[Fourteenth Annual Report, Housing and Home Finance Agency, 1960]
[From the U.S. Government Publishing Office, www.gpo.gov]

ourteenth I annual report
Housing and
Home Finance Agency
ROBERT C. WEAVER Administrator
1960
Housing and Home Finance Agency
OFFICE OF THE ADMINISTRATOR fli
1626 K Street NW.
Washington 25, D.C.
Robert C. Weaver, Administrator
Federal Housing Administration
811 Vermont Avenue NW.
Neal J. Hardy, Commissioner
Public Housing Administration
1 741 Rhode Island Avenue NW.
Marie C. McGuire, Commissioner
Federal National Mortgage Association
811 Vermont Avenue NW.
J. Stanley Baughman, President
Community Facilities Administration
1230 16th Street NW.
(1626 K Street NW., mailing address)
Sidney H. Woolner, Commissioner
Urban Renewal Administration
811 Vermont Avenue NW.
(1626 K Street NW., mailing address)
William L. Slayton, Commissioner
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington 25, D.C. - Price $2.00
I annual report
Housing and
Home Finance Agency
......
PART I
Housing in’I960, page 1
PART II
Office of the Administrator, page 23
PART III
Federal Housing Administration, page 47
PART IV
Public Housing Administration, page 203
PART V
Federal National Mortgage Association, page 241
PART VI
Community Facilities Administration, page 265
PART VII
Urban Renewal Administration, page 281
U005 000333033
Letter of Transmittal
My Dear Mr. President: I have the honor to transmit herewith for
submission to the Congress the Fourteenth Annual Report of the Housing and
Home Finance Agency covering information on housing and community
development for the calendar year 1960.
In this Fourteenth Annual Report, the Housing and Home Finance Agency
records the activities and accomplishments of the Office of the Administrator;
the three constituent agencies—the Federal Housing Administration, the
Public Housing Administration, and the Federal National Mortgage Association;
and the two constituent units—the Community Facilities Administration
and the Urban Renewal Administration.
Respectfully yours,
Robert C. Weaver,
Administrator.
The President,
The White House,
Washing ton 25, D.C.
TABLE OF CONTENTS
Page
Organization and structure of HHFA___________________________________ ______________________________ ix
PART I. HOUSING IN 1960_____________________________________________________________ xi
Section 1. HOUSING IN THE ECONOMY_____________________________________________________ 1
Homebuilding_______________________________________________________________________________ 1
New Home Characteristics_______________________________________________________________ 1
Residential Rent________________________________________________________________________ 2
Government’s Role______________________________________________________________________ 2
Materials Output and Prices______________________________________________________________ 4
Employment and Wages_________________________________________________________________ 4
Vacancy________________________________________________________________________________ 5
Credit Conditions_______________________________________________________________________ 6
Volume of Mortgage Lending_____________________________________________________________ 7
Net Increase in Outstanding Mortgage Debt________________________________________________ 7
Foreclosures___________________________________ _________________________________________ 8
Legislation__________________________________________________________________________________ 8
Section 2. HOUSING SUPPLY AND NEEDS___________________________________________________ 10
Section 3. CHRONOLOGY OF SIGNIFICANT EVENTS IN HOUSING____________________________ 18
PART II. OFFICE OF THE ADMINISTRATOR__________________________ 23
Section 1. STAFF FUNCTIONS AND ACTIVITIES OF OA________________________________________ 26
Agency Supervision and Coordination________________________ 26
Community Programs________________________________________________________________________ 26
Housing for the Elderly______________________________________________________________________ 28
Direct Loans for Housing for the Elderly_______________________________________________________ 29
Defense Planning Activities_________________________________:_________________________________ 31
Farm Housing Research Program______________________________________________________________ 32
Conference on Higher Education’s Role in Housing and Urban Affairs_____________________________ 32
Inspections and Investigations________________________________________________________________ 32
International Housing________________________________________________________________________ 34
Community Group Relations__________________________________________________________________ 37
Intergroup Relations_________________________________________________________________ _ ___ 37
Section 2. VOLUNTARY HOME MORTGAGE CREDIT PROGRAM______________________________ 39
Functioning of the Program_______________________________________________________________ 39
Program Activity____________________________________________________________________________ 41
Participation of Lenders______________________________________________________________________ 42
Section 3. COMMUNITY DISPOSITION PROGRAM____________________________________________ 44
Sales Activity_______________________________________________________________________________ 44
Financing of Sales____ _______________________________________________________________________ 44
Budget Program and Repayment of Federal Investment. _______________________________________ 45
PART III. FEDERAL HOUSING ADMINISTRATION_____________________ 47
Section 1. GENERAL REVIEW_________________________________________________________________ 49
Home Mortgages____________________________________________________________________________ 50
Cooperative Housing_________________________________________________________________________ 51
Rental Housing______________________________________________________________________________ 51
Housing for the Elderly________________________________ 52
Urban Renewal______________________________________________________________________________ 53
Armed Services Housing______________________________________________________________________ 53
Nursing Homes_______________ 54
Property Improvement Loans_________________________________________________________________ 55
Aggregate Insurance Volume__________________________________________________________________ 59
Foreclosures and Losses_______________________________________________________________________ 59
Financial Position____________________________________________________________________________ 59
FHA Debentures____________________________________________________________________________ 59
Organization and Personnel___________________________________________________________________ 61
Section 2. VOLUME OF MORTGAGE AND LOAN INSURANCE OPERATIONS_________________ 63
Summary of Operations_____________________________________________________________________ 63
Combined Insurance Activity________________________________ :____________________________ 63
FHA Influence on Residential Financing During 1960_____________________________________________ 64
Home Mortgages____________________________________________________________________ 64
Multifamily Project Mortgages________________________________________________________ 65
Property Improvement Loans_________________________________________________________ 66
Construction Starts__________________________________________________________________ 66
FHA Workload__________________________________________________________________________ 68
iii
293910
PART III. FEDERAL HOUSING ADMINISTRATION—Continued
Section 2. VOLUME OF MORGAGE AND LOAN INSURANCE OPERATIONS—Continued
Volume of Insurance Written_________________________________________________________________
Home Mortgages________________________________________________________________________
Project Mortgages_______________________________________________________________________
Property Improvement Loans_____________________________________________________________
State Distribution of Insurance Written________________________________________________________
Insurance Written During 1960___________________________________________________________
All Programs_______________________________________________________________________
Home Mortgage Programs____________________________________________________________
Project Mortgage Programs__________________________________________________________
Property Improvement Loans_________________________________________________________
Cumulative Insurance Written, 1934-60____________________________________________________
All Programs_______________________________________________________________________
Home Mortage Programs___________________________________________________________
Project Mortgage Programs__________________________________________________________
Property Improvement Loans_________________________________________________________
Lending Institution Activity__________________________________________________________________
Mortgage and Loan Financing During 1960---------------------------------------------------------------------------
Home Mortgage Financing___________________________________________________________
Multifamily Housing Mortgage Financing-----------------------------------------------------------------------
Property Improvement Loan Financing--------------------------------------------------------------------------
Mortgages and Loans Held in Portfolio--------------------------------------------------------------------------------
Home Mortgage Holdings____________________________________________________________
Multifamily Housing Mortgage Holdings------------------------------------------------------------------------
Property Improvement Loan Holdings------------------------------------------------------------------ .--------
Mortgages and Loans Purchased or Sold in I960,-------------------------------------------------------------------
Purchases and Sales of Home Mortgages,-----------------------------------------------------------------------
Purchases and Sales of Multifamily Housing Mortgages----------------------------------------------------
Purchases and Sales of Property Improvement Loans--------------------------------------------------------
Terminations, Defaults, and Claims Paid------------------------------------------------------------------------------------
Terminations of Home and Project Mortgages by Type of Termination---------------------------------------
Home Mortgages____________________________________________________________________
Project Mortgages___________________________________________________________________
Terminations of Home and Project Mortgages by Years----------------------------------------------------------
Home Mortgages____________________________________________________________________
Project Mortgages___________________________________________________________________
Defaults of Home and Project Mortgages by Years-----------------------------------------------------------------
Home Mortgages____________________________________________________________________
Project Mortgages___________________________________________________________________
Terminations and Defaults by States-----------------------------------------------------------------------------------
Home Mortgages____________________________________________________________________
Project Mortgages___________________________________________________________________
Claims Paid on Property Improvement Loans------------------------------------------------------------------------
Trend______________________________________________________________________________
State Distribution---------------------------------------------- --------------------------------------------------------
Financing Institutions________________________________________________________________
Payments Received Prior to Default------------------------------------------------------------------------------
Section 3. CHARACTERISTICS OF MORTGAGE AND LOAN TRANSACTIONS INSURED IN 1960___
Section 203 Home Mortgage Transactions------------------------- - --------------------------------------------------------
Trends of Typical Section 203 Home Mortgage Transactions------------- --------------------------------------
Mortgage Characteristics_________________________________________________________________
Amount of Mortgage_________________________________________________________________
Term of Mortgage___________________________________________________________________
Total Monthly Mortgage Payment--------------------------------------------------------------------------------
Ratio of Loan to Value_______________________________________________________________
Property Value Characteristics____________________________________________________________
Property Value______________________________________________________________________
Transaction Characteristics___________________________________________________________
Property Characteristics______________________________________________________________
Rooms and Bedrooms by Property Value------------------------------------------------------------------------
Year Built__________________________________________________________________________
Market Price of Site----------------------------------------------------------------------------------------------------
Water and Sewer Supply_____________________________________________________________
Financial Characteristics______________________________________________________________
Incidental Costs----------------------------------------------------------------------------------------------------------
Size of House Characteristics----------------------------------------------------------------------------------------------
Calculated Area_____________________________________________________________________
Characteristics by Calculated Area---------------------------------------------------------------------------------
Age of Principal Mortgagor----
Mortgagor’s Income Characteristics
Mortgagor’s Income__________________________________________________________________
Characteristics by Mortgagor’s Monthly Income--------------------------------------------------------------
Age of Principal Mortgagor-------------------------------------------------------------------------------------------
Housing Expense by Mortgagor’s Monthly Income-----------------------------------------------------------
Total Acquisition Cost by Income----------------------------------------------------------------------------------
Purchase Transaction Characteristics------------------------------------------------------------------------------------
Total Acquisition Cost_______________________________________________________________
Characteristics by Total Acquisition Cost------------------------------------------------------------------------
Page
68
68
71
74
74
75
75
75
77
79
79
79
80
82
82
82
82
82
84
85
85
87
87
88
88
91
91
92
92
92
92
95
95
95
96
99
99
99
102
102
103
104
104
105
106
107
108
108
108
111
111
112
112
113
115
115
116
116
117
119
119
120
121
122
123
123
124
124
124
126
126
128
128
130
132
132
132
iv
PART III. FEDERAL HOUSING ADMINISTRATION—Continued
Section 3. CHARACTERISTICS OF MORTGAGE AND LOAN TRANSACTIONS INSURED IN 1960—
Continued Page
Characteristics of Multifamily Housing Mortgage Transactions_____________________ ____________ 133
Trends of Typical Multifamily Housing Transactions__________________________________________ 135
Type of Structure______________________________________ 136
Size of Project__________________________________________________________________________ 137
Size of Dwelling Units____________________________________________________________________ 138
Mortgage Allocable to Dwellings____________________________________________________________ 139
Ratio of Mortgage Amount to Replacement Cost____________________________________________ 140
Monthly Rentals for Rental Projects________________________________________________________ 141
Elderly Housing and Nursing Homes_______________________________________________________ 142
Housing for the Elderly________________________________________________________________ 142
Nursing Homes______________________________________________________________________ 144
Characteristics of Property Improvement Loans___________________________________________________ 145
Amount of Loan_________________________________________________________________________ 145
Duration of Loan__________________________________________________________________________ 145
Type of Property and Improvement_________________________________________________________ 146
Claims Paid by Type of Property and Improvement_________________________________________ 147
Section 4. ACTUARIAL ANALYSIS OF INSURING OPERATIONS_________________________________ 149
Analysis of Reserves of Insurance Funds________________________________________________________ 149
Analysis of Termination Experience______________________________________________________________ 153
Mutual Mortgage Participation Payments________________________________________________________ 157
Analysis of Debt Retirement Experience-._______________________________________________________ 159
Section 5. ACCOUNTS AND FINANCE__________________________________________________________ 162
Combined Funds______________________________________________________________________________ 162
Gross Income and Operating Expenses, Fiscal Year 1960_____________________________________ 162
Cumulative Gross Income and Operating Expenses, by Fiscal Years___________________________ 162
Salaries and Expenses____________________________________________________________________ 162
Capital and Statutory Reserves___________________________________________________________ 163
Income, Expenses, and Losses_____________________________________________________________ 164
Contributed Capital_____________________________________________________________________ 165
General Mortgage Insurance Authorization_________________________________________________ 166
Cost Certifications on Multifamily Projects_________________________________________________ 167
Title I: Property Improvement Loans__________________________________________________________ 167
Loans Insured and Claims Paid___________________________________________________________ 167
Recoveries______________________________________________________________________________ 167
Title I Insurance Fund___________________________________________________________________ 168
Title I Insurance Authority_______________________________________________________________ 170
Title I Insurance Liability________________________________________________________________ 170
Title I Claims Account___________________________________________________________________ 170
Title I: Housing Insurance Fund______________________________________________________________ 170
Capital and Net Income:_________________________________________________________________ 170
Investments____________________________________________________________________________ 171
Properties Acquired Under the Terms of Insurance__________________________________________ 172
Title II: Mutual Mortgage Insurance Fund_____________________________________________________ 173
Capital_________________________________________________________________________________ 173
Income and Expenses____________________________________________________________________ 174
Investments_____________________________________________________________________________ 175
Properties Acquired Under the Terms of Insurance__________________________________________ 175
Certificates of Claim and Refunds to Mortgagors____________________________________________ 176
Mutual Mortgage Participation Payments__________________________________________________ 177
Title II: Housing Insurance Fund_____________________________________________________________ 177
Capital and Net Income__________________________________________________________________ 177
Investments_____________________________________________________________________________ 179
Properties Acquired Under the Terms of Insurance__________________________________________ 179
Certificates of Claim and Refunds to Mortgagors____________________________________________ 180
Title II: Section 220 Housing Insurance Fund__________________________________________________ 180
Capital and Net Income__________________________________________________________________ 181
Investments_____________________________________________________________________________ 182
Properties Acquired Under the Terms of Insurance_____________ _____________________________ 182
Title II: Section 221 Housing Insurance Fund__________________________________________________ 183
Capital and Net Income__________________________________________________________________ 183
Investments_____________________________________________________________________________ 184
Properties Acquired Under the Terms of Insurance__________________________________________ 185
Title II: Servicemen’s Mortgage Insurance Fund________________________________________________ 185
Capital and Net Income__________________________________________________________________ 186
Investments_____________________________________________________________________________ 187
Properties Acquired Under the Terms of Insurance___________________________________________ 187
Title VI: War Housing Insurance Fund_______________________________________________________ 188
Capital_________________________________________________________________________________ 188
Income and Expenses_____________________________________________________________________ 189
Investments_____________________________________________________________________________ 190
Properties Acquired Under the Terms of Insurance___________________________________________ 190
Certificates of Claim and Refunds to Mortgagors____________________________________________ 192
PART II!. FEDERAL HOUSING ADMINISTRATION—Continued
Section 5. ACCOUNTS AND FINANCE—Continued Page
Title VII: Housing Investment Insurance Fund________________________________________________ 193
Capital and Net Income_________________________________________________________________ 193
Investments____________________________________________________________________________ 194
Title VIII: Armed Services Housing Mortgage Insurance Fund__________________________________ 194
Mortgage Insurance Authorized___________________________________________________________ 194
Capital and Net Income_________________________________________________________________ 194
Investments____________________________________________________________________________ 196
Properties Acquired Under the Terms of Insurance, Section 803_______________________________ 196
Properties Acquired Under the Terms of Insurance, Section 809_______________________________ 197
Title IX: National Defense Housing Insurance Fund___________________________________________ 197
Capital and Net Income_________________________________________________________________ 197
Income and Expenses____________________________________________________________________ 198
Investments____________________________________________________________________________ 199
Properties Acquired Under the Terms of Insurance__________________________________________ 199
Salaries and Expense Account_________________________________________________________________ 201
PART IV. PUBLIC HOUSING ADMINISTRATION________________________________________ 203
Section 1. ORGANIZATION AND FUNCTIONS OF THE PH A_________________________________ 208
Program Operations_________________________________________________________________________ 208
Financing__________________________________________________________________________________ 208
Section 2. SUMMARY_________________________________________________________________________ 210
The Decade of the 1950’s_____________________________________________________________________ 210
Program Activity in 1960_____________________________________________________________________ 210
Housing for the Elderly______________________________________________________________________ 210
A Look to the Future________________________________________________________________________ 211
Section 3. DEVELOPMENT PROGRESS________________________________________________________ 212
Program Authorizations______________________________________________________________________ 212
Program Activity____________________________________________________________________________ 212
Housing for the Elderly______________________________________________________________________ 212
Policy and Procedure--------------------------------------------------------------------------------------------------------------- 213
Manual Procedures__________________________________________________________________________ 214
Delegation of Authority______________________________________________________________________ 214
Bulletins and Guides Specifications____________________________________________________________ 215
Re-Use of Existing Housing___________________________________________________________________ 215
Costs______________________________________________________________________________________ 215
Scattered Site Projects_______________________________________________________________________ 215
Slum and Nonslum Sites______________________________________________________________________ 215
Section 4. MANAGEMENT PROGRESS________________________________________________________ 217
Income Limits, Rents, and Occupancy Requirements____________________________________________ 217
Special Census Tabulations___________________________________________________________________ 217
PHA-NAHRO Cooperation—-Income Limits____________________________________________________ 218
Equivalent Elimination_______________________________________________________________________ 218
Rent Collection_____________________________________________________________________________ 218
Cost of Operating Elderly Housing____________________________________________________________ 219
Waiver of Operating Budget Approval_________________________________________________________ 219
Audits of Local Authorities by Independent CPA’s______________________________________________ 219
Progress of Consolidated Supply Program______________________________________________________ 219
Community Relations________________________________________________________________________ 219
Mortgage Servicing Activities_________________________________________________________________ 220
Operating Guides____________________________________________________________________________ 220
Project Operating Expenses___________________________________________________________________ 220
Families in Public Housing___________________________________________________________________ 220
The Elderly in Public Housing________________________________________________________________ 221
Intergroup Relations_______ _________________________________________________________________ 221
Section 5. FINANCING PUBLIC HOUSING IN 1960____________________________________________ 222
Major Public Housing Financing Methods______________________________________________________ 222
Temporary Note Financing___________________________________________________________________ 222
Sale of Temporary Notes in 1960______________________________________________________________ 223
Bond Financing______________ 224
Security for Bonds___________________________________________________________________________ 224
Tax Exemption—-New Housing Authority Bonds________________________________________________ 224
Sales of Bonds_______________________________________________________________________________ 224
Series A Notes_______________________________________________________________________________ 226
PH A Loans to Local Authorities_______________________________________________________________ 226
PH A Borrowings from Treasury_______________________________________________________________ 226
Section 6. ADMINISTRATION_________________________________________________________________ 227
Organization Changes__________________________________________________________________________ 227
Internal Auditing______________________________________________________________________________ 227
Budget and Employment_______________________________________________________________________ 227
Recruitment and Training Activities_____________________________________________________________ 228
Incentive Awards Activities_____________________________________________________________________ 228
Defense Planning Activities____________________________________ _ _______ _ _______ _ _ 228
Section 7. STATISTICAL AND FISCAL TABLES_________________________________________________ 230
Page
PART V. FEDERAL NATIONAL MORTGAGE ASSOCIATION__________________________ 241
Section 1. SUMMARY OF FNMA 1960 ACTIVITY_________________________________________________ 244
The Purchasing Program During 1960___________________________________________________________ 244
Mortgage Sales and Other Portfolio Changes______________________________________________________ 245
Section 2. FNMA’S OPERATIONS AND FUNCTIONS_____________________________________________ 246
Secondary Market Operations__________________________________________________________________ 246
Mortgage Purchasing Activity______________________________________________________________ 246
Sales____________________________________________________________________________________ 250
Other Liquidation and Yearend Portfolio_____________________________________________________ 251
Financing________________________________________________________________________________ 253
Financial Position_________________________________________________________________________ 255
Special Assistance Functions____________________________________________________________________ 255
Mortgage Purchasing Activity______________________________________________________________ 255
Program Activity_________________________________________________________________________ 257
Liquidation and Yearend Portfolio__________________________________________________________ 257
Financing________________________________________________________________________________ 259
Financial Position_________________________________________________________________________ 259
Management and Liquidating Functions_________________________________________________________ 260
Mortgage Purchasing Activity______________________________________________________________ 260
Liquidation—Exchange of FNMA Mortgages for U.S. Treasury Bonds__________________________ 260
Other Liquidation_________________________________________________________________________ 260
Financing________________________________________________________________________________ 261
Financial Position_________________________________________________________________________ 262
Section 3. ADMINISTRATION___________________________________________________________________ 263
Management_________________________________________________________________________________ 263
Operations___________________________________________________________________________________ 263
PART VI. COMMUNITY FACILITIES'ADMINISTRATION _______________________________ 265
Section 1. REVIEW OF COMMUNITY FACILITIES PROGRAMS_________________________________ 267
Section 2. ACTIVE OPERATIONS PROGRAMS__________________________________________________ 269
College Housing Loans_________________________________________________________________________ 269
Public Facility Loans Program__________________________________________________________________ 271
Program of Advances for Public Works Planning__________________________________________________ 273
School Construction___________________________________________________________________________ 274
Section 3. PROGRAMS IN LIQUIDATION_______________________________________________________ 276
Revolving Fund_____________________________________________________________________________ 276
Alaska Housing Program_____________________________________________________________________ 276
Prefabricated Housing Loans Program___________________________________________________________ 277
War Public Works Program____________________________________________________________________ 277
Defense Community Facilities Program__________________________________________________________ 277
First and Second Advance Planning Programs____________________________________________________ 278
Public Agency Loans (RFC)__________________________________________________________________ 278
PART VII. URBAN RENEWAL ADMINISTRATION_____________________________________ 281
Section 1. REVIEW OF THE URBAN RENEWAL PROGRAM__________________________________ 283
Federal Aids for Urban Renewal________________________________________________________________ 284
Section 2. ACTIVITY__________________________________________________________________________ 287
Project Progress_____________________________________________________________________________ 287
Operations_______________________________________________________________________________ 287
Well Advanced Projects__________________________________________________________________ 227
Data on Projects in Execution____________________________________________________________ 288
Urban Planning Assistance Grants___________________________________________________________ 289
Community Renewal Programs____________________________________________________________ 289
Demonstration Grants_____________________________________________________________________ 290
State Legislation and Court Decisions__________________________________________________________ 290
Section 3. URBAN RENEWAL STATISTICAL DATA___________________________________________ 292
APPENDIXES
A. Statistical Supplement_______________________________________________________________________ 301
B. Executive Messages and Orders and Federal and State Legislation Affecting Housing and Community
Development in 1960_________________________________________________________________ 389
C. Publications of the HHFA____________________________________________________________________ 395
HOUSING AND HOME FINANCE AGENCY
ORGANIZATION CHART
viii
Organization and Structure of the
Housing and Home Finance Agency
The Housing and Home Finance Agency, created
under Reorganization Plan No. 3 on July 27,
1947, was established to carry out the principal
housing, home financing, and community development
functions of the Federal Government. The
Agency is headed by an Administrator who is responsible
for the general supervision and coordination
of the whole range of housing and
community development programs and operations
which the Agency embraces.
At the end of 1960, the Housing and Home
Finance Agency consisted of the Office of the
Administrator and five constituent agencies or
units-—the Federal Housing Administration, the
Public Housing Administration, the Federal National
Mortgage Association, the Community Facilities
Administration, and the Urban Renewal
Administration. The Agency also supplies staff
services and facilities to the Voluntary Home
Mortgage Credit Program.
An Advisory Board for Agency Policy Coordination,
composed of the Housing and Home
Finance Administrator and heads of the constituents,
advises the Administrator on major policies..
The Administrator is also chairman of the
h. ational blousing Council which serves as a
medium for the coordination of housing policies
and objectives on a Government-wide basis. It
includes the Chairman of the Federal Home Loan
Bank Board, the Administrator (or his designee)
of the Veterans Administration, and the Secretaries
(or their designees) of Agriculture, Commerce,
Labor, Defense, and Health, Education
and Welfare, along with key HHFA officials.
HHFA PERSONNEL
During the calendar year 1960 the Housing and
Home Finance Agency operated with an average
staff of 11,094 employees, as compared with 10,979
the preceding year. The following figures show
employment at the end of 1960 and 1959:
Dec. 31, Dec. 31,
I960 1959
Total---------------------------------- 11, 243 10, 998
Office of the Administrator1________ 1, 756 1, 666
Federal Housing Administration 7,124 7,028
Public Housing Administration_____ 1, 471 1’ 481
Federal National Mortgage Association
----------------------------------------- 892 823
1 Includes employees of Community Facilities Administration,
and Urban Renewal Administration, constituent
units of HHFA.
During the year the following major appointments
were made:
Howard J. Wharton, Assistant Commissioner
for Redevelopment, Urban Renewal Administration,
on January 4, 1960.
C. William Cardin, Director of Public Information,
Federal Housing Administration,
on March 21, 1960.
Lester P. Condon, Deputy Commissioner for
Operations, Federal Housing Administration,
on April 12, 1960.
Gerald P. Nye, Special Assistant for Housing
for the Elderly, Federal Housing Administration,
on April 14,1960.
William A. Painter, Assistant Commissioner
for Field Operations, Federal Housing Administration,
on April 15,1960.
Louis R. Bruce, Special Assistant for Cooperative
Housing, Federal Housing Administration,
on April 29, 1960.
Bruce C. Savage, Commissioner, Public Housing
Administration, on May 24, 1960.
Mrs. Helen Holt, Special Assistant for Nursing
Homes, Federal Housing Administration,
on June 3,1960.
John D. Currie, Assistant Commissioner for
Financing, Public Housing Administration,
on June 27, 1960.
Charles L. Levy, Assistant Commissioner for
Development, Public Housing Administration,
on June 27,1960.
Daniel G. Minto, Director, Division of Housing
for the Elderly, Office of the Administrator,
on July 18,1960.
Edward J. Dee, Assistant Commissioner for
Field Operations, Federal Housing Administration,
on July 22, 1960.
Carl V. Ramey, Director, Compliance Division,
Office of the Administrator, on August
21,1960.
Mrs. Mary U. Cleverley, Assistant Commissioner
on Housing for the Elderly, Public
Housing Administration, on September 9,
1960.
Matthew F. Whalen, Deputy Assistant Commissioner
for Development, Public Housing
Administration, on September 14,1960.
William K. Brussat, Deputy Assistant Commissioner
for Program Planning and Development,
Urban Renewal Administration,
on September 26, 1960.
V illiam E. Murray, Director, Division of
Housing for the Elderly, Office of the Administrator,
on December 27, 1960.
591772—61------ 2 ix
EXCERPT FROM THE NATIONAL HOUSING
POLICY
"The Congress hereby declares that the general
welfare and security of the Nation and the health
and living standards of its people require housing
production and related community development
sufficient to remedy the serious housing shortage,
the elimination of substandard and other inadequate
housing through the clearance of slums and
blighted areas, and the realisation as soon as
feasible of the goal of a decent home and a suitable
living environment for every American family, thus
contributing to the development and redevelopment
of communities and to the advancement of the
growth, wealth, and security of the Nation!’
Section 2. The Housing Act of 1949
(Public Law 171, 81st Congress)
Approved July 15, 1949
Housing in 1960

Section 1
Housing in the Economy
HOMEBUILDING VOLUME
For homebuilding, 1960 was a year of recession.
The number of nonfarm units started, 1,258,000,
was 18 percent below the 1,531,000 of 1959. Including
construction of farm housing, the number
of starts during 1960 was 1,280,000 units, also
18 percent below the 1959 figure.1
The amount expended on new nonfarm residential
construction, $22.7 billion, was down from the
1959 figure by 11 percent. Of the 1960 total,
$17.1 billion was for new dwelling units, $4.7 billion
for additions and alterations, and $0.9 billion
for new construction of hotel rooms, motor courts
and lodges, dormitories, and similar living accommodations.
Despite the general decline in residential
construction, the last two components each
advanced above the 1959 figure. With expenditures
for maintenance and repairs in 1960 estimated
at $7-$7.5 billion, total expenditures for
residential nonfarm building and maintenance
during the year came to about $30 billion. This
is 8 percent under the $33 billion reported for the
record year of 1959.
These $30 billion of expenditures accounted for
6.0 percent of the gross national product in 1960,
indicating the substantial part played by homebuilding
and home maintenance in the Nation’s
economy. In the crucial area of capital formation,
private residential construction accounted for
a very substantial share of the total, the $22.0 billion
of expenditures for private new residential
construction comprising over 30 percent of the
value of all private capital investment. Both of
these proportions were somewhat lower than in
1959.
The course of housing construction throughout
1960, though subject to numerous fluctuations,
was generally in a downward direction, continuing
a trend that had begun in the second quarter of
1959. During the last quarter of 1960 private
non farm units were begun at a seasonally adjusted
annual rate of 1,126,000 (average for 3 months)
compared to 1,245,000 in the first quarter and
1,302,000 in the second. There was thus little evidence
in the monthly trend to support hopes or
expectations that the tide was about to turn or
had indeed already turned. In fact, in the month
of December the seasonally adjusted annual rate
dropped to 975,000.
1 It is impossible to make more than rough comparisons of the
number of housing starts for 1959 and 1960 on the one hand
with the series of starts for years prior to 1959 on the other.
The primary, although not only, reason for this is the improved
coverage of the new series beginning in 1959.
The South, leader in recent years in volume of
nonfarm residential construction, again led the
regions with 421,300 units started. The West was
next with 309,100, followed by the North Central
States with 297,000 and the Northeast with
2’30,100. The number in each of these regions was
off between 15 and 20 percent from that of the year
before.
Even greater variation existed between individual
States. Judging by the number of building
permits issued, California was far ahead of
any other State. About 192,000 building permits
were issued in that State in 1960, compared to
83,000 in New York, which was runner-up, 67,000
in Florida, and 53,000 in Texas. The figures in
each of these States were substantially lower than
in 1959.
Again on the basis of building permits issued,
Los Angeles led all metropolitan areas with 81,400,
displacing the New York area, which was first in
1959, but second in 1960 with 69,700. Chicago
was a distant third with 40,600. These three areas
each reported fewer permits issued than in 1959,
as did nearly all the other metropolitan areas for
which data are available. In Denver and Milwaukee,
however, building permits w’ere higher in
1960 than in 1959. As a class metropolitan areas
accounted for 70 percent of all housing starts, the
same as in 1959.
Nonresidential Building
New nonresidential construction held up much
better than new’ residential building. In fact, total
expenditures for new construction amounting to
$55.2 billion were only 2 percent below the total
for 1959. Public new construction held up even
better, its $16.2 billion being about the same as the
year before. In fact, both private and public construction
other than residential building scored
gains in 1960 over 1959—gains of 9 and 2 percent
respectively. Outside of residential building the
major components of construction were highways
$5.8 billion, down 2 percent, public utilities $5.3
billion, commercial buildings $4.1 billion, public
and private educational buildings $3.4 billion, each
4-7 percent higher than the year before, and public
and private industrial buildings $3.3 billion, which
was 33 percent higher.
New Home Characteristics
Probably the most significant fact about the
characteristics of new dwellings was the continuation
of a trend in evidence over the past 5 years
for a growing proportion of private nonfarm hous-
1
Chakt 1-1
TOTAL NONFARM DWELLING UNITS STARTED
a / Earliest data available on sales-type and rental-type starts are for 1900. b / See source
Source: U. S. Bureau of the Census; New series defined, Series C20-11 (Supplement)
ing starts to be in rental-type units. This past
year that proportion reached 21 percent, as high
as it has been since 1931 except for 1943, which
because of the war was not a typical building year.
In large cities relatively more rental-type units
were built than elsewhere. For instance in the
Los Angeles metropolitan area about one-half, and
in the New York area about two-thirds, of all
building permits issued were for rental-type units.
Average construction cost of 1-family private
nonfarm dwellings continued to rise in I960, advancing
from $13,425 in 1959 to $13,715, an increase
of about 2.5 percent. The average floor
area of single-family houses remained about the
same.
Residential Rent
Residential rents have been rising nearly continuously
since 1935 and in 1960 advanced to new
high ground, the residential rental index reaching
142.8 (1947-1949 = 100) by the close of the year.
The increase of 1.4 percent over the year was
slightly less than the year before. It was also
somewhat less than the rise in consumer prices generally,
and slightly less than the increase in housing
costs, which advanced by 1.5 percent. Housing
costs include, in addition to rent, the cost of gas
and electricity, fuel, home furnishings, household
operation, house purchases and interest, taxes, insurance
and upkeep. The increase in residential
rent occurred in the face of a rise over the year of
15-20 percent in the number of rental vacancies.
Government’s Role
In 1960 the Federal Government’s role in the
private housing market was of about the same relative
magnitude as in 1959. About 336,000, or 28
percent of all private nonfarm units started were
initiated under Government inspection, the first
step toward FHA-insured or VA-guaranteed
mortgage loans on new properties. This compares
with 30 percent the year before. Units started
under VA inspection declined 31 percent and were
down more sharply than units begun under the
FHA programs which declined by only 21 percent.
The number of units in one-to-four family
structures started under FHA programs, however,
declined by nearly as much—26 percent—as homes
started under the Veterans Administration. FHA
rental-type starts, in contrast, increased somewhat.
Home mortgages on new and existing housing insured
by the FHA amounted to $4.6 billion, about
25 percent less than in the record year of 1959, but
higher than in any previous year.
In the public housing sector there was a substantial
increase in the number of units started.
Ground was broken for some 43,900, which was 20
percent more than in 1959. The overall increase
was due to an increase of nearly 90 percent in the
number of units assisted by the Public Housing
2
Chart 1-2
PRIVATELY OWNED NONFARM RENTAL-TYPE STARTS
Percent of total private starts Number in thousands of units
400-
Source: U. S. Bureau of the Census; New series defined, Series C20-11 (Supplement)
3
Chart 1-3
HOUSING COSTS
250 -
240 -
230 -
220 -
All the cost factors entering into the price of a
new home rose significantly during the last decade,
with the sharpest rise in land cost.
210 -
200 -
Average
hourly
earnings
in
a / Based on FHA reports of average market price of site of l-family house
U. S. Departments of Labor and Commerce; E. H. Boeckh and Associates and Federal Housing Administration
Administration. This more than offset a 21 percent
decline in other publicly financed housing
units. The Public Housing Administration
ended the year with nearly 25,900 starts to its
credit.
Materials Output and Prices
Output of construction materials declined by 3
percent from 1959 to 1960. The decline extended
to all but 2 of the 10 major product classes. These
two were iron and steel products, which increased
by 8 percent, largely because production in the
strike-bound industry was abnormally low in 1959,
and paint, varnish, and lacquer, which was virtually
the same in the 2 years. Greatest declines
occurred in millwork, 25 percent; heating and
plumbing equipment, 16 percent; and plumbing
fixtures, 12 percent.
Construction materials prices by and large declined,
the index of wholesale prices dropping to
132.6 from 134.6 the year before, a decrease of 1.5
percent. Since the index is based on average prices
for 1947-49, it is seen that prices were 32.6 percent
higher in 1960 than they were during the base
period some 11-13 years before.
Despite the overall decline, prices for a number
of materials advanced, some establishing new alltime
highs. Among the advances were prices of
millwork and plumbing fixtures, each of which,
especially millwork, experienced sizeable cutbacks
in output. The greatest increase, 4.8 percent, occurred
in enameled iron fixtures. Declines were
greatest in softwood plywood, 11 percent; Douglas
fir, 9 percent; water heaters and asphalt roofing,
8 percent each.
Employment and Wages
With an average annual rate of 12.2 percent,
unemployment among wage and salary workers in
all types of construction was a little greater in
1960 than in 1959, when the rate was 12.0 percent.
The year 1960 marked the third year in a row with
a rate of 12.0 percent or better and as such was a
part of the longest period since the postwar reconversion
that the unemployment rate was above 10
percent. During the last 3 years the annual average
rate of unemployment for wage and salary
workers in construction moved in the same direction
as the rate for the entire civilian labor force.
While the annual rate of unemployment among
wage and salary workers engaged in construction
increased a little over the year, the average number
of such workers who were employed remained
essentially unchanged at 2,770,000. What is more,
employment by building contractors increased by
36,000 to 2,219,000 or by 2 percent, thanks to the
increases, some substantial, in practically all types
of nonresidential building construction, which
more than offset the decline in residential build-
4
ing. In spite of the apparent indication that Chart 1-4
workers in building construction, unlike other construction
employees, fared better in 1960 than in
1959, lack of information about the overall size
of the building construction work force, including
the unemployed and self-employed as well as employed
wage and salary workers, makes it impossible
to conclude definitely that a larger
proportion of the overall building construction
work force was employed in 1960 than a year
earlier.
The increased employment in building construction
was found entirely within the special
trades, which in 1960 reached a new high of
1,467,000, or 3 percent above the level of a year
earlier. Painting and decorating and electrical
employment each rose by 7 percent, and other
special trade employment by 3 percent. Plumbing
and heating employment experienced a 1 percent
loss.
Average hourly earnings as well as employment
in building construction increased over the year.
Employees of all building contractors averaged
$3.37 an hour or 5 percent more than in 1959. The
differential in favor of employees of special trades
as opposed to employees of general contractors continued
to widen with rates in the special trades increasing
by 5 as compared to 4 percent for general
contractors. Electrical workers with an average
hourly rate of $3.89 were the highest paid
employees.
While hourly earnings increased over the year,
average weekly hours decreased by 1 percent on the
average. Electrical workers alone of all classes of
construction workers suffered no shortening of the
workweek. Maintenance of the workweek of
electrical workers combined with the wage increases
they received further widened the gap between
the average weekly earnings of these and all
other groups of construction workers.
Vacancy
In the second quarter of 1960 the proportion of
all units in the housing inventory that were vacant
m good condition, and available for rent or sale,
advanced to 3.5 percent and remained at that figure
to the end of the year. This was the highest rate
in the postwar period, and was appreciably higher
than the 3.0 percent prevailing in the second half
of 1959. Four-fifths of the available vacant units
were for rent, the rest for sale. But while the
absolute number of rental vacancies was four
times greater than sales vacancies, rental vacancies
in i elation to the rental market, comprising both
renter-occupied and vacant rental units, were over
6 times as numerous as sales vacancies in relation
to the homeowner market. Thus, the rental
vacancy rate was 7.6 percent at the end of the year,
compared to a homeowner vacancy rate of only
1.2 percent. J
VACANCIES
The rates in 1960 increased to a postwar
high for each type of available housing
TOTAL RENTAL UNITS = 100 PERCENT
TOTAL HOME-OWNER UNITS = 100 PERCENT. oj
2-
1950 1956 1957 1958 1959 1960 1961
aj Legend used same as that for rental units
Source: U. S. Bureau of the Census
5
Rates varied considerably by region, bearing
witness to the fact that there is not one, but many
housing markets in the country. Even the regional
vacancy rates are averages. Vacancies in some
local markets were higher, in others lower, possibly
by considerable amounts. The highest rental
vacancy rate, 11.4 percent, was in the West, the
lowest 4.1 percent, in the Northeast. Sales vacancies
were highest in the South, 1.7 percent, and
lowest again in the Northeast, 0.8 percent. Rental
and sales vacancy rates were both somewhat higher
outside standard metropolitan statistical areas
than inside them.
In comparison with a year earlier rental vacant
units in the last quarter of 1960 tended to have
fewer rooms, to be situated in larger buildings, to
be in a higher rental bracket and to be vacant not
quite as long. Vacant sales units, on the other
hand, tended to be larger in comparison with a
year ago, to be more exclusively single-family
units, and to be vacant for longer periods.
CREDIT CONDITIONS
The availability of mortgage loan funds at prevailing
interest rates improved gradually during
most of 1960. By the end of the year, in contrast
with a tight mortgage money supply at the beginning,
funds were generally available for conventional
and FHA-insured 5% percent mortgage
loans. Funds for VA-guaranteed 5% percent
loans, although in somewhat better supply than at
the beginning of the year, were still inadequate
in the majority of local market areas. The increased
supply of mortgage funds, in relation to
a reduced demand, led to a slow but measurable
reduction of mortgage discounts in the secondary
mortgage market, but it was insufficient to produce
more than a small decline in mortgage interest
rates.
This easing in the mortgage market followed
slowly in the wake of a general easing of financial
markets, as various demands for loanable funds
fell below 1959 levels. A marked decline in absorption
of loanable funds occurred in the mortgage
segment of the market. The net increase
in outstanding residential mortgage debt in 1960
was only $12.3 billion, compared with $15.2 billion
in 1959. Efforts to bring the Federal budget into
balance brought about a slight reduction in outstanding
Federal debt, compared with an $8 billion
increase in 1959. New capital issues of nonfinancial
corporations and of State and local governments
in 1960 were each about 5 percent less
than in 1959. There was also a reduction in
business loan demands from the level of recent
prior years.
The reduction of business loans in the latter part
of 1960 reflected the shift from net accumulation
of inventories to net liquidation. Under the circumstances,
Federal Reserve authorities took a
number of steps to change monetary policies from
restraint toward ease. Also, in the latter half of
the year there was an acceleration in the net inflow
of savings at lending institutions which had been
lagging behind year-ago levels. The combineci
annual total net inflow of savings at the four major
types of lending institutions (life insurance companies,
savings and loan associations, commercial
banks, and mutual savings banks) was roughly
one-fifth greater than in 1959.
With an easier monetary policy, increased savings
and reduced demands for credit, interest rates
generally declined, during 1960. The decline was
retarded by an enlarged outflow of private funds
to foreign countries. Nevertheless, the declines in
interest rates and yields were relatively substantial
for United States Government bonds and for
municipal bonds, less so for commercial bank loans
and corporate bonds.
As was previously mentioned, interest rates on
mortgage loans declined very little, despite a significant
reduction in mortgage financing requirements
which accompanied a 19 percent decrease in
the annual total of private nonfarm housing starts.
The lag in the decline of mortgage interest rates
is typical of changes in the interest rate structure.
Mortgage interest rates are apt to be “sticky” because
advance commitments for mortgage loans on
new homes are made months in advance of completion
and sale of houses; and because lenders are
slow to adjust interest rates downward on longer
maturity loans represented by mortgages. Also,
a higher proportion of mortgage loans than of
other types of loans are made by institutions dependent
upon an inflow of individual savings for
investment funds. Such institutions are reluctant
to lower the rates paid on savings, lest they suffer
a large withdrawal of savings which might impair
their liquidity positions. Consequently, they cannot
readily reduce the interest rates that they
charge on mortgage loans.
The increasing availability of mortgage loan
funds did, however, exert downward pressure on
secondary market discounts on FHA-insured 5%
percent and VA-guaranteed 5^ percent home
mortgage loans and on conventional mortgage loan
interest rates. At the end of the year, private
secondary market discounts averaged about 2 percentage
points on FHA-insured 5% percent home
loans and 7 percentage points on VA-guaranteed
home loans, compared with 4 and 8 percentage
points, respectively, at the beginning of the year.
Also, by yearend, conventional mortgage loan interest
rates had, receded slightly from an average
interest rate of about 6^ percent that prevailed a
year earlier.
Easier mortgage market conditions were encouraged
by the activities of Government programs
which can supplement the private mortgage
market and to .a limited extent transmit to it the
effect of a lower interest rate structure in the general
loanable funds market.
The main Government programs, which substantially
supplemented the private mortgage
market in the provision of funds for home financ6
ing, were those of the Federal National Mortgage
Association. Under its secondary market operations
which are financed primarily with funds
raised through the issuance of its obligations in
the private general money market, FNMA
purchased $980 million of FHA-insured ami VAguaranteed
mortgages. Under its special assistance
programs, financed with appropriated funds
furnished by the Treasury, FNMA purchased $267
million of mortgages to finance special types of
housing, such as urban renewal, armed services
housing and housing for the elderly. The Veterans
Administration also supplemented the supply
of private mortgage funds by making $309 million
in direct loans to veterans for the purchase of
homes in areas where VA-guaranteed loans were
not available from private sources.
In addition, interest rates charged by the Federal
Home Loan Banks on advances to member
savings and loan associations were lowered significantly
during the year. However, many of the
savings and loan associations took advantage of an
increase in share deposits to reduce their outstanding
advances from the Federal Home Loan Banks,
coincident with a slackening in the demand for
mortgage credit.
The Federal National Mortgage Association
raised the prices paid for loans purchased through
its secondary market operations as the availability
of mortgage funds and prices paid for mortgages
in private markets improved. Two price increases
of y2 point each were announced, the first in July
and the second in August. The maximum size loan
per dwelling eligible for purchase under the secondary
market program was raised by FNMA
from $15,000 to $20,000 in January; and in October
the issuance of standby commitments for the
purchase of existing houses was initiated.
Volume of Mortgage Lending
Although the availability of mortgage funds
increased during 1960, the lower demand for mortgage
loans led to a significant reduction in mortgage
lending activity.
The total amount of nonfarm mortgage recordings
of $20,000 or less in 1960 was $29.3 billion, a
9 percent reduction from the all-time high of $32.2
billion recorded in 1959. There was a decline in
the amount of mortgage recordings under each of
the FHA, VA and conventional segments of the
mortgage market, but the relative share accounted
for by conventional mortgages increased from 72
percent to 77 percent of the annual totals. On the
other hand, the proportions accounted for by
FHA-insured and VA-guaranteed mortgages declined,
from 19 to 16 percent and from 9 to 7 percent,
respectively.
Savings and loan associations continued to be
the main source of mortgage funds. They made
42 percent of the mortgages of $20,000 or less recorded
in 1960, about the same proportion as in the
preceding year. The commercial banks’ share of
the mortgage recordings declined to 15 percent in
1960 from the 1959 level of 18 percent. There was
little change from the preceding year in the shares
of life insurance companies and mutual savings
banks which were about 4 and 5 percent, respectively.
The latter two types of lenders provide a
greater share of home mortgage loan funds than
these percentages indicate, since many of the loans
which they acquire for their portfolio investment
are originated by mortgage company correspondents.
The mortgage company correspondents are
included among “other mortgagees” whose share
of the mortgage recordings of $20,000 or less rose
from 18 percent in 1959 to 20 percent in 1960.
There was also a rise in the share made by individuals,
from 12 percent in 1959 to 14 percent in 1960.
Net Increase in Outstanding Mortgage Debt
The $12.3 billion net increase in the outstanding
residential mortgage debt in 1960 was 19 percent
less than the record net increase of $15.2 billion
in 1959. Of the $12.3 billion net increase in outstanding
residential mortgage debt in 1960, $11.1
billion was in the one- to four-family mortgage
segment and $1.2 billion in the multifamily
segment.
At the end of 1960, the total outstanding residential
mortgage debt was $160.5 billion. About
88 percent of the total, or $142 billion, was secured
by mortgages on one- to four-family properties;
the outstanding multifamily mortgage debt was
$18.5 billion at the yearend.
Most of the 1960 net increase in the outstanding
mortgage debt was in the conventional loan segment
which rose by $9.3 billion to a total of $98.2
billion, equal to 61 percent of the total residential
mortgage debt. The FHA-insured segment rose
by $3.3 billion to a total of $32.6 billion or 20 percent
of the residential mortgage debt total at the
end of the year. In contrast with net increases in
the FHA-insured and conventional segments,
there was a slight reduction in the VA-guaranteed
segment of the debt. _ The latter declined by $0.3
billion in 1960, the third consecutive year in which
there was a slight net decline. At the end of 1960,
the outstanding VA-guaranteed mortgage debt
was $29.7 billion, 19 percent of the total outstanding
residential mortgage debt.
Virtually all of the outstanding VA-guaranteed
residential mortgage debt of $29.7 billion is secured
by one- to four-family properties. The comparable
FHA-insured home mortgage debt is $26.7 billion,
and conventional mortgages accounted for
$85.6 billion of the total of $142 billion of one- to
four-family property mortgages outstanding at
the end of 1960.
The total of $18.5 billion in outstanding mortgage
debt secured by multifamily mortgages at the
end of 1960 consisted of $5.9 billion in FHA-insured
mortgages and $12.6 billion in conventional
mortgages.
Chart 1-5
FORECLOSURES OF MORTGAGED HOMES
- 4
Total nonfarm real Foreclosed homes
estate foreclosures (FHA-insured loans)
Claims paid on homes
(VA-guaranteed loans)
Other nonfarm
foreclosures including
conventional ly
financed home loans
1950 1955 1960 1950 1955 1960
a / Derived by HHFA
1950 1955 1960 1950 1955 1960
Sources: Federal Home Loan Bank Board, Federal Housing Administration (HHFA), and Veterans Administration
Close to 60 percent of the $11.1 billion net increase
in one- to four-family mortgage debt was
represented by the net increase in mortgage holdings
of savings and loan associations. Portfolio
increases at mutual savings banks and life insurance
companies each accounted for about 13 percent
of the net increase in one- to four-family
mortgage debt. The balance of the net increase in
home mortgage debt was reflected largely in the
holdings of “individuals and others” and Government
agencies, primarily FNMA. The commercial
banks showed only a negligible increase in
their holdings of one- to four-family mortgages.
The $1.2 billion net increase in multifamily
housing mortgage debt in 1960 was more evenly
distributed among various types of lenders than
the net increase in the one- to four-family mortgage
debt. The largest share of the net increase
in outstanding multifamily mortgage debt, over
30 percent, was accounted for by mutual savings
banks. Life insurance companies and “individuals
and others” each accounted for roughly 20
percent of the net increase in multifamily mortgage
debt. The balance of the net increase in this
segment of the outstanding mortgage debt was
divided among holdings of savings and loan associations,
commercial banks and the Federal National
Mortgage Association.
Foreclosures
The estimated number of nonfarm real estate?
foreclosures in 1960 was about 50,000, a 14 percent
increase over 1959. This rate of change was
markedly greater than the 4 percent increase between
1958 and 1959. The high number of foreclosures
also resulted in a measurable increase in
the rate of foreclosures per 1,000 mortgaged residential
units, probably reflecting the conditions of
general economic decline in the second half of 1960.
This rate rose to 2.66, compared to a rate of about
2.35 which had prevailed in the 2 preceding years.
It was the highest rate in 11 years for which comparable
data are available, but was still well below
what a comparable rate would have been in the
early thirties when foreclosures ran to about
250,000 per year.
LEGISLATION
During 1960, no major housing legislation was
enacted, although three major bills concerned with
housing were considered by the Congress:
1. H.R. 10213, a proposed Emergency Home
Ownership Act, designed to encourage home building
and employment. Its major provision would
have increased by $1 billion the FNMA authorization
to purchase mortgages on new low-cost
homes as a means of stabilizing the mortgage
8
market. This bill was passed in the House, but
made no progress in the Senate.
2. H.R. 12603, a proposed Housing Act of 1960,
an omnibus housing bill with a $1.36 billion
authorization. The House Banking and Currency
Committee reported this bill, but the Rules Committee
denied it clearance for House floor action.
3. In the Senate the proposed omnibus Housing
Act of 1960 was S. 3670, which the Senate passed
with a $1.87 billion authorization. The House
took no action on this bill.
Instead, the Congress enacted a minimum bill,
to prevent the lapse of existing housing programs.
This was done in the form of three floor
amendments to H.J. Res. 784, which became Public
Law 86-788 (September 14, 1960). These provisions
: (1) extended the FHA Title I home repair
and improvement insurance program to October 1,
1961; (2) increased the revolving fund authorization
for college housing loans by $500 million; and
(3) increased the community facilities revolving
loan fund authorization by $50 million.
In addition, Public Law 86-665 (July 14, 1960)
extended to July 25, 1962, the Veterans’ Administration
guarantee and direct loan programs. The
authorization for the 2-year period is $150 million
per year.
9
Section 2
Housing Supply and Needs
Section 401 of the Housing Act of 1949, as amended, requires
the Housing Administrator each year to “prepare
and submit to the President and to the Congress estimates
of national urban and rural nonfarm housing needs
and report with respect to the progress being made
toward meeting such needs.” Since the data thus far
released from the 1960 Census of Housing relate to the
total rather than the nonfarm sector, the following discussion
also deals with total supply and needs.
SUMMARY
The close of the year 1960 found the Nation
still faced with large areas of critical housing
need. Despite significant progress in upgrading
our housing stock during the decade of the 1950’s,
the 1960 Census of Housing reports that 16 million
units, or better than 1 out of 4, still were dilapidated
or deteriorating or lacked complete plumbing
facilities. Among minorities conditions were
far worse than for the population as a whole,
with the situation especially acute in the South.
This legacy from the past is only part of the
problem. To it must be added the ever expanding
requirements of a growing population. In the
decade ahead, 10 million or more additional families
will have to be housed. Perhaps as many as
3 million existing dwellings will be lost to the supply
because of demolition, disaster, conversion, or
abandonment. These must be replaced. Additional
houses will be required to meet the demands
arising from the continuing mobility of the
population.
To meet these current and prospective needs,
effective steps must be taken to revitalize the
sagging homebuilding industry, which in 1960
produced only a shade more than Ipi million new
units. If current requirements are to be filled and
at the same time significant progress is to be made
in removing slums and housing blight from the
American scene, we need to resume building at the
rate of at least iy2 million units a year and to
expand this rate progressively during the balance
of the decade so that by 1970 the rate per year will
be at least 2 million units.
Mere expansion in the volume of homebuilding
will not do the job. It is not a matter simply of
getting more higher priced houses built in the
expectation that this will free existing houses
down the price and rental ladder. The need, instead,
as well as the market is for a very significant
expansion in housing within the economic
grasp of low- and lower middle-income families.
Special attention must also be given to directing
an adequate share of the new production in the
years ahead to minority groups, to the elderly, and
to the physically handicapped.
To accomplish this will require full utilization
of all our existing resources, and more. It will
call for the adaptation of old tools and the creation
of new ones, which will give the Nation a
greater capability for dealing with the problem
in its broadest dimensions.
HOW MUCH OF THE NEED WAS MET
IN 1960
One part of the answer to the question of “the
progress being made” in meeting our housing needs
can be found in a look at what was accomplished
in 1960. As has already been pointed out earlier
in this report, the year 1960 was not only a year
of recession for homebuilding, it was one of the
least impressive homebuilding years since 1949.1
Only 1,258,000 nonfarm units were started, 18
percent fewer than in 1959.
What explains the poor showing in homebuilding
? For one thing, the vacancy rate throughout
the year was at a postwar peak. Moreover, many
localities the country over reported that sales of
both new and existing housing were slow and that
surpluses were accumulating. Also, mortgage
money was scarce during the early part of the year
while interest rates were high, thus making financing
of new homes both difficult and often
unattractive. Finally, the economy generally was
in recession, and this had its effect not only upon
builders’ decisions to build but also upon potential
purchasers’ decisions to buy.
Our principal concern, however, is not the reasons
for the decline in homebuilding but rather
how adequately the new units coming on the market
together with the satisfactory housing in the
existing inventory will meet the Nation’s housing
needs. Housing needs in this connection include
not just the active market demands of new families
seeking shelter, but also the social needs of
existing ill-housed families for decent places in
which to live.
The year 1960 saw little done directly to help
this latter group. Except for the 28,000 low-rent
public housing units started in 1960, little of last
year’s new home production was aimed at rehousing
ill-housed families in the low- and lower
1 Direct comparisons between the number of housing starts in
1900 and years prior to 1959 cannot be made because of a change
instituted in 1960 (and extended back through 1959) in the
coverage of the housing starts series. If appropriate adjustments
were made, however, in the data, production in 1960
would undoubtedly rank with that of the 2 or 3 lowest years
since 1949.
10
middle-income brackets. Rather, it was tailored to
meet the requirements either of newly established
families or of established households whose economic
success or increases in family size brought
them back into the market for another house.
[Number of housing units in millions]
Condition and plumbing facilities of housing in the United
States, 1950, 1956, and 1960
Tenure and condition
1960 1956 1950
Number
Percent
Number
Percent
Number
’46.1
29.1
Percent
100
63
All units____ _ ____ *58.3
47.4
42. 6
4.8
7.9
4.3
3.6
3.0
53.0
44.2
39.9
4.3
6.4
3. 5
2.9
2.4
32.8
28.9
26.9
2.0
3.0
1.7
1.3
.9
20.2
15.3
13.0
2.3
3.4
1.8
1.7
1.5
5.3
100
81
73
8
14
7
6
5
100
83
75
8
12
7
6
5
100
88
82
6
9
5
4
3
100
76
64
11
17
9
8
7
100
255.3
42.3
100
76
Not dilapidated with all plumbing
facilities. _ ____ _
Sound
Deteriorating
Not dilapidated, lacking some or
all plumbing facilities__ __ 8.9 16 12.5 27
Sound______7________________
Deteriorating
Dilapidated_________ . — - 4.2
49.9
39.3
8
100
79
4.5
43.0
27.7
10
100
65
All occupied units ____
Not, dilapidated with all plumbing
facilities— —
Sound
Deteriorating
Not dilapidated, lacking some or
all plumbing facilities. _ 7.4 15 11.3 26
Sound
Deteriorating
Dilapidated__ . ... 3.1
30.1
25.2
6
100
84
3.9
23.6
16.3
9
100
69
Owner-occupied units _ _ ____ .
Not dilapidated with all plumbing
facilities _
Sound
Deteriorating
Not dilapidated, lacking some or
all plumbing facilities. 3.8 13 5.9 25
Sound
De ter i o r a tin g
Dilapidated. ._ ____ __ 1.1
19.8
14.1
4
100
72
1.4
19.4
11.4
6
100
59
Renter-occupied _ __ _ ...
Not dilapidated with all plumbing
facilities.. .. .
Sound
Deteriorating
Not dilapidated, lacking some or
all plumbing facilities... 3.6 18 5.5 28
Sound
Deteriorating
Dilapidated . ... 2.0
5.5
10
100
2.5
3.2
13
Vacant units 100
1 50 States.
i 2 48 States.
DEVELOPMENTS DURING PAST DECADE
To see the situation in its proper perspective, it
is necessary to look at more than a single year’s
performance. The recent release of 1960 Census
of Housing figures makes it possible to see what
has been happening to the housing inventory of
the Nation over the past decade. During that
time some 14 million housing units were built,
an average of 1.4 million a year. As might be
expected, this substantial addition to our standing
housing stock led to a measurable improvement
in the overall quality. The 1950, 1956, and 1960
inventories, compared in the accompanying table,
indicate the extent of the improvement. The proportion
of units that were not dilapidated and had
private toilet, private bath, and hot running water,
advanced from 63 percent in 1950 to 76 percent
in 1956, and 81 percent in 1960. Similar advances
are evident if occupied units alone are
considered. Owners and renters both shared in
these gains, and to a nearly equal degree.
SLUM PROBLEM IN 1960
For all these gains, slums are still with us. As
the accompanying table illustrates, roughly one
out of five of our houses was either dilapidated or
deteriorating at the time of the 1960 Census.
Most of these were located in slum or blighted
areas. Not all of the remaining four-fifths were
up to standard. In fact, of the units classed as
sound, some lacked hot water and some had no
private toilet, or private bath, while some did not
even have cold running water. The number of
sound units with complete plumbing facilities was
thus only 73.1 percent of all units—less than three
out of every four. Of the deteriorating units—
many of them well on their way to becoming
dilapidated—only somewhat over half had complete
plumbing facilities. The situation can be
summarized as follows:
42.6 million units (73.1 percent of the total)
were sound and had adequate plumbing
facilities;
15.7 million (26.9 percent) were unsound or
lacked some or all plumbing facilities.
The latter may be further described as follows:
4.3 million (7.4 percent) were sound but
lacked some or all plumbing facilities;
4.8 million (8.2 percent) were deteriorating
but had adequate plumbing;
3.6 million (6.2 percent) were deteriorating
and lacked some or all plumbing facilities;
3 million (5.1 percent) were dilapidated, and
many of these also lacked plumbing
facilities.
TENURE AND GEOGRAPHIC DIFFERENCES
IN QUALITY
These overall totals tend to obscure differences
between various segments of the housing market,
such as between homeowners and renters, urban
areas and open country, the several regions and
sections of the country, whites and minorities, and
occupied and vacant units. Not all the detail has
yet been made available, but such as has been made
available disclosed significant differences between
these segments of the market.
11
Chart 1-6
HOW GOOD ARE THE DWELLINGS IN WHICH PEOPLE ARE LIVING?
Owners
and
Renters
Owners
Renters
While the vast majority of households
are living in units that are structurally
sound and have adequate plumbing facilities,
there are still 17 percent living
in units that are dilapidated or lack some
or all facilities, and 8 percent in units
that have plumbing facilities but are deteriorating
and will become dilapidated
unless adequate preventive measures
are taken.
Home owners are generally better
housed than renters. Owners in large
urban areas fare best as a group.
Renters outside such areas, 41 percent
of whom are living in dwellings that are
dilapidated or lack adequate plumbing
facilities, fare worst.
Quality of Units
INSIDE STANDARD METROPOLITAN STATISTICAL AREAS
Sound with adequate plumbing
facilities
Deteriorating, but with adequate
plumbing facilities
Dilapidated or lacking some or
all plumbing facilities
Owners
and
Renters
36.0 Million owners and rent ers = 100%
82%
Owners
20.0 Million owners = 100%
12
Condition and plumbing of housing in the United States, inside and outside standard metropolitan statistical areas: 1960
Source: 1960 Census of Housing.
Tenure, condition, and plumbing
Thousands of housing units Percent distribution
United
States
Inside
SMSA’s
Outside
SMSA’s
Total Inside
SMSA’s
Outside
SMSA’s
All units_________ _____ _ 58,323 36,384 21,939 100.0 100.0 100.0
Sound _ _ ___ ___ ___ _____ _ _ . 46, 914 31,122 15,792 80.4 85.5 72.0
With all plumbing facilities___________ ________ _____ 42, 605 29,476 13,128 73.0 81.0 59.9
Lacking only hot water - - ______ _ _ _ ________________ ________ ' 504 230 274 .9 .6 1.2
Lacking private toilet or bath or running water____ - _____ _____ 3,804 1,416 2,388 6.5 3.9 10.9
Deteriorating- _____ _ _____ _________ _____ _ _ _ 8,384 4,043 4,340 14.4 11.1 19.8
With all plumbing facilities_________ __ __ _ ______ _______ 4,766 2,875 1.891 8.2 7.9 8.6
Lacking only hot water _ ______ _ _ __ ___________ _____ _ _ 353 178 175 .6 .5 .8
Lacking private toilet or bath or running water __ ______ ._ ____ __ 3,264 990 2,274 5.6 2.7 10.4
Dilapidated__ ______________________________ _ _____ _______________ 3,024 1,218 1,806 5.2 3.3 8.2
All occupied units___ ________ ___ __ __ _____________ ___ _ ________ 53,021 33,998 19,023 100.0 100.0 100.0
Sound___ ___ __ _ __ ___ ___ __ _ _ ______ 43,400 29,364 14,037 81.9 86.4 73.8
With all plumbing facilities_______ _______ _ __________ ___ 39 913 27' 979 11,935 75.3 82.3 62.7
Lacking some or all facilities__ __ _ _________ _ _________ 3,486 1,385 2,102 6.6 4.1 11.0
Deteriorating __ _______ __ __ __ __ ___ ____________ _ _________ 7,235 3,621 3,615 13.6 10.7 19.0
With all plumbing facilities, _______ _ _____ _ _ ___________ 4, 288 2,630 1.657 8.1 7.7 8.7
Lacking some or all facilities..__ _ __ __ ________________ _________ 2,948 990 1,957 5. 5 2.9 10.3
Dilapidated____________________ _ _______ _____________ _________ 2,386 1,014 1,371 4.5 3.0 7.2
Owner occupied__ __ _ ____ _ _ _ ______ _ ___ ____ 32, 796 20,036 12, 759 100.0 100.0 100.0
Sound._ _____________ ____ ________________ ___ _ ______ 28,640 18,415 10, 224 87.3 92.0 80.1
With all plumbing facilities.__ ____ _ _ _ _______ _ 26,914 18,009 8 905 82.1 89.9 69.8
Lacking some or all facilities. ___ ____________________ 1 725 406 1 318 5. 3 2.0 10.3
Deteriorating ___ _____ _________ ___ _ __ __________ 3,268 1,319 1 949 10. 0 6.6 15.3
With all plumbine facilities____ _ ________ ___ ________ 2, 003 1, 048 954 6 1 5.2 7.5
Lacking some or all facilities _ _______________ _ _ _______ 1,264 270 994 3. 9 1.3 7.8
Dilapidated_______ __ _ __ _____ __________ __ 887 301 586 2. 7 1.5 4.6
Renter occupied. _______ _______ __ _ _____ ________ 20,225 13,962 6,262 100. 0 100.0 100.0
Sound. _ ______ __ ____ __ ___ __ _ _ ___ 14. 759 10,948 3 811 73.0 78.4 60.9
With all plumbing facilities _ _ _____ _________ 12,998 9,969 3 028 64.3 71.4 48.4
Lacking some or all facilities. _ __________ _____ ________ 1, 761 978 782 8. 7 7.0 12.5
Deteriorating__ ___ _ ____ _ __________ ___ 3 967 2 301 1,665 19.6 16.5 26.6
With all plumbing facilities___________ . _ ________ ______ _ 2,284 1, 581 703 11.3 11.3 11.2
Lacking some or all facilities _ _ . _ _________ _ _____ 1,682 720 962 8.3 5.2 15.4
Dilapidated_____________________________________________________________ 1,497 712 785 7.4 5.1 12.5
Influence of Tenure
Consider first the housing of homeowners as
compared with renters. Homeowners (who in
1960 comprised 61.9 percent of all households
compared to 55 percent in 1950) are appreciably
better housed by and large than are renters. 82.1
percent of them live in structurally sound homes
with all essentia] plumbing facilities, whereas only
64.3 percent of renters live in such homes.
Geographic Variances
The Pacific Coast and the Middle Atlantic
States, in which over 80 percent of all units are
sound and have adequate plumbing facilities, can
boast of the best housing, while parts of the South,
with a ratio of less than 53 percent, have the worst.
Historically, cities have had better housing than
open country, largely because the presence of
water and sewer systems has made it relatively
easy to provide city houses with adequate plumbing.
While this situation is rapidly changing, as
the country acquires more and more of the
amenities of the city, the effects of the past are
still discernible in the differences in housing
quality between metropolitan and other areas.
Inside standard metropolitan statistical areas 81
percent of all housing units had private bath and
toilet and hot running water, while outside such
areas only 59.9 percent of units were of comparable
quality.
The best housing, thus, tended to be housing
occupied by owners in metropolitan areas, and the
worst housing that occupied by renters outside of
metropolitan areas. A direct comparison is instructive.
Inside standard metropolitan statistical
areas about 90 percent of owners live in
sound structures that have adequate plumbing,,
while outside standard metropolitan statistical
areas only 48 percent of renters live in comparable
structures.
13
Nevertheless, housing conditions inside the
standard metropolitan statistical areas leave much
to be desired. Nearly one-half of the housing
found to be either deteriorating or dilapidated was
located within the confines of the Nation’s 212
standard metropolitan statistical areas. Of particular
concern are the more than 4 million deteriorating
units. These dwellings, touched as
they are with varying degrees of blight, constitute
a major threat to the urban housing supply.
Unless positive, effective action is taken to rehabilitate
these shabby units, their inevitable
further deterioration can only lead to the creation
of more slum areas and so offset the gains made
through vigorous slum clearance efforts.
MINORITY HOUSING SITUATION
Greater than the differences between owners
and renters, or metropolitan and nonmetropolitan
areas, are the differences between housing of
whites and nonwhites. While 86 percent of white
households lived in units that were not dilapidated
and had all essential plumbing facilities, only 55
percent of non whites lived in such units. In the
South the comparable proportion for nonwhites
was 38 percent. In other words, 62 percent of
nonwhites in the South, 45 percent the country
over, lived in units that were substandard either
because they were dilapidated or lacked essential
plumbing facilities. Most of them were located
in rural or city slums.
Bad as their housing remains, substantial progress
was made in the past decade in improving the
living arrangements of nonwhites. In 1950, 72
percent of nonwhites were living in units that
either were dilapidated or lacked some essential
plumbing facilities, compared to 45 percent in
1960. Much of the improvement occurred in the
South where a majority of non whites still live, the
comparable percentage there dropping from 87 to
62.
IMPROVEMENT TOO SLOW
Were we to continue at the rate of progress in
evidence during the decade of the 1950’s, the objective
of a decent home and a suitable living environment
for every American family as set forth
in the Housing Act of 1949 would still be far from
realization. In fact, it would appear that the
progress has been at so slow’ a pace that its continuance
would not permit achievement of that
goal for many decades, at best. Consider that in
10 years the number of dilapidated units in the
Nation’s housing stock declined only from 4.5 to
3 million units. What is more, there is reason to
believe that this decline probably overstates somewhat
the actual amount of progress that was
made. To understand why, it is necessary to look
for a minute at the changes which were made in
the way the condition of dwellings was recorded
in 1960. For the first time Census enumerators
were required to use a three-way rather than a
two-way breakdown, and classify dwellings as
sound, deteriorating, or dilapidated, instead of
not dilapidated and dilapidated as was the case in
1950. Faced with this three-way choice in 1960,
enumerators listed as deteriorating some units
which would have been called dilapidated if the
1950 two-way choice had still been open to them.
But for this, the decline in dilapidation over the
decade would no doubt have been something under
the 1.5 million reported by the Census.
What is more, the dilapidated units are only
a part of our bad housing. In addition to the 3
million units that fall in that category, there were
nearly 8 million others that lacked some essential
plumbing facilities, and something under 5 million,
which while equipped with necessary plumbing,
were found to be deteriorating—a total of
almost 16 million units that need to be replaced,
rehabilitated, or repaired to prevent further deterioration—
a backlog of need of very considerable
proportions.
When it is further recognized that this bad
housing exerts its blighting influence over adjacent
sound houses—for typical slum areas are an
admixture of bad and good housing—the size of
the challenge with which we are faced pyramids
rapidly.
DEMANDS OF THE SIXTIES
The job ahead would be big enough if all that
we were faced with was the challenge of eliminating
the areas of slums and blight. Added to
this, however, is the task of meeting the needs of
an expanding and highly mobile population.
Population Growth
The decade we have just entered will be one
of unprecedented population growth and more
housing will have to be built than ever before,
just to keep up with it. Growing even now at
the rate of about 3 million a year, population is
expected to reach 214 million by 1970, 34 million
more than in 1960. This compares with an increase
of something over 28 million in the
preceding 10 years.
While the decade got off to a slow start in the
rate of household formation, it can be expected
to gain momentum especially in the latter half
of the period. In fact, by 1969 the annual net
gain in household formation may well be as much
as 1.2 million. In addition, by the end of the
decade our household count may be as high as
63.5 million, a net gain of 10.5 million during
the 10 years.
Influencing the picture greatly in the sixties in
addition to the absolute gains in households is the
changing age composition of the population
which is taking place. Young adults and the
aged will increase more than proportionately, the
middle age groups and the very young will increase
proportionately or decline. Thus, while
the population as a whole will increase between
14
Chart 1-7
HOUSING STARTS ARE CLOSELY RELATED TO HOUSEHOLD FORMATION
a_/ Projected by HHFA using the coverage for starts as established in I960 by the U. S. Bureau of the Census
by Derived by HHFA from series A and B projections
Source: U. S. Bureau of the Census
1960 and 1910 by about 19 percent, the number
between 20 and 30 will increase by 39 percent
or by more than 8.7 million. Particularly striking
will be the increase in the number of persons
aged 20-24, from 11.3 to 17.3 million or by over
50 percent.
Another group that will experience a more than
average increase is that of the aged—the 65-plus
group—an increase of 24 percent. It may also
be significant that a major part of this increase
will take place among older women, for whom
the rate of increase will be 29 percent. Persons
in the age group 50 to 60, and 60 to 70 as well as
those under 10, will increase at about the same
rate as the total, each namely 18-19 percent. On
the other hand, those in the 40-49 age bracket
will increase by only 7 percent, while those in
the 30-39 group will actually decline by about
that percentage.
Because of these changes in the age composition
of the population, it will not be enough simply
to permit or to encourage a proportionate increase
in the various types of housing that now exist.
Rather, particular attention will have to be directed
to the special housing needs of the predominant
age groups. This, in turn, will have an
important bearing both upon the type and the
rentals or prices of the units that will be needed.
Mobility
Another factor which will continue to be a
potent force is the very great mobility of the
15
American people. Every year one out of every
five persons moves to a different home, many
across comity and State lines, in search for better
job opportunities or more congenial living environments.
The result is a demand for housing
over and above that due to natural population increase.
This is exemplified in the great population
increases of some of our States and cities during
the preceding decade—e.g., 79 percent for Florida,
48 percent for California, and among metropolitan
areas, 100 percent for Phoenix, 121 percent
for San eJose, and nearly 300 percent for Fort
Lauderdale-Hollywood—to name only a few. To
the extent that there is a net population loss in
old communities the country over, by so much
will the migration of people to new communities
exert the same effect on housing demand as would
population increase itself. While the pattern may
shift geographically, there is every reason to expect
that migration during the sixties will continue
as in the past to be a significant factor in housing
demand.
Offsetting Losses to the Supply
In addition to construction to provide for the
increasing number of households and for families
moving to new’ communities, an appreciable
amount of building will be necessary in order to
replace units which are lost to the supply for any
of a variety of reasons. Some of these will be
demolished in connection with urban renewal programs,
highways and other public actions. Others
will be razed to make way for new structures such
as apartment and commercial buildings. Still
others will be tom down because they are old and
dilapidated. More will be lost to the residential
supply as they are converted to nondwelling uses
of various sorts. Finally, fire, flood, storm, and
other natural disasters will take their inevitable
toll. When consideration is given to stepped-up
highway and urban renewal programs in prospect
during the decade, the housing replacement needs
may well reach 3 million units.
Community Facilities
As most of the new housing to be built for our
expanding and mobile population will be built in
new’ areas, adequate provision for community
facilities such as water, sewer, gas, educational,
and transportation facilities must be made. These
facilities require time to plan and construct and
often must be installed before the new’ housing can
be constructed. As they involve large capital investments
and as these investments often must be
made in advance of the construction of the housing,
careful consideration should be given to the
nature and extent of the community facilities to
be provided.
Even in older communities where the goal is
to reduce the extent of the substandard housing,
consideration must be given to the provision of
the necessary community facilities. The water
supply, the gas supply, and the sewer facilities
must be adequate to satisfy the new demands.
Often this involves additional heavy capital expenditures
by the community which typically is
approaching the limits of its ability to issue bonds,
increase taxes, or otherwise provide the required
funds.
THE SIZE OF THE JOB
The housing job of the sixties is one of many
facets. The largest single portion of it will be
in assuring suitable quarters for the more than
10 million new’ households that will be added during
the decade. After having been in a slack
period for most of the past 10 years, with the
annual level down below 900,000 for 6 of the 10, a
turn in the tide is in the making. In fact, by the
end of the present decade new households may
again be forming at a rate of close to 1,200,000
a year.
With stepped-up programs of highway construction
and urban renewal, losses to the housing
supply during the decade can be expected to exceed
the 300,000-a-year average posted during the
1950’s. Migration can certainly be expected to
play its part in stimulating housing demand, as
it has in recent years when the rate has approximated
150,000 or more.
Some portion of the 16 million families who
were ill-housed in 1960 will of necessity be rehoused
during the decade since their present quarters
w’ill be razed in connection with urban renewal
and highway projects already referred to. Less
easy to determine is how many more of our slum
dwellers will be able to improve their living arrangements
during the decade. Without attempting
to pin this number down, one thing is
abundantly clear. The rate of new building must
be sharply increased. With the explosive increases
in prospect in the numbers of young newly married
couples and the elderly, a continuation of the
volume of housing production at the 1960 level
would leave us far short of our needs. No effort
can be spared to regain the ground lost during
1960 and get homebuilding volume back to the
previous year’s 1,500,000 rate as rapidly as possible.
Accomplishing this will be only a first step.
To make any significant progress toward meeting
our housing goals, production must reach 2 million
units a year by the end of the decade.
EXPANDED OUTPUT NOT ENOUGH
Merely to encourage an increase in housing of
the types and price classes of recent years will
not be enough. The areas of urgent need are in
sectors of the market scarcely touched by new
production in the past. It is true, of course, that
some of the need can be met by the traditional
method of building much of the new housing in
the upper price and rental range and looking to
these additions to result in the freeing up of older
units at lower prices and rentals for families of
16
lower income. Experience has proved, however,
that merely adding new units at the top of the
pyramid will not automatically release satisfactory
existing units in sufficient quantity lower
down the scale. Present or prospective market
demand can absorb only limited increases in volume
at the top. Effective steps must be taken to
build houses within the economic reach of the
large group of ill-housed low income families.
Equally important is the provision in quantity of
housing at prices and rents which the growing
numbers of middle income families can afford. A
growing proportion of the units to be provided
must be designed to meet the special needs of the
aged and the physically handicapped. An overriding
consideration in all sectors of the market
is the need to make important strides toward reducing
the serious deficiencies which have been
allowed to build up over the years in the supply
of decent housing available to minorities.
In meeting these manifold needs, rehabilitation
must play an important role in the plan for the
years ahead. In the first place, it is an essential
measure in preventing the further spread of blight
and slums. In every urban community there are
disturbingly large numbers of houses which have
been allowed to fall into various stages of neglect
and disrepair. Unless positive steps are taken to
bring them back into sound condition they almost
inevitably will continue to deteriorate to the point
of dilapidation. Not only does this eventually
mean the loss of potentially sound and usable
structures to the housing supply, but it also leads
to the spread of blight to other previously sound
houses in the vicinity. Firm enforcement of codes
coupled with an effective rehabilitation program
is, therefore, an essential weapon against the creation
and growth of slums.
Equally important is the need to assure the
fullest utilization of our existing housing resources
to provide accommodations especially for
the economically disadvantaged. Older structures,
properly modernized and rehabilitated, can
provide an important source of housing for families
in the low and moderate income groups.
But there is a limit to how much can be accomplished
through rehabilitation. The fact remains
that to fill the Nation’s housing needs during the
balance of the decade, a major share of the housing
will have to be provided by new construction.
NEED FOR NEW TOOLS
To do both the rehabilitation job and to get
new construction of the types and at the prices
and rentals that will be required, new tools must
be developed. It was a recognition of this need
for new approaches which prompted the President
to send to the Congress a message calling attention
to the urgency of new legislation to assure the
rapid attainment of the three basic national
objectives:
First, to renew our cities and assure sound
growth of our rapidly expanding metropolitan
areas;
Second, to provide decent housing for all of
our people;
Third, to encourage a prosperous and efficient
construction industry as an essential component
of general economic prosperity and
growth.
To achieve these goals calls for special aids for
moderate income families, for an expanded and
revitalized low-rent public housing program, an
expanded program of housing for the elderly, and
for more effective aids to residential rehabilitation
and conservation. Recognition must be
given to the community facilities that must be
provided for the growing and mobile population.
Recognition must also be given to the inadequacy
of transportation in our expanding urban areas
and the adverse influence which this lack has upon
the provision of adequate living environments for
the residential population. Finally, if we are to
develop better solutions to the complex problems
of a growing urban economy, we must begin to
look far enough into the future to plan not merely
for undoing yesteryear’s mistakes but also to laying
the groundwork for orderly community development
and for adequate planning of land uses
in the future. As President Kennedy said in his
message to the Congress,
Land is the most precious resource of the
metropolitan area. The present patterns of
haphazard suburban development are contributing
to a tragic waste in the use of a vital
resource now being consumed at an alarming;
rate.
Provision for the creation of adequate land reserves
must therefore become an integral part of
any broad-gaged attack upon the Nation’s housing
needs.
17
Section 3
Chronology of Significant Events in Housing
January
5 The Federal National Mortgage Association increased to $20,000 from $15,000 the maximum
amount of a mortgage, for each family residence or dwelling unit, that may be
purchased under its Secondary Market Operations.
19 A move to assure full consideration of the interests of minorities in the renewal of urban
communities was announced by Administrator Mason as a result of a review to determine
how local workable programs to eliminate and prevent blight can be strengthened.
24 The Administrator announced that purchasers of land in urban renewal areas in States
and localities that have laws forbidding racial discrimination in housing will be put on
official notice of their obligation to comply fully with such statutes. This policy is contained
in instructions being issued to regional offices of the HHFA by the Urban Renewal
Commissioner.
February
5 The Administrator directed the establishment of a joint URA-FHA top level committee
in Washington for the coordination of the conservation and rehabilitation activities of
both agencies.
8 Announcement was made of improved ways of helping a community prepare an acceptable
workable program for the elimination of slums and blight by providing more specific
guides to communities on what they have to do in order to qualify for the several types of
Federal assistance made available under the Housing Act of 1954.
9 FNMA and the Department of the Treasury jointly announced that the Association was
making available $200 million, or thereabouts, of 4 percent VA-guaranteed mortgages held
in the portfolio of the Management and Liquidating Functions in exchange for U.S.
Treasury 2% percent bonds, Investment Series B, 1975-80.
12 The Federal Housing Administration put into effect new escrow commitment procedures
to facilitate trade-in financing and certain other home mortgage transactions and to avoid
duplicate closing costs.
15 FHA’s intergroup relations advisers met in Washington for a week’s conference which
included panel discussions with representatives of various groups interested in the development
of equal opportunities in housing.
16 The Administrator called for new solutions to curb the rising cost of land for housing.
He applauded a 6-months’ study of the land problem which the National Association of
Home Builders and the Urban Land Institute are jointly financing and said that the
Housing Agency will provide technical advice in carrying out the study.
23 The interest rate on Community Facilities Administration public facility loans was increased
from 4% percent to 4% percent on general obligation bonds and from 4% percent
to 5 percent on revenue bonds.
March
8 Alaska, under legislation provided by the Housing Act of 1959, became the first State to
receive a Federal grant for statewide planning.
10 The Urban Renewal Administration issued a simplified version of the Urban Renewal
Manual, limited to minimum UR A requirements expressed in the shortest and most precise
language possible. It is designed to facilitate and expedite the operations of Local
Public Agencies.
15 An FHA survey of 433,000 rental units with mortgage insurance in force on this date
showed a vacancy rate of 4.8 percent, the highest since 1951.
The American Institute of Architects voted the AIA “Citation of an Organization” for
1960 to the Providence City Plan Commission for the Commission’s College Hill Demonstration
Grant Study for the preservation of an historic area of Providence. The
study was carried out with a two-thirds Federal grant from the Urban Renewal Administration.
The results of this study are available through the report issued by the Providence
City Plan Commission to other planning and renewal agencies throughout the
country.
18
March
20
21
April
1
6
18
20
21-22
29
May
9
13
18
June
10
20
23
29
July
1
A meeting of the Advisory Committee of Mayors was called for March 22 to discuss
housing and urban planning and renewal problems with them.
FNMA announced its procedure for purchasing over-the-counter and under advance
commitments mortgages insured by FHA under its “Escrow Commitment Procedure”
(“trade-in” financing).
FHA's requirement that board and framing lumber used in housing built under FHA
inspection be grade marked became mandatory.
Administrator Mason spoke to the spring conference of the Building Research Institute
in New York City, where he was the first recipient of the newly established F. Stuart
Fitzpatrick Memorial Award. He was honored in recognition of his “outstanding individual
achievement in the unification of the building industry.”
FNMA began issuance of short-term discount notes similar to commercial paper to help
meet its financing requirements under the Secondary Market Operations.
Tribute was paid to 82 individuals, firms, and public and private organizations for the
part they played during the past year in telling and showing more than 400 visitors from
60 foreign countries the story of housing and community development in the United
States.
Some 36 educators—presidents and faculty members of 26 Negro colleges located in the
South, Southwest, and Midwest—participated in a 2-day conference in Washington with
key housing agency officials to discuss ways to develop leadership in local housing and
urban renewal activities.
FHA minimum downpayments in insured home financing transactions were reduced to
the amounts authorized by the Housing Act of 1959—3 percent of $13,500 of appraised
value plus 10 percent of the next $4,500 of value plus 30 percent of value above $18,000.
Nineteen college students from all parts of the country came to Washington to tell the
Housing Administrator what they would like their communities to be and what they
think needs to be done to achieve this end. The conference was arranged through the
U.S. National Student Association, which selected the participants.
Two prominent leaders in housing and urban problems from the private business field,
Harry N. Osgood and Zachary Fisher, have accepted appointment as advisers to the
United States delegation to the Twentieth Session of the Housing Committee of the
United Nations Economic Commission for Europe in Geneva, Switzerland, June 6
through 10.
The interest rate on CFA public facility loans was decreased from 4% percent to 4% percent
on general obligation bonds and from 5 percent to 4% percent on revenue bonds.
Victoria Plaza Apartments, 185-unit public housing development specifically designed
for elderly persons, was completed. The development is located in San Antonio, Tex.
Philadelphia, under legislation provided by the Housing Act of 1959, became the first
city in the country to begin execution of an urban renewal project in which special provisions
in respect to areas involving colleges or universities were invoked.
FHA announced that, to facilitate the use of central city areas as sites for rental housing,
it would consider applications for mortgage insurance under Section 207 on some projects
for families without children.
FHA increased the interest rate ceiling on insured nursing home mortgages from 514
percent to 5% percent.
The Brookings Institution began a conference study for the HHFA to determine the
main areas in which more adequate and reliable information is needed on the housing
needs and. desires of the elderly as a guide to the rapidly growing interest and activity in
this housing field. The study was expected to require about 6 months and cost a total
of $16,452.
CFA completed the decentralization of its program operations. With final approval
authority now vested with the regional administrators, service to the public will be
expedited.
Cl* A initiated special handling under the public facility loans program for loan applications
from public agencies located in labor surplus areas for public works which will
aid in improving local employment conditions on a long-term basis.
19
July
1 The interest rate on CFA coliege housing loans was increased from 3% percent to 3^
percent to apply to all loans for which reservation of funds are made between July 1,
1960, and June 30, 1961.
2 Orders to expedite the public housing program to relieve families left homeless on tidal
wave battered Hilo, Hawaii, were issued by the PHA Commissioner.
6 FNMA increased prices being paid for mortgages purchased under its Secondary Market
Operations.
12 The revolving fund for the program of advances for public works planning was increased
by an appropriation of $6 million to a total of $36 million.
13 FHA amended its regulations to permit individuals and organizations other than approved
mortgagees to own home mortgages insured under Section 203(b) of the National
Housing Act.
The Administrator called on HHFA Regional Administrators to see that “positive and
resourceful” use is made of the services of the Regional Intergroup Relations Specialists,
who have now been named in all six of the Agency’s continental regional offices to assist
in making the benefits of urban renewal available to all people.
18 It was announced that the HHFA is ready to accept applications under the new program
of direct loans for housing for the elderly. The purpose of the program is to achieve
housing for the elderly at substantially lower rents than can be attained under the regular
FHA program of housing for the elderly.
The interest rate on CFA public facility loans was decreased from 4% percent to 4%
percent on general obligation bonds and from 4% percent to 4% percent on revenue bonds.
27 Outstanding loans to the Alaska Housing Authority (an agency of the Territory of
Alaska) were refunded into one general obligation of the Alaska State Housing Authority
in the amount of $7.8 million to be amortized in monthly installments over a period of
25 years.
30 The Urban Renewal Administration announced the formation of the Federal Urban
Renewal Council, an advisory council to develop solutions to current problems in urban
renewal. The Council met twice during 1960, on July 14 and October 12, respectively.
It was composed of representatives of industry, city planning, business, and higher
education.
August
3 FHA made permissible an annual service charge of one-half of 1 percent on outstanding
balances of mortgages with face amounts of $9,000 or less. The charge was formerly
limited to mortgages of not more than $8,000.
9 The city and county of Denver, Colo., under legislation provided by the Housing Act of
1959, received the first Federal grant for preparation of a community renewal program,
designed to provide a comprehensive and coordinated approach to the area’s overall urban
renewal needs.
16 The Urban Renewal Administration launched a three-pronged publications program designed
for three different audiences. These audiences are (a) professional, technical,
and administrative staff of all levels of government who are actively engaged in the
urban renewal process, (b) all people interested in urban renewal, and (c) combinations
of audiences, but especially nonprofessionals concerned with or involved in the urban
renewal process.
19 FNMA increased prices being paid for mortgages purchased under its Secondary Market
Operations.
31 A meeting of the Public Interest Advisory Committee was held to discuss the new direct
loan program for housing for the elderly and new approaches and developments in public
housing.
September
8 Monthly dividend rate on FNMA common stock was increased from 23 cents per share
to 27 cents.
14 Public Law 86-779 was approved; it provides with respect to taxable years beginning
after December 31, 1959, that whenever the fair market value of FNMA common stock
as of the date of its issue is less than the subscription price, the difference shall, for
Federal income tax purposes, be treated by the initial holder of the stock as ordinary
and necessary expense incurred during the taxable year in carrying on a trade or
business.
20
September
14
15
28
October
12
18
25
27
November
8
21
21-22
29
December
1
2
9
14
Public Law 86-788, Section 2, approved; it removed the $1,750 million FHA ceiling on
the aggregate amount of all loans, advances of credit and obligations purchased with
respect to which insurance may be granted and outstanding at any time on home
improvements under Title I of the National Housing Act; raised the ceilings for college
housing loans under Section 401(a) of the Housing Act of 1950, for other educational
facilities and for hospitals from $1,175 million, $125 million, and $50 million, respectively,
to $1,675 million, $175 million, and $100 million, respectively; and increased the revolving
fund for the public facility loans program from $100 million to $150 million.
The Advisory Committee on Housing for the Elderly met to discuss recent developments
in that field.
The maximum size of loans permitted to hospitals under the college housing program to
provide housing for student nurses and interns was increased from $500,000 to $750,000.
Formal approval was given for a loan to Kundig Center in Detroit, Mich., the first project
to qualify for a loan under the new program of direct loans for housing for the
elderly.
FNMA standby commitment procedure was modified to include the issuance of such
commitments in its Secondary Market Operations for the purchase of mortgages on
existing as well as new construction.
The seventh meeting of the College Housing Advisory Committee was held to acquaint
the committee with the status of the program and to discuss the Housing Amendments
of 1960 and legislative proposals.
Announcement was made of the establishment of a Financial Advisory Committee for
Community Facilities to advise the agency regarding technical advisory services that
might be rendered to local government units concerning the budgeting, financing, planning
and construction of public facilities, and various financial problems arising under
the college housing and public facility loans programs.
FHA initiated a procedure for optional submission of proposed alternates to basic plans,
in order to study the effect on value resulting from use of new construction features,
materials, and equipment, in homes offered as security for insured mortgages.
The interest rate on CFA public facility loans was decreased from 4% percent to 4%
percent on general obligation bonds and from 4% percent to 4% percent on revenue
bonds.
A 2-day meeting between representative leaders of higher educational institutions and
top agency staff was conducted by HHFA with the cooperation of the Brookings Institution.
Ways in which housing and urban research in our colleges and universities can
be made more widely available for applied practical use formed an important part of
the discussions.
The Housing Administrator and the Secretary of Commerce announced an agreement by
which methods will be developed, under a Joint Steering Committee, to make highway
and urban planning funds available for joint use in comprehensive urban and metropolitan
planning.
FHA put into effect revised procedures designed to shorten the time required for conveying
title and processing claims for home mortgage insurance.
Renewed efforts were made to stimulate public works planning activities by State and
local governments by giving greater publicity to the planning advances offered by CFA
under the program of advances for public works planning.
CFA received a notice that the General Arnold School at Lincoln, Nebr., which was
constructed under the school construction program, was selected by the Nebraska Architects’
Association as the most outstanding school building to be constructed in Nebraska.
Kansas became the 46th State to participate in the public housing program when ground
was broken in Kansas City for the State's first project.
591772—61------ 3 21

Office of the
Administrator
part
■ ■
II
Office of the Administrator
The Office of the Administrator provides the staff
assistance to the Administrator necessary to permit him
to discharge his responsibilities as head of the Agency.
The Housing and Home Finance Administrator is directly
responsible for (1) general supervision and coordination
of all the Agency’s programs ; (2) approval of
Workable Programs for Community Improvement developed
by local communities for the prevention and elimination
of slum and blight conditions as a prerequisite to
eligibility for certain Federal aids for urban renewal
and low-rent public housing and certification that such
aids may be made available; (3) certification of the
maximum number of dwellings required for relocation
of families displaced by governmental action and who
would be eligible to rent or purchase dwellings in
properties covered by mortgage insurance under Section
221 of the National Housing Act; (4) certifications relating
to urban renewal plans and required as a condition
of eligibility for mortgage insurance under Section 220
of the National Housing Act; (5) administration of the
program for disposition of the Government-owned properties
at Richland, Wash., and Oak Ridge, Tenn.; (6)
administration of the program of grants to land-grant
colleges for farm housing research authorized by the
Housing Act of 1957; (7) administration of the program
of direct loans for housing for the elderly; and (8)
making plans for provision of housing and related community
facilities in the event of enemy attack. The
Housing and Home Finance Administrator has statutory
responsibility for carrying out the urban renewal program,
the college housing loan program, the public facility loan
program, the programs of advances for public works
planning, and a number of other programs in the process
of liquidation. These programs and activities are carried
out by constituents of the Agency under the supervision
of the Administrator.
The Housing and Home Finance Administrator is
Chairman of the Board of the Federal National Mortgage
Association and is Chairman of the National 1 oluntary
Home Mortgage Credit Extension Committee.
In addition to providing staff assistance to the Administrator
with regard to the responsibilities enumerated
above, the Office of the Administrator (1) provides a
consolidated compliance and investigative activity for the
entire Agency ; (2) provides staff and supporting services
and facilities for the National Voluntary Home Mortgage
Credit Extension Committee and its regional committees ;
and (3) provides certain consolidated staff and general
services for the Community Facilities Administration and
the Urban Renewal Administration.
In the field, the Housing and Home Finance Administrator
is represented by Regional Administrators in
New York. N.Y.; Philadelphia, Pa.: Atlanta, Ga.;
Chicago, Ill.; Fort Worth, Tex.; San Francisco, Calif.;
and San Juan, P.R. The HHFA Regional Administrators
assist the Administrator in carrying out his responsibilities
for general supervision and coordination of the
Agency’s programs, and direct the program, staff and
service operations assigned to the regional offices, including
the execution of CFA and URA programs.
HOUSING AND HOME FINANCE AGENCY
OFFICE OF THE ADMINISTRATOR
ORGANIZATION CHART
24
HOUSING AND HOME FINANCE AGENCY
STANDARD REGIONAL OFFICE ORGANIZATION
HHFA REGIONAL MAP
SAN JUAN, PUERTO RICO ★
25
Section 1
Staff Functions and Activities
of the Office of the Administrator
Agency Supervision and Coordination
It is the responsibility of the Administrator to
give continuous guidance to the administration of
Government housing and community development
policies along the lines of the national housing
policy and objectives defined by the Congress in
the Housing Act of 1949, and to deal responsibly
on these matters with the Congress, the President,
and the public.
As principal spokesman for the executive branch
on housing and community development matters,
the Administrator has responsibility for developing,
presenting and explaining to the Congress the
legislative program of the administration in the
field of housing and community development; he
presents and explains the budget program of the
Agency; and he is called upon to analyze a variety
of legislative proposals pending before the Congress
and advise legislative committees and individual
members as to the probable effects of such
legislative proposals and their relationship to existing
activities and to the program of the President.
He makes periodic and special reports on
basic factors affecting the public interest in the
field of housing and community development, such
as the nature of public need and demand for housing,
the existing and probable rate of new housing
construction, mortgage credit requirements, present
and probable trends in housing costs and prices,
and the contribution of Government housing and
community development programs toward meeting
national housing and community development
needs.
As head of the Agency, the Administrator makes
regular reports to the President on all programs
of the Agency; and receives and interprets to the
constituent agencies the President’s views on housing
policies and the administration program. He
formulates and presents to the President recommendations
for basic policies in the field of housing
and community development, and he works
with the Executive Office of the President and
other Federal agencies in keeping economic and
fiscal policies in housing consistent with other economic
and fiscal policies of the Government. He
gives general supervision to, and coordinates, all
operating programs of the Agency to assure that
they are conducted in accordance with the intent
of the Congress, the national housing policy and
the program of the President, and that they are
operated economically with a minimum of duplication
or overlapping. Also, he provides for
Agency-wide representation in relationships with
the Bureau of the Budget, the Civil Service Commission,
the General Accounting Office, the General
Services Administration, and other Federal
agencies administering Government-wide functions.
As the Government’s principal housing official,
the Administrator meets with and interprets Government
housing and community development programs
to the public, and to organizations and
officials representing builders, real estate firms,
home financing institutions, building materials
and equipment manufacturers and distributors,
local governments, labor groups, minority groups,
and social service organizations. He receives,
discusses, considers, and evaluates the recommendations
and proposals of such groups in connection
with legislation, regulations, and current
policy and operations of all Agency programs.
He is also specifically authorized to exchange
with other nations data relating to housing and
urban planning and community development.
Community Programs
The Community Programs Staff acts for the
Administrator in carrying out the functions that
under the statutes he may not delegate to the
operating constituents together with related functions
that he has chosen not to delegate. This
serves not only as a means for coordinating the use
of the basic Federal aids at the community level
but it serves to keep the Administrator directly
informed of progress and problems for the purpose
of policy evaluation.
The nondelegable functions are: the determination
that a community’s Program for Community
Improvement (Workable Program) meets the requirements
of the law and the certification to
UBA, PHA, and FHA that the aids for which
such program is a prerequisite may be approved;
the certification of the maximum number of
dwelling units needed for the relocation of families
to be displaced as a result of governmental
action in a community, who would be eligible to
purchase or rent a dwelling insured under Section
221 of the National Housing Act; and the determination
that there is a feasible method for the
relocation of families displaced from an urban
renewal project. The authority to certify to the
FHA Commissioner that an urban renewal project
is eligible for mortgage insurance under Section
26
220 of the National Housing Act lias been retained
by the Administrator. In addition he has retained
the authority, delegated by the President, to approve
the undertaking by the PHA of contracts
with local housing authorities for the planning
and development of low-rent public housing
projects.
The Program for Community Improvement is
a community’s own plan of action for using its resources
and authorities to eliminate and prevent
slums and blight. It is made up of seven elements
which, when used on an integrated basis, have
proven to be an exceedingly effective means for
setting community standards and for bringing its
housing and neighborhoods into conformity with
those standards.
The seven elements are codes and ordinances,
comprehensive community plan, neighborhood
analyses, administrative organization, financing,
housing for displaced families and citizen participation.
The specific Federal aids for which a
Program for Community Improvement is a prerequisite
are loans and grants for urban renewal,
loans and annual contributions for low-rent public
housing, mortgage insurance under Section 220
of the National Housing Act to aid in Hie financing
of new and rehabilitated housing in urban renewal
project areas and mortgage insurance under
Section 221 of the National Housing Act to aid
families displaced by governmental action in buying
or renting private housing. Mortgages insured
under Sections 220 and 221 are eligible for
purchase under the FNMA Special Assistance
F unctions.
Significant steps were taken in 1960 to broaden
and strengthen PFCI requirements: to simplify
the work of the community and of the field staffs
in processing requests for certification and recertification;
to meet more promptly local requests
for assistance and advice; and to give the PFCI
the administrative emphasis it deserved within
the Agency.
Studies showed that progress in comparable
cities varied from paper promises, repeated each
year, to concrete accomplishments under one or
two elements, to steady and coordinated progress
under all elements. The new requirements set
down specific work that had to be done before a
PFCI would be initially certified. They called
for meaningful goals and for steady and coordinated
progress each year. These measures found
willing acceptance in the great majority of the
affected communities and they have served to give
new impetus to local improvement efforts.
The revised requirements are set forth in an
attractive and clearly written booklet published
during the year and by simple and concise forms
on which a community can set forth its accomplishments
and goals with a minimum of paper work.
These forms have also served to reduce the processing
time in the regional and central offices.
Pavilion Apartments in the Gratiot Redevelopment Area of
Detroit, an example of housing financed with a mortgage
insured under FHA's Section 220.
The appointment of a Special Assistant to the
Administrator (PFCI) in the latter part of 1959
was followed by the appointment of Special Assistants
to the Regional Administrators in all of
the regional offices, except Puerto Rico, in 1960.
They were made responsible for contacts with the
communities and for processing the submissions,
work that previously had been largely handled as a
secondary function by the staffs of the Regional
Directors of Urban Renewal. Under the new procedure
technical assistance continued to be furnished
by the URA staffs.
All of these steps resulted in an almost immediate
enhancement of the quality of community improvement
efforts and in a reduction in the rate
at which communities had been dropping out of
the program.
During 1960 a total of 186 new communities
received initial approval of their programs bringing
the total communities certified to 1,242. Programs
for 540 communities were recertified during
the year under the requirement that there be an
annual review of progress. One hundred and
thirty-nine lapsed programs were in process of
being recertified.
During 1960 the Administrator certified 6,827
units as eligible for mortgage insurance under
Section 221 in 60 localities which have previously
not been authorized to use this special assistance.
At the end of the calendar year, there were 353
communities with a net number of 103,677 units
27
A portion of Preston Park, o subdivision consisting of factory fabricated dwelling units financed under FHA’s Section 221.
certified under the program, some 1,700 less than
a year earlier. This smaller number reflects adjustments
(entire quotas in 6 communities cancelled
for a total of 415 units; reduction of 10,350
units in 46 localities ; and increases of 2,167 units
in 17 localities) during the year in existing programs
undertaken in accordance with Agency
policy for periodic modification in quotas as may
be necessary to conform to changing needs for
relocation housing in the community.
Housing for the Elderly
The Federal Government has a multisided program
aimed at assisting the significant and growing
core of older people in our population in
obtaining adequate housing. This program is
designed to:
a. facilitate the purchase of housing by older
persons,
b. facilitate the financing of rental housingprojects,
both profit and nonprofit, designed
specifically for the elderly,
c. make low-rent public housing more readily
available to older persons, and
d. make direct loans to sponsors of nonprofit
rental housing projects otherwise unable to
secure financing.
During 1960 two new programs became active
in this field. They were the nursing home program
under FHA and the program of direct loans
for housing for the elderly, administered by the
Division of Housing for the Elderly in the Office
of the Administrator.
There has been widespread and growing interest
throughout the country in the Federal programs of
assistance in the provision of housing for the
elderly, and in 1960 the activity in all of these programs
showed gains. As of December 31, 1960,
FHA had received applications for mortgage insurance
on 129 projects in 36 States, involving
16,567 dwelling units with a mortgage amount of
$165,975,871. Commitments to insure had already
been issued on 90 of these projects, and mortgage
insurance had been written on 62 projects, containing
7,154 dwelling units with a mortgage amount
of $67,620,221. Of these 129 projects, 111 containing
13,977 dwelling units with a mortgage amount
of $140,132,471 were nonprofit motivated and 18
were profit motivated.
To facilitate in the financing of these projects
and single family sales units for the elderly, the
Federal National Mortgage Association, as of
December 31, 1960, had in its mortgage portfolio
3,151 mortgages in the amount of $47,503,000 involving
5,138 dwelling units and had undisbursed
commitments to purchase 404 mortgages in the
amount of $61,407,000 involving 5,943 dwelling
units.
Under the federally-aided low-rent housing program
for elderly persons, at the end of 1960, there
were either built or to be built 25,241 units specifically
designed for use of the elderly. The Public
Housing Administration estimates that in addition
approximately 100,000 persons aged 65 or
older are living in low-rent housing developments,
including units not specifically designed for
elderly use.
In June 1960 the Housing and Home Finance
Agency arranged to have the Brookings Institution
commence a conference study to be completed
in mid-1961 to determine the main areas of needed
research on the housing needs and desires of the
elderly. It is hoped the recommendations will
stimulate further basic research and studies in this
field.
Professor Walter K. Vivrett, Special Assistant
to the Administrator for the 1961 White House
Conference on the Aging, continued during 1960
to play a major role in the development of plans
and the preparation of material for the housing
section of the White House Conference. He participated
in many meetings, conferences and forums
dealing with the broad problems of the
elderly and their housing requirements related to
the White House Conference.
During 1960 members of the Administrator’s
staff participated in the deliberations of the interdepartmental
Federal Council on Aging and pre28
pared the statement on HHFA programs for
housing for the elderly included in the 1960 Report
to the President from the Federal Council on
Aging.
During the fall, the Administrator met with his
Advisory Committee on Housing for the Elderly,
to get its counsel on the steps taken by the HHFA’s
Division of Housing for the Elderly to implement
the direct loan program for nonprofit organizations
to erect housing for aging.
Direct Loans for Housing for the Elderly
The Division of Housing for the Elderly was
created during 1960 to administer the program of
direct loans for housing for the elderly, for which
funds were appropriated for the first time in July
1960. This program was created under the Housing
Act of 1959 which authorized the Housing and
Home Finance Administrator to make low-interest
rate, long-term loans to private nonprofit corporate
sponsors of rental housing and related facilities
for elderly families and persons.
The longer term of mortgage and lower interest
rates provided in the statute are designed to produce
housing for elderly families and individuals
at substantially lower rents than can be achieved
under the FHA Section 231 mortgage insurance
program for housing for elderly persons. It was
intended that this direct loan program would supplement
but not supplant the FHA mortgage insurance
program for aiding the financing of
nonprofit rental projects.
Under the provisions of Section 202 of the Housing
Act of 1959, a total of $50 million was authorized
for making direct government loans at
one-fourth of 1 percent above the average annual
interest rate of all interest-bearing obligations of
the United States to be determined as of July 1
of each year—the present rate being 3% percent.
The interest rate thus determined is applicable to
all direct loans for housing for the elderly made
during the subsequent 12 months.
In accordance with this authorization, the Independent
Offices Appropriation Act, 1961 (PL
86-626) provided an appropriation of $20 million
to initiate a limited program of direct loans for
PROGRAM HIGHLIGHTS BY STATES FOR HOUSING ELDERLY
UNDER SECTION 202 OF HOUSING ACT OF 1959
591772—61 29
Work proceeds at Menlo Park, Calif., on the 30 unit Peninsula Volunteer direct loan project.
housing for the elderly, which the President signed
into law on July 15, 1960. Immediately, a heavy
flood of inquiries was received and procedures
were established for receiving and processing
applications.
Because of the pilot and experimental nature of
the program and the limited appropriation available,
the activity of the program was centralized
in the Washington office.
From July 18,1960, the beginning of operations
in the Division of Housing for the Elderly,
through December 31, 1960, the Division received
1,479 letters of inquiry, sent 276 applications, received
103 preliminary applications of which 32
were processed to the full application stage. From
the full applications, seven commitments were issued.
However, construction had not been started
on any project. The 103 preliminary applications
received had an approximate potential of Federal
loans aggregating $44,500,000; and the full applications
of slightly over $12 million. As of December
31, 1960, seven commitments had been issued
with total Federal loans of $2,774,560. The average
loan amount per unit was $9,735; and the ratio
Table 1.—Program highlights of housing for elderly under
Section 202 of Housing Act of 1959
[Cumulative from July 18, 1960, through Dec. 31, 19601
Characteristics
Full applications received
Commitments
issued
Total Withdrawn Active
Number_______________
Number of units_______
Amount of Federal loan..
Amount of applicant’s
funds______________
Other__________________
Average loan per unit__
32
1,329
$12, 403,384
1,623,970
11,055
2
42
$330,000
6,000
None
30
1,287
$12,073,384
1, 617,970
11,055
9,381
Percent
88.1
7
285
$2,774, 560
212, 000
None
9,735
Percent
92.9
Ratio of Federal loan to
total estimated project
cost *---____ _____
1 Excludes furnishings and movable equipment.
[Cumulative July 18, 1960-Dec. 31, 1960]
Table 2.—Characteristics for commitments issued for housing for elderly under Section 202 of Housing Act of 1959
Amount
Number of dwelling units
State and city Name of sponsor
Date commitment
issued
Amount
of Federal
loan
of applicant’s
Estimated
project
cost
Duration
of
mort-
Housekeeping Congregate
Number
of
perfunds
gage
Efficiency
1 bedroom
2 bedroom
Single
Double
Total sons
Michigan, Detroit-
California, Menlo
Park.
Minnesota, St.
Paul.
Illinois, Peoria____
Oklahoma, Cordell.
New York, New
York.
Iowa, Eagle Grove.
Kundig Center, Inc., Archdiocese
of Detroit.
Peninsula Volunteer Properties,
Inc.
Amherst II. Wilder Foundation,
Inc.
Lutheran Welfare Council of
Greater Peoria.
Cordell Christian Home Corp..
The Hudson Guild, Inc----------
Oct. 12,1960
Oct. 16,1960
Nov. 15,1960
Nov. 16,1960
Nov. 21,1960
Dec. 13,1960
Dec. 14,1960
$135,850
280,000
540,000
493,000
400, 000
495,000
430, 710
$2, 772
102, 000
36,294
40, 000
12,144
10,000
8,790
$138, 622
382,000
576, 294
533,000
412,144
505, 000
439, 500
25 yrs.
40 yrs.
50 yrs.
48 yrs.
41 yrs.
50 yrs.
50 yrs.
25 25 25
22 8 30 54
27 18 5 50 78
40 10 50 60
18 32 50 82
20 20 40 60
40 40 80
Total 2, 774, 560 212,000 2,986,560 69 46 5 83 82 285 439
______ _____
30
Table 3.—Number and type of units and monthly rental for commitments issued for elderly housing under Section 202
of the Housing Act of 1959
[Cumulative July 18, 1960-Dec. 31, 1960]
Monthly rental1
Type of unit Total
$85.00
-89.99
$90.00
-94.99
$95.00
-99.99
$100.00
-109.99
$110.00 $120.00
-119.991-129.99
$130.00
-139.99
$140.00
and
over
Median
Housekeeping:
Efficiency_____
1-bedroom_____
2-bedroom_____
Congregate:
Single room____
Double room__
Total________
■8
18 54 10
$68.30
81.25
85.00
64.71
2124. 26
26 54 10 76.91
5
5
1 Includes some utilities; excludes the cost of raw food and its preparation and serving.
2 $62.13 per person.
of the Federal loan to total estimated cost, exclusive
of furnishings and movable equipment, was
92.9 percent.
Letters of inquiry have been received from 49
States, the District of Columbia, and Puerto Rico.
Preliminary applications have come from 30
States and full applications from 18 States. Commitments
have been issued for seven projects in
seven States. Individual activity can be secured
from map No. 1.
The proposed monthly rental per unit for the
seven projects ranges from $47 for a single congregate
unit to $141.80 (or $70.90 per person) for a
double congregate unit. This monthly rental
figure includes the cost for some utilities, but excludes
the cost of raw food and its preparation and
serving.
Defense Planning Activities
The Housing and Home Finance Administrator’s
responsibilities for civil defense and defense
mobilization activities include development of
emergency plans and programs for: emergency
lodging; guidance to States and localities as to
standards and priorities for emergency lodging
and housing programs; repair of damaged housing
and construction of new housing; repair, restoration,
and construction of emergency community
facilities; economic stabilization measures pertaining
to real estate credit controls and rent stabilization
programs; and an Agency emergency organization
plan.
During the year 1960 the efforts of the Defense
Planning Branch have been directed toward getting
all parts of the Agency ready to carry out its
delegated responsibilities in a civil defense emergency.
Following is a list of items on which substantial
progress has been made or which have
been completed.
1. In March 1960 the Administrator issued an
order establishing an emergency field organization
which would be activated in the
event an attack on the United States disrupted
communications between the various
field levels and the national headquarters
staffs of the Agency. It provides, for emergency
purposes, eight regions to correspond
to the eight Office of Civil and Defense Mobilization
regions. Also, the order establishes
the FHA office in or nearest the capital
of each State as the emergency State office
for all components of the Agency. The
emergency field organization would continue
in effect until the Administrator determined
that normal communications and agency organizational
patterns could be resumed.
Following issuance of the order, a section
of the Manual (Policies and Procedures of
the Administrator, OA Field Service) was
issued explaining the order, and Emergency
Field Service Circular^ 1 and 2 were issued
outlining the emergency functions and organization
of the Regional and State offices
both before and after the declaration of a
civil defense emergency.
The effect of the Emergency Field Service
Order on advance planning is being discussed
at meetings of the Regional Defense
Planning Committees in all regions, with
representatives of the Defense Planning
Branch in attendance.
2. The National Emergency Housing Plan,
Annex 42 to the National Plan for Civil and
Defense Mobilization, was issued.
3. The HHFA Emergency Plans Book was issued.
This assembles in one loose-leaf volume
the Agency’s emergency job, the authorities
and action documents which have been
issued, and the status of work in progress.
It is used as a guide by key employees at
national and field levels.
4. Four action documents have been approved
by the Administrator and have been prepositioned
at all levels. These are not effective
until signed by the Administrator after the
declaration of a civil defense emergency, but
are so drawn that they may be activated by
31
one code message to all HHFA field stations.
They cover (1) suspension of all nonessential
programs and activities; (2) making
federally owned or controlled housing available
for refugee lodging; (3) authority to
requisition or condemn private property or
its use; and (4) emergency contractingauthority.
5. Interim instructions were prepared for review
by the Office of Civil and Defense Mobilization
covering the use of drawings,
specifications, materials lists, and erection
instructions covering a prefabricated barrick-
type emergency housing structure.
G. HHFA, the U.S. Public Health Service, and
Office of Civil and Defense Mobilization
signed an agreement which spells out the
division of authority and responsibility between
Housing and Home Finance Agency
(Community Facilities Administration)
and Department of Health, Education, and
Welfare (Public Health Service) for providing
community facilities in a civil defense
emergency.
7. The plotting on large-scale maps of principal
components of water systems for large
cities and target areas in the United States
was completed. These will be useful as
d a m age assessment and reconstruction
guides. Sets have been prepositioned at
HHFA national, regional, and State offices
or relocation sites, and at OCDM Regional
Relocation sites.
8. An Appendix has been prepared to Annex
32 (National Water Plan) containing instructions
for emergency provision of potable
water using “primitive” methods. It is
in the Office of Civil and Defense Mobilization
for final clearance and publication.
9. A broad planning paper on the emergency
rent control problem was submitted to the
Office of Civil and Defense Mobilization,
and a preliminary draft of an operational
guide for rent control has been prepared.
10. The HHFA Executive Reserve was increased
from 26 to 35, giving a much broader
coverage both geographically and professionally.
11. The Agency participated in a series of
Government-wide mobilization test exercises
during the year.
Farm Housing Research Program
Most of the work on farm housing research as
authorized by the Housing Act of 1957 was completed
in 1960. The $75,000 appropriated for the
program has been used for studies in two fields,
following recommendations by an advisory committee
representing the land-grant colleges in each
of the agricultural research regions.
Three land-grant colleges have cooperated in an
investigation of the financing of rural housing.
Auburn University coordinated this study and will
publish the final report. It also conducted the
major part of the study which covers the Southeast
cotton belt region. Smaller studies using the
same questionnaires were conducted by the University
of Missouri in the Midwestern corn belt and
by the University of Colorado in the Western
wheat region. A fourth land-grant college, Iowa
State University, has completed a pilot study and
will soon publish the final report on the use
farmers make of available information about the
construction and financing of farm homes.
Conference on Higher Education’s Role
in Housing and Urban Affairs
In November 1960, the Housing and Home Finance
Agency, in cooperation with The Brookings
Institution, called a Conference on Higher Education’s
Role in Housing and Urban Affairs. Representatives
of colleges and universities participated
in the sessions. The conference explored
ways of (1) stimulating academic research in housing
and urban affairs, and developing better lines
of communication between housing policy makers
on the one hand and university researchers and
teachers on the other, (2) broadening the educational
and training opportunities in the housing
and related fields in our colleges and universities,
and (3) attracting more students into planning to
make a career in either the housing or related
urban fields.
After two days of deliberation, the conferees
pointed to the need for more funds, public and
private, and for the more rapid training of manpower
to meet urban requirements, and reported
their feeling that this will require greater awareness
and understanding of the large stakes involved
in our urban civilization by citizens,
public officials, business and industry, and
academic leaders.
The group also favored continuation of such
conference meetings, to provide a clearinghouse
between educators as well as with public officials
and others, as a significant means of stimulating
and coordinating a greater volume of research and
personnel training for the needs of American
communities.
Inspections and Investigations
The Compliance Division of the Office of the
Administrator, the permanent and continuing inspection
and investigative arm of the Housing
and Home Finance Agency, made substantial
progress during its sixth year of operation in
carrying out its responsibility for the formulation
and execution of overall compliance policies for
enforcement of all housing regulations and the
Federal statutes relating to the housing programs.
The Compliance Division, through its staff in the
central office in Washington, D.C., and field offices
located in the cities of Atlanta, Chicago, Fort
Worth, Los Angeles, and New York, protects the
32
Representatives from 50 colleges and universities meet in Washington to consider the role of higher education in housing and urban
affairs.
public interest, as well as the interests of the
Housing and Home Finance Agency, its constituents,
and the participants in their programs.
In the discharge of this responsibility, the Division
supervises and directs the compliance program
to assure integrity and effectiveness of
operations and activties in all constituents of the
Housing and Home Finance Agency.
The annual dollar volume of the activities of
the various constituent agencies aggregated hundreds
of millions of dollars; and outstanding
assets or guarantees under general supervision of
the Agency at the close of the year were approximately
$46 billion.
During 1960 the inspection program of the
Compliance Division embraced the review on a
continuing basis of the agency-wide inspection
facilities and programs of the Urban Renewal
Administration, Federal National Mortgage Association,
Community Facilities Administration,
Public Housing Administration, and segments of
the Federal Housing Administration, to ascertain
the adequacy and effectiveness of such facilities
and programs in assuring integrity of operations
and compliance with governing legal and administrative
regulations, policies, and requirements.
The survey of the Federal National Mortgage
Association resulted in recommendations which
led to measures being taken by FNMA to bring
about a better understanding of its policies and
requirements in Puerto Rico and the resolution of
problems which had developed in that area, to
correct deficiencies in mortgage servicing operations
by branch affiliates of servicers, to eliminate
misleading advertising and irregular activities of
certain mortgage servicers, to eliminate delays in
inspections of multifamily properties being serviced
by FNMA, and to require prior FNMA approval
of acquisition of property by a servicer
who is servicing the mortgage in the interest of
preventing conflict of interests.
In keeping with prior survey recommendations,
the Community Facilities Administration has put
into effect simplified loan servicing procedures for
improving the efficiency of the loan servicing operation,
and has made mandatory the use of an
improved certification with respect to labor
standards.
Acting on recommendations of a Compliance
Division survey, the Urban Renewal Administration
instituted measures to check and correct noncompliances
with approved redevelopment plans
and grant and loan contracts in New York City.
Under consideration by management are survey
recommendations to obtain adjustments in sponsor's
payments where substantial deviations are
disclosed. Action was also taken to implement a
recommendation to reduce the time lag in clearing
project audit exceptions.
Pursuant to survey recommendations, the Federal
Housing Administration instituted several
revised procedures and requirements in its Certified
Agency Program to eliminate areas of vulnerability
and to establish improved control and
accountability. Action was also taken to clarify
and define situations which would involve a conflict
of interest.
Federal Housing Administration management
has under consideration several recommendations
which the Compliance Division has made following
a survey of the Title I Property Improvement
Program. These recommendations are concerned
with the need for stricter compliance with established
regulations and requirements governing the
33
making of loans and submission and payment of
claims and with the need for obtaining greater
cooperation by lenders to reduce irregularities and
abuse by participants in the program.
On January 1, 1960, the Compliance Division
had on hand 1,615 investigative cases. During the
year a total of 1,259 additional investigative matters
were received which related to all constituents.
Of this 2,874 total, final dispositions were made in
1,324 cases. Investigations were also completed in
755 of the remaining 1,550 cases. In connection
with these 755 cases, there remain only final determinations
by the interested constituent agency
and/or the Department of Justice as to the appropriate
disposition by administrative, criminal,
or civil actions.
An analysis of the 1,324 investigative cases
closed during 1960 revealed that administrative
action was taken involving 1,053 individuals or
firms. Some of these actions related to personnel,
others involved construction corrections, denial
of claims, and administrative determinations
which restricted participation of certain firms or
individuals in the Agency programs. Monetary
recoveries to the Agency, its constituents, and private
claimants exceeded $2,400,000.
In addition, refunds amounting to more than
$265,000 were made to housing corporations
(whose mortgages were insured by the Federal
Housing Administration) by stockholders and
others who had withdrawn such funds from the
corporations in violation of provisions of their
charters. Much of the basic information upon
which these recoveries were predicated was obtained
and developed by the investigative arm of
the Compliance Division.
Further analysis of cases closed (1,324) during
1960 disclosed that criminal prosecutions for violations
of the Federal criminal statutes resulted
in the following:
1. Number of persons or firms sentenced__ 135
2. Total years of sentences______________ 230
3. Fines imposed_______________________ $51,000
These convictions involved violations of the
Davis-Bacon Act, the National Housing Act, and
other Federal statutes relating to the programs
of the constituents. Available figures indicate
that United States attorneys, in connection with
Agency investigations and court proceedings, required
approximately 5 percent of each investigator’s
time.
The Compliance Division actively cooperated
and collaborated with other Government agencies
and organizations in matters of mutual interest.
It also served as liaison in behalf of the Housing
and Home Finance Agency and its constituents in
criminal matters with the Department of Justice
and other Federal, State, and municipal enforcement
agencies.
The activities of the Compliance Division have
had a salutary effect on all housing programs administered
under the Housing and Home Finance
Agency by substantially inducing incidents of
exploitation of the programs through unscrupulous
and unethical practices which, in the majority
of instances, were accomplished through
fraud and deceit.
The Security Office in the Compliance Division
is responsible for the administration of Executive
Orders 10450 and 10501 for the Office of the Administrator,
Community Facilities Administration,
Urban Renewal Administration, and the
Federal National Mortgage Association.
Executive Order 10450 sets forth the provisions
for maintaining a program to assure that the employment
and retention in employment of any employee
is clearly consistent with the interests of
national security.
Executive Order 10501 provides that knowledge
or possession of classified defense information
shall be permitted only to persons whose official
duties require such access in the interests of promoting
national defense and only if they have
been determined to be trustworthy. The Security
Office is responsible for the safeguarding of this
official information and determining that the
transmission, dissemination, custody, and disposal
of classified information is in accordance with
the provisions of this Executive Order.
In addition, the Security Office designates positions
as sensitive, initiates personnel investigations,
readjudicates cases on which new information
is received, evaluates investigative reports,
and recommends the suspension or termination of
any employee whose employment is not considered
to be clearly consistent with the interests of national
security. The Security Office cooperates
with the Civil Service Commission in the administration
of the security program by furnishing
information to be used in the documentation of its
Security Investigations Index.
The Security Office also coordinates the security
activities of the Office of the Administrator and
the constituent agencies in policy matters relating
to security.
During 1960, the Security Office reviewed and
evaluated 51 full-field investigations and 346 National
Agency Checks and Written Inquiries in
carrying out the provisions of Executive Orders
10450 and 10501. The information contained in
these reports of investigation was disclosed
through investigations conducted by the Civil
Service Commission and the Federal Bureau of
Investigation.
International Housing
In the year 1960 housing emerged as a recognized
element of importance in the economic and
social development of countries of low productivity.
The Office of International Housing traditionally
has supported the view that a housing
program is a requisite element of balanced economic
and social development.
34
In 1960, the President, members of the Congress,
the savings and loan industry, the building industry,
and others took strong positions favoring
action to improve housing conditions throughout
the world.
The 21 American Republics in the “Act of
Bogota” gave housing a high priority in the programs
for economic and social betterment in Latin
America. The Congress of the United States
authorized the U.S. Delegation at that Conference
to pledge a half billion dollars to a program which
among other things will help mobilize local financial
resources in each country as a means to improve
housing.
The Congress also directed the Development
Loan Fund to include housing in its objectives.
It has assisted Latin American governments in
the establishment of savings and loan institutions
which eventually should become an important
source of credit for housing in those countries.
The Assistant Administrator for International
Housing, among others, has recommended greater
use of the local foreign currencies paid to the
United States for the sale of Government-owned
farm products for financing housing and community
facilities.
A strong influence to cause housing to rise in the
priorities scale for economic and social development
has been the general recognition that people
are no longer willing to tolerate poor housing and
squalor. Housing programs can facilitate social
and economic progress by democratic methods.
An understanding of this ferment of social
philosophy is a necessary background to a proper
evaluation of the day-to-day routine activities of
the Office of International Housing. These activities
.involve such services as exchanging information
to the advantage of U.S. industry and
Government as well as foreign countries; enabling
U.S. citizens to meet their professional counterparts
when they visit abroad; serving as the foreign
office for the Administrator in carrying out
technical aspects of international policy in collaboration
with the Department of State; providing
technical support and training services under a
letter of agreement with the International Cooperation
Administration; and serving as host and
providing guidance to many professionals whose
visits to this country are unsponsored by either
the United States or international organizations.
One hundred and seventy-two U.S. citizens who
traveled abroad in 1960 met foreign professional
persons and housing and planning officials
through introductions provided by the Office of
International Housing. In this manner OIH has
widened the two-way street for the exchange of
technology, policies, and practices between the
United States and other countries.
On request of several U.S. embassies and missions,
this office informed pertinent trade associations
of business opportunities in the field of
housing. It also has made available to U.S.
industry and professional people information on
foreign developments in the field of housing and
planning. In many cases such information has
been made known through direct communication
and in others through the acquisition of documents
which are available in the HHFA Library and
reported in Housing References which has wide
distribution.
OIH has responded to 949 requests from U.S.
sources and 513 from foreign sources for information
on United States and foreign housing,
planning, and technology. Reports or publications
are often prepared on housing finance, technology
and planning, particularly to meet the
needs of housing advisers stationed in less developed
countries by the ICA. For example, and not
included in the above data, OIH has distributed
two publications, 1,600 copies of Planned Industrial
Parks and 375 copies of the Tennessee 1 alley
prepared for the 1960 World Housing and
Planning Congress by the Department of Commerce
and Tennessee Valley Authority, respectively,
and published by the HHFA and ICA.
Another publication in the Ideas and Methods
Exchange series produced by OIH on establishing
savings and loan associations in less industrialized
countries is proving useful in connection with the
promotion of such associations abroad. Other
publications in this series on aided self-help housing,
simple building materials, etc., have been in
continuous demand. Also in 1960 technical films
have been loaned to 17 United States and 10 foreign
borrowers.
An article on housing in the United States was
prepared jointly with the American Institute of
Architects for publication in Habitation, a European
professional magazine. Another article was
prepared on the “Programs of the Housing and
Home Finance Agency and Their Relation to
Housing Research in the United States” for use in
the bulletin of the International Council for
Building Research Studies and Documentation.
Reports for various United Nations Bodies have
been prepared by HHFA; some in the Office of
International Housing, others, on request of OIH,
by the Office of Program Policy, Office of General
Counsel, and the Urban Renewal Administration.
Of particular note is a study on capital funds
for housing in the United States printed in English
for use of the U.N. Economic Commission
for Europe (Housing Committee). It was also
printed in French for use of the International Cooperation
Administration. Two reports on urban
renewal were submitted to the ECE in preparation
for a June 1961 symposium on that subject.
A paper on technical developments in rural
housing in the United States, and reports on housing
conditions in the United States and on other
topics were also submitted to ECE. A background
paper was prepared in OIH on improvement
of rural housing through cooperative
action in Puerto Rico for distribution at the con35
current Organization of American States and
I nited Nations Food and Agriculture Organization
Conference on Agriculture in Mexico. Material
also was developed for incorporation in
various U.S. Government reports to the United
Nations concerning human rights, the world
social situation, and related topics. News Notes
were issued five times in 1960 to keep specialists
informed on international housing and planning
both in the United States and abroad. This news
of housing and planning covers international organizations,
housing developments abroad, foreign
visitors to the HHFA including ICA
participants, and personal items concerning people
in this field of work. Sometimes new materials or
construction methods are highlighted for the attention
of readers, especially the U.S. housing advisers
stationed abroad.
On request of the Department of State, OIH
during 1960 drafted seven position papers, i.e., instructions
to U.S. delegations at international
meetings. In addition, it has written various informational
background papers for the use of such
delegations and has shared in preparation of other
position papers primarily charged to other
agencies.
The Assistant Administrator was Chairman of
the U.S. Delegation at the Housing Committee of
the United Nations Economic Commission for
Europe. He was supported by two representatives
of private industry and the International Housing
Economist of OIH (Director of the Division of
International Organizations Affairs) as advisers.
The Senior Economic Officer of the U.S. Resident
Delegation was the political adviser on the Delegation.
The Regional Administrator, HHFA Region
II, was an observer at the meeting.
This meeting was followed by an ECE sponsored
study tour of Scandinavia which proved
fruitful to the entire U.S. Delegation. The Assistant
Administrator while overseas also attended,
as representative of HHFA, the
Executive Committee meeting of the International
Council for Building Research Studies and
Documentation. While attending foreign meetings
or on consultations, Agency staff members
often observe and exchange information with
other countries. In 1960 the following countries
were visited in this way: Belgium, Denmark, England,
France, Germany, Netherlands, Poland,
Russia, Sweden, and Yugoslavia.
The International Housing Architect of the
OIH Staff (Director of the Division of Documentation)
served as U.S. Delegate at the Bangkok
Meeting of the Working Party on Housing and
Building Materials of the United Nations Economic
Commission for Asia and the Far East.
He also met in Geneva with rural housing rapporteurs
of ECE on his return from Bangkok.
The Deputy Administrator was a member of the
U.S. Delegation to the International Labor Conference
where housing was an important topic.
The Director of the OIH Division of Technical
Services began a 5-month reimbursable detail
to the Housing, Building, and Planning Branch
of the Secretariat of the United Nations in New
York.
Technical support to the International Cooperation
Administration required less office time in
1960 than previously but much more time was
given to overseas details of HHFA personnel.
Staff members of OIH have served on nonreimbursable
details for a few days or weeks at a time
to Guatemala, Ecuador, Nicaragua, and Tunisia.
In addition, the Comptroller of Federal National
Mortgage Association was on an ICA reimbursable
detail in Chile and the HHFA Budget Officer went
to Colombia on a nonreimbursable detail. The
Chief of Operations of the Federal Housing Administration
in Puerto Rico served on the ICA
housing program in Guatemala, a Special Assistant
in the Urban Renewal Administration began
a reimbursable detail to Yemen, and an
Assistant to the Administrator served on a nonreimbursable
detail to Panama. A foreign group
which had attended the World Housing and Planning
Congress in Puerto Rico was escorted
through the Eastern States and to Montreal,
Canada by the Administrative Officer.
During 1960 a total of 16 training officers and
4 technicians en route to overseas ICA assignments
have been briefed by OIH on pertinent aspects of
housing and planning.
OIH organized the observation and educational
programs for 44 individual ICA participants from
overseas. These professional visitors included
high level officials as well as graduate and undergraduate
university students. There were also
76 visitors traveling as members of 10 ICA teams.
These were mostly highly competent professional
and administrative persons from whom much was
learned concerning techniques, policies, etc., in
their own countries. Industrialists whom they
visited often gained as much as they gave. There
also were 12 United Nations Fellows whose program
costs to HHFA are covered by ICA and 37
ICA financed visitors handled primarily by other
agencies but for whom OIH rendered professional
services. The foreign visitors to OIH supported
by ICA and United Nations thus totaled 169 .
Another 280 visitors, some in team groups, some
as individuals, came under the auspices of the International
Exchange program of the Department
of State, as fellows of private philanthropic funds,
as representatives of their own governments or in
an entirely private capacity. All looked to the
Housing and Flome Finance Agency for insights
into American technology and business methods.
They especially sought clues to the success with
which the free enterprise system working effectively
under Government stimulus has provided
ever improved housing for the American people.
36
Community Group Relations
The broad scope of Federal housing and urban
development programs over the years has been of
active concern to a wide range of national public
interest organizations. Community Group Relations,
located in the Immediate Office of the Office
of the Administrator, provides a central focus for
(1) presenting and interpreting the programs and
policies of HHFA in order to stimulate the participation
of national groups and their local segments
in helping communities achieve the full
potentials of Federal housing and urban development
programs, and (2) for benefiting from the
viewpoints and advice of national leaders, especially
regarding the sociological and human impacts
of Federal programs on the community, the
family, and the individual.
During 1960 the Administrator met twice with
his Public Interest Advisory Committee consisting
of 26 national representatives of welfare, labor,
minority, veterans, religious, women's, housing
and educational organizations. Such committee
meetings provided a major channel for securing
the advice of national leaders regarding steps to
increase the effectiveness of existing programs and
in undertaking new programs in a manner that
would best serve the American people. In addition,
the Administrator continued his practice of
conferring frequently with small groups and individuals
concerning special programs and aspects
of various Agency operations.
In mid-year, the Administrator gave the opening
address at a week-long Seminar on Housing
for Older People, held at Lake Mohunk, N.Y., and
sponsored by the National Committee on Aging
of the National Social Welfare Assembly. The
Seminar brought together national leaders from
the housing, architectural, planning, social welfare,
and other similar fields for intensive study of
housing for the elderly. He also addressed the
Housing Session of the Churchmen’s Washington
Seminar, laying stress on human aspects of urban
renewal and community improvement programs,
and the significant role churches can play in their
localities. During the year he served as a member
of the President’s Council on Youth Fitness, with
his Assistant giving staff level cooperation on the
Inter-Agency Advisory Group.
Community Group Relations assisted in coordinating
the participation of HHFA and its constituents
in the 1960 White House Conference on
Children and Youth. Among other important
subject areas, the Conference dealt substantially
with the potentials of Federal housing and urban
programs in helping provide a healthy environment
for children and their families. HHFA’s
cooperation embraced preparation for the Conference
as well as subsequent follow-up activity, including
participation in a special Conference with
State Commissions on Children and Youth.
During the year consultative assistance was
given the Joint Committee on Housing and Welfare,
sponsored by the National Association of
Housing and Redevelopment Officials and the National
Social Welfare Assembly. The Community
Relations Assistant also served as a member
of the American Public Welfare Association’s
Committee on Aging, and the National Social Welfare
Assembly’s National Committee on the Aging.
In addition, the office provided official representation
of HHFA at the Fifth National Convention
of the Girl Scouts of U.S.A., held in November
at St. Louis, Mo. The year’s activities also included
technical assistance on housing to the Community
Organization and Social Services Planning
Committees in preparation for the 1961 M hite
House Conference on Aging. From time to time,
several special articles and papers interpreting
Federal housing and urban renewal programs were
either presented at national organizational conferences
or published in their official journals.
In conjunction with the Agency's Office of International
Housing, a special housing workshopwas
arranged for a group of outstanding women
leaders from several foreign count rifes to learn
about U.S. Federal housing and urban renewal
programs and how community groups in the
United States concerned themselves with these
programs in their localities. These international
leaders were visiting the United States under the
sponsorship of the Women’s Division of Christian
Service of the Methodist Church.
Throughout the year, numerous conferences
were held with individuals representing graduate
schools of social work, private foundations, and
community agencies undertaking special studies
designed to strengthen community aspects of Fecleral
housing and urban renewal programs.
Intergroup Relations
A significant aspect of Intergroup Relations
activities this year has been the implementation of
equal opportunity in housing.
New specific requirements with regard to the
citizen participation element in the Program for
Community Improvement now include the appointment
of citizen advisory committees, community-
wide and representative in scope, in local
communities participating in this program. Several
years of experience with the urban renewal
program has revealed that those communities
which include minority representatives among
their citizen advisory groups have been most
successful in assuring full consideration of their
needs and understanding cooperation in carrying
out the community’s plans.
Purchasers of land in urban renewal areas in
States and localities that have laws forbiddingracial
discrimination in housing were notified of
HHFA policy requiring full compliance with
such statutes. Local redevelopment agencies in
States forbidding discrimination in housing be37
cause of race, creed, color, or national origin present
formal notice citing the applicable laws to
prospective redevelopers and developers of urban
renewal project land and they are expected to conduct
their operations in conformity with State
and local law or risk refusal of UBA to concur in
the disposition of any other project land to that
developer.
Policies calling for the rental and sale of all
acquired properties without distinction as to race,
creed, or color have been strengthened by requiring
that all brokers handling these acquired properties
and the public be informed of their availability
through the establishment and maintenance of a
current inventory of all such properties.
Programs for providing adequate housing for
elderly families and individuals at substantially
lower rents are being supplemented by a program
of direct loans for housing for the elderly. Eligibility
criteria with respect to occupancy standards
require that the borrower establish occupancy
standards which extend equal opportunity to all
regardless of race, creed, color, or national origin.
The ILS. Housing Administrator and his intergroup
relations personnel met often with representative
groups of minority and minority-interest
organizations, and exchanged views with key
officials of principal real estate, newspaper, building,
lending and related groups on housing and related
policies and activities. They made numerous
field visits and discussed with public officials at
national and regional organization meetings, conferences,
clinics, workshops, etc., the Agency’s
housing and urban renewal program.
Minority group representation among the membership
of the various Agency advisory committees
offered to the Administrator the benefit of
their collective experience and viewpoint in Agency
plans and programs.
At different times during the past year some of
the Nation’s foremost authorities and researchers
in intergroup relations have given to the Agency
the benefit of their thinking and ideas on the many
aspects of human relations in our changing urban
life with special consideration of intergroup
relations.
HHFA is aware that Federal aid cannot
achieve its objective of benefiting all the people
without positive citizen cooperation in the community.
It is believed that educational institutions
can give invaluable civic leadership assistance
in getting community understanding of the
practical, working problems of various programs
as they affect the living standards of the people
in the community. In this connection, the U.S.
Housing Administrator with the assistance of
Intergroup Relations and key Agency personnel
met with educators from Negro colleges located in
the South, Southwest, and Midwest to discuss
ways to develop leadership in local housing and
urban renewal activities. The Agency conferred
also with educational leaders from colleges and
universities throughout the country to discuss
ways to provide more trained brainpower for the
housing and urban field.
Because of the interest in and need for pointingup
the preparation, guidance, and counseling of
qualified Negro college graduates for increased
career opportunities in the government service, the
Intergroup Relations staff brought together in a
conference key governmental agency leadership,
including that of HHFA, and presidents, deans
and placement officers of many southern colleges
to explore the approaches to more active participation
by college graduates in government career
service.
Reaffirming the policy of the Government that
equal opportunity in employment can be afforded
all qualified persons and, by way of further implementation
of this policy, qualified inter group relations
personnel are now serving in professional
and technical positions throughout the Agency.
Steps toward increasing equal opportunity of
qualified nonwhites into employment opportunities
not only in HHFA programs but in the field
of housing are being taken in current HHFA
Housing Intern Programs. The program has
been extended to some predominantly Negro colleges
and universities throughout the South for the
purpose of interesting qualified students to become
applicants for the Housing Intern group annually.
Several such colleges and universities have been
visited and told in detail about the program and
its career opportunities. Intergroup relations personnel
has assisted in the conduct of recruitment
interviews of prospective graduates at several of
the educational centers of the South to stimulate
their participation in the Housing Intern Program.
The past year saw the increased participation
of Negro college graduates in this Intern
Program.
There is substantial evidence that all segments
of the population are sharing in the benefits of our
housing progress. Intergroup relations is consistently
studying and analyzing new and more
effective approaches to its operations and how it
can better serve the minority group segment of the
housing market .
38
Section 2
The Voluntary Home Mortgage Credit Program
In establishing the Voluntary Home Mortgage
Credit Program in the Housing Act of 1954, the
Congress wrote that it would be the function of
the VHMCP to “facilitate the flow of funds for
residential mortgage loans into areas or communities
where there may be a shortage of local
capital for, or inadequate facilities for access to,
such loans, and to achieve the maximum utilization
of the facilities of private financing institutions
for this purpose by soliciting and obtaining the
cooperation of all such private financing institutions
in extending credit for insured or guaranteed
mortgage loans wherever consistent with
sound underwriting principles.”
Remoteness from the centers of mortgage capital
has always created difficulties in providing
mortgage funds for home buyers in small towns
and cities. Difficulty has also frequently attended
efforts of members of minority groups, even in
larger places, to obtain the considerations generally
available to other home borrowers. A more
equitable flow of mortgage funds to credit-short
areas, minority groups, and specific housing programs
designed to improve the living conditions
of all the people has often been hampered by an
unawareness of these needs by private sectors of
the economy due to the lack of a specific force to
focus attention upon them. The VHMCP was
created as a practicable method to help overcome
these difficulties.
The VHMCP operates as a nationwide mortgage
clearinghouse. It is a joint industry-
Government program undertaken as a part of a
broad effort to extend to all qualified homeseekers
the benefits of Government-insured and -guaranteed
loans. The program is designed to bring
together potential borrowers, who are unable to
obtain VA and FHA financing from local sources,
with lending institutions all over the country
which have indicated a willingness to lend in the
specific places and programs covered by the
VHMCP. The VHMCP affords Government and
free enterprise the opportunity to work hand in
glove in focusing attention upon the needs of previously
neglected groups of people and areas of
the housing market and in stimulating private
lending institutions to provide mortgage financing
to help meet those needs.
During the first 5 years of program operations,
the VHMCP’s mortgage assistance has been confined
to locating private mortgage financing for
people in small communities and for any kind of
housing available to minority groups regardless
of location. The year 1960 offered a new challenge
to the VHMCP in its role of alerting, educating,
and stimulating private lending institutions to
provide mortgage financing to specific groups and
programs. VHMCP extended its activities to include
the function of encouraging the private lending
industry to provide financing of mortgages
eligible under FNMA's Special Assistance Programs—
with particular emphasis on urban renewal
relocation and residential housing.
The Federal Government, through the Housing
and Home Finance Agency, provides the staff and
machinery by which the lending activities of the
private institutions participating in the program
are made possible. There is no charge for
VHMCP assistance. The program itself has no
mortgage money, makes no commitments, and
closes no loans. Its sole function is to get a borrower’s
loan application into the hands of a
private lending institution.
The program’s activities are carried on under a
National Committee, which establishes operating
policies and maintains general supervision of the
program. This Committee consists of the HHFA
Administrator as Chairman and representatives
of the various industry groups and trade associations
involved in housing and mortgage finance,
with advisory members from Government agencies
in the field. The program operates through seven
regional committees, made up of representatives
of the same industry groups and trade associations,
which supervise activities in their respective
regions. The Executive Secretary of the National
Committee is charged with the administration of
the program. Each committee has a small staff,
and committee members serve 2-year terms of office
on a voluntary basis.
During the calendar year 1960 the program had
regional offices located in the following cities:
Region I in Washington, D.C.; Region II in
Atlanta, Ga.; Region III in Nashville, Tenn.;
Region IV in Chicago, Ill.; Region V in Dallas,
Tex.; Region VI in Denver, Colo.; and Region
VII in San Francisco, Calif. The following map
of the United States shows the area served by each
Region.
Functioning of the Program
Under the Housing Act of 1954, all applicants
must certify that application has been made to at
least two private financing institutions to obtain
FHA-insured or VA-guaranteed loans, and that
their applications have been rejected. The
VHMCP’s national committee sets certain standards
of eligibility for assistance under the
program.
39
•MT > W- ■Li S'/-!'-'-? jTSS0Bia>,~ .oaMutflMHMBUaMMMMCMW .
VHMCP REGIONAL COMMITTEE BOUNDARIES
0 REGIONAL COMMITTEE OFFICES
Small Community and Remote Area Aspect.—
The program operates primarily to assist builders
and home buyers without regard to race, creed,
or color, in small communities of the United States
and Territories of Guam, Puerto Rico, and the
Virgin Islands. Assistance is available only in
areas declared eligible by the National and Regional
Committees. Thus, most VA direct loan
areas are eligible for assistance as are other communities
of less than 25,000 population (1950
Census) where financing facilities are deemed inadequate
by the Regional and National Committees.
Flexibility in these requirements is
maintained to prevent arbitrary exclusion of
needy areas. Financing assistance is rendered
only for one- to four-family owner-occupied units.
Minority Group Aspect.—Members of minority
groups are eligible for VHMCP assistance without
regard to geographical considerations, when they
are unable to obtain mortgage financing on terms
comparable to those offered others. Assistance
may be given to individuals and builders in obtaining
FHA-insured and VA-guaranteed mortgage
financing for any type of housing available
for occupancy by members of minority groups.
FNMA Special Assistance Aspect.—The program
encourages maximum participation by
private lending institutions in providing financing
for all mortgages eligible for FNMA Special Assistance.
These include cooperative housing, Section
213; housing in urban renewal areas, Section
220; relocation housing for families displaced by
urban renewal activity or other governmental actions,
Section 221; and housing for the elderly,.
Section 231. Special emphasis is placed on urban
renewal residential and relocation housing. Private
lending institutions participating in VHMCP
are urged to set aside a portion of their loanable
funds for the express purpose of financing these
programs. In communities where Section 220 and
Section 221 housing is being developed, VHMCP
staff and committee members work with city officials
and local lenders to arrange pools of mortgage
credit for urban renewal residential and relocation
housing. Sponsors of cooperative housing
projects, elderly housing projects, and urban
renewal residential and relocation housing projects
are eligible for VHMCP’s assistance in locating
funds for their projects. Individuals,
displaced by slum clearance in urban renewal
areas, or by highway construction, or by other
governmental actions, are aided by the program
in locating mortgage financing for other homes.
Builders of relocation housing and urban renewal
residential housing are assisted by VHMCP in
obtaining commitments from private lenders to
build such housing.
The VHMCP renders no assistance in financing
farms, summer homes, boarding or rooming
houses, commercial properties, home improvements
40
or repairs (except urban renewal housing), or in
refinancing existing mortgages.
Under the program, all loans are macle by
private lending institutions with their own lending
standards. All usual expenses of processing, as
distinguished from the program’s referral process,
are borne by the lender. Loans are negotiated
directly by the lending institutions with the borrowers.
The VHMCP merely brings the two
together.
Program Activity
During 1960, the VHMCP made possible the
investment of many millions of dollars of private
funds in credit-short areas. The volume of applications
received in January and February was
subject to the usual seasonal decline characteristic
of the housing industry for those months.
A slight increase in volume began in March and
continued through the high-volume month of August,
followed by a gradual decrease through
December. In 1960, the program received a
total of 17,878 applications for assistance, compared
with 21,699 received in 1959 and 12,933 in
1958. Of this number, 52 were from builders and
17,826 were from individual applicants; 1,174 of
the individual applications were screened out by
regional offices because of the poor quality of the
property.
A total of 4,686 loans, amounting to approximately
$55 million, were placed through the program
in 1960. Of the total number of loans placed
during 1960, there were 3,151 in response to applications
from individual applicants and 1,535
were in response to applications from builders.
Of this total, 4,446 loans, or 95 percent, were
FHA-insured and 240 loans, or 5 percent, were
VA-guaranteed.
From the beginning of the program through
December 31, 1960, a total of 146,737 applications
were received, resulting in 45,343 loans representing
a cumulative dollar investment by private
lenders of approximately $457 million.
The total number of loans placed through the
VHMCP has not been large in terms of the national
volume of mortgage lending, due primarily to
the sectors of the market to which program operations
are confined. However, the VHMCP’s overall
effect has been a stimulation to the housing
market in small towns and to minority housing
where past lack of financing has stifled the demand
of qualified borrowers for better housing.
The major beneficiaries of the program have
been families of moderate means who buy lowpriced
homes. Persons having incomes of between
$4,000 and $7,000 a year have obtained 48.5 percent
of the home mortgage loans made through the
VHMCP. Of the total number of dwellings purchased.
with VHMCP placed loans, 64.8 percent
were for homes ranging in price from $7,000 to
$13,000. These middle incomes and home pur-
A modern home in Ketcham, Idaho, which owes its existence to
financing arranged through the Voluntary Home Mortgage
Credit Program.
chase prices relate in part to the areas of the program’s
operation in which such conditions are apt
to be more prevalent than in other geographical
areas and population segments of the housing
market.
The purposes of the loans which have been
placed under the program also indicate that the
program has been providing the type of home
financing which, generally, is difficult to obtain
through normal channels, and would be most difficult
to obtain in small communities or by minority
group members. Forty percent, or 17,926, of the
loans placed under the program have been loans to
individuals for homes to be constructed for, or by,
themselves. There is a great demand for these
loans in small communities, but they are generally
very hard to arrange. Forty-six percent, or 20,658,
of the loans placed under the program have been
for the purchase of existing, previously occupied
homes, and 15 percent for the purchase of existing,
not previously occupied homes.
Through December 31, 1960, the program has
placed 9,565 loans, amounting to approximately
$100 million, for individual members of minority
groups in metropolitan areas. In addition to the
9,565 owner-occupant minority loans placed
through VHMCP in metropolitan areas, the program
has arranged financing for 4 project loans,
so that 634 minority families could live in rental
units.
The terms of the loans obtained for members of
minority groups have been at least as favorable
as the terms prevailing in the regular mortgage
market. One of the salutary byproducts of the
VHMCP is the growing acceptance of the fact
that loans to minorities are safe investments.
Through the VHMCP, private lenders have discovered
that the delinquency rate is as low for
well-checked loans to minorities as for loans made
to the general public.
The VHMCP has already achieved tangible results
from its new role of encouraging maximum
private financing of mortgages eligible for FNMA
Special Assistance. By mid-1960, private lending
41
institutions participating in VHMCP were being
urged to set aside a portion of their loanable funds
for the express purpose of financing Sections 220
and 221 mortgages. VHMCP staff and committee,
members began working with Mayors’ Advisory
Committees on Urban Renewal Financing in communities
in which Sections 220 and 221 housing
was being developed in order to stimulate private
financing of these mortgages. Additionally,
VHMCP began working with local lenders in
these communities to arrange pools of mortgage
credit for Urban Renewal residential and relocation
housing. For example, in Nashville, Tenn.,
six savings and loan associations agreed with
VHMCP to buy and hold, at a price of 9U/2, at
least $1 million of 40-year 5% percent mortgages
insured under FHA Section 221. This is the same
price the builder would be getting from FNMA
Special Assistance. By December 31, 1960, this
group had issued commitments for 90 loans, totaling
$788,500, at an average loan amount of $8,760.
Of this number, 11 loans were for existing dwellings
and 79 were for dwellings to be constructed.
Thirty-three of the loans were made to members
of minority groups. The average income of the
borrowers was $4,000. Similar arrangements are
in the making in other cities of the country.
More than 22,600 of the loans made under the
program have been for veterans. During periods
when the VA interest rate was competitive, the
program was successful in placing VA-guaranteed
loans for veterans in credit-short areas.
In 1960, the VA-guaranteed mortgage, with its
fixed interest rate of 5% percent, was unable to
adjust itself to credit and capital conditions.
Participating private lenders were reluctant to
make VA loans under the program at an interest
rate not competitive with other forms of investments.
In an effort to satisfy the mortgage financing
needs of veterans applying to the VA for
direct loans, the VA advised veterans on direct
loan waiting lists that FHA financing was available
to qualified borrowers through the VHMCP.
This procedure proved quite successful, particularly
in areas where there were long waiting lists.
The unattractiveness of the VA-guaranteed
mortgage interest rate, coupled with a stringent
money market during the major portion of 1960,
caused a decline in VHMCP's volume of loan
placements to the lowest level since the program
began. The following statistical breakdown of
loans made under VHMCP shows the trend by
type of loan application for the 6 years of program
operations:
Note.—The statistical data in this report of actual loans made under
VIIMCP have been adjusted to reflect attrition.
1 This total does not include 503 conventional loans, obtained by veterans
who initially requested VA loans through the VHMCP.
2 This figure does not include the loans made to minority-group families
in small communities where statistics do not distinguish between minority
and nonminority categories.
Year VA
VA
minority
VA
direct
Total
VA, VA
minority,
and VA
direct
FHA
FHA
minority
Total
FHA,
FHA
minority,.
VA, VA
minority,
and V A
direct
Total. . 7,683 3,810 11,117 i 22,610 16,974 2 5, 759 45,343
1955______ 1,526 925 4, 522 6,973 695 432 8,100
1956______ 3, 936 2,172 5, 003 11.111 1,298 532 12,941
1957______ 1,622 402 1.516 3, 540 2, 862 1,000 7,402
1958______ 149 57 8 214 4. 354 1,541 6,109
1959______ 263 205 64 532 4, 378 1,195 6,105
1960______ 187 49 4 240 3,387 1,059 4,686-
Participation of Lenders
The majority of the loans made under VHMCP
in 1960 continued to be made by life insurance
companies. However, the number of loans made
by savings and loan associations was nearly five
times the number made by that group in 1959.
This was brought about through an educational
program carried out by the savings and loan association
trade groups among their membership.
Surveys indicate that participating financial institutions
are expanding their lending operations
in the areas they served for the first time through
VHMCP.
It should be remembered that the Voluntary
Home Mortgage Credit Program is a residual
program—a last resort for obtaining loans which
are not available locally. For this reason, the
program must rely on financial institutions operating
in the national mortgage market.
The following statistical breakdown shows the
distribution of loans, by type of lender, for each
of VHMCP’s 6 years of operations:
Period of operation
Savings and
loan association
Commercial
banks
Life insurance
companies
Mutual
savings banks
Mortgage
companies Other Not reported Total
1955 ... _____________________________ 211 90 7,556 130 113 0 0 8,100
Percent of total . 2. 6 1.1 93.3 1.6 1. 4 0 0 100.0
1956 _____________________________ 323 56 12.126 229 199 7 1 12. 941
Percent of total . . 2.5 0. 4 93.7 1.8 1.6 0 0 100.0
1957 _____________________________ 569 416 6.124 182 109 2 0 7,402
Percent of total . ... 7. 7 5. 6 82. 7 2.5 1.5 0 0 100.0
1958 ... _____________________ 465 617 3. 742 610 675 0 0 6.109
Percent of total. 7.6 10.1 61.3 10.0 11.0 0 0 100. 0
1959 .. ... ____________________ 175 652 3. 571 1,602 103 0 2 6.105
Percent of total _ .... 2.9 10.7 58.5 26.2 1. 7 0 0 100. 0
1960 ________________ 772 94 3,388 112 320 0 0 4, 686
Percent of total . ___ 16.2 2.0 72.7 2.4 6.7 0 0 100. 0
Cumulative ____... 2, 515 1,925 36, 507 2, 865 1,519 9 3 45. 343
Percent of total_______________________ 5.5 4.2 80.6 6.3 3.4 0 0 100.0
42
Conclusion
During its 6 years of operations, the Voluntary
Home Mortgage Credit Program has demonstrated
that private lending institutions, suitably
organized, can help satisfy the mortgage financingneeds
of people cut off from the regular flow of
mortgage credit. Through an intensive effort on
the part of industry groups participating in the
program and by the program’s small staff, the industry
was organized and mobilized for the extremely
difficult task of channeling funds into
previously neglected areas. Many in the country
who never before had access to the loan insurance
and guarantee programs of the Federal Housing-
Administration and the Veterans’ Administration
have been able to obtain loans of these types on
terms as liberal as are available to those in areas
with adequate financing facilities.
43
Section 3
Community Disposition Program
Sale of Government-owned residential and commercial
properties at the Atomic Energy Commission
installations of Oak Ridge, Tenn., and Richland,
Wash., as authorized by Public Law 221,
84th Congress and Executive Order 10657, continued
during the year. In addition, in March
I960, the Housing and Home Finance Administrator
transferred from the Public Housing Administration
to the Director, Community Disposition
Program, responsibility for liquidating the
remaining war and emergency housing properties
held by the Administrator. These properties
range from entire projects to individual houses
in scattered locations throughout the entire
country with a present value of $2% million.
Sales Activity
The last of 9,166 Government-owned singlefamily
and duplex houses in Oak Ridge and Richland
was conveyed to private ownership in 1960.
Sales of all remaining improved commercial properties
in Oak Ridge were completed or in the
process of closing by the end of the calendar year.
Two large apartment developments in Oak Ridge
were sold by competitive sealed bid in May 1960.
Forty additional improved commercial properties
at Richland were sold during the year. At the
year’s encl, all but 400 of the 11,750 properties at
'Oak Ridge and Richland had been sol(I. These unsold
properties are appraised at $4,500,000.
Activity in the liquidating emergency program
consisted of negotiating contracts for up-to-date
appraisals on the properties in the inventory,
entering into listing contracts with brokers for the
sales, accepting applications to purchase, and
closing of sales. At Norwayne, Mich., a contract
was let for the reconditioning of 18 buildings;
engineering inspections were made and specifications
drawn for reconditioning of an additional 41
buildings.
Preparations were made for offering for sale
early in 1961 of a project of 180 dwelling units
at Mineral Wells, Tex.; and for the closing of the
sale of 75 acres of land acquired by the Administrator
in Richmond, Calif., to the local Redevelopment
Agency.
Financing of Sales
Liquidating emergency properties have been
listed for sale generally for 10 percent down and
A war housing project at Mineral Wells, Tex., scheduled for sale under the Community Disposition Program.
44
a mortgage for the balance of the purchase price.
An agreement was reached with the Federal National
Mortgage Association to purchase all mortgages
acquired in these sales.
At Oak Ridge and Richland, purchase money
mortgages acquired in the sale of residential properties
bear interest at the prevailing Federal
Housing Administration interest rate at the time
the mortgage transaction was completed. In addition
to payments on principal and interest, the
FHA-insured mortgages include the charge for
FHA mortgage insurance premiums and, where
applicable, the service charge permitted under
FHA regulations for smaller mortgages.
More than $27 million in individual home-owner
mortgages were acquired by Housing and Home
Finance Agency in the sale of single-family and
duplex houses at Oak Ridge and Richland. Sales
of these mortgages to lending institutions continued
during 1960 and, by the end of the year, only
$4 million of mortgages on single-family and
duplex houses were held by HHFA. To date, all
mortgage sales have been at par or better.
In order to facilitate the sale of commercial
properties, HHFA financing was extended to
priority purchasers up to 90 percent of the purchase
price and to successful bidders in bid sales
up to 85 percent of the bid amount. Eighteen
mortgages in this category, totaling $677 thousand,
were acquired during 1960.
Budget Program and Repayment of Federal
Investment
The budget program assumes that it will be
possible to dispose of all properties now held in
the inventory and all mortgages by June 30, 1962.
The following table shows the estimated value
of Government investment at Oak Ridge and
Richland after giving effect to allowable statutory
credits.
Estimated value of Government investment (dollars in
thousands) :
Total appraised value of properties to be disposed
of___________________________ 203
Appraised value of single-family and duplex
houses subject to 15 and 10 percent discounts_____________________
$62, 189
Statutory discounts allowable------------------ 15, 546
Estimated credits for tenant improvements- — 1, 937
Net estimated value of Government investment________________________
62,720
In accordance with the requirements of Public
Law 221, the resources of the disposal operations
shall be paid as liquidating dividends to the Treasury.
The following dividends have been paid or
are scheduled for payment into miscellaneous receipts
of the Treasury:
Fiscal Year 1957—Actual____________ $6 million
Fiscal Year 1958—Actual____________ 16 million
Fiscal Year 1959—Actual____________ 20 million
Fiscal Year 1960—Actual____________ 8 million
Fiscal Year 1961—Estimate--------------- 5 million
Fiscal Year 1962—Estimate---------------- 7% million
45

Federal Housing
Administration
part
■ ■ ■
III
Federal Housing Administration
Under authority of the National Housing Act of June
27, 1934, as amended, the Federal Housing Administration
operates housing loan insurance programs designed to
encourage improvement in housing standards and conditions,
to facilitate sound home financing on reasonable
terms, and to exert a stabilizing influence in the mortgage
market. The FHA makes no loans and does not plan or
build housing.
As provided by the President’s Reorganization Plan
No. 3 of 1947, the FHA is a constituent agency of the
Housing and Home Finance Agency.
The various FHA insurance programs in effect in 1960
are summarized below.
TITLE I
Section 2 of Title I of the National Housing Act
authorizes the FHA to insure qualified lending institutions
against loss on loans made to finance the alteration,
repair, improvement, or conversion of existing structures
and the building of small new nonresidential structures.
FHA liability is limited to 90 percent of loss on individual
loans and to 10 percent of all Section 2 loans made by an
institution.
TITLE II
Section 203(b) of Title H authorizes the insurance of
mortgages on new and existing 1- to 4-family dwellings.
Maximum mortgage amounts are $22,500 on a 1-family
dwelling. $25,000 on a 2-family dwelling. $27,500 on a 3-
family dwelling, and $35,000 on a 4-family dwelling.
Section 203(h), added to the Act in 1954, authorizes
the insurance of mortgages in amounts up to $12,000 and
up to 100 percent of value, on single-family homes to
replace homes damaged or destroyed in major disasters.
Section 203(i), added in 1954, authorizes the insurance
of mortgages in amounts up to $9,000 on single-family
dwellings for families of low and moderate income, particularly
in suburban and outlying areas. From 1950 to
1954. similar authority was provided in Section 8 of Title
I. FHA insurance of mortgages in amounts up to $9,000
on farm properties is also authorized under Section 203 (i).
Section 207 authorizes the insurance of mortgages,
including construction advances, on rental housing projects
of eight or more family units, and on mobile home
courts.
Section 213, added to Title II in 1950, authorizes the
insurance of mortgages on cooperative housing projects
of eight or more family units. This section also authorizes
the FHA to furnish technical advice and assistance
in the organization of the cooperatives and in the planning,
development, construction, and operation of the
housing projects. Before the enactment of Section 213,
mortgages on cooperative housing were eligible for insurance
under Section 207.
Section 220. added in 1954. provides FHA mortgage
insurance to assist in financing the rehabilitation of existing
salvable housing and the replacement of slums with
new housing, in areas that have been certified to the FHA
by the Housing and Home Finance Administrator as eligible
for this insurance.
Section 221, added in 1954, authorizes mortgage insurance
on low-cost relocation housing for sale or rent to
families from urban renewal areas and families displaced
by Government action. Mortgage insurance is available
under Section 221 on both new and existing housing,
including rehabilitated housing. Section 221 insurance
is made available on request by the local or area authorities
and after the HHFA Administrator has certified to
the number of units needed, in a community that has a
workable program approved by the Administrator for the
elimination of slums and blight.
Section 222, added in 1954, authorizes the insurance of
mortgages on dwellings owned as their homes by persons
on active duty with the Armed Forces or the Coast Guard,
on certification by the Secretary of Defense (or the Secretary
of the Treasury, for Coast Guard personnel).
Section 223, added in 1954, authorizes the insurance
under Sections 203, 207, 213. and 222 of mortgages on
specified types of permanent housing sold by the Federal
or State government. This authority is similar to that
formerly provided under Section 610 of Title VI.
Section 225, added in 1954, authorizes the insurance
of additional advances under an open end provision, in a
mortgage insured under any section of the Act on a 1- to
4-family home, when the advances are made to finance
repairs and improvements to the property.
Section 231, added in 1959, authorizes the insurance of
mortgages on new or rehabilitated rental housing projects
of eight or more units designed for occupancy by elderly
persons (62 years old or older). From August 1956 until
the enactment of Section 231, mortgage insurance on
rental housing for the elderly was authorized under
Section 207.
Section 232, added in 1959, authorizes mortgage insurance
on new or rehabilitated nursing homes that provide
skilled nursing care and related medical services.
TITLE VI
This title is now inactive except for outstanding mortgage
insurance in force.
It authorized FHA mortgage insurance on housing for
war workers and later for veterans, under Sections 603
and 608; insurance of short-term loans on manufactured
housing under Section 609; mortgage insurance under
Section 610 on specified types of permanent housing sold
by the Government; and mortgage insurance under Section
611 on projects of 25 or more single-family dwellings.
The Housing Act of 1954 provided that no new insurance
commitments should be issued under Title VI after
August 2, 1954.
TITLE VII
Title VII, added in 1948, authorizes the insurance of a
minimum amortization charge and an annual return on
outstanding investments in rental housing projects for
families of moderate income where no mortgage is
involved.
TITLE VIII
Title VIII. added in 1949 (Wherry Act) and rewritten
in 1955 (Capehart Act), authorizes under Section 803
the insurance of mortgages on rental housing built on or
near military reservations for the use of personnel of the
Armed Forces, on certification by the Secretary of
Defense.
Section 809, added in 1956, authorizes mortgage insurance
on homes built for sale to essential civilian employees
at military research and development installations.
Section 810, added in 1959, authorizes mortgage insurance
on not more than 5,000 units of off-base housing for
military and essential civilian personnel of the Armed
Services.
TITLE IX
This title, added to the Act in 1951 and now inactive,
authorized FHA insurance of mortgages on housing programed
by the Housing and Home Finance Administrator
for critical defense areas.
48
Section 1
General Review
Throughout 1960, applications received by
FHA, insurance written, and dwelling units
started under FHA inspection were substantially
below the 1959 levels. Applications in 1960 on
242,374 new-home units were 34.4 percent under
the 369,747 units on which mortgage insurance
was applied for in 1959. Applications on existing
homes were 11.5 percent below 1959.
Insurance written during the year 1960 included
mortgages on 373,261 home units, and
multifamily housing projects with 49,101 units,
together with 1,011,858 property improvement
loans. The ratio of dwelling units started under
FHA programs to total privately financed nonfarm
starts declined from 22.2 percent in 1959 to
21.5 percent in 1960.
A number of steps were taken during the year
to make FHA benefits available to more families.
A new escrow commitment procedure for trade-in
transactions was put into effect in February. On
April 29 the minimum downpayment requirements
for insured home mortgages were reduced.
FHA regulations were amended in July to allow
individuals and organizations other than approved
mortgagees to own FHA-insured home
mortgages. The service charge previously permitted
on mortgages of $8,000 or less was made
applicable to mortgages up to $9,000. Measures
were taken to facilitate the insurance of mortgages
on properties on Indian reservations. Increases
were authorized in FHA mortgage limits
as required by local cost levels. A policy was
adopted of considering some multi family rental
projects in central city areas for families without
children.
In addition, changes were made in FHA procedures
to increase their efficiency. The procedure
for conveying foreclosed properties to the Commissioner
and obtaining mortgage insurance benefits
was completely revised.
Measures were taken during the year to encourage
high quality in housing financed under
the FHA system. FHA directors in the field
were reminded to be alert to the difference in prospective
housing expense caused by the use of
alternative materials and equipment, since higher
initial costs for items of better quality may be
offset by reductions in maintenance and repair
costs. The requirement for grade marking of
framing and sheathing lumber became mandatory
April 1.
In order to maintain a close check on the quality
of FHA appraisals, FHA instructed the insuring
offices in December to make a field review of at
least one of every 20 home mortgage appraisals
throughout their respective jurisdictions, and at
least one of every 10 fee, per-diem, and Certified
Agency Program appraisals.
Room count criteria for multifamily housing
projects were revised and simplified. A cost
index was established for determining per-room
and per-unit mortgage limits for use with the
new criteria in accordance with the authority
given in the Act for mortgage amounts higher
than the basic statutory amounts, when the
projects are located in high-cost areas.
The Commissioner met in the course of the year
with advisory committees of builders, experts on
nursing homes, and representatives of the property
improvement industry, to discuss aspects of
FHA operations in which the advice of these
groups would be of special value.
Under the FHA technical studies program, 27
studies have so far been completed and 32 others
were under contract in 1960. Studies undertaken
are concerned with mechancial, structural, sanitary,
soils, and architectural problems, and problems
having to do with streets and drainage. The
technical studies program, carried on under contract
with the Building Research Advisory Board
of the National Academy of Sciences, provides a
procedure for identifying and studying construction
and materials problems. FHA publishes
periodically a list of studies being considered or
under way, in order to advise research sources of
FHA's needs, to stimulate research by others, and
to help prevent duplication of effort.
FHA assisted in a research study in land planning
and community development undertaken
jointly by the Urban Land Institute and the National
Association of Home Builders, which reviewed
land planning concepts already developed
and provided background for evaluating new concepts
as well as for further investigation.
The Section 608 recovery program was substantially
completed during the year and a report was
made to the Senate subcommittee on housing.
The purpose of the program was to effect recovery
of excess mortgage proceeds to the project corporation,
or reduction in the mortgage, when the
amount of the insured mortgage was found to be
excessive in relation to actual construction cost.
Cumulative recoveries effected by the FHA and
the Department of Justice from the inception of
the program in 1954 through 1960 aggregated
approximately $39 million.
The seven FHA intergroup relations advisers in
the field were called to Washington in February
49
Mortgages on individual homes account For the great bulk of FHA insurance. The home shown above is one of 400 in Halida
Addition, Indianapolis, Ind., priced at $16,000 to $19,000. Architect, Elmer J. Son of Dayton, Ohio; builders, Perine
Development Co.,- mortgages insured under Section 203(b).
for conferences with the Commissioner and other
agency officials. Pane] discussions in which the
intergroup relations advisers participated were
also held at this time with representatives of several
State, religious, and civic groups and national
organizations interested in the development of
equal opportunities in housing.
At the end of 1960, eight States and two cities
had legislation that would bar discrimination in
housing built with any public assistance, including
FHA mortgage insurance. Other States and
cities are expected to propose similar legislation.
Where such laws are in effect, FHA cooperates
fully with the authorities responsible for their administration.
FHA appointed a special intergroup
relations adviser in 1960 who serves as
liaison with all the States that have fair housinglaws.
FHA has also taken part in educational
meetings and staff consultations held for the purpose
of bringing about understanding of the laws.
Commissioner Julian H. Zimmerman resigned
on October 21, 1960, and Housing Administrator
Norman P. Mason was also Acting FHA Commissioner
for the rest of the year.
Home Mortgages
The volume of home mortgage insurance in 1960
fell below that written in 1958 and 1959, both of
which were record years. The 168,720 new-home
units insured in 1960 were the highest number insured
in 10 years except for 1959, and the 204,542
existing-home units insured in 1960 represented
the third highest annual volume for any FHA
year. Insurance under Section 203 of the Act,
FHA’s standard home mortgage insurance program,
covered 149,414 units in new homes and
190,638 units in existing homes.
Discounts on FHA-insured mortgages began
a slow decline early in the year as money became
more readily available for mortgage investment.
From the high of 3.7 points in February, the average
discount on immediate deliveries of 5% percent
new-home mortgages with 25-year maturities
and 10 percent down payment fell to 2.2 points
at the end of the year, with the mortgages selling
at par in some areas.
On April 29, 1960, the Commissioner put into
effect the minimum downpayment schedule
authorized by the Housing Act of 1959 for FHAinsured
home mortgages. The change affected
valuations above $13,500 and was made to help
more families buying higher-priced homes to take
advantage of FHA-insured financing. The revised
schedule provided for down payments of
3 percent of $13,500 of value, plus 10 percent of
the next $4,500 of value, phis 30 percent of value
above $18,000.
The previous minimum requirement had been 3
percent of $13,500 of value, plus 15 percent of the
next $2,500 plus 30 percent of value above $16,000.
The ceilings of $22,500 on the mortgage amount for
a single-family dwelling, $25,000 for a two-family
dwelling, $27,500 for a three-family dwelling, and
$35,000 for a four-family dwelling, remained
unchanged.
On August 3, FHA authorized an annual
service charge of one-half of 1 percent on mortgages
in amounts up to $9,000. The charge had
previously been limited to mortgages of not more
than $8,000. The change was made to encourage
50
greater activity by lenders in the financing of
lower-priced homes.
FHA. field offices were notified on August 31,
1960, that the Minimum Standards for Low Cost
Housing, which permit less costly construction of
homes without sacrifice of structural soundness,
could be used for properties financed under Section
203(b) with mortgages of $9,000 or less.
Previously, the regular FHA Minimum Property
Standards were required in all Section 203(b)
cases regardless of the mortgage amount.
FHA put into effect early in the year the new
trade-in procedure made possible by the Housing
Act of 1959. Under the new procedure a builder,
realtor, or other nonoccupant mortgagor is able to
close a loan in his own name on the most liberal
terms available to an owner-occupant, provided at
least 15 percent of the loan proceeds will be held
in escrow until the property is sold to an owneroccupant.
When a buyer acceptable to FHA is
found, his name can be substituted on the mortgage.
If the house is not sold to a qualified buyer
within 18 months, the escrowed 15 percent of the
loan is applied to reduce the mortgage.
For the first time in FHA history, individuals
and organizations other than approved mortgagees
may now own FHA-insured mortgages. FHA
regulations were amended on July 13, 1960 to
make this possible. The amendment applies only
to mortgages insured under Section 203(b) of the
Act. The mortgages will continue to be originated,
held, and serviced by approved mortgagees,
who will be fully responsible for all
mortgage obligations under the insurance contract.
The purchaser receives an Assignment of
Note and Mortgage as proof of ownership. The
action was taken to broaden the sources of investment
in these mortgages.
From the date of the amendment to the end of
September 1960, 456 mortgages in a total amount
of $4.4 million were purchased by individuals and
organizations made eligible by the amendment.
The 90 approved mortgagees that sold the mortgages
included State banks, national banks, and
mortgage companies in about equal proportions.
Under the Mutual Mortgage Insurance system,
mortgage insurance premiums collected from borrowers
who finance homes under Section 203 of
the Act are paid into the Mutual Mortgage Insurance
Fund. This alone of the FHA insurance
funds is a mutual fund. If the homeowner’s
total premiums over the life of the insured mortgage
amount to more than their proportionate
share of FHA expenses, losses, and reserve requirements,
the difference is refunded to the
homeowner when his loan is paid in full. In the
calendar year 1960, FHA made payments of this
kind totaling $13.4 million to 93,490 mortgagors.
From 1945, when the payments were first made,
through 1960, payments have been made to 938,528
mortgagors in a total amount of $114 million.
A detailed discussion of FHA participation
payments to mortgagors appears in Section 4 of
this report.
Cooperative Housing
A marked increase occurred during 1960 in the
volume of mortgage insurance on cooperative
housing. Mortgages were insured on 237 projects
comprising 7,803 units. Insurance written in the
preceding year covered 125 projects with 4,453
units.
The 1960 volume included 33 managem ent-type
projects (those in which ownership remains with
the cooperative corporation) with 4,425 units—the
largest number of units since 1942—and 204 salestype
projects (those in which individual owners
take title to the individual homes after completion)
with 3,378 units.
Since cooperative housing mortgage insurance
under Section 213 of the Act was first authorized
in 1950, FHA has insured mortgages on 1,334
projects with 64,418 units, in a total amount of
$740 million. The projects have been located in
38 States, and groups in other States, particularly
in the east coast and southern areas, have expressed
interest in Section 213 financing. The
first cooperative project in Puerto Rico was insured
in 1960, and a commitment has been issued
on a second project.
Through the end of 1960, defaults on 5 management-
type projects with 370 dwelling units
and mortgages aggregating $3.6 million, and on
3 sales-type projects with 211 units and mortgages
totaling $2.2 million, had resulted in the acquisition
of the properties by FHA after foreclosure
by the mortgagees, or the assignment of the
mortgage notes to FHA in lieu of foreclosure.
In addition, titles to 402 single-family homes,
built as part of sales-type projects and individually
reinsured under Section 213, had been
acquired by FHA. Losses to the Housing Insurance
Fund from the disposition of part of this
acquired security had totaled slightly over
$392,000 or about 0.12 percent of the total amount
of insurance written.
Interest in the program has been increased by
the 1959 amendment to the Act authorizing Section
213 insurance on existing structures converted
to use as cooperatives. A mortgage on
1 such project with 216 units was insured during
the year, and there are indications of greater
activity in the coming year.
A new area of cooperative housing activity—
housing for the middle and middle-low income
group of American Indians—was explored in
1960, and legal problems are being worked out
with the Bureau of Indian Affairs.
Rental Housing
Mortgages were insured under Section 207 in
1960 on 142 rental projects with 19,447 units, compared
with 94 projects and 14,076 units in 1959.
The 1960 volume represented the largest number
51
Penn Center House, Philadelphia, with 432 apartments, is the largest cooperative so far financed under Section 21 3. Architect, George
S. Idell, F.A.I.A.,- builder, R. M. Shoemaker Co.; mortgagee, W. A. Clarke Mortgage Co., Philadelphia.
of units insured in any year under this section.
A survey of rental units with FHA mortgage
insurance in force on March 15, 1960 disclosed a
vacancy rate of 4.8 percent, the highest since 1951,
when 5.8 percent of all FHA-insured rental apartments
were vacant. The lowest rate recorded was
2.4 percent in 1957, and there has been an increase
each year since then. The 1960 survey included
433,000 completed apartments in all the States, the
District of Columbia, and Puerto Rico.
Because of the growing need in centra] city
areas for rental housing, FHA announced in June
1960 a change in policy that would permit consideration
for mortgage insurance of some projects
under Section 207 designed essentially for families
without children. The Act states that the
insurance of mortgages under this section is intended
to facilitate particularly the production
of rental accommodations suitable for family living,
and the Commissioner is directed to take
action which will direct the benefits of the insurance
primarily to those projects which make
adequate provision for families with children.
For this reason, the number of projects for
families without children will necessarily be small
in relation to the total program.
FHA field offices were authorized in 1960, in
estimating rental income in Section 207 rental
projects, to increase the limitation of 93 percent
occupancy ratio to a 95 percent ratio when
circumstances warranted.
Housing for the Elderly
Increasing recognition of the special housing
needs of elderly persons was evident in 1960, and
FHA-insured financing continued to help provide
housing of good quality specially designed for
them.
By December 31, 1960, FHA had received applications
for mortgage insurance on 129 projects
in 36 States with a total of 16,567 dwelling units.
Mort gages aggregating $67.6 million had been
insured on 62 projects with 7,154 units. Of the
mortgages insured, 37 were insured under the
provisions of Section 207 of the Act and 25 under
the provisions of the new Section 231 authorized
by the Housing Act of 1959. Commitments
totaling $20.9 million on 16 additional projects
with 1,922 units were outstanding at the end of
the year.
Section 231 allows profit-motivated sponsorship
for the first time under the FHA program. Although
only 1 of the 25 projects insured under
Section 231 by the year end had such sponsorship,
commitments were outstanding on 5 others and
11 additional applications were under examination
at that time.
The projects vary in size from 12 to 557 units.
More than half are sponsored by churches or
church-related organizations. Other nonprofit
sponsors include hospitals and professional, labor,
and welfare groups. A commitment was issued in
1960 on the first publicly sponsored project—-
Lakeside Place, with 216 units, sponsored by
Campbell County, Ky.
The Housing Act of 1959 authorized the HHFA
Administrator to make direct loans totaling $50
million to finance housing for the elderly, supplementing
the FHA program. The limited directloan
program has attracted applications from a
number of nonprofit sponsors who might otherwise
have taken advantage of Section 231
financing.
Urban Renewal
In urban renewal, the year 1960 was marked
by a growing recognition by the Federal agencies
concerned and by local public agencies that the
rate of progress needed to be stepped up, that
relocation housing was not benefiting as high a
proportion of displaced families as it should, and
that very little advantage had been taken of the
financing aids available through FHA for rehabilitation
of homes and apartment buildings.
A committee representing the Urban Renewal
Administration and FHA studied the situation
and recommended simplification of procedures,
revision of instructions, more realistic processing
of existing housing involving rehabilitation, and
closer supervision and guidance of field personnel.
Mortgages totaling $77.3 million on 21 multifamily
projects with 4,467 units, and mortgages
totaling $1.8 million on 197 homes were insured
during the year under Section 220. This brought
the grand total from 1954, when the program was
first authorized, through the end of 1960, to
20,956 multifamily units and 1,502 home units.
Under Section 221 (relocation housing for displaced
families), mortgages totaling $84.8 million
on 9,312 homes, and mortgages totaling $13.6 million
on multifamily projects were insured in 1960,
bringing the cumulative total to 5,232 multifamily
units and 21,988 home units, which
amounted to 26 percent of the 103,677 units that
the Housing Administrator had certified to FHA
as needed through December 31,1960.
Armed Services Housing
Mortgages on 105 projects to provide housing
for personnel of the Armed Services were insured
by FHA in 1960 under Section 803, Title VIII of
the National Housing Act, involving 12,680 family
units. Altogether FHA has insured Section 803
mortgages on 997 projects with 186,022 units, of
which 274 projects with 84,883 units were insured
under the old “Wherry” provisions of the section,
and 723 projects with 101,139 units were insured
under the “Capehart” provisions enacted in 1955.
Mortgages on 1,526 homes for essential civilian
employees at military research and development
installations were also insured under Section 809
FHA mortgage insurance helps to provide comfortable rental
housing specially planned for elderly tenants. Two projects
financed under the program are shown here.
York House, Philadelphia, has 206 efficiency and 1-bedroom
apartments—a nonprofit project sponsored by the Home for
the Jewish Aged and financed with an FHA-insured mortgage
loan of $2,430,300 made by Ohio Citizens Trust Co., Toledo,
later sold to FNMA.
Crestview Club Apartments, Sylvania, Ohio, with 171 efficiency
and 1-bedroom apartments—a nonprofit project sponsored
by Flower Hospital, Toledo, and financed with an FHAinsured
mortgage loan of $1,660,000 made by Provident
Tradesmen’s Bank & Trust Co., later sold to FNMA.
A view of the lobby of Crestview Club Apartments.
591772—451—5 53
Park West Apartments, New York City—a 1,660-unit urban renewal project financed under Section 220 of the National Housing Act.
The four mortgages insured by FH A total $24.1 million. Sponsor: Webb & Knapp, New York; architect and builder, S. J. Kessler
& Sons, New York; mortgagee, County Trust Co., White Plains, N.Y.
of Title VIII ill I960, bringing the total number of
units financed under that section to 5,201.
By the end of 1960, insurance had been terminated
on 50 Section 803 mortgages. Of these, 36
mortgages had been assigned to the FHA Commissioner
and 5 properties had been transferred
to FHA. Insurance had been terminated on 61
home mortgages insured under Section 809, and
FHA had acquired title to 16 of these properties.
FHA regulations were amended in 1960 by
limiting to $19,800 the maximum cost of an individual
unit of Capehart housing under Section
803 contracted for after June 7, 1960. This was
done in accordance with a provision in the
Military Construction Act of I960.
The high cost of money, which was the principal
deterrent to Armed Services housing construction
in 1959, began to level off in the second quarter of
1960, and discounts asked were reduced from the
high of 8 points in late 1959 to an average of 4
points by the end of 1960.
No insurance has been written under Section
810, added to Title VIII in 1959. It provides for
mortgage insurance on not more than 5,000 units
of off-base housing for military and civilian personnel
of the Armed Services. The Military
Construction Act of 1960 prohibited the Secretary
of Defense from certifying the need for a Section
810 project that was not approved as a special line
item by the Armed Services Committees of
Congress; but the actual line items were omitted
from the Act as finally passed, so that through
the end of 1960 it had not been possible to build
housing under Section 810.
Nursing Homes
FHA insurance of mortgages on nursing homes,
authorized by the Housing Act of 1959 under a
new Section 232 of the National Housing Act, got
under way early in 1960. Its purpose is “to assist
the provision of urgently needed nursing homes
for the care and treatment of convalescents and
other persons who are not acutely ill and do not
require hospital care but who do require skilled
medical care and related medical services.”
The program was restricted by law to “proprietary”
homes (homes to be operated for profit) in
order to avoid possible conflict with the program
of the Department of Health, Education, and Welfare
for nonprofit nursing homes.
The mortgage may cover a project involving a
new or rehabilitated nursing home with a minimum
of 20 beds. The mortgage amount cannot
exceed $12.5 million or 75 percent of the FHA
estimate of value. The maximum mortgage maturity
is 20 years from the start of amortization,
and the maximum interest rate—originally 5)4
percent—was increased on June 29 to 5% percent.
Before insuring a nursing home mortgage, FHA
must have certification from the appropriate State
54
Urban renewal in Philadelphia—Park Towne Place with 970 units has two mortgages totaling $15.4 million insured by FHA under
Section 220. Ten banks participated in the financing, which was handled through the Provident Tradesmen’s Bank & Trust Co.,
Philadelphia. Sponsor of the project was Park City Triangle Corp., Bernard Weinberg, president.
agency that the home is needed and that there are
reasonable minimum standards for licensing and
operating nursing homes in force in the State,
which standards will be enforced with respect to
the home on which mortgage insurance is sought.
Following enactment of the legislation, the
FHA obtained the advice of a group of recognized
experts in the preparation of minimum property
standards that would assure continuing utility,
durability, and desirability, as well as compliance
with basic safety and health requirements, and
would provide adequate facilities for efficient care
and nursing services. The FHA minimum property
standards are generally higher than those
established by the States for licensure eligibility.
By December 31, 1960, FHA had issued commitments
amounting to $4.6 million on 10 proposed
projects with a total of 932 beds. Mortgages on
2 projects with 171 beds had been insured. Formal
applications had been accepted on 18 other
projects with 1,406 beds and mortgages totaling
$7.9 million. In addition, FHA had for consideration
firm proposals for 81 projects in the
preapplication stage.
According to the latest Public Health Service
figures, there are now about 175,000 acceptable
nursing home beds and about 135,000 nonacceptable
beds. About 260,000 additional acceptable
beds are needed, and the need is increasing more
rapidly than additional facilities are being provided.
A large part of the need results from the
increasing proportion of elderly persons in our
population.
Property Improvement Loan Insurance
By the end of the calendar year 1960, FHAinsured
property improvement loans had helped
more than 24 million borrowers to remodel, repair,
and improve homes or to build new commercial or
farm structures. Loans insured from 1934
through 1960 totaled $13.4 billion. Of this
amount, $1.6 billion was outstanding on December
31, 1960.
There were 1,011,858 loans insured in 1960, with
net proceeds to the borrowers totaling $982.4 million.
This volume represented a decrease of 7.7
percent in number of loans and 1.4 percent in
55
Southfield Addition, Columbus, Ohio, a development of 481 homes priced at $10,400, built by William K. Kerr & Sons, Inc., and
financed under Section 221, for families displaced by urban renewal operations.
Lake Terrace Subdivision, Chattanooga, Tenn., was built by Suburban Lake Homes, Inc., of Chattanooga, and financed with
mortgages insured by FHA under Section 221.
amount from the totals for 1959. The number of
loans insured was the lowest for any year since
1946. The average loan amount has been rising
steadily, and the total amount of insurance in 1960
was the third highest for any year. Net proceeds
of loans insured in 1960 averaged $971.
FHA paid 20,241 claims in 1960, totaling $11.9
million or 0.75 percent of the amount of loans outstanding.
The average claim paid during the
year amounted to $587. Claims paid from 1934
through 1960 totaled $200.2 million, or 1.80 percent
of the amount insured. Of the amount of
loans outstanding at the end of 1960, 1.3 percent
was delinquent 90 days or more.
On paying a claim, FHA takes over the note and
undertakes to collect the unpaid balance. Recoveries
on such balances in 1960 totaled $7.2 million,
11 percent less than in 1959. At the same
time the volume of defaulted notes on hand declined
from 93,758 on January 1, 1960 to 81,346 at
the end of the year, and with a continuation of this
trend the volume of recoveries can also be expected
to decline.
56
Four-apartment, two-story, threebedroom
buildings at Schofield
Barracks, Hawaii.
Vandenberg Village, a 1,405-
unit development at Vandenberg
Air Force Base, Calif.
Plattsburgh Air Force Base,
New York.
Naval Auxiliary Air Station,
Chase Field: off-station housing
near Beeville, Tex.
Housing for personnel of the Armed Services, financed with mortgages insured by FHA under Title VIII of the National Housing Act.
57
Sheridan Pavilion, Chicago, a nursing home with 144 beds, sponsored by a corporation of 16 individuals with Robert H. Krasnow as
chairman; mortgagee, H. F. Philipsborn & Co., Chicago. A mortgage of $836,600 has been insured by FHA underthe provisions
of Section 232 of the National Housing Act.
FHA takes various measures to maintain the
integrity of the program. It has 18 financial
representatives in the field who examine insured
lenders’ portfolios of property improvement loans
and advise them on technical questions concerning
the loan insurance. In addition, they direct the
collection activities of the loan servicing operation
in FHA field offices and collect delinquent
payments on Commissioner-held mortgages.
The preclaim collection assistance plan begun
in February 1958 has achieved savings of about $10
million in claim disbursements. In 1960, with
1,444 lenders taking advantage of this service
offered by FHA, 7,800 loans representing potential
claims against FHA were reinstated, refinanced,
or paid in full, for nearly $4.6 million.
The coordination plan made effective in 1959 for
an exchange by various Government agencies of
information on lenders examined by them continued
advantageously in 1960.
Contracts of insurance were issued to 320 new
lenders in 1960. More than 13,900 lenders, including
branches, are now approved to make
FHA-insured property improvement loans. One
contract was canceled by FHA during the year and
8 were suspended.
During the year FHA placed the names of 902
salesmen, dealers, and others on its Precautionary
Measures list. There are now 7,288 firms and
individuals on the list. When making loans in
which these people are concerned, lenders are required
to take measures to make sure that the
transactions comply with FHA objectives.
FHA cooperates closely with the National Better
Business Bureaus and their 110 offices throughout
the country. In 1960, representatives of FHA
took part in a meeting of more than 500 contractors,
home builders, and dealers held at the request
of the Better Business Bureau of Metropolitan
New York City to formulate a program for eliminating
abuses in the field of property improvement
and for preventing misrepresentation in
advertising. FHA was also represented in a meeting
with the Attorney General of the State of New
York which resulted, in agreement on a code of
ethics for the home improvement industry in that
area. FHA advice was sought on several occasions
by the Commissioners of the District of
Columbia, who were drafting regulations for the
licensing of home improvement contractors.
FHA also cooperated in the preparation of a
series of articles in a Washington newspaper on
rackets in the home improvement business for
which the author was awarded a Pulitzer prize.
There is increasing emphasis in the housing industry
on conservation and rehabilitation of homes
and other properties. The National Association
of Home Builders established during the year a department
to advise its members on technical and
financial aspects of home improvement work, and
the National Association of Real Estate Boards
has under way a program of education on repair
and modernization of homes and the use of FHA-
58
insured financing to promote neighborhood rehabilitation
and sales of older properties.
On September 14, 1960, FHA insurance authority
under Title I of the Act, scheduled to expire
September 20, 1960, was extended to include
property improvement loans made before October
1, 1961, and the limitation of $1.75 billion on the
amount of outstanding loans covered by FHA insurance
was removed.
Aggregate Insurance Volume
From the beginning of FHA operations through
December 31, 1960, the total amount of FHA insurance
exceeded $67 billion, of which $34.2 billion
was outstanding at the end of 1960. Total insurance
written included $13.4 billion in 24.4 million
property improvement loans, $46.0 billion on 5.6
million home mortgages, and $8.0 billion on 10,849
multifamily projects housing 890,589 families.
Insurance outstanding at the end of 1960 included
$26.7 billion in home mortgages, $5.9 billion
in project mortgages, and $1.6 billion in
property improvement loans.
Detailed statistics on the volume and characteristics
of mortgages and loans insured are presented
in Sections 2 and 3 of this report.
Foreclosures and Losses
From 1934 through 1960, the FHA acquired
through foreclosure or the assignment of mortgage
notes 117,707 units of housing representing
1.7 percent of the 6.8 million units on which mortgages
had been insured since the beginning of
operations. Of the acquired units, 62,166 had
been sold by the end of 1960 and 55,541 remained
on hand.
Losses sustained on'properties acquired and sold
by FHA from 1934 through I960 amounted to
15/ioo of 1 percent of the total amount of mortgage
insurance written. Losses to the Mutual Mortgage
Insurance Fund on sales of acquired properties
under Section 203 amounted to %oo °f 1
percent.
FHA has set aside $149.1 million for estimated
future losses on the 55,541 units that remained
on hand at the end of 1960.
Financial Position
Gross income of the FHA from fees, insurance
premiums, and investments during the fiscal year
1960 totaled $203.5 million. Expenses of operation
during the fiscal year were $54.5 million,
leaving excess of gross income over operating expenses
of $149.0 million.
From the establishment of the FHA in 1934
through June 30, 1960, its gross income totaled
$1.8 billion and its operating expenses amounted
to $617.6 million. Expenses during the first 3
fiscal years, 1935 through 1937, were met from
funds advanced through the Reconstruction Finance
Corporation by the U.S. Treasury. During
the following 3 fiscal years, 1938 through 1940,
partial payments of operating expenses were met
from income. Since July 1, 1940, operating expenses
have been paid in total by allocation from
the various insurance funds.
In fiscal year 1954, the FHA completely repaid
its indebtedness to the U.S. Treasury
Department, including principal and interest totaling
$85.8 million, for funds advanced by the
Treasury to pay salaries and expenses during the
early years of FHA operations and to establish
certain insurance funds.
At June 30, 1960, FHA had total statutory
and insurance reserves of $866.6 million accumulated
from earnings. Of this amount, $718.0
million was in the insurance reserves and $148.6
million in the statutory reserve. Insurance reserves
are available for future losses and expenses,
while the statutory reserve is available for future
losses, expenses, and participation payments
under the mutual provisions of the National
Housing Act.
Total reserves of each insurance fund at June
30, 1960 are shown below:
Title I Insurance Fund--------------------------- $89, 852, 213
Title I Housing Insurance Fund__________ 5, 551, 709
Mutual Mortgage Insurance Fund------------ 1558, 256, 066
Housing Insurance Fund_______________ 15, 303, 664
Section 220 Housing Insurance Fund-------- 2, 551, 202
Section 221 Housing Insurance Fund-------- 775, 919
Servicemen’s Mortgage Insurance Fund---- 10,120, 644
War Housing Insurance Fund----------------- 181,100,180
Housing Investment Insurance Fund------ 916, 526
Armed Services Housing Mortgage Insurance
Fund_________________________ 16, 992, 647
National Defense Housing Insurance Fund- —14, 772, 710
Total___________________________ 866, 648, 060
1 Includes statutory reserve of $148,595,327.
A discussion of the actuarial adequacy of the
reserves is presented in Section 4 of this report.
FHA Debentures
When a mortgage insured by FHA goes into
default, the mortgagee, after acquiring the property
through foreclosure or otherwise, can transfer
it to the FHA Commissioner in exchange for
FHA debentures which are guaranteed as to
principal and interest by the United States. If
the mortgaged property‘is a multifamily project,
or, with respect to a home mortgage, at the Commissioner’s
discretion for the purpose of avoiding
foreclosure, the mortgagee has the option of assigning
the mortgage to the Commissioner in
exchange for debentures.
The Commissioner establishes an interest rate on
FHA debentures every 6 months comparable with
the current yield on long-term Government securities
as determined by the Secretary of the
Treasury.
The interest rate on FHA debentures was increased,
effective July 1, 1959, from 3% percent to
4% percent. This rate remained in effect through
December 31, 1960.
FHA policy is to call its debentures, with the
approval of the Secretary of the Treasury, when-
59
FEDERAL HOUSING ADMINISTRATION
ORGANIZATIONAL CHART
SEPTEMBER 29, I960
ever the cash position of the various- insurance
funds permits. Two such calls were issued by
the Commissioner in 1960.
The first, on March 24, 1960, was a call for redemption
on July 1, 1960 of approximately $37.5
million of debentures at par plus accrued interest.
The debentures to be redeemed were obligations
of the Title I Housing Insurance Fund ($572,300),
the Mutual Mortgage Insurance Fund ($9,627,-
500), the Housing Insurance Fund ($5,000,000),
the Section 221 Housing Insurance Fund ($44,-
100), the Servicemen’s Mortgage Insurance Fund
($265,350), the War Housing Insurance Fund
($20,000,000), and the Armed Services Housing
Mortgage Insurance Fund ($2,000,000).
The second, on September 23, 1960, was a call
for redemption on January 1, 1961 of approximately
$29 million of debentures at par plus
accrued interest. The debentures to be redeemed
were obligations of the Title I Housing Insurance
Fund ($378,650), the Mutual Mortgage Insurance
Fund ($9,951,600), the Housing Insurance Fund
($2,500,000), the Servicemen’s Mortgage Insurance
Fund ($1,177,400), and the War Housing
Insurance Fund ($15,000,000).
Organization and Personnel
The organizational pattern in effect at the end
of 1960 for the central office of FHA is shown in
Chart III-l, and the jurisdictional area covered
by each FHA insuring office is set forth in Chart
III-2 along with the location of the various field
offices.
Central office accounts for 24 percent of all
full-time FHA employees. The other 76 percent
are employed at FHA’s 139 field offices spread
throughout the Nation and in Puerto Rico.
These offices include 75 insuring offices, responsible
for all FHA operations in their respective jurisdictions
; 16 service offices, where applications for
mortgage insurance are received, processed, then
forwarded to the insuring offices for review, commitment,
and final endorsement; and 48 valuation
stations, where technical personnel serve the insuring
offices in their areas by preparing compliance
inspection and valuation reports.
Full-time FHA employees at the start of 1960
numbered 6,972. The number had increased to
7,052 by December 31, and the average number
during the year was 6,980. Appointments and
separations during the year totaled 931 and 851,
respectively.
591772—61—-6
61
JURISDICTION OF FIELD OFFICES - FEDERAL HOUSING ADMINISTRATION
DECEMBER 31, I960
62
Section 2
Volume of FHA Mortgage and Loan Insurance Operations
This section provides detailed statistical information
on the size and scope of FHA operations
during 1960 and cumulatively since the
establishment of the agency in 1934. The data
presented include analyses of yearly trends, distribution
by State, participation by type of financial
institution, terminations and foreclosures, and default
experience.
In 1960, under the National Housing Act, as
amended, the FHA was authorized to insure mortgages
and loans under the following titles and
sections i
Home Mortgages: Title II—Sections 203, 213,
220, 221, 222, 223, and 225; and Title VIII—
Sections 809 and 810.
Multifamily Project Mortgages: Title II—Sections
207, 213, 220, 221, 223, 231, and 232; and
Title VIII—Sections 803 and 810.
Property Improvement Loans: Title I—Section
2.
Rental Housing Investment Yields:—Title
VII—Section 701.
An explanation of the purposes of the various
titles and sections appears at the beginning of
this report.
Insurance was written under all of these programs
in 1960 with the exception of Sections 701
and 810. No formal application has ever been received
under Section 701, Investment and Yield
Insurance, since the inception of this program in
1948. No applications may be accepted under
Section 810, single and multifamily rental housing
for military and essential civilian personnel employed
in connection with an installation of one of
the armed services, until enabling legislation is
passed authorizing the construction of such
housing.
The initial insurance was written in 1960
under Section 232, which was enacted in 1959 to
provide for insurance of mortgages on nursing
homes. The Section 231 housing for the elderly
program, which was also included in the 1959
legislation, has been marked by more rapid development,
a condition reflecting experience
gained and the completion of numerous projects
initially planned and developed under the predecessor
Section 207 program of housing for the
elderly which was in effect prior to the 1959
amendments.
SUMMARY OF OPERATIONS
Combined Insurance Activity
FHA insured more than $6.3 billion of mortgages
and loans during 1960. Although it was
Chaet III-3
VOLUME OF INSURANCE WRITTEN, 1934-60
Under all Insurance Programs of FHA
19 percent under 1959, the 1960 volume was the
third highest in FHA history, virtually duplicating
the 1958 figure which was the first to exceed
$4.0 billion (Chart HI-3). The 1960 insurance
covered 366,000 home mortgages, project mortgages
involving 49,000 dwelling units and almost
200 nursing home accommodations, and 1,012,000
property improvement loans (Table III—1).
Home mortgages continued to predominate in
1960 insurance operations, but by a relatively
smaller margin than in the previous year. The
following table shows that home mortgages accounted
for 73 percent of the insurance written
in 1960, as against 11 percent for project mortgages
and 16 percent for property improvement
loans. Home mortgages dropped from 78 percent
in 1959, and project mortgages. and home improvement
loans gained in relative importance,
up from 9 percent and 13 percent, respectii ely.
Year 1960 1934-60
Program
Billions
of dollars
Percent Billions
of dollars
Percent
4.6 73 46.0 68
8.0
Multifamily project mortgages.— 13.4 . 7 on Property improvement loans------ 1.0 16
Total____________________ 6.3 100 67.4 100
63
Table III-l.—Mortgages and loans insured try FHA, 193^-60
[Dollar amounts in thousands]
Year
Total—all
programs 1
Home mortgage
programs 2
Project mortgage
programs 3
Property improvement
loans 4
Manufactured housing
loans 6
Amount Number Amount Units Amount Number Net
proceeds
Number Amount
1934 $27. 406
297, 495
532, 581
489,200
671,593
925,262
991,174
1,152,342
1,120,839
933, 986
877,472
664, 985
755, 778
1,788, 264
3, 340,865
3, 826,283
4,343,378
3,219, 836
3,112, 782
3,882, 328
3,067, 250
3, 806, 937
3,460,468
3, 716, 980
6,328, 597
7. 740, 742
6,306, 413
72, 658
635, 747
617, 697
124, 758
376,480
502,308
653,841
680,104
427, 534
307,826
389, 615
501,441
799,304
1,247, 613
1,357,386
1,246,254
1,447,101
1,437, 764
1,495,741
2, 244,227
1,506,480
1,024, 698
1,013,086
1,111,962
1,038,315
1,096, 635
1, 011, 858
$27,406
201,258
221, 535
54,344
138,143
178, 647
216,142
228,007
126,354
86,267
114,013
170,923
320, 654
533, 645
614,239
593,744
693, 761
707, 070
848,327
1,334,287
890, 606
645, 645
691,992
868, 568
868,443
996, 642
982,405
1935 23,397
77, 231
102,076
115,124
164, 530
177,400
210,310
223, 562
166, 402
146, 974
96, 776
80,872
141,364
300,034
305, 705
342, 582
252, 642
234,426
261, 541
214,237
310, 870
248,121
198, 429
381,883
495.172
366, 213
$93,882
308,945
424,373
485,812
694, 764
762,084
910, 770
973,271
763,097
707, 363
474, 245
421, 949
894, 675
2,116,043
2, 209,842
2,492,367
1,928,433
1.942,307
2,288, 626
1,942,266
3,084, 767
2, 638, 230
2,251,064
4,551,483
6,069, 418
4, 600, 506
738
624
3,023
11,930
13,462
3,559
3,741
5,842
20,179
12,430
4,058
2,232
46, 604
79,184
133,135
154, 597
74,207
39,839
30, 701
28, 257
9,431
11,177
43, 609
64, 953
43,976
49,101
$2,355
2,101
10,483
47, 638
51, 851
12,949
13, 565
21,215
84, 622
56,096
19,817
13,175
359, 944
608, 711
1,021, 231
1,156,681
583, 774
321,911
259,194
234,022
76,489
130, 247
597,348
908, 671
674, 682
723, 501
1936_____________________________________
1937
1938_____________________________________
1939_____________________________________
1940
1941
1942
1943
1944
1945
1946
1947
1948_________________________ ________ 3
196
175
131
85
40
115
11
$1,872
1,466
569
560
237
221
356
36
1949. ___________
1950_____________________________________
1951_____________________________________
1952_____________________________________
1953_____________________________________
1954_____________________________________
1955_____________________________________
1956
1957
1958
1959
1960
Total8________ _ _ _ _ _ __ 67,381,237 5, 637,873 46,030, 582 890, 589 7, 992, 272 24,368,433 13,353,067 756 5,316
1 Throughout this report, component parts may not add to the indicated
totals because of negative adjustments or rounding of numbers.
2 Includes the folllowing sections listed in order of enactment date: Sec.
203, June 27, 1934; Sec. 2 (Class 3), Feb. 3, 1938; Sec. 603, Mar. 28, 1941; Sec.
603-610. Aug. 5, 1947; See. 8, Sec. 213 (individual home mortgage provisions),
and Sec. 611 (individual home mortgage provisions), Apr. 20, 1950; Sec. 903,
Sept. 1, 1951; Sec. 220 (individual home mortgage provisions), Sec. 221 (individual
home mortgage provisions), Sec. 222, and Sec-. 225, Aug. 2, 1954;
Sec. 809, June 13. 1956.
3 Includes the following sections listed in order of enactment date: Sec.
207, June 27, 1934; Sec. 210, Feb. 3. 1938; Sec 608, May 26, 1942; Sec. 608-610,
Aug. 5, 1947; Sec. 611 (project mortgage provisions), Aug. 10, 1948; Sec. 803,
Military Housing, Aug. 8, 1949; Sec. 213 (project mortgage provisions), Apr.
20,1950; Sec. 908, Sept. 1,1951; Sec. 220 (project mortgage provisions) and Sec.
221 (project mortgage provisions), Aug. 2, 1954; See. 803, Armed Services
Housing, Aug. 11, 1955; Sec. 231 (project mortgage provisions), Sept. 23, 1959;
Sec. 232 (project mortgage provisions), Sept. 23, 1959, amount only.
4 Sec. 2 (Classes 1 and 2), enacted June 27, 1934. Data are based on loans
tabulated in Washington. The increase in 1953 loans over 1952 loans insured
is due in part to authorization controls which resulted in a tabulation backlog
of approximately $200 million as of December 31, 1952. See text of 1953
FHA Annual Report, pages 126-128 for detailed explanation.
5 Sec. 609, enacted June 30. 1947.
6 Cumulative data shown in this report represent volume of operations
from the dates of enactment of the various programs.
Insurance written under each title and section
of the National Housing Act is summarized in
Table III-2 for 1959 and 1960 and cumulatively
since 1934. Title II insurance represented 81 percent
of the total in 1960, substantially the same as
in 1959. Among the sections of Title II, however,
Section 203 declined in importance from 73 percent
of all insurance written in 1959 to 66 percent in
1960, the same as in 1958. Actual increases in
activity were demonstrated by all other Title II
sections except the Section 220 urban renewal and
Section 222 servicemen’s housing insurance
programs.
Title I increased in relative importance from
13 to 16 percent of total insurance even though
there was a 1-percent decline in 1960 in aggregate
net proceeds. Title VIII showed little
change in relative strength in 1960—still about 4
percent of the total—despite a drop of more than
30 percent in Section 803 armed services housing
(Capehart).
In more than 26 years of operation, FHA has
insured mortgages and loans involving nearly
$67.4 billion in privately advanced funds. Over
$46.0 billion of this amount was accounted for by
the 5,638,000 home mortgages, almost $8.0 billion
by project mortgages involving 891,000 dwelling
units, and $13.4 billion by 24,368,000 property improvement
loans.
Table III-3 shows the status as of December 31,
1960 of the $67.4 billion in mortgages and loans
insured. Insurance in force at the year end covered
an outstanding balance of $34.2 billion or
slightly more than half of the total insured. Reductions
include the termination of insurance on
mortgages and loans with original face amounts
totaling $27.0 billion and $6.3 billion in the partial
amortization of indebtedness still insured.
FHA Influence on Residential Financing
During 1960
Home Mortgages.—The $4.6 billion of home
mortgages insured by FHA in 1960 represented 16
percent of the $29.3 billion total for nonfarm
mortgage recordings of $20,000 or less for the year.
This percentage was down somewhat from 1959,
when at 19 percent it equaled the previous postwar
high established in 1949. The largest percentage
64
ever recorded for FHA occurred in 1942, when
wartime restrictions channeled 25 percent of all
home mortgage financing dollars into FHAinsured
obligations. It should be noted that the
FHA volume is not strictly comparable to total
nonfarm mortgage recordings, since the total
figures include both second mortgages and repetitive
recordings of construction and interim shortterm
financing on properties subsequently financed
with long-term mortgages. Moreover, the comparison
is further attenuated by the fact that the
maximum insurable FHA mortgage of $22,500 on
single-family dwellings now exceeds the limit used
by the Home Loan Bank Board in its estimates
of total recordings.
The estimated amount of total mortgage debt on
nonfarm homes outstanding at the end of 1960
increased by $10.8 billion to $141.8 billion. Of the
increase, $8.2 billion was conventionally financed
and $2.9 billion FHA-insured. These increases
were partially offset by a $0.3 billion decrease in
VA-guaranteed loans. The FHA share of the
$141.8 billion total was $26.7 billion, or 19 percent—
up 1 percent from 1959.
FHA influence on home mortgage financing is
measured only in part by comparisons with total
mortgage recordings and total home mortgage
debt outstanding. A relatively high percentage
of FHA-inspected homes are known to be sold
upon completion with conventional or VA-guaranteed
financing rather than with FHA-insured
mortgages. Further evidence of the influence of
FHA operations on home mortgage financing is
apparent in the number of VA new-home appraisal
requests for which FHA construction inspections
were specified. These cases represented 37
percent of the VA total in 1960.
Mulfifamily Project Mortgages.—Evaluations of
FHA influence in the field of multifamily project
financing are generally limited to a comparison
of the outstanding amount of FHA-insured project
mortgages with the estimate of the total
Table III-2.—FHA insurance written, by title and section, 1959, 1960, and 1934-60
[Dollar amounts in thousands]
1960 1959 1934-60
Number Units Amount Number Units Amount Number Units Amount
Title I__________________________________ 1,011,858 n.a. $982, 405 1,096, 635 n.a. $996, 642 24, 452, 893 n.a. $13, 683,937
Sec. 2 property improvement loans------- 1,011,858 n.a. 982,405 1.096. 635 n.a. 996, 642 24,368,433 n.a. 13,353,067
Sec. 2 home mortgages________________
Sec. 8 home mortgages------------------------
46,115
38. 345
46,115
38,345
126, 611
204. 260
Title II_________________________________ 365,126 408,156 5,091,506 493, 812 531,781 6,416, 923 4, 865, 630 5, 244, 605 43, 638,017
Sec. 203 home mortgages----------------------
Sec. 207 project mortgages--------------------
Sec. 213 cooperative housing----------------
Project mortgages-------------------------
Sales-type project mortgages-----
Management-type project mortgages_____________________
Home mortgages---------------------------
Sec. 220______________________________
Project mortgages-------------------------
Home mortgages__________________
Sec. 221______________________________
Project mortgages-------------------------
Home mortgages__________________
See. 222 home mortgages----------------------
Sec. 225 open-end advances------------------
Sec. 231 project mortgages_____________
Sec. 232 project mortgages--------------------
333,107
142
3, 260
(237)
(204;
(331
(3,023)
186
(21)
(165)
9, 254
(13)
(9, 241)
19,151
(5)
24
2
340.052
19,447
10, 826
(7, 803)
(3,378)
(4,425)
(3,023)
4, 664
(4.467)
(197)
10, 975
(1,663)
(9,312)
19,151
(5)
3,041
(171)
4,186,428
269.389
159, 775
(117, 511)
(47,249)
(70, 261)
(42. 264)
80, 909
(79,116)
(1,794)
99,132
(14, 307)
(84,826)
264,065
11
31,177
621
460, 966
94
2, 287
(125)
(100)
(25)
(2,162)
196
(33)
(163)
7, 751
(6)
(7, 745)
22, 517
(2)
1
471, 210
14,076
6, 615
(4,453)
(1,396)
(3,057)
(2,162)
7,865
(7, 627)
(238)
9,291
(1. 545)
(7,746)
22,517
(2)
207
5, 646.752
187,114
96,907
(65, 676)
(19, 795)
(45,881)
(31,231)
103.213
(100, 865)
(2, 349)
82, 706
(13, 231)
(69,475)
298,161
3
2,067
4, 725,029
1,176
29,049
(1,334)
(1,107)
(227)
(27, 715)
1,480
(96)
(1,384)
21,946
(30)
(21,916)
86, 923
(55)
25
2
4, 881, 968
130, 655
92,133
(64,418)
(28, 607)
(35, 811)
(27,715)
22, 458
(20,956)
(1,502)
27, 220
(5, 232)
(21,988)
86,923
(55)
3,248
(171)
39,747,141
1,086,148
1,064, 287
(740,121)
(336,371)
(403, 751)
(324,166)
296,752
(280, 864)
(15, 888)
243,475
(44,819)
(198. 656)
1,166, 236
112
33, 244
621
Title VI_________________________________ — 635,939 1,166, 812 7,127, 565
Sec. 603 home mortgages----------------------
Sec. 608 project mortgages--------------------
Sec. 609 manufactured-housing loans-----
Sec. 610 public housing sales----------------
Sec. 603-610 home mortgages_______
Sec. 608-610 project mortgages--------
Sec. 611 site-fabricated housing-------------
Project mortgages-------------------------
Home mortgages---------------------------
—
624, 653
7,044
756
3,386
(3,363)
(23)
100
(25)
(75)
690,007
465, 674
n.a.
9,072
(5,157)
(3. 915)
2.059
(1, 984)
(75)
3, 645, 218
3,440,017
5, 316
24,468
(16,109)
(8,360)
12,546
(11.991)
(556)
Title VIII_______________________________ 1,631 14. 206 232, 500 1,755 17, 688 327,178 6,196 191, 223 2, 351,021
Sec. 803 project mortgages--------------------
Military housing_________________
Armed services housing-----------------
Sec. 809 home mortgages______________
105
(-—)
(105)
1,526
12, 680
(—-)
(12,680)
1,526
211,381
(— -)
(211,381)
21,119
136
(-—)
(136)
1, 619
16.068
(—-)
(16,068)
1,620
305, 730
(—-)
(305, 730)
21.447
997
(274)
(723)
5,199
186,022
(84.883)
(101,139)
5,201
2, 282, 661
(683.143)
(1,599, 519)
68, 360
Title IX_________________________________ — — 57, 253 74,187 580, 697
Sec. 903 home mortgages----------------------
Sec. 908 project mortgages--------------------
— (57,156)
(97)
(65,702)
(8,485)
(517, 270)
(63,427)
Total1_____________________________ 1, 378, 615 2 422, 362 6,306,413 1, 592, 202 2 549,469 7, 740, 742 30,017, 911 2 6, 761,287 67, 381,237
1 All tables presenting cumulative data for Sec. 207 include 106 mortgages 2 Excludes Title I, Sec. 2 property improvement loans; Sec. 232. expressed
for $7,782,866 and 2,176 units insured under See. 210. as number of beds; and Sec. 609.
65
Table III-3.—Status of FHA insurance written as of Dec. 31, 1960
[Dollar amounts in thousands]
Title and section Item
Insurance
written
Insurance
terminated
Insurance in force
Total Amortized
(estimated)
Net outstanding
Title I:
Sp.p. 2 property improvement loans 1 _ ___ Number of loans ________ 24, 414, 548
$13,479,677
38, 345
$204, 260
4, 725,029
$39,747,141
130,655
$1,086,148
92,133
$1,064,287
22,458
$296,752
27,220
$243, 475
86. 923
$1,166,236
3,248
$33,244
(171)
$621
628,016
$3,661,326
469,589
$3,448,377
756
$5,316
2,059
$12,546
186,022
$2,282,661
5,199
$68,360
57,156
$517,270
8,485
$63,427
22,343, 821
$10, 559,657
7,651
$39.338
2,027, 923
$12,186,172
48.097
$206.897
28,778
$327,088
9
$87
1,398
$11,724
4, 470
$57,164
2,070,727
$2, 920,020
30.694
$164, 922
2,697,106
$27,560,969
82, 558
$879. 251
63.355
$737,199
22, 449
$296,665
25,822
$231, 752
82,453
$1,109,071
3.248
$33,244
(171)
$621
186,683
$1,255, 398
360,468
$2, 711,843
Net proceeds _ _ $1, 310,933 $1,609,087
Sp.p. 8 home mortgages __ ___ ____________ Number of mortgages. ____ $32,047 $132,875 Amount _____________
Title II:
Spp 203 home mortgages ____________________ Number of mortgages______ $3,619,138 $23, 941,831 Amount ______________
Spp ^07 9io project mortgages__________________ Number of units________ $41, 768 $837, 483 Amount ____________
Sec 213 cooperative housing___ _ _ _ __ NAummoubnert of units ________________ $36, 345 $700, 855
Spp 220 redevelopment housing 2 _ __________ Number of units ______ $3,239 $293,425 Amount ______- -
Spp 221 relocation housing 2 _________________ Number of units ________ $3,010 $228,742 Amount __ ______ - -
Sec 222 servicemen’s housing _ ____________ Number of mortgages- ____ $52,161 $1,056,911 Amount _ ___
Spp 231 elderly housing _ ____________ Number of units ___ _____ $14 $33,229 Amount __________
Sec 232 nursing homes ________________ Number of beds__________ $621 Amount ________
Title VI (war and veterans’ emergency program):
Sec 003 home mortgages 3 _ ______ 441.333
$2, 405,928
109,121
$736, 534
756
$5,316
1,996
$12,079
9, 531
$102,898
61
$724
14,757
$130, 547
2. 332
$17,209
Number of mortgages_____ $533,084 $722,314 Amount____ ______
Sec 00S project mortgages 4 ___________ ______ Number of units ________ $527,386 $2,184,457 Amount, ____ ____—
Spp 009 mannfactured-housing loans 5 _______ Number of loans_________
Amount ______
Sec 011 site fabricated housing _ .. _______ 63
$467
176, 491
$2,179, 764
5,138
$67,635
42, 399
$386, 723
6,153
$46,218
Number of units___ $105 $362 Amount ______________
Title VIII
Sec ^03 military housing 6 _________________ NAummobunert of uni_t s________________ $119,730 $2,060,034
Sec 809 civilian housing __ _ __ _______ - NAummobuenr to_f_ _m__o_r_tg__a_g_e_s_._______ $2,093 $65,542
Title IX (defense housing program):
Sec 903 home mortgages __________ NAummobunert of mortg_a_g_es________ $55, 789 $330,935
Sec Q08 project mortgages __________________ Number of units _ _ $6,122 $40,096 Amount__________________
Total 7 _________________________ $67,381,237 $26, 799, 384 $40,581,853 $6,342, 974 $34,238,879
i Includes home mortgages insured under Sec. 2.
2 Number of units terminated are estimated.
s Includes 3,363 mortgages for $16,108,500 insured under Sec. 610, of which
1,366 mortgages for $5,616,200 have been terminated, leaving 1,997 mortgages
for $10,492,300 in force. , , , a cin .
4 Includes 3,915 units (23 mortgages) for $8,359,500 insured under Sec. 610, of
which 1,198 units (11 mortgages) for $2,167,200 have been terminated, leaving
2,717 units (12 mortgages) for $6,192,300 in force. .
J Includes 745 discounted purchasers’ loans for $2,119,<559, all of which have
^TlncTudes^Oh’lSg units (723 mortgages) for $1,599,518,726 insured under
Sec. 803 armed services housing program.
7 Includes open-end advances of $112,157 insured under Sec. 225 of which
$11,449 has been amortized.
amount outstanding for all such mortgages. This
comparison is not strictly valid, since the estimate
of total mortgage debt on multifamily properties
is based on a multifamily concept of five or more
units in contrast to FHA’s eight or more units.
An estimated $18.5 billion of mortgage debt was
outstanding at the end of 1960 on multifamily
properties. Of this amount, $5.9 billion or 32
percent was FHA-insured. This percentage,
which was the same as for 1959, was considerably
under the high of 38 percent reached in the period
from 1950 through 1952 at the height of the Section
608 Veterans’ Emergency Housing Program.
Property Improvement Loans.—Of the estimated
$2.1 billion total consumer installment credit extended
for home repair and modernization purposes
during 1960, FHA-insured property improvement
loans represented approximately 47
percent. This percentage, unchanged from 1959,
remained at 1 point above the average for the
previous 5 years. FHA’s share of the $3.0 billion
in consumer installment credit outstanding
for these purposes, however, was estimated at 53
percent. This was 3 percentage points lower than
at the end of 1959, but continued above the 50
percent mark as it has each year since 1955.
Construction Starts.—In 1960, privately financed
nonfarm dwelling units started totaled 1,230,000.
The FHA portion of these starts covered 260,900
units or 21 percent of the total, compared with
22 percent in 1959. Total starts and FHA starts
decreased by relatively similar percentages—18
and 22 percent, respectively. The decrease in
FHA dwelling units started was entirely attributable
to a decline in home mortgage units started,
since multifamily project units showed a marked
increase for 1960 of 38 percent (Chart III-4 and
Table III-4).
Total nonfarm starts estimates for 1959 and
1960 used in the foregoing comparisons are the
first in a revised series prepared by the Bureau
of the Census. This new series reflects modifications
of the methods used in estimating construction
starts as well as a more comprehensive defini-
66
Table 111-4.—Privately financed nonfarm dwelling units started under FHA programs compared with total for United States, 1935-60
FHA as percent
of U.S.
total
IT, CM TH S 1G o O O -X M 00 Tt« r-< CM 00 O OO CM O O H M OOi (N 1O
smsss ss&isjg gsgss? s 3 |
Total
U.S.
nonfarm
units 5
88883 88881 88888 88888 §8881 §
ggis'ss IISsl SgSSs 8
20,074, 400
L during th
Total
FHA
units 2 3 4
sggits 33388 8S86S 8
= s»'gg §8§gs SSgSg Sgggg gggg-g g
5, 284,543
1 as started
Total
Project
1_______
glsgS SSSSS ssssS 38886 a
«~8R‘g gss'ss »”Ssa S
780,226
; renortec
Ml ! ! ! ! : iiiii iiiii ; f CM * CM ' '
i i § 1
co b, iiiii i ! III 1 1 1 1 1 1 15So® ; i ;
IIIII IIIII 1 1 ! ! 1 1 !co^ 1 I
ii iiiii ii
ii',;; ; ;
III i
i i i i
i ; i i
iir
cf i
i
§ 1
13 iiiii m
: : ; i i i; iii i i i is
1 1 1
5S 1 i
i
: : । ;
i i
■ 1
11 H i H H<
i : i : : : I.
: ; ; ; ; i;
IB if
O cT CM r-"S^'g
Ǥdcf ) .1 . 1 (>) (>)
221________ 2.5 1.9 4.4 3.1 .9 . 7
222________ 5.1 5.7 6.3 6.6 4.2 4.9
809________ .4 .5 .6 .6 .2 .3
Total 100.0 100.0 100.0 100.0 100.0 100.0
Chart III-5
VOLUME OF HOME MORTGAGES INSURED,
1935-60
Under all home mortgage programs of FHA
The Section 203 home mortgage program accounted
for about 91 percent of both dwelling
units and dollar amount insured in I960. This
represented a decline of about 2 percent in both
units and amount from 1959, with new homes
declining slightly more than existing. The predominance
of Section 203 reflects the fact that this
has been the only home mortgage program in continuous
operation since the agency’s beginning and
has dominated home mortgage activity throughout
the period except for the years 1943 through
1948 when most home mortgages were insured
under the Section 603 War and Veterans’ Emergency
Housing Programs.
69
3o £
■ps-^si
issg^00 s § 8
cn
p’3
s
it§o§~ i i i
! i I
i i H
1 i i ■ ■ -sas
3
s
s
s
p
ffll o
8 £
cz:
p
8 o8
If- ! ;
__ b
ssss g
s
§
5
'8
P
s
'8
P
sSas : :
co of
ss I I
§
c
ffll o
8
'8
P
ffll o
fl
i &
§go co^co r : H !
s
3
S S'
ll f
=2
i
.8
S
Table III-5.—Home mortgages insured by FHA, 1935-60
oa §
s8g§s8 3
3 £
! i i
a
fl
O
z
02
fl
k
p
c
Pi
c3 5
(*
p
a ao
8
p
a
a o8
*a
ffll o
8
'8
P
ffll o
8
'8
P
fl o6
'8
o8
'8
P
ggsSsg
WNCOWOO
■ -SSg
i i H i H
i ; ; i i : i
••!!!!!!
!i ii i>8313
ggS8§ggg§8sSgg
sg§§S§§E3gSs§s
gsSsSsgSsssSss
3IS¥3§Ss‘§s’g"s^
gmgSSslES i i i
S&SWSS ; I ।
Sssgsssggr i i ;
CO cL *o T-? CO IO TM UO *0* I | j
»3«ss§ssgg3?si
=SgSa8sgs"gggS
?§8S§g^S§8|§
iBBBSWsls
ggSSSSSglsSSS
sslaWSsssgg
sgsSssggssssM
^■gsslslssliSE
S’
£
§
g
§
s
3
P
£
s
s
£
P
g
S
£
s
§
£
o
(X
ae o8
a
P
8 o8
'8
P
3 o8
tn
a
P
ffll o
8
'8
P
s3 o8
P
ffll o
8
'8
P
ffll o
8
co
p’S
■26§sS3S
! IO 00 t~T O cf 00
■PS“§§
I 00 0=0
i i iSsggg§®K38
; ; iasss^'-'sssss!
! ! !
! i !§s8§ssga§g
i
£
B
p
£
§
£
I
§8
S
p
£.
sggsggagsSscg
gWSfgWsSla' 8
■ N- rtHrtNMCf jH
^sssO^S^gg
i i igssis i i i H
' ■ ' ! ! ! ! !
i; !i ;>§§"
gfglSWslgW
^assSBs
§■§§§
©
gs
5
s
.3
5
1
§
s
§
I
p
§
o
3
■3
iJn .
70
The Section 203 data shown in Table III-5 include
mortgages insured under the moderate-cost
home provisions of Section 203 (i), which was instituted
in 1954 to replace the terminated Section
8. In 1960, mortgages on 13,000 new units were
insured under Section 203(i) in the amount of
$107 million. Although insurance of existing
units under this program was authorized by the
Housing Act of 1959, mortgages on fewer than
900 existing units were insured in 1960, a large
portion of which represented refinancing of cases
originally insured under Section 203(i) as new.
The disposition of Section 203 home mortgage
applications for 1960 and selected earlier years is
shown in Table III-6. Some 49 percent of the
cases were closed by insurance in 1960, a decline
of nearly 7 percentage points from the 1959 ratio.
Expirations increased correspondingly to 45 percent,
and rejections remained at 6.6 percent.
The relatively high rate of expirations points up
the fact that builders and lenders often use FHA
commitments as a means of obtaining FHA appraisals,
construction financing, and FHA construction
inspections. Moreover, the rather
marked increase in the rate of expirations in 1960,
coupled with the corresponding decrease in the
rate of insurance, is evidence that this practice is
even more pronounced during periods when the
conventional mortgage interest rate may be more
favorable than the FHA rate.
Table III-6.—Disposition of home mortgage applications,
Sec. 203, selected years
Year
Number
of eases
closed
Percent of cases closed by—
Rejection
of application
i
Expiration
of commitment
12
Insurance
of moitgage
TOTAL CONSTRUCTION'
NEW CONSTRUCTION
1946 - ____________ 145. 500 16.2 37.9 45.9
1950 ____ ___ 539, 640 10.4 26.9 62.7
1954 _________________ 357.920 14.6 36. 3 49.1
1955 ____________ 584, 779 10. 4 39.2 50.4
1956 __________________ 498, 964 7.2 45 7 47.1
1957 _____________ 422, 006 8.8 48.1 43.1
1958 . . ________ 631,104 10. 1 33 9 56.0
1959 _______________ 831,746 6.6 38.0 55.4
1960___________________ 681, 070 6.6 44.5 48.9
EXISTING CONSTRUCTION
1946 _____________ ___ 51,522 13. 5 65.9 20.6
1950 - ______________ 345.478 9. 5 27.2 63.3
1954 ___________________ 196,291 13. 5 44.0 42. 5
1955 . ____________ 281,065 9. 5 48 0 42. 5
1956___________________ 257,098 5. 1 55. 6 39.3
1957___________________ 207, 096 5.4 60. 9 33. 7
1958 ___________ 236,733 6.8 41.2 52.0
1959 ___________________ 320,469 5.6 37. 5 56.9
1960___________________ 297,389 2.2 47.7 50.1
1 Excludes cases reopened after rejection or expiration.
2 Includes expired agreements to insure in 1958-60.
1946 ______ __________ 93,978 17.6 22. 6 59.8
1950___________________ 194,162 12.1 26 4 61.5
1954___________________ 161, 629 16.0 26.8 57 2
1955 ___________________ 303, 714 11.3 31 0 57. 7
1956___________________ 241,866 9. 4 35. 2 55.4
1957 ___________________ 214,910 12. 1 35.9 52.0
1958 ____ ___________ 394,371 12. 1 29.5 58. 4
1959 __________________ 511.277 7.3 38.2 54.5
1960___________________ 383,681 9.9 42.1 48.0
Project Mortgages
Multifamily housing mortgage insurance in
1960 was authorized by the National Housing Act
under the following programs: Title II, Section
207, covering (1) new and rehabilitated rental
housing, (2) trailer courts or parks, (3) public
housing sold by certain Federal or State agencies,
(4) refinanced Section 608 or .Section 908
mortgages, and (5) sale of Commissioner-held
mortgages assigned or properties acquired under
provisions of Titles II, VI, VII, VIII, and IX;
Section 213 cooperative housing; Section 220 redevelopment
housing; Section 221 relocation housing;
Section 231 housing for the elderly;
Section 232 nursing homes; and Title VIII, providing
mortgage insurance for Section 803 armed
services housing and Section 810 rental housing.
In addition, authority existed to insure certain elderly
housing project mortgages under Section 207.
Also authorized, but never used, was the provision
to insure equity financing under Title VII for
yield insurance on rental projects. With respect
to Section 810, 1960 legislation stipulated that
specific authorization in the Military Construction
Act was a prerequisite for the construction
of units under Section 810 during fiscal year
1961. Such authority was not provided prior to
the end of 1960. Each of the programs is described
briefly at the beginning of this report.
FHA project mortgage insurance in 1960 rose
7 percent to $724 million, replacing 1959 as the
fourth largest year in FHA history in terms of
the total dollar volume of project mortgages insured
(Chart III-6).
Chart III-6
VOLUME OF MULTIFAMILY MORTGAGES
INSURED, 1935-60
Under all project mortgage programs of FHA
1.5 —
Mortgages insured in 1960 covered 49,100 dwelling
units, one-sixth more than in 1959, making
1960 the sixth highest year in multifamily dwelling
units. In addition, mortgages to finance 2
nursing homes with a total of 171 beds were in71
sured under Section 232. The average project-unit
mortgage in 1960 was $14,722, slightly less than
the $15,300 reported for 1959, reflecting reapportionment
of activity under the several multifamily
housing insurance programs rather than a leveling
off in mortgage amounts.
Multifamily housing mortgage insurance constituted
nearly one-eighth of the aggregate amount
of all mortgages and loans insured in 1960, as compared
with less than 9 percent of the total in 1959.
The 78,500 dwelling units represented by 1960
applications for multifamily housing mortgage insurance
exceeded by one-tenth those reported in
1959. Units in commitments to insure issued in
1960 increased more than one-third to 69,300 dwelling
units. These figures include one application
for a mobile home court (334 spaces) and two
commitments covering 538 spaces. In addition,
FHA received applications for nursing home facilities
involving nearly 2,500 beds and issued
commitments covering the financing of facilities
for over 900 beds. At December 31, 1960, there
were 34,800 units in rental and cooperative projects,
334 mobile home spaces, and nursing home
facilities (761 beds) covered by outstanding commitments,
and nearly 49,000 project units and 1,400
nursing home accommodations under examination
in FHA field offices. An additional 9,000 dwelling
units were in the process of preapplication appraisals,
the bulk of these under the Section 803
armed services housing program.
Some 35,200 multifamily dwelling units were reported
started in 1960 under FHA inspection,
bringing the total project units under construction
during the year to 65,200—about one-third
more than in 1959. Of these units, 25,700 were
reported completed and ready for occupancy.
These figures exclude nursing home facilities (80
beds) started under FHA inspection and 12,700
Section 803 units started under military
inspection.
Section 207 project mortgage insurance in 1960
totaled $269 million and covered over 19,400 dwelling
units. Increasing by more than two-fifths
over 1959, the Section 207 insurance volume
reached a new all-time high for the third consecutive
year and for the first time in 5 years exceeded
the volume of insurance reported for any other
project program (Table III—7). This section accounted
for 37 percent of the total amount of all
multifamily housing mortgage insurance written
during the year, including—in addition to 18,610
new units with mortgage amounts aggregating
$266.8 million—389 dwelling units ($3.5 million)
for elderly persons, 803 existing units ($2.5 million)
involving the sale of property of the Atomic
Energy Commission at Oak Ridge, Tenn., and one
acquired project (34 units) which was reinsured
after sale.
By December 31, 1960, total Section 207 insurance
had passed the billion-doll ar mark ($1,086
million) and represented nearly 14 percent of all
FHA multifamily housing mortgage insurance.
The bulk, $1,061 million, of this insurance covered
the financing of 123,300 newly constructed rental
units and of 1 mobile home court containing 200
trailer sites. The remaining $25 million represented
refinancing transactions, mortgages to finance
the rehabilitation of existing structures, and
mortgages to finance purchases of existing public
housing.
Cooperative housing project mortgages insured
under Section 213 in 1960 rose to $118 million—
four-fifths more than the amount reported for 1959
and a record year for this program. Of the
7,800 dwelling units provided, 4,200 units ($68
million) involved newly constructed managementtype
cooperatives anti 200 units ($2 million)
represented existing structures purchased by
management-type cooperative groups. Included
with the management-type total were 3,500 units
($55 million) representing investor-sponsored cooperatives.
An investor sponsor is permitted to
construct the project prior to the formation of the
cooperative. This allows the project to be put
on the market without delay and gives the prospective
members an opportunity to examine the
completed structure. Such projects contemplate
sale to a management-type cooperative group
within 2 years after completion. Under these
provisions, a total of 56 projects containing 8,000
units had been insured through the end of 1960,
of which 25, containing 3,400 units, had been
reported sold to management-type groups.
Sales-type cooperative project insurance in 1960
covered 3,400 dwelling units and involved $47 million.
These projects consisted of single-family
dwellings constructed for release to individual
cooperative members. Upon release, these homes
may be insured either under the individual mortgage
provisions of Section 213 or under Section
203.
Through the end of 1960, cooperative project
mortgage insurance amounted to $740 million
(64,400 units). The larger proportion, $404 million,
was utilized to provide 35,800 units in management-
type cooperatives and the remaining
$336 million produced 28,600 single-family dwellings
in sales-type cooperatives. Most of these units
were subsequently refinanced under the individual
mortgage provisions of Section 213 upon dissolution
of the mortgagor corporations following
completion of the projects.
Section 220 urban renewal project mortgage insurance
declined by one-fifth in 1960 to $79 million,
covering 4,500 dwelling units. Through December
31, 1960, total insurance under this program
amounted to $281 million, providing 21,000 rental
units in urban renewal areas throughout the
country.
Section 221 relocation project mortgage insurance
in 1960 amounted to $14 million and covered
1,700 dwelling units. Total insurance through the
year end stood at $45 million (5,200 units). Al-
72
Table III-7.—Multifamily housing mortgages insured by FHA, 1935-60
[Dollar amounts in thousands]
1 For total number and amount of mortgages insured under each section in 1959, 1960, and cumu- 2 Units under Sec. 232 are in terms of beds and are excluded from totals,
latively through 1960, see Table 2.
73
though the Housing Act of 1959 provided a rental
program for profit organizations under Section
221, no profit-motivated projects had been insured
by the end of 1960.
Section 231 mortgage insurance in 1960 reached
$31 million and provided 3,000 living accommodations
for elderly persons. This represented the
first full year of operations under this program,
which in 1959 replaced the former provision for
elderly housing insurance under Section 207.
Coupled with Section 207 operations, a total of
7,200 units ($68 million) had been provided
through the end of 1960 for elderly persons. Section
231, enacted in 1959, provided for insurance
of profit-motivated elderly housing projects as
well as nonprofit projects previously authorized
under Section 207. By the end of 1960, only 1
project for profit, containing 48 units, had been
insured by FHA.
Section 232 mortgage insurance for nursing
homes, also initiated in 1959, was first utilized in
1960 when mortgages on 2 projects containing 171
beds were insured by FHA.
Section 803 armed services (Capehart) housing
mortgage insurance written in 1960 aggregated
$211 million and covered 12,700 dwelling units—
about one-third less than the amount for 1959.
Through 1960, 101,100 units had been insured
under this program and, along with the 84,900
units of military (Wherry) housing, provided a
total of 186,000 dwelling units on or near military
and atomic energy installations. By the year encl,
a total of $2,283 million, 29 percent of all FHA
multifamily housing insurance, had been insured
under the Section 803 programs.
Table III-8.—Property improvement loans insured by
FHA, 1934-60
Year
Annual Cumulative
Number Net proceeds
(000)
Average Number Net proceeds
(000)
Average
1934-39 _ 2,329, 648 $821,332 $353 2,329, 648 $821,332 $353
1940-44. 2,458, 920 770, 782 313 4, 788, 568 1,592,115 332
194.5-49 - 5,151,998 2, 233,205 433 9,940, 566 3,825,320 385
1950___ 1, 447,101 693, 761 479 11,387,667 4. 519.081 397
1951___ 1, 437, 764 707,070 492 12.825, 431 5,226,151 407
1952 i.._ 1, 495, 741 848,327 567 14,321,172 6,074,478 424
1953 i... 2,244, 227 1,334.287 595 16, 565,399 7,408, 765 447
1954___ 1, 506, 480 890,606 591 18,071,879 8,299,372 459
1955___ 1,024, 698 615, 645 630 19,096, 577 8. 945,017 468
1956___ 1,013,086 691, 992 683 20,109, 663 9,637,008 479
1957___ 1,111.962 868, 568 781 21, 221, 625 10, 505, 576 495
1958___ 1,038,315 868,443 836 22, 259,940 11,374,019 511
1959___ 1,096, 635 996,642 909 23.356. 575 12. 370. 661 530
1960___ 1,011,858 982,405 971 24,368,433 13, 353,067 548
i Since authorization controls limited tabulations of loans in 1952, estimates
based on loan reports received indicate that 1,816,881 loans for $1,047,358,000
were originated in 1952 and 1,832,180 loans for $1,092,277,000 were originated
in 1953.
Property Improvement Loans
Under Title I, Section 2, FHA insures approved
financial institutions against loss on unsecured
loans made to improve existing properties or to
build new nonresiclential structures. Financial
institutions classify these loans as consumer credit
Chart III-7
VOLUME OF PROPERTY IMPROVEMENT LOANS INSURED,
1934 - 60
Under the Title I program—excludes small homes
1.5 —
notes and they are generally made on the basis of
the borrower’s character and credit rating. Upon
certification by the originating institution that a
loan has been made in conformance with the FHA
regulations, the Commissioner accepts the loan for
insurance without further investigation. The
portfolio of each institution’s loans is insured up
to 10 percent of the total amount of the net proceeds
to the borrowers, with the individual claim
payment being limited to 90 percent of the calculated
principal loss sustained by the lender on the
defaulted note. Table III-8 presents data on the
volume of loans insured by years and cumulatively
since 1934.
During 1960 these approved institutions reported.
slightly over 1.0 million notes with net
proceeds to borrowers aggregating $982 million.
Compared to 1959 this is a decrease of 8 percent in
the number of loans and 1 percent in amount of
proceeds, but activity under this program was at a
relatively high level (Chart HI-7). The average
net proceeds for loans insured in 1960 continued
to trend upward, reaching a new high of $971, an
increase of 7 percent over 1959 and triple the
average size of the loans insured, during the 1940-
44 period. From 1934 through 1960, over 24 million
property improvement loans with net proceeds
of $13 billion have been insured—an average
volume of $500 million a year.
STATE DISTRIBUTION OF FHA
INSURANCE WRITTEN
The distribution of FHA insurance operations
among the several States reflects geographic variations
in the demand for housing and home improvements,
partially determined by population
size and growth, the size and condition of the housing
inventory, ancl the general economic situation.
Also figuring largely in the volume of FHA
activity in different localities are the availability
74
of mortgage funds and the financing policies and
desires of both lenders and borrowers.
Insurance Written During 1960
All Programs—A State distribution of mortgages
and loans insured in 1960 is presented in
Table III-9 and Chart III-8. These data indicate
that, in practically all States, FHA activity was
predominately that of home mortgage insurance.
Exceptions were North Dakota and the District
of Columbia, where project mortgage insurance
exceeded that for homes in both number and
amount. New York held a unique position because
its insurance was more evenly distributed among
home and project mortgages and property improvement
loans than was true in any other State.
For the third consecutive year, the largest total
amount of insurance written under all programs
combined was reported for California, $692 million
in 1960.
Home Mortgage Programs.—As shown in Table
III-9, there were 10 States, led by California,
Texas, and Florida, in which more than 10,000
home mortgages were insured during the year.
Table III-9.—Volume of FHA-insured mortgages and loans, by State location of property, 1960
[Dollar amounts in thousands]
1 For volume by sections see Tables 10 and 11. 2 Units are not reported under Sec. 232. 8 Based on cases tabulated in 1960, including adjustmentsnot
distributed by States.
State Total amount
Home mortgages 1 Project mortgages 1 Property improvement
loans
Number Amount Units Amount Number Net proceeds
Alabama____ __ __ __ _ ______ ___ - ______________ . $90,449 6, 577 $79, 009 80 $800 12, 704 $10,640
Alaska __ _ _ ________ _______________ 17,397 ' 725 16,943 280 453
Arizona_________ _ __ ________________ _ ________ 171,103 11,833 142^ 917 1,122 13, 694 16,902 14,492
Arkansas____ __ ____________ ___________ -_____ 48,628 2,862 34,171 ' 544 8', 336 7,544 6,121
California______________ ___________________________ 691, 919 40,005 564,134 6,043 89, 603 32,055 38,182
Colorado____________________ ________________ _____ 77,220 4, 626 62, 472 424 3, 463 12,110 11,284
Connecticut____ ___ -_____ ________ _____ - - 90, 906 4,901 66, 375 1, 531 20, 634 2,928 3,898
Delaware- _ __________ ___ ____ _____________ ___ 31, 749 2,144 27, 524 250 4,100 93 125
District of Columbia_______________________________ 26, 541 ’ 179 2, 320 1,290 18, 677 5, 422 5, 545
Florida_________ _________________________________ 416,473 28,166 337, 888 2, 558 37,437 46, 518 41,148
Georgia_______________________________________ ____ 147, 464 9, 875 120, 970 914 14, 798 13,409 11, 696
Hawaii_____ __________________________ ____ ____ 38,138 1,492 23, 807 941 14, 320 10 11
Idaho - - _ _ ____ ___________ - 27,834 1, 526 20,075 6,997 7, 759
Illinois-- ________________ ____________ _- __ ____ 133,977 5,288 71,005 333 3,600 61.602 59,371
Indiana_______________________________________ ___ 141, 534 8, 845 110, 452 34,282 31,082
Iowa _ _ _ _ _ _ ___________ 59, 935 3, 570 45,347 15,149 14, 588
Kansas________ __ _______ _____________ ___ - ___ 62i 501 3^ 832 46, 350 200 3,279 14, 978 12, 872
Kentucky__ __ _ _ _ _ __ _____ _____ _ _ 44, 629 2, 530 30, 721 20, 536 13,908
Louisiana_ _ _____________________________ __ 122. 644 8^ 688 111,988 97 8. 957 9,676
Maine____ ________ __ - -- __________ - - - _____ 37,035 2,001 20,327 804 13,193 3, 852 3, 515
Maryland________ ____________ ____________ - __ 96,315 6, 422
r
81,195 10 120 15, 865 15,001
Massachusetts ________ ____________ ___ ___ __ _ 135,455 6, 597 82,883 1, 731 29, 026 23,056 23, 546
Michigan ____________________________ -____ ____ 338, 531 18,369 230, 851 1,680 22,949 90,136 84, 731
Minnesota _ ____ _ _ ________ ____ ____ ______ 103, 326 4,966 67, 707 417 4, 778 35,460 30, 841
Mississippi_______ ___ _ __ __ — -__ ___ ___ 66, 614 3, 800 45,367 1,009 15,720 7, 803 5, 527
Missouri________________________ _____ ___ ___ _____ 129,463 7,399 90, 514 636 10,490 36,390 28,459
Montana___________ __________________________ __ 26, 843 1,651 21,936 38 295 4,232 4,612
Nebraska.. ______________________________________ 53, 603 3, 657 46, 568 30 313 6, 884 6, 722
Nevada _ ________ - ___ _____ ____________ 37,913 2,166 32, 487 266 3,796 1,314 1,631
New Hampshire - - 13,919 1,048 11, 603 2, 542 2,316
New Jersey _______________________________________ 240, 016 13, 820 177,987 2, 502 38,115 18,212 23,915
New Mexico__ _ 45, 877 3, 335 41.411 4,340 4.466
New York. ____ _________ ________ ______ ____ _ _____ 603.207 18.205 241, 906 14,196 221, 334 104,975 140,667
North Carolina___ __ _ _________ ________________ 71.114 4, 515 50.293 367 5,757 19, 663 15, 065
North Dakota________ ________ ___ ___ _ ___________ 13,686 333 4,224 5,998 3,545 3,464
Ohio____________ ____ _ _________ -_ __ _ _____ 308, 353 16, 721 222, 770 1,525 19, 394 75, 903 66,188
Oklahoma______ ______ _ __ _______ _____ ___ _____ 109, 678 7,640 87,224 502 7, 710 14, 988 14,744
Oregon.__ _________ ___________ — -___ _____ _ 56,406 3, 587 41, 895 482 5,493 9,123 9,019
Pennsylvania____ _ _ _ _ ____ _ __ __ ______ 211, 595 15,248 170,199 422 4, 641 36. 209 36, 755
Rhode Island _ _ 24,437 2, 003 22,074 2,120 2, 363
South Carolina________ _ ________ _______________ 50,345 3, 508 40, 719 390 6, 399 3,938 3,227
South Dakota____________________ ___ _____________ 19, 582 1,158 13,198 221 3. 384 3, 126 3.000
Tennessee__________ _ - _ - ___ _ _____ ____ _ 120, 402 8, 538 97, 786 1,047 4,436 26. 375 18,180
Texas__________ ___ _ ________ ____ _ ______ -_____ 423, 358 28, 905 331. 883 21,490 23,078 75,998 68, 397
Utah______________ _ ________ __ --_ _ __ ________ 49,418 3,052 42,110 12 100 7, 333 7,208
Vermont 4,931 432 F 4.188 944 742
Virginia________ __ __ ___ ______ ____ _____ _______ 129, 062 8,198 112,255 385 5, 324 14,117 11,484
Washington__________ _______ _ __ _ ___ ____ 180,156 11,083 137, 745 780 10. 793 31,153 31.617
West Virginia_________________ ________ __________ 25. 791 1,365 17,945 (2) 200 7,885 7,646
Wisconsin______ - __ _ _______ __________ ___ ___ 56,314 3,295 42, 620 776 7,386 6,466 6,308
Wyoming 15, 357 1,060 14, 692 621 666
Guam ' 154 7 121 60 33
Puerto Rico______ -__ _ _ ____ _______ __________ 77, 838 6,709 63, 781 663 6, 573 4, 739 7,484
Virgin Islands 351 28 334 15 17
Total8_______________________________________ 6,330,472 368,485 4, 624, 566 49,101 723, 501 1,011,858 982,405
75
Table III-10.—Volume of FHA-insured new- and existing-home mortgages, fry State location of property, fry sections, 1960
________ ___________________________________ [Dollar amount in thousands]
1 Includes Secs. 220 and 809. 2 Cases tabulated in 1960.
76
Chabt II1-8
Comparisons of the individual States with respect
to relative volumes of FHA-insured newand
existing- home mortgages, in total and under
separate programs, are presented in Table III-10.
States leading in new-home mortgage insurance
were Florida, California, Texas, Arizona, and
Michigan, in that order. Three of these, California,
Texas, and Michigan, were also among the
five ranking States in insured mortgages on existing
homes. More noteworthy is the fact that
three of the five States leading in the new-home
category—Florida, Texas, and Arizona, which are
among the Nation’s fastest growing, according to
1960 Census figures—each had more new-home
than existing-home mortgages insured. Other
States with more new than existing units included
Delaware, Hawaii, Louisiana, Mississippi, Nebraska,
New Mexico, North Carolina, South Dakota,
Tennessee, Utah, Wyoming, Puerto Rico, and
the Virgin Islands. For most of these, however,
the difference between new and existing is not significant,
and in most cases the excess of new over
existing is attributable to reasons other than the
rate of population growth.
Practically all States had some activity, both
in new and existing homes, under Sections 203
and 222. Section 203 (i), the program for lowcost
suburban homes, was particularly active, in
Florida, Texas, and Puerto Rico, each having
more than 2,000 new-home mortgages insured.
Cooperative housing (Section 213) was located
in only 11 States, with more than one-half of the
3,013 units in Florida. Concentration by State
among other programs indicated formal governmental
action, either Federal or federally assisted,
in setting up local urban renewal areas, relocation
projects, or military programs.
Project Mortgage Programs.—-Forty percent of
all multifamily housing dwelling units covered
by project mortgages insured in 1960 were located
in New York (14,196 units) and California
(6,043 units). However, multifamily project
mortgages were insured in 41 States and Puerto
Rico during 1960. Section 207 was the most active
multifamily program, accounting for 19,447
or nearly 40 percent of all units. This was the
first time since 1955 that the Section 207 total
units insured surpassed Section 803; over half
(10,831 units) were insured in New York, with
the remainder scattered throughout 20 States and
Puerto Rico. Section 803 ranked second in the
total number of units insured, with 12,680 units
in 22 States. Insurance under the new Section
232 nursing homes program involved facilities for
only 171 beds in 2 States. (These projects, reported
in terms of bed accommodations, are excluded
from the total units insured.) Table Hill
shows the State distributions of all project
mortgage insurance in 1960 for all programs combined
as well as for the individual sections.
77
Table III-ll.—Volume of FHA-insured multifamily housing mortgages, by State location of projects, by sections, 1960
[Dollar amounts in thousands]
i Units under Sec. 232 are in terms of beds and are excluded from totals.
78
Table III-12.—Volume of FHA-insured mortgages and loans by State location of property, 1934 60
[Dollar amounts in thousands]
1 For volume by sections, see Tables 13 and 14. , o „nn
2 Based on cases tabulated through 1960, including adjustments not distributed by States, and excluding Sec. 609.
State
Total
amount
Home mortgages 1 Project mortgages 1 Property improvement
loans
Number Amount Units Amount Number Net proceeds
Alabama __ _ _ - -__ ____ _________ - $881,768 73,104 $612,245 14,190 $104,824
45, 765
102,019
49,795
678,446
351,688
3,761
215,822
165, 233
2,343,458
$164,699
4,989
132,370
83,454
1,057,116
Alaska _ _ _ _ ______ _____ -- 138,717 5,022 87,964 3,953
Arizona ___ _ __ _ ___ ____ _ - -- - 1, 048,057 94,425 813,667 10,732
Arkansas - - -___ __ ______________ -- 522,851 53,088 389,602 4,315
California.___ _ _______ ______________________ 8, 788,186 866,426 7, 052,624 71, 595
Colorado _ _ __ --___ - - 776, 666 68,006 588,365 5,712 58,167
99,308
54,649
182,983
234, 537
197,435
15, 542
128,958
620,637
130,134
102,389
7,343
72, 740
399, 758
Connecticut _ _ ________ ___ _ ___________ 855,781 69,518 654,084 10,436
Del aware __ ________ 220,779 16,301 158,787 5,719
District of Columbia ____ ___ _________ - - - 321,868 8,038 66,145 24,141
Florida _ __. _ _______ ______ 2,455,436 207,946 1,833,217 23,108 222,461
Georgia _ __ ____ ___________ -- - - - - 1,268, 536 106,404 898,735 26, 639 212, 736
122,887
13,990
313,887
4,107
143,146
1,486 408
831,135
157, 064
3,116
90.618
863,021
412,825
Hawaii _ __ _ _ ___ - - - - - - 333,155 19,008 207,153 9,301
Idaho __ - __ - _ _ _ 350,040 30, 733 245,432 1,416
Illinois __ - ___ __ __ __ _____ 2,723,074 206, 597 1,623,315 27,019 230, /3S
Indiana __ _ _ _ _ _ ___ _ __ __ 1,780,689 169,971 1, 280,279 10, 534 87, 586
Iowa ______ _ _____ ____ - -__ - _ _ _ _ - - 668,585 56,342 459,094 2, 677 24,064
82, 000
345,782
266,197
306,106
255, 649
102,899
185,427
136, 510
148,846
143, 795
52,170
Kansas _ _ __ _ _ _ __________ 1,000,233 98,826 781, 723 7,997
Kentucky _ ___ ___ _ ___ __ - - - - 648, 641 52, 295 414,641 9,124 85,153
T.ouisiana, __ _ __ - - - 1,168, 551 100, 791 906,167 12,934 118, 588
Maine _ _ __ _ _ _ ___ - -- - - 264,315 22, 243 163, 269 4,307 48,876
Maryland _ _ _ _ - ______ _____— 1, 272,119 84,787 689,663 45, 052 319,001 533,742
619,882
2, 042,326
617, 778
157,059
263,456
329,978
1, 079,859
326, 224
77, 046
Massachusetts ______ _ __ - - - 927,719 54,042 508,141 8,470 89, 600
Michigan _ _ ____ -__ - - - 4,218,156 360, 567 2,930,333 20, 793 207,964
Minnesota ___ _______ ___ _ ____ - 934,509 60, 261 547,455 7, 438 60,829
Mississippi _________ 447,250 42,689 325,189 4, 501 45, 015
Missouri _ _ -___ 1, 660, 735 143,022 1,181, 229 15,716 149,325 689,129
70, 578
144, 086
31,484
60,987
330,181
47,879
80, 290
22,407
30, 566
Montana - _ _ _ _ _ _ _ ___ ____ _ ___ 251,162 21, 229 181,714 1,785 21, 569
Nebraska _ __________ _ _ _ _ _ _ __ 563,177 54,377 436,461 4,420 46,426
Nevada _ _____ _ ____ _ _ _ ----- - 261,115 19, 540 197,875 3,346 40, 833
New Hampshire ____ ___ - _____ _________ 123.119 9, 551 74,227 1,344 18,326
New Jersey __ ___ __ - - ___ - — - 2,613, 807 199,164 1,561,929 67,898 563,192 757,108
62,845
2, 624, 278
274,571
50,165
488,686
45,294
1,853,719
151,273
29,800
New Mexico __ _ _ ___ _ _ 466,088 39,819 360,910 5,063 59,884
New York _ ___ _ _ _ _ __________ 6,093,965 293,344 2, 555,343 170,921 1, 684,902
North Carolina ____ __ __ _____ 882, 723 69,420 541, 583 23, 503 189,867
North Dakota __ _______ - - - - 130,647 6,350 55,224 2,881 45,623
Ohio _ ______ 3,345,226 268,764 2,343,836 29,220 240,844 1,496,663
349,738
274, 574
1,221,815
75,665
760, 546
184,280
146,447
618,355
37,792
Oklahoma _____ ___ _ _ ----- 1, 200,433 126,874 941,266 7, 211 74,887
57,102
Oregon _ _ __ _ ___ 794,402 76, 270 243,140 590,852 6,779
Pen ns vl vania, _ _____ - -_____ 2,833, 537 266,414 1,972,042 29,032
Rhode Island - - - ----------------- -- 209, 269 18, 680 162,304 1,028 9,1/3
South Carolina ____ _ - - - ----- 510, 587 49,636 361,338 10, 552 94,495 113,149
51.999
505,436
1,484,340
238,932
54,754
31, 620
234, 569
815,688
127,884
South Dakota, _ _ _ _ - ---------- 194,878 19,316 145,907 1,715
12,618
17,351
83,070
341,649
16,960
Tennessee _ _ _ __ -- -- - - - 1,207,929 113,682 890, 291
'Texas __ _ _ ___ -- - - 3,998,693 370,174 2,841,356 41, 591
Utah _________ -- --- - 589,020 52, 677 444,176 1,903
Vermont __ - -- - -- - -- 64, 287 7,299 49,470 193 1, 512
344,666
151, 570
5,333
45,009
26,061
347, 273
619.127
130,082
293,417
13,305
179,751
351,400
75,228
150,530
Virginia, __ __ 1, 608,132 127,214 1,083, 715 48,636
Washington __ ____ _ ___ 2,173, 559 214,948 1,670, 588 15, 213
AVest Virginia, ______ -- 311,201 31, 295 230,640 900
Wisconsin _______ __ _ ------- 603,891 47, 705 408,351 5,317
Wyoming__________________________________________ 156, 526
5,403
29. 571
17, 584 137,271 611
330
1,270
4,976
5,399
24,801
56,944
21,663 14,278
Canal Zone________________________________________
Guam _ - - 308 4,321 387
48,964
48
449
53,123
Puerto Rico________________________________________ 42
Virgin Islands -____ ___ - - - - - —
414,736
927
39,470
77
304, 669
884
7, 590
Total2 _______ - --- -- 67,312, 016 5, 631, 519 45,966,677 890, 589 7,992, 272 24,368,433 13,353,067
1 —
Property Improvement Loans.—During 1960 approved
institutions made insured loans to improve
properties in every State (Table III-9), ranging
from a low of 10 loans with less than $11 thousand
net proceeds in Hawaii to a high of 104,975
loans with corresponding proceeds of $141 million
in New York.
Activity in five States—New York, Michigan,
Texas, Ohio, and Illinois—accounted for over twofifths
of the total net proceeds insured during
1960. It should be noted that these State data
on property improvement loans, as under the
other programs, pertain to the location of the
property and do not necessarily reflect the location
of the lending institution.
CumuJcsfive insurance Written, 1934—60
All Programs.—State distributions of the cumulative
volume of mortgage and loan insurance
written by FHA from the beginning of its operations
in 1934 through 1960 are presented in Table
HI-12.
79
California, with $8.8 billion in insured mortgages
and loans, has led all other States in total insurance,
followed by New York, Michigan, Texas,
and Ohio. These same five States, in a slightly
different order, were also leaders in home mortgage
insurance. For projects, New York has been
by far the ranking State, with $1.7 billion in
multifamily housing mortgages insured—over a
fifth of the national total. The next four ranking
States, California, New Jersey, Virginia, and
Texas, had an aggregate of $1.9 billion in project
mortgage insurance, only a little more than New
York alone. New York was also the leading
State in property improvement loans, with $1.9
billion insured. Michigan and California also
had more than $1 billion in improvement loan
insurance, followed by Illinois and Texas with
$900 million and $800 million, respectively.
Home Mortgage Programs.—Table III-13 shows
the State distribution of the cumulative number of
FHA-insured mortgages for each home mortgage
program. In addition to presenting a complete account
of activity in each State, including insurance
under currently inactive programs (Sections
2, 8, 603, and 903), these figures are useful, when
compared with 1960 annual data (Table III-10),
Table III-13.—Volume of FHA-insured home mortgages by State location of property, by section, 1935-60
[Dollar amounts in thousands]
All sections Number of mortgages
Number Amount Sec. 2 and
Sec. 8
Sec. 203 Sec.
213
Sec.
220 '
Sec.
221
Sec.
222
Sec. 603 i Sec. 611 See. 809 Sec. 903
Alabama_____________________ 73,104 $612, 245 916 56,199 45 57 2,355 1,078 9, 836 ________ 1,895 723
Alaska_______________________ 5,022
94, 425
87.964 21 4, 954
5,250
5
134
41 1
Arizona---------------------------------- 813,667 2,672 76,259 50 2,333
101
517 7,132 78
Arkansas_____________________ 53,088 389,602 273 44, 923 552 218 1,061 5,377
165
583
California------------------------------ 866,426 7,052, 624 15,283 692, 915 10,199 65 395 12, 284 126,012 25 9,083
Colorado_____________________ 68,006 588,365 1,995 58,936 355 ___ ___ 4 1,434 5,069 ________ 213
Connecticut__________________ 69,518 654,084 264 59,864 2 4 1,375 7, 537 472
Delaware____________________ 16, 301 158,787 41 13, 328 35 77 2, 631 189
District of Columbia__________ 8,038 66,145 1 5,047
2,482
148 62 2, 780
Florida______________________ 207,946 1,833, 217 4, 380 161,147 — 2, 709 5, 885 26,895— 2,867 1,581
Georgia______________________ 106,404 898, 735 1,568 81, 266 57— 3,021 3,944 13,350 —----- 3,198
Hawaii______________________ 19, 008 207,153 6 16,822 306 17 206 835 544 272
Idaho________________________ 30, 733 245,432 107 29, 504 20 208 527 367
Illinois_______________________ 206,o97 1,623,315 3,065 178.008 —------ 24 645 21,975 2,880
Indiana______________________ 169, 971 1, 280, 279 1,733 149,192 198— 78 435 15,823— 2,512
Iowa_________________________ 56,342 459,094 905 51,642 351— 2 175 2, 551— 716
Kansas______________________ 98,826 781,723 1,854 81,141 143 1,538 10,368 3, 782
Kentucky____________________ 52, 295 414, 641 292 45,118 70 1 1, 188 284 4, 73/— 605
Louisiana____________________ 100, 791 906,167 1,056 81,464 1,010 1,025 3,114 12, 381 741
Maine_______________________ 22, 243 163, 269 46 19,659— 6 2 675 1, 290— 565
Maryland____________________ 84, 787 689,663 1,728 65,149 114 __ ____ 1 2, 430 14.409— 956
Massachusetts________________ 54,042 508,141 650 47, 283
1,788 1,161
2,739 3,076 294
Michigan____________________ 360,567 2, 930,333 7,273 307,934 16 511 41,334 550
Minnesota____________________ 60, 261 547,455
325,189
401 53,984 489 2 334 4.810 241
Mississippi___________________ 42, 689 752 35, 911 — 114 1,024 4,168— 720
Missouri_____________________ 143,022 1,181,229 338 133,681 10 _______ 43 808 7,118— 1,024
Montana_____________________ 21, 229 181,714 41 20,367
365
90 239 334 158
Nebraska____________________ 54, 377 436,461 681 45, 285 — 5 1,979 5,868 194
Nevada______________________ 19, 540 197, 875 69 15,516 1,185 94 1,925 751
New Hampshire______________ 9,551 74, 227 165 8, 331 — 668 337 --------- 50
New Jersey__________________ 199,164 1, 561, 929 2,632 176, 296 ______3_7 60 2, 347 17,014 — 778
New Mexico__________________ 39,819 360, 910 86 34,015 809 10 1, 345 2, b24 930
New York___________________ 293, 344 2, 555, 343 9, 111 257,496 72 1,939 23, 699 1,027
North Carolina_______________ 69,420 541,583 657 56,786 694 905 8,829 1, 549
North Dakota________________ 6,350 55, 224 10 5,941 58 — 6 56 162 — 117
Ohio_________________________ 268, 764 2, 343,836 1,620 234,464 304 3 2, 238 2,486 24, 786 2,863
Oklahoma____________________ 126,874 941, 266 1,866 102,455 666 2,745 17, 741 1,401
Oregon_______________________ 76,270 590,852 789 68,027 52— 15 282 6,847 258
Pennsylvania_________________ 266,414 1,972, 042 1,211 231, 368 1 182 1,078 31,454 1,120
Rhode Island_________________ 18,680 162, 304 51 15, 797 — 1 1,493 1,263 — 75
South Carolina_______________ 49,636 361, 338 664 36,957 25 _______ 21 3, 265 6, 378 2, 326
South Dakota________________ 19, 316 145, 907 206 17, 682
3,024
7 3u 520
157
178
Tennessee__________ .. 113, 682 890, 291 1,131 90, 692 398 16 1,002 16,056 1. 206
Texas________________________ 370,174 2, 841,356 9,553 296, 924 173 1 601 7, 405 52,145 — 3,372
Utah_________________________ 52, 677 444,176 177 43,048 225 999 1 273 7, 920 — 34
Vermont_____________________ 7,299 49, 470 17 6, 892 ___
1,124
107 283 ________
Virginia______________________ 127, 214 1,083,715 3,289 92,524 25 8, 828 18,898 2,526
Washington__________________ 214, 948 1,670, 588 1,873 188, 789 19 95 3, 246 20,143 783
West Virginia________________ 31, 295 230, 640 141 29, 737 9 68 15 1, 325
Wisconsin.____________________ 47, 705 408,351 327 41, 673 — 211 194 4,444 — 856
Wyoming____________________ 17,584 137, 271 122 16,213 40 84 1,125 —
Guam________________________ 308 4, 321 303
318
5
Puerto Rico__________________ 39, 470 304, 669 465 34,028 ---------4-5 447 4,162 5
Virgin Islands________________ 77 884 74 — 1 2 —
Total1 2__________________ 5, 631, 519 45,966,677 84,460 4, 719,010 27,649 1,372 21, 848 86,771 | 628,016 75 5,162 1 57,156
1 Includes See. 603-610.
2 Cases tabulated through 1960 including adjustments not distributed by States.
80
in pointing up shifts in activity among the States.
For example, under Section 203 some States forged
ahead to positions of leadership in 1960 activity,
while others failed to maintain relative positions
established in earlier years. Florida advanced
from 10th place on its 1934—60 record to 3rd place
in 1960, while Arizona rose in position from 19th
place to 9th on the same records. On the other
hand, Illinois slipped from 8th place on its 26-year
record to 21st in 1960. Michigan and Ohio also
dropped several positions.
Progress made under special programs is evident
from the cumulative State figures. Table III-13
indicates that the construction of homes by Section
213 cooperatives is especially successful in
California, Arizona, and Florida, since these 3
States accounted for 65 percent of 27,600 mortgages
insured under this section. Homes insured
under Section 220 are an inadequate measure of
urban renewal operations, since most redevelopment
activities ordinarily involve multifamily
housing (compare Table 14). Notable accom-
Table III-14.—Volume of FHA-insured multifamily housing mortgages, try State location of projects, hy sections,
1935-60
[Dollar amounts in thousands]
1 Units under Sec. 232 are in terms of beds and are excluded from totals.
State
All sections Number of units
Number
Amount Units Sec. 207
Sec. 213
Sec. 220
Sec.
221
Sec.
231
Sec.
232 1 Sec. 608
Sec.
608-610
Sec.
611
Sec. 803
Sec.
908
Sales Mngt. Military
Armed
services
Alabama________________ 249 $104,824 14,190 674 48 8 ' 72 80 10,295 1,005 1,970 38
Alaska__________________ 34 45, 765 3, 853 1,496
5,378
2,357
Arizona_________________ 259 102, 019 10, 732 1,059 160 1,619
74
947 1,569
Arkansas________________ 68 49, 795 4,315 332 5/8
2,696 1,321
932 2,399
California_______________ 1,364 678,446 71,595 8,224 10,255 80 971 — 21, 575 58 973 13,693 10, 755 994
Colorado________________ 116 58,167 5, 712 609 365 148
255
______ 1,896 50 680 1,700 264
Connecticut_____________ 115 99,308 10,436 3, 610 197 88 3,013 450 740 2,083
Delaware_______________ 28 54,649 5, 719 678
593
3,771 20 1,250 — District of Columbia____ 192 182,983 24,141 3,218
2,749 488
993 300 — 19, 037
Florida_________________ 560 222,461 23,108 963 — 10, 669 — 4,168 4,071 —
Georgia_________________ 202 212, 736 26, 639 2,190 57 298 ____ __ 48 18. 882 150 195 2,150 2, 469 200
Hawaii_________________ 131 122, 887 9,301 301 311 850 2,077
500
5, 762
Idaho___________________ 14 13, 990 1, 416 20
1,885
571 270 55
Illinois__________________ 321 236, 738 27, 019 3, 780
1,869 199
35 17,012 3, 416 875 16
Indiana.. ______________ 164 87, 586 10, 534 — 6, 065 — 510 930 961
Iowa____________________ 52 24,064 2,677 500 351 ------ - 1,591
350 823
235
lx dllSdS_________________ 107 82,000 7, 997 346 11 3, 243 3,212 12
Kentucky_______________ 117 85,153 9,124 682 70 52 2,247
150
3,465 2, 404 204
Louisiana_______________ 200 118, 588 12,934 1,394 1,012 7, 071
688
25 782 2,500
Maine__________________ 38 48, 876 4, 307 — — 1,924 1,695 —
Maryland_______________ 340 319, 001 45,052 4,020 124 138
477
______ 34,221 486 4, 794 1,161 108
Massachusetts___________ 71 89,600 8,470 1,212
1,950 448
25 — 3,186 1,502 2, 024 44
Michigan_______________ 472 207,964 20, 793 5,675 526 196 7,214 500 661 3,623
Minnesota______________
Mississippi______________
213 60,829 7,438 1,307 700 155 — 5,036
858
240
58 45,015 4, 501 121 1,852 — 1,670 —
Missouri________________
Montana________________
Nebraska_______________
189 149,325 15, 716 1,782 10 ___1_,_2_2_2
38
9, 439 ____ - 120 3,143 16 21, 569 1, 785 no
370 366
— 135 592 910
84 46, 426 4,420 71 1, 786 — 611 1, 216
Nevada_________________
New Hampshire_________
83 40, 833 3,346 100 1,192 168 240 801 845
12 18,326 1,344 — 244 — 1,100 —
New Jersey_____________
New Mexico____________
643 563,192 67,898 8,100
828
1,139 1,909 - _ - 51,451 ______ 1,983 2,854 462
7 5 59, 884 5,063
41,285
277 2,395 1, 563
New York______________ 1,211 1, 684, 902 170, 921 27, 677 9, 37/ 85,807 566 556 1,642 4,011
North Carolina__________
North Dakota___________
158 189,867 23, 503 3, 086
61
9,107 85 5,571 5, 478 176
34 45,623 2,881 16 — 43 — 2,666 95
Ohio____________________ 388 240, 844 29,220 4,153 307 680 941 3,072 16, 207 10 2,528 400 922
Oklahoma_______________ 169 74,887 7, 211 310 667 24 — 2, 974 500 2,347 389
Oregon__________________ 160 57,102 6, 779 295 52 37
1,551
694 — 5,155 464 82
Pennsylvania___________ 420 243,140 29,032 4,682 1,360 209 206 — 19, 474 450 400 231 469
Rhode Island____________ 13 9,173 1, 028 36 — 210 — 706 76 ------
South Carolina__________
South Dakota___________
113 94, 495 10, 552 290 25 ______
31
6,329 ______ 25 585 3, 298 _____
20 1 /, 351 1, 715
12, 618
125
398 375
--- ----- 258 891 410
Tennessee_______________ 172 83, 070 2,290 48 40
(96)
6,915 250 1,740 562
Texas___________________
Utah___________________
510 341, 649 41, 591
1,903
6,095 173 187 19, 432 — 9, 072 6, 632
42 16, 960 36 226 — 737 — 854 50 —
Vermont________________
Virginia_________________
7 1,512 193 56
25
— 137
398 344, 666 48,636 10, 545 100 440 4, 329 3,024
271
29, 672 501
Washington_____________
West Virginia___________
Wisconsin_______________
168 151, 570 15,213 1, 512 20 — 6,369 3,100 3, 641 300
18 5,333 900 188 9 94
448 144
(75) 209 400
198 45, 009 5, 317 835 41 21— — 3, 828
Wyoming_______________
Canal Zone______________
10 4, 976 611 — 40 — 71 — 500
Guam__________________ 3 5,399 330 330 ------ - 14 24,801 1,270 1,270
Puerto Rico_____________ 36 56, 944 7, 590 208 — 60— 395 — 4,947 — 886 1, 094 —
Total______________ 10, 849 7,992,272 890, 589 130, 655 28, 607 35,811 20, 956 5,232 3, 248 (171) 465,674 3,915 1,984 84,883 101,139 8,485
81
plishments were reported, however, in the insurance
of urban renewal homes in Alabama (Birmingham
and Florence areas), Arkansas (Little
Rock), California (Calexico, Los Angeles, and
Richmond), and Utah (Ogden). In contrast to
the urban renewal program, relocation housing
under Section 221 is predominately that of homes
rather than projects. The volume of home mortgages
insured under local relocation programs was
highest in Georgia, Tennessee, Florida, Alabama,
and Ohio, each with more than 2,000 mortgages.
Project Mortgage Programs.—By the end of
1960, FHA had insured mortgages on multifamily
housing in all 50 States, Puerto Rico, Guam, and
the Canal Zone for a total of 890,600 units, exclusive
of 171 nursing home accommodations. Nearly
one-fifth of the total, or 170,900 units, were located
in New York. California ranked second with
71,600 units, followed by New Jersey with 67,800
units.
By programs, the Section 608 War and Veterans’
Emergency Housing Programs—even
though in effect only from 1942 to 1952—had accounted
for 465,700 units, or more than one-half
of all project units insured by FHA. One or more
projects was insured under these programs in each
State and in Puerto Rico.
Military housing, which was established in 1949
under Section 803, and armed services housing
which superseded it in 1955 had accounted for
the second largest number of project units insured,
with a total of 186,000 units and projects
in all but 5 States. Although the Section 207
regular rental housing program has been in continuous
operation since 1935, the number of units
insured under this program had reached only
130,700 by the end of 1960, less than 15 percent
of the total. The cumulative volume of insurance
written in each State for all multifamily housingprograms
is shown in Table HI-14.
Property Improvement Loans.—Cumulative State
totals showing the geographic distribution of the
24 million property improvement loans with net
proceeds of $13 billion insured under Title I of
the National Housing Act through the end of
1960 are presented in Table HI-12 and show that
the financing of improvements to properties in
six States has accounted for nearly one-half of
the number and aggregate net proceeds of loans
insured since the beginning of this program in
1934.
Over 2.6 million loans have been insured involving
properties located in New York, with net
proceeds of $1.9 billion. Both California and
Michigan have reported over 2 million insured
loans with net proceeds aggregating slightly over
$1 billion. Illinois, Ohio, and Texas have each
reported 1.5 million loans with net proceeds ranging
from $761 million to $863 million.
LENDING INSTITUTION ACTIVITY
FHA mortgages and property improvement
loans may be originated only by FHA-approved
financial institutions. Governmental institutions
such as the Federal Reserve banks, Federal Home
Loan banks, and the Federal National Mortgage
Association, along with certain other Federal,
State, and municipal agencies, are automatically
approved as mortgagees. Members of the Federal
Reserve System and institutions whose accounts
or deposits are insured by either the Federal Savings
and Loan Insurance Corporation or the Federal
Deposit Insurance Corporation may be
approved as mortgagees upon application. Other
types of institutions are approved if they meet
certain qualifications and comply with regulations
prescribed for such approval. There were about
14,300 financial institutions on the approved
roster as of December 31, 1960.
Mortgage and Loan Financing During 1960
A total of $6.3 billion of FHA-insured mortgages
and property improvement loans were financed
by an estimated 5,600 lending institutions
during 1960. As indicated in Table HI-15, the
types of institutions which were most active during
the year were mortgage companies with 45
percent of the total and national banks with 16
percent.
The following table shows the extent of participation
in the major categories of FHA programs
by the various types of lending institutions:
1 Less than 0.05 percent.
Type of institution
Percentage distribution
Home
mortgages
Multiiamily
project
mortgages
Property
improvement
loans
Total
National bank___________ 39.1 15. 5 45. 4 100. 0
State bank— ___________ 36. 6 24. 8 38. 6 100.0
Mortgage company_______ 94.2 5. 0 .8 100. 0
Insurance company_______ 95. 2 4. 8 (*)
17. 7
100. 0
Savings ami loan assn____ 78. 3 4. 0 100. 0
Savings bank_____ _______ 72. 5 21. 3 6. 2 100.0
All other_________________ 54.2 36.3 9.5 100.0
As this summary shows, property improvement
loans accounted for the largest proportion of
FHA mortgages and loans insured for national
and State banks, and home mortgages represented
the greatest share of the FHA-insured
financing of the other types of institutions.
Home Mortgage Financing.—All of the major
types of financial institutions engaging in FHAinsured
business in 1960 reported decreases in the
volume of FHA home mortgages financed, thus
paralleling the overall decline in home mortgage
insurance written in 1960. Mortgage companies,
however, still led by far in the relative volume of
originations, with $2,664 million. Even though
this represented a decline of 8 percent from 1959,
the proportion of the total volume financed by
mortgage companies rose from 48 percent in 1959
to 58 percent. National banks experienced the
greatest decline in originations, falling by almost
60 percent from 1959 to $408 million in 1960.
This reduced the share of total financings by these
82
institutions from 17 to 9 percent, dropping them
to third place. Savings and loan associations
with $565 million or 12 percent of the total
became the second largest supplier of FHA funds.
Savings banks ranked fourth with 7 percent, followed
by State banks and insurance companies
with about 6 percent each. The proportions financed
by all types of institutions for 1960 and
selected earlier years are shown in Table HI-16
and graphically, for 1960 only, in Chart III-9.
Table III-15.-—Financing of FHA-insured mortgages and loans by type of institution, 1960
[Dollar amounts in thousands]
Type of institution
Section
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other1 Total2
Number of mortgages and loans:
Home programs:
Sec. 203(i) __ __________ -- - 535 196 10,889
177,974
2,723
123
123 1,898
44, 582
36 1 584 14,262
320,906
3,013
160
Sec. 203 (other)_ -_____ __________ 29, 011
166
20,293
70
16,840
2
22, 536 91 9, 579
Sec. 213If -______ - -______ 52
Sec. 220H ____________________ 1 13 7 4 1 11
Sec. 221H _ _____________________ 260 162 7,926
12,306
1,146
129 232 24 483 9,216
19,422
1, 508
Sec. 222 _________ ____________ 1,157
99
968 1,335 1,930
3
1,129 597
Sec. 809 - ________ _________ 182 78
Total_____________________ -__ 31,229 21,884 213,087 18,429 48,652 23, 729 93 11,384 368,487
Project programs:3
Sec. 207 __________ ___________ 30 46 22 2 3 30 4 5 142
Sec. 213 sales_ __ _______ __ _____ 5 2 190 7 204
Sec. 213 management _________ 9 10 6 8 33
Sec. 220P - ________ -____ - 4 5 10 2 21
Sec. 221P ____________________ 3 7 1 1 1 13
Sec. 231_________________________ 8 4 11 1 24
Sec. 232 _________________ ______ 1 1 2
Sec. 803 armed services _________ 19 21 11 14 40 105
Total___________________ 79 89 257 4 19 39 4 53 544
Property improvement loans:4 Sec. 2_ _____ 508, 521 307,297 24,810 51 123,784 23, 752 23, 670 1,011,885
Total all programs__________________ 539,829 329,270 238,154 18,484 172,455 47, 520 97 35,107 1,380,916
Face amount of mortgages and loans:
Home programs:
Sec. 203 (i). _____________________ $4,362
381,300
2,492
25
$1,579
269,921
1,174
162
$88,907
2,278, 793
37, 702
1,309
72,822
168,481
15,885
$1,021
232,871
31
$15,129
521, 762
$300 $8 $4, 797
121, 298
754
$116,102
4,092,166
42,154
1,747
84,544
267, 027
20,858
Sec. 203 (other)___________ ________ 285, 584 636
Sec. 213H___ _____________________
Sec. 220H___ ___ ___________ _ 63 37 12 137
Sec. 221H____________ 2,396
15, 646
1,389
1,615 1,144
19, 771
1,980
25,732
39
231 4,356
7,674
1,099
Sec. 222________________________ 13,839
2,445
15,884
Sec. 809________________ _
Total______ _______________ 407, 610 290, 737 2,663,900 254,838 564,705 302,035 656 140,115 4,624, 597
Project programs:
Sec. 207______________________ 57,445
2,318
20,121
21,054
4,011
13, 067
421
100,096
868
31, 782
43,246
10,260
15,156
8, 646
13, 793
1,265 5,005 66, 007 2,452 5,338
818
269,389
47, 249
70, 261
79,116
14,307
31,177
621
Sec. 213 sales--___ _____________
Sec. 213 management 17,012
31,358
22, 445
Sec. 220P___ ______ _________ 11,548
Sec. 221P ______________ 550 412 688
Sec. 231 _______________________ 4,092
200
225
Sec. 232________________________
Sec. 803 armed services _____ _ 42,827 43,107 17,895 22,959 84, 546 211,381
Total_______________ _________ 161,263 196,732 140,777 12,813 28,739 88,912 2,452 91,814 723, 501
Property improvement loans:4 Sec. 2 ___ 472,989 306,275 24, 724 61 127,775 25,847 24, 766 982, 437
Total all programs__ - _____________ 1,041,862 793, 744 2,829,400 267, 712 721, 219 416, 794 3,108 256, 695 6,330, 535
Percentage distribution of amount:
Home programs:
Sec. 203(i) _________________ 3.7 1.4 76.6 0.9 13.0 0.3 (5) 4.1 100.0
Sec. 203 (other) ________________ 9.3 6.6 55.7 5.7 12.7 7.0 (5) 3.0 100.0
Sec. 213H___ -_______________ __ 5.9 2.8 89.4 . 1 1.8 100.0
Sec. 220FI __ ___ ____ 1. 5 9.3 74.9 3.6 2.1 .7 7.9 100.0
Sec. 221TI ___________________ - 2.8 1.9 86.1 1.4 2.3 .3 5.2 100.0
Sec. 222_____________________ ___ 5.9 5.2 63.1 7.4 9.6 5.9 2.9 100.0
Sec. 809 _______________ _____ 6.6 11.7 76.2 .2 5.3 100.0
Total__________________________ 8.8 6.3 57.6 5.6 12.2 6.5 (S) 3.0 100.0
Project programs:
Sec. 207 _________________________ 21.3 37. 1 11.8 .5 1.9 24.5 .9 2.0 100.0
See. 213 sales ________ _______ 4.9 1.9 91. 5 1.7 100.0
Sec. 213 management __________ 28.8 24.4 14.7 32.1 100.0
Sec. 220P - -___________________ 26.6 39.6 19.2 14.6 100.0
Sec. 221P ______ ________ 28.0 60.4 3.9 2.9 4.8 100.0
Sec. 231 41.9 13.1 44.3 .7 100. 0
Sec. 232 _ 67.8 32.2 100.0
Sec. 803 armed services - ________ 20.3 20.4 8.5 10.8 40.0 100.0
Total _________ ___ ___________ 22.3 27.2 19.4 1.8 4.0 12.3 .3 12.7 100.0
Property improvement loans: Sec. 2 ____ 48.2 31.2 2.5 (s) 13.0 2.6 2.5 100.0
Total all programs ____ ___ ________ 16.5 12.5 44.7 4.2 11.4 6.6 (J) 4.1 100.0
See footnotes at end of table.
83
Table HI-15.-—Financing of FHA-insured mortgages and loans by type of institution, 1960—Continued
[Dollar amounts in thousands]
Type of institution
Section
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other 1 Total
Number of financing institutions:
Home programs:
Sec. 203 (i)________________________
Sec. 203 (other)____________________
Sec. 213H________________________
Sec. 220H________________________
Sec. 221H________________________
Sec. 222__________________________
Sec. 809__________________________
Project programs:
Sec. 207__________________________
Sec. 213 sales_____________________
Sec. 213 management_____________
Sec. 220P________________________
Sec. 221P________________________
Sec. 231__________________________
Sec. 232__________________________
Sec. 803 armed services____________
54
1,097
21
24
149
2
10
16
33
815
38
1,283
13
21
106
4
18
17
4
221
1,031
19
14
200
551
38
16
13
3
568
22
200
2
5
56
189
1,481
4
33
322
7
338
28
115
29
112
22
17
46
4
11
561
5,579
26
27
308
1,345
49
63
17
20
13
12
21
2
23
414
4
7
1
2 2
4
1 3
2
1
4 7
1 On this and following lending institution tables, includes industrial
banks, finance companies, endowed institutions, private and State benefit
funds, etc.
2 As tabulated in Washington.
3 Includes miscellaneous small adjustments caused by amendments of
mortgages.
4 Based on co-insurance only.
6 Less than 0.05 percent.
The relative participation of the various types
of financial institutions in the origination of FHA
home mortgages is also shown in Table HI-15,
with a further breakdown by sections of the National
Housing Act. Mortgage companies were
the leading originators under all of the FHA home
mortgage programs, ranging from 56 percent of
the total volume reported under the “regular”
Section 203 program to 89 percent for Section 213.
Although all of the other types of financial institutions
combined did not equal the total originations
of mortgage companies for any one home
Chart IH-9
INSTITUTIONS FINANCING
FHA INSURED MORTGAGES, 1960
Percent distribution of face amount
mortgage program, they did show a tendency to
specialize in certain types of FHA mortgages.
Savings and loan associations, for example, were
the second largest financers of Section 203, 203 (i)
and 222 mortgages, while State banks and trust
companies ranked second in the Section 220 and
809 special purpose programs. National banks
also showed a leaning toward special-purpose programs,
supplying the second largest amount of
funds for Section 213 and Section 221 mortgages.
Multifamily Housing Mortgage Financing.—A
total of almost $724 million secured by FHAinsured
mortgages on 544 multifamily projects
was financed by FHA approved lending institutions
in 1960. State banks were the leaders, accounting
for $197 million or 27 percent of the
total, followed by national banks with $161 million
or 22 percent and mortgage companies with $141
million or 19 percent (Table HI-15).
Participation of these institutions in financing
project mortgages under the various sections of
the Housing Act is also shown in Table HI-15.
Over one-half of the total 1960 project mortgage
investments of State banks was in Section 207
“regular” rental housing mortgages, with another
22 percent allocated to Section 803 armed services
housing. The activities of these institutions
under these two programs primarily accounted
for their being the leading source of FHAinsured
project mortgage funds. National banks
financed about the same amount of Section
803 mortgages as State banks, but their second
place ranking reflected a volume of Section 207
originations that was only about half as large.
On the other hand, the mortgage companies’ position
as the third largest supplier of FHA-insured
project mortgage funds in 1960 can be attributed
w in so
84
Table III-16.—Financing of FHA-insured mortgages and loans, by type of institution, selected years
Program
Home mortgages:
1946_________________________________
1950_________________________________
1954_________________________________
1955_________________________________
1956_________________________________
1957_________________________________
1958_________________________________
1959_________________________________
1960_________________________________
Project mortgages:
1946_________________________________
1950_________________________________
1954_________________________________
1955_________________________________
1956_________________________________
1957_________________________________
1958_________________________________
1959_________________________________
1960_________________________________
Property improvement loans:
1950_________________________________
1954_________________________________
1955_________________________________
1956_________________________________
1957 ________________________________
1958 _______________________________
1959 ________________________________
1960_________________________________
Percentage distribution of face amount or net proceeds
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other Total
24.3 17.7 26.7 15.4 9.8 3.2 2.9 100.0
15.8 13.8 27.7 20.8 10.8 7.6 3.5 100.0
22.0 12.5 35.2 11.8 10. 8 5.8 1.9 100.0
22.4 12.7 33.3 11.1 12. 3 7. 2 1.0 100.0
25.8 13.2 33.2 8.4 9.5 9.0 (>) .9 100.0
15.9 10.3 42.2 9.1 10.7 10.4 0.3 1.1 100.0
12. 1 7.4 51.4 5.5 12.2 7.9 .3 3.2 100.0
16.5 7.3 48.1 4.8 13.9 6.0 . 1 3.3 100.0
8.8 6.3 57.6 5.6 12. 2 6.5 (') 3.0 100.0
0.7 35.3 23.0 39.5 1.5 100.0
23.6 42.4 8.6 8.3 1. 1 13.6 .5 1.9 100.0
23.9 33.7 20.9 4.5 .5 14.5 2.0 100.0
35.5 33.9 19.1 .5 9. 8 1. 2 100. 0
38.5 38.0 5.5 3.3 14. 6 . 1 100.0
32.7 37.9 14.0 2.3 5.1 7.6 .4 100.0
30.4 37.4 18.8 .6 1.3 9.0 2. 5 100.0
33.2 38.6 10.7 .2 2.9 11.6 2.8 100.0
22.3 27.2 19.4 1.8 4.0 12.3 .3 12.7 100.0
52.8 29.2 0.6 4.6 1.3 11. 5 100.0
51.4 30.2 (>) 9.0 2.3 7.1 100.0
38.2 40.5 1.0 (') 8.7 2. 2 9.4 100.0
47.0 32.6 .3 8.5 2.5 9.1 100.0
50.2 31.0 1.0 (•) 10.5 2.3 5.0 100.0
47.5 31.9 .6 (>) 13.5 3.0 3.5 100.0
48.3 30.4 .4 (') 13.4 2. 4 5.1 100.0
48.2 31.2 2.5 (■) 13.0 2.6 2.5 100.0
1 Less than 0.05 percent.
largely to originations of Section 213 sales-type
cooperatives which accounted for 31 percent of
their project financing activity. This also accounts
for the fact that these institutions led in the
number of projects financed, inasmuch as Section
213 sales-type cooperatives are characteristically
small. Savings banks were the second largest
originators of Section 207 mortgages but dropped
from third to fourth place in originations in 1960.
As usual, insurance companies originated the
smallest amount of FHA project mortgages, since
they normally tend to buy rather than originate
mortgages for investment purposes.
Property Improvement Loan Financing.—By
types of institution, the number and dollar volume
of the net proceeds of loans insured in 1960 to improve
properties are presented in Table HI-15.
Of the 1 million loans and $982 million proceeds
insured, national banks financed 509,000 loans
with $473 million in proceeds, State banks 307,000
loans with $306 million in proceeds, and savings
and loans associations 124,000 loans with $128 million
in proceeds.
During the last decade national and State banks
combined have financed approximately four out
of every five of the total property improvement
loans insured. Financing of loans during 1960 adhered
to this pattern, with these two types of institutions
originating 81 percent of all loans and
accounting for 79 percent of the total net proceeds.
Savings and loan associations financed another 13
percent of the proceeds (Table III—16)—approximately
their relative participation over the last
3 years. The three remaining types of institutions
that were active in financing loans under this
program reported a total of slightly less than 8
percent of the aggregate net proceeds, each being
responsible for about 2.5 percent.
Mortgages Held in Portfolio
FHA-insured mortgages held in the portfolios
of financial institutions at the end of 1960 totaled
$37 billion in face amount. The distribution of
these holdings by type of institution is shown in
Table HI-17 for each of the home and project
mortgage programs. An estimated 11,000 institutions
were holding FHA-insured home mortgages,
and well over 300 held multifamily-project
mortgages.
These holdings include Section 203 mortgages
bought by individuals, organizations, and pension
or endowment funds under regulations of July 14,
1960, permitting such sales to investors who are
not themselves approved mortgagees. These
mortgages remain in the custody of the sellers, who
act as servicing agents. As of September 30,1960,
almost $4.4 million (face amount) in mortgages
had been purchased by these investors. Year-end
figures are unavailable but would indicate a sizable
increase over this amount, since many mortgagees
had in September just begun operation of their
sales and servicing programs under this regulation.
The largest investors in FHA mortgages at the
close of 1960 were insurance companies with $11.1
billion or 30 percent of the total. Savings banks
were next with $7.8 billion or 21 percent, followed
by national banks with $4.8 billion or 13 percent.
591772—61——7 85
Table III-17.—Holdings of FHA-insured mortgages ~by type of institution, as of Dec. 81,1960
[Dollar amounts in thousands]
Section
Type of institution
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
hank
Federal
agency All other Total i
Number of mortgages:
Home programs:
Sec. 8 - _____________ _______ 1.724 1,248 223 3,621 7,285 7, 663
519, 824
8,208
161,404
14, 354
1, 201
16,817
12,990
9,722
2,998
38,076
721
58, 264
2,499
30,693
2, 658,272
25,134
1,349
20, 279
79, 765
186, 683
5,004
42,399
Sec 203 ____ ___________________ 416,940 213,130 76, 743 855, 211 356,756
Sec. 213H- ____________________ 300 109 1,038 3, 343 205 3, 286
Sec 220H________________________ 2 28 69 7 11 22
176
1,183
6,239
Sec 221II - ___________________ 56 84 2,777 49 252 68
Sec. 222 ___________ _ 7, 852 2, 798 5, 798 23,057 8,939 17,148
Sec 603 _____________________ 25,118 16, 222 830 92,186 10,897 25,469
Sec 809 _____________________ 59 88 563 633 80 499 84
Sec. 903__________________________ 655 240 482 910 380 1, 599 57
Total__________________________ 452, 706 233,947 88, 523 979.017 384,805 575,578 265,773 69, 229 3,049, 641
Project programs:
Sec 207 __________________ _ 50 118 20 98 9 290 48 94 727
1 147
13
Sec. 213 smiles---------—-------- 2 142
33 4 4 106 33 27 220
Rpp 990P 8 20 14 4 5 40 5 96
See 9,91 P __ -______ 4 4 5 1 1 9 1 25
8 3 11 1 2
1
238
1 2
Sec 608 _____________________ 314 39 2, 928 41 1,514 11 488 5,573
1 11 73 79 44 36 244
Sec 803 armed services_____ _____ 97 70 16 31 28 25 155 281 703
Sec^ 908__________________________ 7 9 2 16 28 2 64
Total__________________________ 421 583 251 3,147 82 2,036 370 936 7,826
Total homes and projects-------------------- 453.127 234, 530 88,774 982,164 384, 887 577, 614 266,143 70,165 3,057,467
Face amount of mortgage:
Home programs:
Sec 8 _____________________ $8, 503
4,118,141
3,820
29
$6,308 $1,216 $19, 226 $39,106 $41,074 $45, 694
1,781,383
$3, 788 $164,916
27,061,736
296, 725
15,467
183, 730
1,069, 688
1,255,398
65, 686
386, 723
Sec 2032 ______ ___________ 2,066, 715
1, 505
923,413 8, 644,041 3, 546,925 5,409, 936 571,182
Sec 213H _____ ______- -- 14, 239 38,168 3,205 39,540 169,919 26,330
Sec 220II ___________ _______ 359 768 75 104 264 13, 786 82
Sec 221H _______________________ 489 805 25, 208 417 2,070 565 152, 601
159, 239
60,404
1,575
16,095
40, 284
1,171
Sec 222 ________ ____ - -____ 103, 292
166,049
786
38, 551 78, 740 325,151 113, 239
69, 599
235,382
Sec 603 3 -___________ __________ 103, 616 6,532 625, 385 183, 529
Sec 809 _______________________ 1,223 7, 832 9,134 1,134 7,081 37,325
Sec. 903__________________________ 5,923 2,240 4,148 7, 706 3,133 14, 615 348,455 504
Total *_________________________ 4,407,032 2, 221,322 1,062,096 9, 669, 304 3, 778,515 5,931,987 2, 768, 805 661,010 30,500, 538
Project programs:
Sec 207 ___ ______ ___________ 88,063 196, 649 21,022 66, 205 4,458 388, 756 35,072 79,026
260
879, 251
Sec. 213 sales ------------___________— 868 31,678 33, 314
7,066
20, 917
26, 803
40,080
8, 410
13,067
421
32,531
224
61,412
94,642
9, 817
1,662
900
7,687 201, 338 34, 251 60, 773 399, 329
See 990P 18,889 13,048 85, 763 7, 523 280, 864
37,076
Sec 221P _ - -_____ ___ 11, 323 550 33, 244 412 5, 876 688
9Q1 15,660 225 2, 630
621
Sec 6083 ___ _________________ 145,450 4,805 1,091,764 8, 667 992,800 23,784
105, 692
412,041
112,082
2,711, 843
635,569
1, 544,195
46, 218
26,165
137,067
220, 579 170,826
Sec 803 armed services __________ 192, 632 31,083 55, 318 45,054 38. 653 405,409 638, 981
Sec; 908__________________________ 5,702 7,183 219 14. 926 16, 839 1,349
Total__________________________ 402,740 679, 633 143, 554 1,467, 625 59,173 1, 820, 759 715,316 1, 312. 723 6, 601,523
Total homes and projects-------------------- 4,809. 772 2,900, 956 1,205, 650 11,136,929 3,837, 688 7, 752, 746 3,484,121 1,973, 733 37,102,061
Percentage distribution of amount:
Home programs:
Sec. 8 __________________________ 5.2 3.8 0.8 11.6 23.7 24.9 27.7
6.6
57.3
2.3
2.1
8.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Sec 203 ____ _______________ - 15.2 7.6 3.4 32.0 13.1 20.0
Sec 213H ___ - __________ 1.3 .5 4.8 12.8 1.1 13. 3
Sec 220H- __________________ --- .2 2.3 5.0 .5 .7 1.7 89.1
83.1
. 5
Sec 22111. ___ _____________ .3 .4 13.7 . 2 1.1 . 3 . 9
1.5
3.2
1.8
.1
Sec 222 _ _______ --- ________ 9.6 3.6 7.4 30.4 10.6 22.0 14. 9
4.8
56.8
90.1
Sec.603. _______________________ 13.2 8.3 .5 49.8 5. 6 14. 6
Sec. 809 ___ _______________ 1.2 1.9 11.9 13.9 1.7 10.8
Sec. 903__________________________ 1.5 .6 1.1 2.0 .8 3. 8
Total__________________________ 14.4 7.3 3.5 31.7 12.4 19.4 9.1 2.2 100.0
Project programs:
Sec 207 ________-___________ 10.0 22.4 2.4 7.5 .5 44.2 4.0 9.0 100.0
1.5 100.0
6 7
2.6
15. 4
95 1 . 8
1.8 1.9 50.4 8.6 15.2 100.0
100.0
100.0
100.0
Sec 290P 14.3 33. 7 7.5 6.7 4.6 30.5 2.7
See 221P 22. 7 26. 5 30.5 1.5 1.1 15. 8 1. 9
39.3
67.8
1.2
5.0
32.2
5.4
47.1 .7 7.9
bee. ---------------------------------- - — 100.0
Sec. 608 _________________________ .2 40.2 .3 36.6 . 9
16.6
15.2
17.7
100.0
100.0
100.0
100.0
(5) 4.1 34.7 26. 9
Sec 803 armed services. _______ _ 12.5 8.9 2.0 3.6 2.9 2.5 26. 2
36.4
41. 4
Sec. 908__________________________ 12.3— 15.6 .5 32.3 2.9
Total__________________________ 6.1 10.3 2.2 22.2 .9 27.6 10.8 • 19.9 100.0
Total homes and projects-------------------- 13.0 7.8 3.3 30.0 10.3 20.9 9.4 5.3 100.0
See footnotes at end of table.
86
Table III-17.—Holdings of FHA-insured mortgages by type of institution, as of Dec. 31, 1960—Continued
[Dollar amounts in thousands]
Type of institution
Section
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other Total i
Number of holding institutions:
Home programs:
Sec. 8____________________________
Sec. 203__________________________
Sec. 213H________________________
Sec. 220H________________________
Sec. 221H________________________
Sec. 222__________________________
Sec. 603__________________________
Sec. 809__________________________
Sec. 903__________________________
Project programs:
Sec. 207__________________________
Sec. 213 sales_____________________
Sec. 213 management_____________
Sec. 220P________________________
Sec. 221P________________________
Sec. 231__________________________
Sec. 232__________________________
Sec. 608__________________________
Sec. 803 military__________________
Sec. 803 armed services____________
Sec. 908__________________________
124
2, 580
12
2
30
406
698
8
25
21
185
4
8
1
38
19
160
3,481
7
8
23
348
904
12
17
27
1
12
9
2
31
44
4
10
3
64
1,187
33
16
197
595
121
43
40
16
11
26
4
7
6
75
516
71
10
205
221
33
17
263
2,390
8
6
57
731
559
16
24
82
436
26
4
18
289
175
43
35
2
15
31
67
211
24
374
92
18
95
62
11
8
13
26
11
794
10, 979
105
40
359
2,676
2,742
167
167
156
15
49
27
14
20
2
345
36
74
19
1 Based on tabulations of audited cases.
2 Includes Sec. 203 (i).
3 Includes S*ec. 610.
Chabt III-10
INSTITUTIONS HOLDING FHA-INSURED
MORTGAGES, DECEMBER 31, 1960
By type of institution holding mortgages
The face amount of home and project mortgages
held by each type of financial institution at the
end of 1960 is shown in Chart HI-10, and a
more detailed analysis of year-end holdings for all
FHA programs by sections is presented in Table
III-ll.
Home Mortgage Holdings.—At the end of 1960
financial institutions held more than 3.0 million
home mortgages amounting to $30.5 billion. This
represented an increase of 9 percent in number and
14 percent in amount over the volume reported
4 Includes Sec. 611 not distributed by type of lending institution,
63 cases for $467,250.
5 Less than 0.05 percent.
December 31, 1959. Insurance companies, as
usual, were the largest holders of home mortgages,
with 32 percent of the total amount. Savings
banks ranked second with 19 percent of the total,
followed by national banks with 14 percent and
savings and loan associations with 12 percent
(Table HI-17). Despite the fact that insurance
companies continued to hold the largest proportion
of FHA-insured home mortgages outstanding,
and even reported a small increase over 1959
in the total amount of these holdings, their share
of the total has steadily decreased since 1950.
The proportions held by national and State banks
have also declined over this period, while those of
savings banks and savings and loan associations
have increased.
The distributions by program of the number
and amounts of FHA-insured home mortgages
held by financial institutions is also shown in
Table HI-17. Excluding Federal agencies, financial
institutions of each type held between 86
and 94 percent of their FHA-insured mortgages in
regular Section 203 cases. Federal agencies are
atypical in that only 64 percent of their holdings
are Section 203 cases, mainly because FNMA has
accumulated substantial amounts of FHA specialpurpose-
program mortgages, such as those insured
under Sections 213, 220, 221, 809, and 903.
Multifamily Housing Mortgage Holdings.—Savings
banks continued in 1960 as the leading investors
in FHA-insured multifamily housing
mortgages, holding 28 percent of the original face
amount of $6,602 million of insurance in force at
the year end. Mortgagees of this type have been
the leading holders of project mortgages since
1954, but, despite increased dollars holdings, declined
proportionally from 37 percent of all proj-
87
ect mortgage holdings in 1955 (peak year) to 28
percent in 1960. Insurance companies, the second
leading holders in this period, had declined in relative
holdings to 22 percent of the total in 1960,
dropping from 35 percent in 1954. Conversely,
“other” or miscellaneous mortgagees increased
their holdings from 8 percent in 1954 to one-fifth
in 1960, while Federal agencies (FNMA) reported
nearly 11 percent of all holdings by 1960 as compared
to less than 3 percent in 1954. Both of
these last types of mortgagees invested heavily
in Section 803 mortgages and together held
nearly three-fifths of the total amount of mortgages
outstanding under this high-volume program
which, in turn, accounted for more than
three-fifths of their total holdings. Project mortgages
in 1960 accounted for 18 percent of the $37.1
billion volume of FHA-insured mortgages in the
portfolios of all approved institutions.
Property Improvement Loan Holdings.—Information
on the holdings of insured property improvement
loans is obtained through the cooperation
of the participating lending institutions.
Once or oftener each year, as requested, these
institutions submit a “call report” statement to
FHA on the number and face amount of loans
outstanding as of a specific date. Summaries of
a call report submitted as of December 31, 1960
from an estimated 97 percent of the total institutions
holding insured property improvement loans
showed that there were outstanding some 2.5
million loans with $1.9 billion in unpaid face
amount. National banks reported 1.3 loans with
$941 million in face amount; State chartered
banks, 812,000 loans with $633 million in face
amount; finance companies 19,000 loans, $12 million
face amount; savings and loan associations,
320,000 loans, $273 million in face amount; and
institutions classified as “other,” 50,000 loans with
$52 million face amount.
Mortgages and Loans Purchased or Sold in
1960
Nearly 424,000 FHA-insured mortgages and
property improvement loans with combined face
amounts of $5.2 billion were bought or sold by
approximately 2,500 financial institutions during
1960. Of the total dollar amount of these loans
transferred, almost 89 percent consisted of home
mortgages, some 11 percent of multifamily project
mortgages, and less than 1 percent of property
improvement loans. Reflecting their leading roles
in the transfer of FHA home mortgages, insurance
companies, savings banks, and Federal agencies
accounted for the largest amounts of purchases,
while mortgage companies sold more FHAinsured
obligations than all other financial institutions
combined. Data showing purchases and
sales of FHA obligations during 1960 by type of
financial institution are presented in Table III-18
and HI-19.
Compared with 1959, transfers increased 30 percent
in dollar amount. This was entirely attributable
to a 38 percent rise in the amount of transfers
for home mortgages, since transfers of project
mortgages decreased by 3 percent and transfers
of property improvement loans declined by 56
percent. Data on transfers do not include Section
203 mortgages sold to investor mortgagees and
held for servicing by the selling institution, as
discussed under Mortgages Field in Portfolio.
Table III-18.—Purchases of FHA-insured mortgages and loans, by type of institution, 1960
[Dollar amounts in thousands]
Section
Type of institution
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other Total
Number of mortages and loans:
Home programs:
Sec. 8____________________________
Sec. 203__________________________
Sec. 213H_________ l________________
Sec. 220H________________________
Sec. 221H________________________
Sec. 222__________________________
Sec. 603__________________________
Sec. 809__________________________
Sec. 903__________________________
1
8, 639
117
267
32
2
10, 727
1
428
143
15
10
4, 592
33
13
152
224
22
1
4
116, 528
15
7
5, 552
44
87
1
30,344
58
6
744
164
39
65
73, 519
257
14
3, 569
22
114
80,357
2, 218
106
9,097
6, 553
1,352
12, 586
7
283
29
1
82
337, 292
2, 582
107
9,152
17, 548
629
1,658
3
Total__________________________ 8,948 11,316 5,047 122,238 31,355 77, 560 99, 683 12, 906 369,053
Project programs:
Sec. 207__________________________
Sec. 213 management_____________
Sec. 220 P________________________
Sec. 221P________________________
Sec. 231__________________________
Sec. 608__________________________
Sec. 803 military__________________
Sec. 803 armed services____________
4
7
2
6
1
8
11
1
3
4
11
15
— 14
11
21
10
20
12
19
82
12
22
6
2
122
81
19
22
9
2
11
2
172
Total__________________________ 13 15 15 21— 29 73 152 318
Property improvement loans: Sec. 2_______ 30, 852 15,049 362 8,073 129 54,465
Total all programs__________________ 39,813 26,380 5, 424 122,259 39, 428 77, 589 99, 756 13,187 423, 836
88
Table III-18.—Purchases of FHA-insured mortgages and loans, hy type of institution, 1960—Continued
[Dollar amounts in thousands]
Type of institution
Section
National
bank
' State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other Total
Face amount of mortgages and loans:
Home programs:
Sec 8 $6 $10 $57 $23 $348 $444
Sec. 203__________________________ 102, 724 131, 267 56, 883 1,531,214 $333,679 904, 530 $968, 952 $152,878 4,182,128
Sec 213H 12 374 240 871 4,058 30,328 35,883
Spc 220TT 10 1,445 1,455
Sec. 221H _______________________ 64 7 115 59 45 111 82, 578 57 83,036
Sec. 222 _________________________ 3,470 6,054 2,012 79, 799 8, 725 48, 708 81, 715 4,048 234,532
Sec 603 182 1,072 2, 413 205 1,497 136 5, 504
Sec. 809 225 308 1.338 568 1,599 17, 828 429 22, 296
8 7 7 22
Total 106, 468 138,636 62,170 1,612, 884 345,386 959, 489 1,182, 846 157, 420 4, 565,299
Project programs:
Sec. 207 5,954 10,054 22, 734 6, 452 28,070 12,356 30, 262 115,882
Sec 213 management 1,749 17, 767 11,885 31.401
Sec 220P 2,225 42, 482 1,794 46, 501
Sec 221P 657 4,603 5,260
Sec 231 2,630 2, 630
Sec 608 776 29 698 2,889 4,391
729 2,388
18,029
3,117
Sec, 803 armed services 3, 915 18, 265 6,563 25,831 32, 467 231, 375 336, 445
Total 10, 644 28,976 29, 325 33, 710 55,350 112,306 275, 316 545, 627
24,849 10,186 162 5,005 121 40, 323
Total all programs ___ 141.961 177, 799 91,657 1, 646, 595 350,391 1,014,839 1,295,152 432, 857 5,151, 249
Percentage distribution of amount:
Home programs:
Sec 8 1.3 2.3 12.8 5.1 78.5 100.0
Sec. 203 . _________________ 2.5 3.1 1.4 36.6 8.0 21.6 23.2 3.6 100.0
Sec 213H (’) 1.1 .7 2.4 11.3 84.5 100.0
Sec 220H .7 99.3 100.0
Sec. 221H _______________________ .1 (>) .1 (>) .1 .1 99.5 .1 100.0
Sec. 222 _________________________ 1.5 2.6 .9 34.0 3.7 20.8 34.8 1.7 100.0
Sec. 603 3.3 19.5 43.8 3.7 27.2 2.5 100.0
Sec. 809 1.0 1. 4 6.0 2.5 7.2 80.0 1.9 100.0
Sec 903 34.8 32.6 32.6 100.0
Total_______ - ____ 2.3 3.0 1.4 35.3 7.6 21.0 25.9 3.5 100.0
Project programs:
Sec 207 5.1 8.7 19.6 5.6 24.2 10.7 26.1 100.0
Sec. 213 management 5.6 56.6 37.8 100.0
Sec 220P 4.8 91.3 3.9 100.0
Sec 221P 12.5 87.5 100.0
Sec. 231 100.0 100.0
Sec 608 17.7 .6 15.9 65.8 100.0
Sec 803 military 23.4 76.6 100.0
Sec. 803 armed services 1.2 5.4 1.9 7.7 5.4 9.6 68.8 100.0
Total 1. 9 5.3 5.4 6.2 10.1 20.6 50.5 100.0
Property improvement loans; Sec. 2 61.6 25.3 .4 12.4 .3 100.0
Total all programs_______- - 2.8 3.4 1.8 32.0 6.8 19.7 25.1 8.4 100.0
Number of purchasing institutions:
Home programs:
Sec. 8 1 2 7 1 2 13
Sec. 203_________________________ 408 482 265 298 586 273 6 143 2,461
Sec 213H 1 2 1 5 9 1 19
Sec 220H 1 1 2
Sec. 221H___ __________________ 2 1 5 3 4 8 1 3 27
Sec. 222__________________________ 65 58 43 127 153 166 2 37 651
Sec 603 15 9 5 8 8 2 47
Sec. 809 _ _ _ _ 4 5 20 11 21 1 3 65
Sec. 903 1 1 1 3
Project programs:
Sec. 207______ _______________ 3 3 4 2 8 1 4 25
Sec. 213 management 1 1 1 3
Sec. 220P 1 1 1 3
Sec. 221P 1 1 2
Sec. 231 1 1
Sec. 608 2 1 1 2 6
Sec. 803 military 1 1 2
Sec. 803 armed services __ - 1 3 2 3 3 1 18 31
Property improvement loans: Sec. 2 40 34 2 15 3 94
1 Less than 0.05 percent.
89
Table III-19.—Sales of FHA-insured mortgages and loans by type of institution, 1960
[Dollar amounts in thousands]
Type of institution
Section
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other Total
Number of mortgages and loans:
Home programs:
Sec. 8______ 1 3 4 74 82
Sec. 203____________ 22,102
257
21,696
125
264, 084
2,089
69
2,414
26
7, 534 2,007 717 16,738
84
337,292
2,582
107
Sec. 213H_______ . 1
Sec. 220H________ 5 19 14
Sec. 221H_____ . 361 135 8,033
13, 768
10
127 130 8 358 9,152
17, 548
629
Sec. 222____________ 943 1,169
170
332 465 31 41 799
Sec. 603__________ 104 237 99 4 5
Sec. 809______ _ 81 169 1,200
1
3 1 15 189 1,658
Sec. 903_______ 2 3
Total______ ... 23,854 23, 483 289, 257 3,145 8,228 2,117 782 18,187 369,053
Project programs:
Sec. 207______________ 17 26 33 2 2 1 81
Sec. 213 management.. . . . . 2 9 4 4 19
See. 220P__________ 13 9 22
Sec. 221P_______ 1 1 6 1 9
Sec. 231________________ 1 1 2
Sec. 608__________ 1 1 8 1 11
Sec. 803 military______. 1 1 2
Sec. 803 armed services... _ . . 64 65 28 9 2 4 172
Total__________ . 84 116 82 1 12 10 2 11 318
Property improvement loans: Sec. 2 7,447 22,486 10, 518 6, 471 2,175 14 5,354 54, 465
Total all programs. _. 31,385 46,085 299,857 3,146 14, 711 4,302 798 23, 552 423,836
Face amount of mortgages and loans:
Home programs:
Sec. 8_______ $5 $17
3,256, 985
28, 891
703
$23
27,192
$399 $444
Sec. 203__________ 288,189
3,610
233
$282, 412
1,830
359
$92, 962 22, 013 $8, 253
16
$204,123
1,188
160
4,182,128
35,883
1,455
83,036
234, 532
5,504
22,296
22
Sec. 213H_______ '348
Sec. 220H._____
Sec. 221H__________ 3,282
12,264
852
1,257
16,290
1,242
2,305
72,999
184,498
70
1, 115
4,013
2,373
46
1, 130 69 3,184
10,284
20
Sec. 222__________ 6, 253
931
407 524
Sec. 603__________ 15
Sec. 809__________ 1,104 16,134
8
19 196 2,493
Sec. 903_____________ 14
Total____________ 309, 538 305,693 3, 560, 305 35,125 101,276 22.853 9, 057 221,453 4, 565,299
Project programs:
Sec. 207_______ 26,235
2,133
36,096
14,161
38,343
99
48, 797
5, 843
8,157
2,985
200
3, 558 1,097 100 115,882
See. 213 management. ___ _ ... 9, 264 31,401
Sec. 220P. _______ 46, 501
5, 260
2,630
4,391
3,117
336,445
Sec. 221P_______ 1, 777 400
Sec. 231__________ 2,430
Sec. 608__________ 698 29 1,817 1,848
2, 388
8, 706
Sec. 803 military.. 729
Sec. 803 armed services___ 126, 503 128, 986 54,860 13, 264 4,126
Total____ .. ... 156, 647 220, 813 121, 571 29 17, 222 2,913 4,126 22,306 545, 627
Property improvement loans: Sec. 2_______ 4,458 16, 251 10,015 4, 065 1, 278 15 4, 243 40,323
Total all programs_______ 470, 644 542, 757 3, 691,891 35,153 122, 562 27,044 13,198 248, 001 5,151, 249
Percentage distribution of amount:
Home programs:
Sec. 8...___... 1.0 3.9 5.1 90. 0 100.0
Sec. 203___________ 6.9 6. 7 77. 9 . 7 2.2 5 0.2
(!)
4 9 100 0
See. 213H____ 10.1 5.1 80 5 1 0 3.3 100. 0
See. 220H______ 16.0 24. 7 48.3 11. 0 100.0
Sec. 221H____ 3.9 1. 5 87. 9 1. 4 1 4 . 1 3. 8 100. 0
Sec. 222__________ 5.2 6. 9 78.7
1.3
1 7 2 7 2 2 4. 4 100. 0
Sec. 603____________ 15. 5 22. 5 43 1 16.9 . 3 . 4 100. 0
Sec. 809__________ 4.9 10.3 72. 4 . 2 . 1 . 9 11.2 100.0
Sec. 903____________ 34.8 65.2 100.0
Total______________ 6.8 6.7 78.0 2.2 5 2 4.9 100.0
Project programs:
Sec. 207_______ 22.6 31.2 42.1 3.1 . 9 0.1 100.0
Sec. 213 management_____ 6.8 45. 1 18.6 29.5 100.0
See. 220P_. ... 82. 5 17. 5 100. 0
Sec. 221P___________ 33.8 1. 9 56. 7 7.6 100.0
Sec. 231_____________ 92.4 7.6 100. 0
Sec. 608__________________ 15.9 . 6 41.4 42. 1 100. 0
Sec. 803 military_______________ . 23. 4 76.6 100.0
Sec. 803 armed services.— 37.6 38.3 16.3 4.0 1. 2 2.6 100.0
Total___________________ 28.7 40.5 22.3 (i) 3.2 5 7 4. 1 100.0
Property improvement loans: See. 2_______ 11.1 40.3 24.8 10.1 3.2 (!) 10.5 100. 0
Total all programs__________________ 9.1 10.5
71.7 1 . 7 2.4 . 5 3 4.8 100. 0
1 Less than 0.05 percent.
90
Table HI-19.—Sales of FHA-insured mortgages and loans by type of institution, 1960—Continued
[Dollar amounts in thousands]
Type of institution
Section
National
bank
State
bank
Mortgage
company
Insurance
company
Savings
and loan
association
Savings
bank
Federal
agency All other Total
Number of selling institutions:
Home programs:
Sec. 8____________________
Sec. 203___________________
Sec. 213H_________________
See. 220H_________________
Sec. 221H_________________
Sec. 222___________________
Sec. 603__________________
Sec. 809___________________
Sec. 903___________________
Project programs:
Sec. 207___________________
Sec. 213 management______
Sec. 220P_________________
Sec. 221P_________________
See. 231___________________
Sec. 608___________________
Sec. 803 military___________
Sec. 803 armed services____
Property improvement loans: Sec. 2
2
1, 013
23
11
183
559
2
37
16
3
541
15
1
106
1
5
24
11
3
1
247 106
3
2
13
43
25
6
2,444
35
18
239
896
52
59
2
49
11
12
7
2
62 34
Purchases and Sales of Home Mortgages.—During
1960, almost 369,100 FHA-insured home mortgages
with an aggregate face amount of $4.6
billion were transferred. This represented an
increase of 33 percent in the number of mortgages
and 38 percent in the amount transferred over
1959. As usual, Section 203 home mortgages
accounted for the great bulk of transfers (92
percent), followed by Section 222 (5 percent) and
Section 221 (2 percent).
As shown in Table III-18, insurance companies
were the leading purchasers of FHA mortgages
in 1960 with $1.6 billion or 35 percent of the
total—only 1 percentage point less than for 1959.
Federal agencies, reflecting mostly FNMA purchases,
bought $1.2 billion in mortgages or 26
percent of the total. This represented an increase
of 10 percentage points in the Federal agencies
share of total purchases over 1959. Since FNMA
acts as a stabilizing influence in the secondary
market for home mortgages, its more than $643
million increase in amount of purchases can be
mainly attributed to this function. Except for
national banks, which decreased by $66 million, all
the other types of financial institutions registered
increases over 1959 in purchases of FHA-insured
home mortgages, led by insurance companies with
$420 million and savings and loans associations
with $151 million. However, almost all of the
increase was the result of increased purchases of
Sections 203 “regular” mortgages, indicating a
definite increase in the velocity of these mortgages
in 1960, since insurance originated by these institutions
was considerably below the 1959 level.
In the transfer of FHA mortgages by sales,
mortgage companies continued as the leader,
accounting for $3.6 billion or 78 percent of the
total. National banks were a distant second with
$309 million or about 7 percent, followed closely
by state banks with $306 million or also about 7
percent (Table HI-19).
Since mortgage companies specialize in shortterm
holding of FHA-insurecl mortgages, they
traditionally account for the major part of all sales
of FHA mortgages. For example, they account
for 85 percent of the $1.3 billion increase of 1960
sales over those reported for 1959. On the other
hand, savings banks and insurance companies,
which tend to obtain FHA mortgages for longterm
investments, showed $36 and $4 million
declines in sales, respectively.
Purchases and Sales of Multifamily Housing
Mortgages.—The volume of FHA-insured project
mortgages transferred in the secondary market
declined by 3 percent in 1960 to $546 million. This
decline resulted mostly from a 21 percent drop in
the amount of Section 803 armed services housing
mortgage transfers, these sales representing 62
percent of the 1960 total compared to 76 percent in
1959. Section 207 transfers mostly offset the drop
in Section 803 by increasing to $115 million, more
than two and a half times the 1959 volume for
this section, and also increasing their proportion of
the total from 10 to 21 percent. The volume of
transfers for these and other multifamily housing
programs, by type of financial institution, is
shown in Table HI-18 for purchases and in Table
HI-19 for sales.
Financial institutions of “other” or miscellaneous
type led all other types of mortgagees in the
purchase of FHA project mortgages in 1960, accounting
for half of the total or $275 million.
About 84 percent of this volume reflected purchases
of Section 803 armed services housing
mortgages by various city, State, and organization
retirement systems. The Federal agency category,
which was first in the purchase of project
mortgages in 1959, dropped to second place in
1960 with $112 million or 21 percent, primarily
91
attributable to an 83 percent reduction in the
purchase of Section 803 armed services housingmortgages.
However, reflecting the special-assistance
functions of FNMA, Federal agencies did
purchase most of the Section 213 mortgages, and
virtually all of those insured under Sections 220,
221 and 231. Savings banks maintained third
place again in 1960 with 10 percent of the total.
The largest amount of sales of project mortgages
was consummated by State banks in 1960
with 40 percent or $220 million of the aggregate
face amount. National banks with 29 percent
or $157 million were second. Since both State and
national banks have been the consistent leaders in
sales as well as originations of project mortgage
loans, it appears that these institutions prefer
financing short-term construction loans involving
higher interest rates rather than holding longterm
obligations with generally lower interest
rates. Moreover, mortgage companies, which
ranked third in sales with 22 percent or $122 million,
have shown a growing interest in project
mortgage financing in recent years and have been
increasing their share of the sales total as well.
In sales of projects by sections of the Housing
Act, State banks led in the amount of Sections 803
ASH, 213, 220, and 231, and mortgage companies
were the leaders in sales of Section 207 and
221 mortgages.
Purchases and Sales of Property Improvement
Loans.—Purchases and sales of FHA-insured
property improvement loans in 1960 were reported
for loans with outstanding net proceeds of $40
million, a decrease of 56 percent from the $92 million
reported for 1959. Table III-18 shows that
three types of institutions—national banks with
$25 million, State banks with $10 million, and
savings and loan associations with $5 million—
accounted for over 99 percent of all purchases of
these notes during the year. Sales by State banks
of $16 million of insured loans and by mortgage
companies of $10 million accounted for 65 percent
of all sales. Combined sales of national banks,
savings and loan associations, and those types of
institution classified as “other” amounted to nearly
$13 million, with each type of institution responsible
for slightly over $4 million.
TERMINATIONS, DEFAULTS, AND
CLAIMS PAID
This section reports data on terminations of
mortgage insurance contracts, on the default status
of insured home and project mortgages, and on
claims paid on defaulted property improvement
loans. At the end of 1960, terminated insurance
amounted to $27.0 billion, almost 40 percent of the
$67.4 billion in total insurance written (Table
III-3). Home mortgage insurance terminations
accounted for $14.8 billion of this amount, project
mortgage insurance for $1.4 billion, and property
improvement loans for $10.6 billion. During 1960,
total terminations amounted to $2.0 billion—$1.2
billion in home mortgages, $0.2 billion in project
mortgages, and $0.6 billion in property improvement
loans.
Terminations of Home and Project
Mortgages by Type of Termination
Home Mortgages.—Termination of an FHA-insured
home mortgage insurance contract occurs
under any of the following conditions:
1. The loan is paid off at maturity.
2. The loan is prepaid—either with or without
refinancing. If refinanced with proceeds of a new
FHA-insured mortgage, prepayment is termed
prepayment by supersession.
3. The mortgage is foreclosed and title to the
property is acquired by mortgagee. The mortgagee
may either (1) transfer title to FHA in
exchange for debentures and a certificate of claim
(for interest losses and foreclosure expenses not
covered by the debentures), or (2) “withdraw”
from the FHA insurance contract and forego the
insurance privileges in order to be free to market
the property. Also classed as withdrawals are
cases in which the mortgage is foreclosed and the
property purchased by a party other than the
mortgagee.
4. The insurance is terminated upon the request
of the mortgagor and mortgagee and upon payment
of a termination fee.
5. The defaulted mortgage is assigned by the
mortgagee to FHA. This alternative, provided
with respect to home mortgages by the Housing
Act of 1959, was unused at the end of 1960.
Cumulative home mortgage insurance terminations
numbered 2.5 million at the end of 1960, or
45 percent of all home mortgages insured. Among
the various programs, the percentage of terminations
varied from 70 percent for Section 603,
under which the last insurance was written in
1954, to around 1 percent for newer programs
under Sections 220 and 809. Section 203, which
has accounted for almost 81 percent of all home
mortgage insurance terminations, had 43 percent
of its cases terminated by the end of 1960.
Prepayments accounted for all but 3 percent of
the total home mortgage insurance terminations
through 1960, 78 percent by payment in full and
19 percent by supersession. The predominance of
prepaid terminations was reported under all programs
except Sections 220, 221, and 903. These
had more foreclosures than any other type of
termination (Table HI-20).
Few programs have operated long enough to
have had many matured loans. All but 176 of the
29,935 such terminations were under Section 203.
Section 603 and Section 603-610 cases made up
the remaining 152 and 24, respectively.
Foreclosures accounted for 2.0 percent of all
home mortgage insurance terminations through
1960,1.6 percent being transfers of acquired properties
to FHA and 0.4 percent titles retained by
the mortgagee. Although foreclosures were more
92
Table III-20.—Terminations of FHA-insured home mortgages, by type, 1935-60
[Dollar amounts in thousands]
1 Excluding Sec. 2. home mortgages and Sec. 225 open-end advances.
Disposition
Total1 Sec. 8 Sec. 203 Sec. 213 Sec. 220 Sec. 221
Number Amount Number Amount Number Amount Number
Amount Number
Amount Number
Amount
Mortgages insured. ___ _______ 5, 591, 758 $45, 903, 859 38,345 $204,260 4, 725,029 $39, 747,141 27, 715 $324,166 1,384 $15,888 21,916 $198, 656
Mortgages terminated:
Prenaid in full_____________ 1,951,184
465, 754
29, 935
41,175
9,734
134
808
11,354, 724
2,988, 748
110,072
320,150
64,469
1,181
4,296
4,440
2,171
22,385
11,214
1,611,657
361, 857
29, 759
16,917
6,962
131
640
9, 483,396
2, 405,233
109, 388
135.950
47, 553
1,143
3, 508
1,159
477
11, 595
4, 545
2 26 17
5
143
40
Properties acquired by mortgagee:
Transferred to FHA___ 944
94
5,233
496
402
3
3,444
27
6 61 443
3
3, 772
Retained by mortgagee__ 26
Voluntary terminations 2____
2 9
Total terminations________
Mortgages in force.. ___________
2,498. 724 14, 843, 640 7,651 39,338 2,027,923 12,186,172 2, 041 19,610 8 87 468 3.980
3,093, 034 31,060,220 30,694 164, 922 2, 697,106 27,560,969 25,674 304,556 1,376 15, 801 21,448 194, 676
Disposition
See. 222 Sec. 603 Sec. 603-610 Sec. 611 Sec. 809 Sec. 903
N umber Amount Number Amount Number Amount Number
Amount Number
Amount Number
Amount
Mortgages insured_______ _____ 86, 923 $1,166.236 624, 653 $3, 645,218 3,363 $16,109 75 $556 5,199 $68,360 57,156 $517,270
Mortgages terminated:
Prepaid in full____ _ ________ 2,396
1,693
31,689
21,154
327, 738
97, 541
152
11,720
2, 656
1
159
1, 777,406
530,506
618
74, 895
16,191
8
689
1,102
226
24
13
1
4, 565
936
66
46
3
7
4
51
30
22
22
270
256
2,644
1,758
23,199
Prepaid by supersession_____ 14, 834
Propei ties acquired by mortgagee:
Transferred to FHA . .. 362
11
1
4, 076
139
17
90
1 7 16 185 10,351
4
. 92,481
Retained by mortgagee... 33
Voluntary terminations 2____
Other terminations
1 13
Total terminations________ 4,470 57,164 439,967 2,400,312 1,366 5, 616 12 89 61 724 14, 757 130,547
Mortgages in force______________ 82,453 1,109,071 184, 686 1, 244, 906 1,997 10,492 63 467 5,138 67, 635 42, 399 386, 723
2 Provided by the Housing Act of 1959.
numerous under older more active programs, they
accounted for only a minor portion of the total
terminations under these programs. For example,
foreclosures under Sections 203 and 603 represented
47 percent and 28 percent, respectively,
of those under all sections, but they represented
only 1 percent of total terminations under Section
203 and slightly over 3 percent of terminations
under Section 603. In contrast, 95 percent of the
terminations under Section 221 and 70 percent
of those under Section 903 were by foreclosure.
The number of properties acquired by lending
institutions upon mortgage foreclosure increased
to 50,909 at the end of 1960 from 43,000 a year
earlier. The percentage retained by the lender
dropped in 1960 to 19 percent as against 21 percent
at the end of 1959. The fact that almost 30
percent of the foreclosures under Section 203 and
over 18 percent of those under Section 603 represented
retained properties attested to favorable
conditions for profitable dispositions of these
properties by the mortgagees.
Seventy percent of the 41,200 properties acquired
by mortgagees and transferred to FHA
through 1960 were sold, 5,000 for cash and 23,600
for cash and notes. Section 203 with 41 percent,
Section 603 with 28 percent, and Section 903 with
25 percent accounted for the bulk of acquired properties
(see Table HI-21). At the year end, FHA
had sold 97 percent of its acquisitions under Section
603 and 66 percent of those under Section
203. For Section 903, more than half (55 percent)
of the acquisitions remained on hand,
location being an important factor in the slowness
of their disposition. Detailed information on
FHA’s financial experience with acquired properties
is contained in Section 5 of this report.
Table III-21.—Disposition of FHA-acquired home
properties, Dec. 31, 1960
Section
Total
number
acquired 1
Number of initial sales
Number
of properties
on
Total hand 8
Sold for all
cash
Sold for
cash and
notes 2
8______________ 944
16,917
402
6
443
362
11, 733
1
16
10.351
808
11,146
264
3
81
101
11,412
11
4,802
58
1,434
38
750
9, 712
226
3
78
93
8,485
1
1
4,235
142
5,792
142
3
362
261
334
203____________
213____________
220____________
221____________ 3
8
2,927
222____________
603 4 _______
611____________
809____________ 15
903____________ 567 5,713
Total____ 41,175 28,619 5.035 23, 584 12, 764
i Excludes FHA repossessions.
2 Or contracts of deeds.
8 Includes 889 repossessions.
4 Includes Sec. 603-610.
591772—61------ 8 93
Table III-22.—Terminations of FHA-insured multifamily housing mortgages, T>y type, 1935-60
[Dollar amounts in thousands]
94
Chart HI-11
FORECLOSURES OF FHA HOME MORTGAGES,
1935-60
Home mortgages Foreclosed or deeds accepted in lieu of
foreclosure as a percent of mortgages in force*
0.4 —
I935 '40 '45 '50 '55 '60
* Includes cases held in mortgagee inventory.
Voluntary terminations provided for under the
Housing Act of 1959 numbered 134 at the end
of 1960, all but 3 being under Section 203. As
provided by the legislation, home mortgage insurance
may be canceled upon request of the borrower
and the lender and upon payment by the
borrower of a termination charge.
Project Mortgages.—By the end of 1960, insurance
on a total of 3,023 project mortgages involving
$1.4 billion in face amount had been terminated.
This was approximately 28 percent of
the number and 17 percent of the total amount of
mortgages insured under these programs. Insurance
remaining in force at the year end covered
7,826 projects with face amounts of $6.6 billion.
In general, the conditions for terminating insurance
on project mortgages are the same as those
discussed for homes: by maturity of the loan, by
prepayment, by foreclosure of defaulted mortgages,
and by assignment of defaulted mortgages
to FHA. There is no provision for voluntary termination
of insurance on project mortgages.
Table HI-22 shows the total cumulative terminations
of insurance on multifamily housing mortgages
by type of termination with detailed data
for the individual sections of the Housing Act.
Almost $830 million or 60 percent of the dollar
amount of these terminations resulted from prepayments
in full prior to maturity of the obligations.
Prepayments superseded by other FHA
mortgages, together with matured loans, accounted
for only $18 million or slightly over 1 percent of
project insurance terminated.
Defaults by the mortgagors accounted for
nearly all of the remaining terminations, totaling
$506 million and covering 875 projects. Of these,
617 had been assigned to FHA by the mortgagees—
304 being held or sold by FHA and 313
subsequently foreclosed by FHA. In the remaining
258 default cases the titles were acquired by
the mortgagees. Of these projects, 249 were
transferred to FHA and 9 were retained.
The disposition of multifamily properties and
mortgage notes acquired by FHA is shown in
Table III-23. The number of properties acquired
through the end of 1960 was 562—74 more than at
the end of 1959. Only 20 projects were sold during
1960, however, which left 178 on hand compared
to 124 at the 1959 year end. It should be
noted that these data on acquisitions and sales
include some instances of reacquisition and resale
of individual properties by FHA.
Mortgage notes assigned to FHA during 1960
numbered 96, bringing the total through the
year end to 617. The number of these cases on
hand rose by 42, with only 54 notes being
sold during the year.
Terminations of Home and Project
Mortgages by Years
Annual volumes of terminations, foreclosures,
and property acquisitions in comparison with the
annual volumes of insurance written are presented
in Tables HI-24 and 25 for home and project
mortgages, respectively. Home mortgage terminations
in 1960 dropped to 147,000, 25 percent below
the all-time high of 196,000 reported for 1959.
The rate of terminations—cumulative terminations
as a percentage of total insurance written—
fell below 45 percent for the first time since 1954.
Foreclosures and acquisitions, on the other hand,
continued to increase in relation to insurance
written. From the beginning of the decade, except
for a slight drop in 1953, the relative volume
of foreclosures increased steadily from 0.62 percent
of insurance written through December 31,
1950, to 0.97 percent through 1960. Similarly,
acquisitions rose from 0.48 percent of cases insured
through 1950 to 0.74 percent at the end of 1960,
with slight reversals in trend in 1952-53 and 1958.
The trend of foreclosures of home mortgages in
relation to the volume of insurance written is
shown in Chart III-ll.
Home Mortgages.—Section 203 terminations in
1960 were 24 percent below 1959 and the termination
rate declined for the third straight year to
less than 43 percent, the lowest reported since
1953. In view of the extended period of operations
under Section 203, the original home mortgage insurance
program, the rate of foreclosures and
acquisitions is noteworthy. Despite the fact that
foreclosures and acquisitions in 1960 more than
doubled those in 1959, foreclosures through the
end of 1960 were less than 6 per 1,000 insured
mortgages and acquisitions less than 4 per 1,000 insured
mortgages.
In relation to total insurance written, foreclosures
and acquisitions have been highest under
Section 903, each type of action accounting for
more than 18 percent of the cases insured.
95
Table III-23.—Disposition of FHA-acquired multifamily
housing properties and mortgages, Dec. SI, 1960
Section
Number of projects:
Sec. 207___________
Sec. 213 sales________
Sec. 213 management.
Sec. 221_____________
Sec. 608_____________
Sec. 608-610_________
Sec. 803 military_____
Sec. 908_____________
Total
Number of units:
Sec. 207___________
Sec. 213 sales________
Sec. 213 management-
Sec. 221_____________
Sec. 608_____________
Sec. 608-610_________
Sec. 803 military____
Sec. 908_____________
Total
Section
Number of projects:
Sec. 207___________
Sec. 213 sales________
Sec. 213 management.
Sec. 221_____________
Sec. 608 ____________
Sec. 803 military_____
Sec. 803 armed services.
Sec. 908_____________
Total____________
Number of units:
Sec. 207___________
Sec. 213 sales________
Sec. 213 management.
Sec. 221_____________
Sec. 608_____________
Sec. 803 military____
Sec. 803 armed services.
Sec. 908_____________
FHA-acquired multifamily housing properties
Properties sold by FHA
Total
Total
With
reinsurance
Without
reinsurance
With
mortgage
held by
FHA
38 25 8 7 10
2
4
482 342 5 80 257
14
20
562
5, 408
26
92
814
31,237
150
1,975
1,449
41,151
Total
37
3
41
509
24
12
27
4,808
211
348
116
34,266
5,165
1,362
2,102
Total_____________ 48,378
69
2 48
384 13 91 280
3,791
26
1,705 1,206 880
26
13
8
178
1,617
On
hand 1
2
4
140
Chart III-12
TERMINATIONS OF FHA HOME MORTGAGES,
1935-60
Home Mortgages terminated under all sections
20, 894
150
571
620
26,052
878 3,934
150
220
20
16,082
351
600
2, 583 5, 530 17,939
Mortgage notes assigned to FHA
Mortgage note disposition
Total
1,993
170
70
92
814
10, 343
Sold
with
reinsurance
Sold
without
reinsurance
Foreclosed
with
property
acquired
by
FHA
15,099
1,404
829
On
hand
1,102 891
26
70
16,142 _______
1,471 _______
~i,-259~
21,105 1,102
162 15,980
___ 1,471
7U ”1,259
306 19,697
23
131
229
15
12
12
296
2, 815
41
278
116
18,124
3, 694
1,362
843
27,273
1 Includes repossessions; other columns do not show these cases.
In relation to terminations, the number of foreclosures
under some sections may appear to be exaggerated.
For example, foreclosures under Section
221 exceed total terminations in both 1959
and 1960. This situation arises (see Footnote 1,
Table III-24) from the inclusion in the foreclosed
cases of those still-insured cases foreclosed by the
mortgagee but held for the redemption period
required by some States.
The number of FIIA home mortgages terminated
and the ratio of terminations to mortgages
in force are depicted in Chart III-12. The
147,000 terminations in 1960 fell below the 196,200
reported for 1959, but were surpassed only by the
previous peak years of 1946-47 and 1955-56. In
relation to insurance in force, terminations in 1960
stood at 4.8 percent, resuming the level of 1957-58,
when terminations represented 5.1 percent and 4.6
percent, respectively, of mortgages in force.
Project Mortgages.—Terminations of project
mortgage insurance contracts are summarized in
Table III-25 for selected years from 1950 through
1960. Through 1960, mortgages covering over 22
percent of the dwelling units insured had been terminated.
Units in defaulted projects accounted
for over half of those in all terminations in 1960,
in sharp contrast to less than a third in 1959.
Section 608 led all other programs in terminations
during 1960, accounting for two-thirds of all
terminated units. On a cumulative basis, Section
608 terminations through 1960 represent over 54
percent of total terminations. This section also
has accounted for over 70 percent of all default
terminations.
In terms of units, the next highest volume of
terminations for 1960 and cumulatively occurred
under Section 207. Cumulative terminations under
this section represent about one-quarter of all
terminations. The termination rate for this program,
however, has declined steadily to 37 percent
in 1960, since relatively more insurance has been
written each year than has been terminated.
96
Table III-24.—Terminations of FHA-insured home mortgages, selected years, 1950-60
Year
Insurance written Total terminations Foreclosures 1 FHA acquisitions
Number
of cases
for the
period
Cumulative
through
end of
year
Number
for the
period
Cumulative through
end of year
Number
for the
period
Cumulative through
end of year
Number
for the
period
Cumulative through
end of year
Number
Percent
of total
insured
Number
Percent
of total
insured
Number
Percent
of total
insured
Total:2
1950___________ 341.032
234,426
214, 237
310, 870
248,121
198,429
381,883
495,172
366, 213
5,815
15.897
5, 714
139
8
2, 628,197
3,115, 292
3,591,070
3, 901,940
4,150,061
4,348,490
4, 730.373
5, 225, 545
5, 591,758
12, 203
32, 479
38,193
38, 332
38, 345
38, 345
38, 345
38,345
2,000, 812
2,459,014
2, 866,157
3,160,929
3, 395,858
3, 577, 538
3, 930,956
4,391,922
4,725,029
3, 548
10, 739
11, 793
12, 470
16, 703
22, 530
24, 692
27, 715
512
1,056
1,219
1,384
4,930
12, 675
21,916
6,645
18,102
28,881
45, 255
67, 772
86,923
627,176
627, 942
628.016
628.016
628,016
628,016
628,016
628.016
628, 016
2,054
3, 673
5,199
53, 594
56, 289
57,123
57,156
57,156
57,156
57,156
131, 833
101,134
131,910
177, 746
159,458
117, 661
117, 393
196, 240
146,968
89
283
754
935
879
1,028
2,042
1,446
97,144
81,301
105, 603
144, 937
133,083
99, 659
101,436
166, 847
126, 874
1
22
106
216
205
200
710
571
1
1,116, 795
1,327, 724
1.583, 258
1,761,004
1.920, 462
2,038,123
2,155,516
2. 351,756
2,498, 724
91
567
1,321
2, 256
3,135
4,163
6,205
7,651
880,845
1,047,652
1,255,087
1,400,024
1,533,107
1,632, 766
1.734,202
1,901,049
2,027,923
1
33
139
355
560
760
1,470
2.041
1
1
1
8
3
53
468
13
146
404
969
2,965
4,470
235, 950
279,980
326, 518
355,014
376, 647
391,672
404,913
426,893
441,333
1
17
61
1,050
4, 488
7,944
9, 577
10,495
13,093
14,757
42.50
42 62
44.09
45.13
46. 28
46. 87
45. 57
45.01
44. 69
.75
1.75
3.46
5.89
8.18
10.86
16.18
19.95
44.02
42.60
43. 79
44.29
45.15
45.64
44.12
43.29
42. 92
.03
.31
1.18
2. 85
3.35
3.37
5.95
7.36
.20
.09
.08
.58
.06
.42
2.14
.20
.81
1.40
2.14
4.37
5.14
37. 62
44. 59
51.99
56. 53
59. 97
62. 37
64.47
67. 97
70. 27
.05
.46
1.17
1.96
7. 97
13. 91
16. 76
18.36
22.91
25.82
2,610
1,478
3,415
4,021
5, 268
3,405
3,087
5, 223
9, 332
5
45
79
174
217
189
171
137
677
684
1.131
1,096
2,089
1,514
2,061
3,190
7,133
16, 301
19, 302
23,849
27, 870
33,138
36, 543
39, 630
44,853
54,185
5
114
193
367
584
773
944
1,081
6,324
7, 768
9, 640
10, 736
12, 825
14, 339
16,400
19, 590
26, 723
0.62
.62
.66
.71
.80
.84
.84
.86
.97
.04
.35
.51
.96
1.52
2. 02
2. 46
2.82
.32
.32
.34
.34
.38
.40
.42
.45
.57
1,860
893
1,573
3, 796
4, 677
2, 657
2, 271
3, 613
7,113
2
25
46
141
219
155
155
146
225
282
427
485
1,572
910
1,328
1,828
5,082
12,707
14, 742
17,048
20, 844
25,521
28,178
30,449
34,062
41,175
2
82
128
269
488
643
798
944
4,333
5,022
5, 712
6,197
7,769
8. 679
10. 007
11,835
16,917
0. 48
.47
.47
.53
.61
.65
.64
.65
.74
.02
.25
.34
.70
1.27
1.68
2.08
2. 46
.22
.20
.20
.20
.23
.24
.25
.27
.36
1952_____________
1954_____________________
1955_______
1956_____________________
1957__________________
1958__________________ .
1959_____________________
1960_____________________
Sec. 8:
1952_____________________
1954_____________________
1955_____________________
1956_____________________
1957_____________________
1958_____________________
1959 _______
1960_____________________
Sec. 203:
1950_____________________ 338,125
212, 748
175, 698
294, 772
234, 929
181,680
353,418
460,966
333,107
3,235
4,502
1,054
677
4,233
5, 827
2,162
3,023
455
544
163
165
4,394
7, 745
9,241
6, 635
11,457
10, 779
16,374
22,517
19,151
2,698
45
1
1952 _ _____________ .
1954_____________________
1955_____________________
1956____________________
1957_____________________
1958_____________________
1959__________________
1960 ________________
Sec. 213:
1952 . ___
1954____________________ 4
46
62
55
66
109
107
4
50
112
167
233
342
449
.04
.42
.90
1.00
1.03
1.39
1.62
3
14
63
71
53
87
111
3
17
80
151
204
291
402
.03
.14
.64
.90
.91
1.18
1.45
1955_______________
1956_____________________
1957__________________
1958_____________________
1959___________________
1960_____________________
Sec. 220:
1957
1958
1959 1
5
3
74
432
1
6
4
78
510
.08
.43
.08
.62
2. 33
1960_____________________ 7
3
50
415
13
133
258
565
1,996
1,505
34, 689
19, 743
25,113
28, 496
21,633
15,025
13, 241
21,980
14,440
1
16
44
889
3, 438
3, 456
1,633
918
2, 598
1,664
6
2
43
398
6
2
45
443
.43
.04
.36
2.02
Sec. 221:
1958______
1959_________________
1960_______ . _
Sec. 222:
1955
1956 1
7
19
120
320
1,933
789
1,114
492
317
195
152
171
143
18
27
147
467
9,977
11,529
12,948
13,440
13, 757
13.952
14,104
14, 275
14,418
.01
.03
.06
.22
.54
1.59
1.84
2.06
2.14
2.19
2. 22
2. 25
2.27
2.30
1957_____________________ 4
17
47
294
1,635
609
427
717
101
180
76
38
64
4
21
68
362
8,374
9,718
10, 557
11, 274
11,375
11, 555
11,631
11.669
11,733
.01
.05
.10
.42
1.34
1.55
1.68
1.80
1.81
1.84
1.85
1.86
1.87
1958 _______________ ..
1959_____________________
I960__________________
Sec. 603:3
1950_____________________
1952_________________
1954_____________________
1955 ___________________
1956 .
1957_____________________
1958_____________________
1959_____________________
1960_____________________
Sec. 809:
1958 1,326
1,619
1,526
18,128
2, 695
834
33
1959_____________________ 1
17
1,121
2, 308
2, 625
1,416
597
1,385
1,038
1
18
1,143
3,451
6,076
7,492
8,089
9,474
10, 512
.03
.35
2.13
6.13
10.64
13.11
14.15
16.58
18.39
1
15
691
2, 534
2,800
1, 273
640
1,413
997
1
16
694
3, 228
6,028
7,301
7,941
9,354
10, 351
.03
.31
1.29
5. 73
10. 55
12.77
13.89
16. 37
18.11
1960__________________
Sec. 903:
1954_____________________
1955_____________________
1956_____________________
1957_____________________
1958_____________________
1959_____________________
1960 -.- _____________
i Includes terminations with titles transferred to FHA or retained by
mortgagees; also foreclosed properties held by mortgagees pending redemption
period or final disposition—43 under Sec. 8, 2,844 under Sec. 203, 44 under
Sec. 213, 64 under Sec. 221, 94 under Sec. 222, 28 under Sec. 603, 2 under Sec.
809, 157 under See. 903.
2 Includes Sec. 611 and excludes Sec. 2 home loans.
3 Includes Sec. 603-610.
97
Table III-25.—Terminations of FHA-insured multifamily housing mortgages, selected years, 1950-60
E & " ’
Year
Total terminations Default terminations 1
Number for the period Cumulative through end of year Number for the period Cumulative through end of year
Number of
mortgages
Number of
units
Number of
mortgages
Dwelling units
Number of
mortgages
Number of
units
Number of
mortgages
Dwelling units
Number
Percent of
total
insured
Number
Percent of
total
insured
All sections:2
1950_____________________ 137 10,961 553 52,232
70,989
95,241
112, 232
128, 254
139,078
157,828
178,954
2 198, 732
10. 54 66 2,646
3,162
5,548
6,909
7, 536
4,286
6, 720
6,925
10,425
112 9,005
16,473
27,416
34,325
41,861
46,147
1.82
1952_____________________ 99 8,321 803 11.65 39 233 2.70
1954_____________________ 187 12,013
16,991
16,022
10,824
18, 750
21,126
19, 778
1,129
1,419
1,581
1,872
2,357
2, 706
3,023
14.25 76 377 4.10
1955____ ______________ 290 16. 56 98 475 5.06
1956_____________________ 162 18.62 65 540 6.08
1957_____________________ 291 18.99 68 608 6.30
1958____ ______________ 485 19.79 73 681 52; 867
59,792
70, 217
6.63
1959____ _______________ 349 21.27 76 757 7.11
1960_____________________ 317 22.31 118 875 7.88
Sec. 207-
1950_____________________ 18 2,883
733
327 37, 252
38, 512
40,616
42, 326
43, 089
43,292
44, 752
45,874
3 48,097
81.16 25 4,483
4,503
4,876
5,763
6,123
6,123
7,225
7,919
9, 673
9.77
1952_____________________ 10 343 67. 76 1 20 26 7.92
1954_____________________ 12 1,136 364 53.83 1 214 30 6.46
1955_____________________ 20 h 710 384 52.54 10 887 40 7.15
1956_____________________ 9 ' 763 393 53.00 2 360 42 7. 53
1957_____________________ 5 203 398 50.48 42 7.14
1958_____________________ 16 1,460
1,122
414 46. 07 8 1,102 50 7.44
1959_____________________ 13 427 41.25 6 694 56 7.12
1960 _ ____________ ___ 22 2j 223 449 36.81 13 1, 754 69 7.40
Sec. 213 sales:
1952_____________________ 10 1,794
2,874
3,029
420
19 2,062
8,964
11,993
12,413
15,496
21, 219
24,405
26,309
11.42 1 144 1 144 .80
1954_____________________ 55 97 78.12 3 211 1.84
1955_____________________ 89 186 99.03 3 211 1.74
1956_____________________ 12 198 92.88 3 211 1.58
1957_____________________ 168 3,083
5, 723
3,186
1,904
366 80.49 3 211 1.10
1958_____________________ 326 692 89.03 3 211 .89
1959_____________________ 152 844 96.73 3 211 .84
1960___________________ 116 960 91.97 3 211 .74
Sec. 213 management:
1954_____________________ 1 12 1 12 .06
1955_____________________ 1 44 2 56 .26
1956____________________ 1 70 3 126 . 55 1 70 1 70 .30
1957_____________________ 1 22 3 104 .40 1 22 2 92 .36
1958-_ 1 46 4 150 .53 2 92 .32
1959_____________________ 4 150 .48 2 92 .29
1960_____________________ 3 278 7 428 1.20 3 278 5 370 1.03
Sec. 221:
1960_____________________ 5 930 5 930 17.78 5 930 5 930 17.78
Sec. 608:
1950 -- -- __________ 114 7,018
5,112
7,347
10,300
13,223
6,343
10,315
12,261
13, 009
221 13,920
28, 200
42,472
52, 772
65,995
72,338
82,653
94.914
3 107,923
3.25 66 2,646
2,998
5,026
4,209
5,608
3, 047
4,472
4,174
6,029
87 4, 522
11,826
22,021
26, 230
31,838
34,885
39,357
43, 531
49, 560
1.06
1952_____________________ 67 419 6.05 37 206 2.54
1954_____________________ 109 633 9.12 70 339 4.73
1955_____________________ 165 798 11.33 75 414 5.63
1956_____________________ 128 926 14.17 53 467 6.84
1957 ____________________ 100 1,026
1,158
1,326
1,483
15. 53 49 516 7.49
1958_____________________ 132 17. 75 57 573 8.45
1959 ___ ______________ 168 20.38 63 636 9.35
1960 ____________________ 157 23.18 83 719 10.64
Sec. 608-610:
1950____________________ 4 960 4 960 24. 58
1952_____________________ 1 10 5 970 24.78
1954 ____________________ 1 10 6 980 25.03
1955_____________________ 1 150 7 1,130
1,178
1,178
1,198
1,198
1,198
28.86 1 150 1 150 3.83
1956 3 48 10 30.09 1 150 3.83
1957 ____________________ 10 30.09 1 150 3.83
1958 1 20 11 30. 60 1 150 3.83
1959 - _______________ 11 30. 60 1 150 3.83
1960 - 11 30. 60 1 150 3.83
Sec. 803 military:
1954 1 55 1 55 .07 1 55 1 55 .07
1955 ___________________ 4 1,069
550
5 1,124
1,674
2, 626
3,612
6,169
6,169
1.35 4 1,069
550
5 1,124
1,674
2,626
3,612
5,669
5,669
1.35
1956_____________________ 2 7 1.99 2 7 1.99
1957_____________________ 11 952 18 3.09 11 952 18 3.09
1958 ____________________ 4 986 22 4.26 4 986 22 4.26
1959____________________ 8 2, 557 30 7.27 7 2, 057 29 6.68
1960 30 7. 27 29 6.68
Sec. 803 armed services:
1959 8 2,000
1,362
8 2,000
3,362
2.26
1960_____________________ 12 20 3.32 12 1,362 12 1,362 1.35
Sec. 908:
1954_____________________ 4 253 4 253 3.02 4 253 4 253 3.02
1955_____________________ 8 594 12 847 9.98 8 594 12 847 9.98
1956 ____________________ 7 948 19 1,795
2, 060
2, 260
2,260
2,332
21.15 7 948 19 1,795
2,060
2,220
2,220
2,292
21.15
1957 ___________________ 7 265 26 24.28 7 265 26 24.28
1958____ ________________ 5 200 31 26.64 4 160 30 26.16
1959 31 26.64 30 26.16
1930_____________________ 2 72 33 27.40 2 72 32 27.01
i Includes mortgage notes and property titles transferred to FHA. Also
includes foreclosed projects retained by mortgagees with termination of FHA
insurance contracts: Sec. 207, 7 projects with 348 units; Sec. 608, 2 projects,
37 units.
2 Includes Sec. 611.
2 Includes terminations superseded by new FHA insurance contracts covering
the same properties: Sec. 207, 13 projects with 2,035 units; Sec. 608, 17
projects, 1,486 units.
98
Chart III-13
DEFAULTS OF FHA HOME MORTGAGES,
1950-60
Mortgages in default under all home mortgage programs
30 — Number of mortgages in default
Terminations under Section 213 sales-type cooperatives
ranked third for 1960 and also on a
cumulative basis. This latter total represents almost
92 percent of Section 213 sales units insured.
The termination rate for sales-type cooperative
projects is unusually high because of the nature
of the program. These cooperatives are organized
to promote and build homes intended for
individual ownership. Upon completion of construction,
individual units are released from the
project mortgage and their pro rata insurance
canceled as property titles are transferred to the
members of the cooperative, refinanced either
under the Section 213 home mortgage provisions,
under Section 203, or by other financing.
Section 803 armed services housing mortgage
terminations have accounted for only 3 percent of
units insured, but in 1960 all of the terminations
reported under this program occurred as a result
of default. Insurance was terminated for the first
time in 1960 on Section 221 relocation housingprojects.
The total reported represented nearly
18 percent of units insured, all default terminations.
Termination ratios for those programs for
which insurance authority has expired will continue
to rise over the years. Insurance written
under Section 611 is completely terminated, since
mortgages on all 25 projects (1,984 units) have
been prepaid in full. Other expired programs
are Section 608 and Section 608-610, Section 908,
and Section 803 (military housing).
Defaults of Home and Project Mortgages
by Years
Home mortgage defaults at the end of 1960
numbered over 58 percent more than at the end
of 1959. The default rate was up substantially
to almost 9 per 1,000 of mortgages in force
(Chart III-13).
Home Mortgages.—Data on home mortgage defaults
are shown for selected years, 1950-60, in
Table HI-26. The year-end default status of insured
mortgages in force under each of the various
programs is presented in this table, rather
than data on the total number of mortgages that
may have been in default during the year. The
table also shows the trend for defaulted cases in
process of foreclosure, as well as for those for
which foreclosure has been accomplished and the
properties retained by the mortgagee for a required
redemption period.
Almost 26,900 home mortgages were in default
at the end of 1960. While this was the highest
year-end volume on record, the default ratio—0.87
per hundred of mortgages in force—was exceeded
in earlier years when the insurance volume was
less. For example, in 1950 when the number of
insured mortgages was 1.5 million—half that of
1960—the default ratio stood at 1.13 per hundred.
Over four-fifths of the insured home mortgages
reported in default at the end of 1960 were Section
203 mortgages. The default ratio for this
section was somewhat less than for the total—
0.83 as against 0.87 per hundred—as was the ratio
of foreclosures in process, which was 0.13 per
hundred as compared with 0.14 for the total.
The highest rate of defaults as of December 31,
1960, 3.89 per hundred, was reported for relocation
housing under Section 221, with the 3.17 per
hundred reported for Section 903 defense housing
mortgages in force the second highest. Lowest
ratios were reported under the newer programs -
0.29 per hundred for urban renewal under Section
220, 0.72 for research and development areas
defense housing under Section 809, and 0.74 for
servicemen’s housing under Section 222. Section
603, war and veterans’ housing, was remarkably
low in defaults, only 0.41 per hundred of mortgages
in force, reflecting the increasing period
these loans have been outstanding.
Project Mortgages.—Table HI-27 shows the
yearly trends for selected years from 1950 to 1960
of project mortgages in default, defaulted mortgages
being assigned to FHA, and properties in
the process of being acquired by FHA—all m
relation to the volume of insured project mortgages
in force.
At the end of 1960 there were 66 projects m default
out of 7,826 in force. This represented an
increase of 57 percent over 1959 in the number of
projects in default, but a decrease of 10 percent
99
Table III-26.—Default status of FHA-insured home
_________mortgages, selected years, 1950-60
‘Titles to foreclosed properties subject to redemption or held by mortgagees
pending final disposition.
2 Includes Sec. 611.
3 Includes Sec. 603-610.
As of year
end
Insured
mortgages
in force
Default and potential FHA acquisitions
Total defaults Foreclosures in
process
Mortgagee inventory
1
Number
Percen
of in
force
Number
Percent
of in
force
Number
Percent
of in
force
Total: 2
1950..._ 1,511,402 17,058 1.13 1,167 0.08 950 0. 06
1952.... 1,787, 568 10, 562 .59 646 .04 513 .03
1954... _ 2, 007, 812 16,231 .81 1,091 .05 1,371 .07
1955.... 2,140,936 14, 988 .70 2, 755 .13 807 .04
1956.... 2, 229, 599 11.973 .54 1,731 .08 695 .03
1957.... 2, 310, 367 10. 333 .45 1,013 .04 821 .04
1958.._. 2, 574, 857 14. 455 .56 1,878 .07 1,040 .04
1959.... 2,873, 789 16, 970 .59 2, 550 .09 1,858 .06
I960.... 3, 093, 034 26, 850 .87 4,201 .14 3, 276 .11
Sec. 8:
1950___ 209
1952.... 12,112 87 .72 5 .04 3 .02
1954.-. 31,912 207 .65 19 .06 21 .07
1955.... 36,872 418 1.13 47 .13 49 .13
1956.... 36,076 533 1.48 75 .21 73 .20
1957.... 35,210 470 1.33 57 .16 61 .17
1958.... 34,182 521 1.52 63 .18 75 .22
1959.... 32,140 446 1.39 65 .20 70 .22
1960___ 30, 694 394 1.28 57 .19 43 .14
Sec. 203:
1950___ 1,119, 967 9,480 .85 502 .04 306 .03
1952___ 1,411,362 7,141 .51 438 .03 176 .01
1954___ 1,611,070 8, 966 .56 681 .04 387 .02
1955___ 1, 760, 905 8, 866 .50 1,515 .09 430 .02
1956____ 1,862, 751 7,985 .43 830 .04 422 .02
1957____ 1, 944, 772 7,790 .40 803 .04 515 .03
1958___ 2,196, 754 11,001 .50 1,161 .05 759 .03
1959___ 2. 490, 873 14, 023 .56 1,919 .08 1,474 .06
1960___ 2, 697,106 22, 490 .83 3,523 .13 2,844 .11
Sec. 213:
1952___ 3, 547
1954___ 10; 706 84 .78 16 .15 1 .01
1955____ 11, 654 133 1.14 12 . 10 33 .28
1956___ 12,115 145 1.20 27 .22 31 .26
1957____ 16,143 98 .61 20 .12 14 .09
1958____ 21, 770 184 .85 33 . 15 27 .12
1959___ 23, 222 186 .80 31 .13 48 .21
1960___ 25, 674 370 1.44 78 .30 44 .17
Sec. 220:
1956___ 57
1957___ 511
1958.. . 1,055
1959____ t 218 5 .41 1 .08 1 .08
1960___ 1,376 4 .29
Sec. 221:
1956____ 16
1957 ___ 536 1 .19 1 . 19
1958____ 4, 927 55 1.12 7 . 14 2 .04
1959___ 12, 622 194 1.54 46 .36 32 .25
I960___ 21, 448 835 3.89 199 .93 64 .30
Sec. 222:
1954___ 10
1955___ 6,632 1 .02
1956___ 17i 956 18 . 10 1 .01 1 .01
1957___ 28, 477 25 .09 4 .01 4 .01
1958___ 44, 286 88 .20 17 .04 4 .01
1959____ 64,807 322 .50 68 .10 74 .11
I960___ 82, 453 614 .74 116 .14 94 .11
Sec. 603- 3
1950____ 391, 226 7, 578 1.94 665 .17 644 .16
1952____ 347, 962 3,317 .95 203 .06 334 .10
1954____ 301, 498 2, 810 .93 190 .06 513 .17
1955____ 273,002 1,739 .64 200 .07 72 .03
1956___ 251,369 1,362 .54 96 .04 121 .05
1957____ 236,344 924 .39 69 .03 37 .02
1958____ 223,103 1,171 .52 85 .04 27 .01
1959____ 201,123 662 .33 58 .03 43 .02
1960____ 186, 683 762 .41 65 .03 28 .01
Sec. 809:
1956 . . 12
1957- . 728
1958 2,053
1959.. 3i 656 2 .05
1960____ 5,138 37 .72 10 .19 2 .04
Sec. 903:
1952 . 12, 510 17 .14
1954____ 52; 544 4,164 7.92 185 .35 449 .85
1955____ 51, 801 3,831 7.40 981 1.89 223 .43
1956____ 49,179 1, 930 3. 92 702 1.43 47 .10
1957____ 47, 579 1,025 2.15 60 . 13 189 .40
1958____ 46, 661 1,435 3. 08 512 1.10 146 .31
1959____ 44,063 1,130 2. 56 362 .82 116 .26
1960____ 42, 399 1,344 3.17 153 .36 157 .37
in the number of units represented by these projects.
The decline was accompanied by a drop in
the default ratio from 63 dwelling units per
10,000 in force to 55 per 10,000, the lowest yearend
ratio ever recorded for project mortgage defaults.
This is depicted graphically in Chart HI-
14. Since Sections 207 and 608 showed increases
in the number of units in default and accounted for
over 90 percent of the units involved, the drop in
the default ratio can be mainly attributed to Section
220, which had no units reported in default at
the end of 1960 as against about 1,100 for 1959.
Half of the programs shown on Table HI-27 had
no mortgages in default at all at the end of 1960.
Programs that did have mortgages in default had
uniformly low ratios, Section 221 with only 20
units per 1,000 being the highest.
A total of eight project mortgages were in the
process of assignment to FHA at the end of 1960.
This was the same number as for 1959, but the
number of units involved was over 3 times as
great, raising the ratio of assignments from 4
units to 13 units per 10,000.
The 4 projects being acquired by the mortgagee
at the year end totaled less than 100 units. These
had all been insured under Section 608 and represented
only 1 unit acquired to every 10,000 in
force.
Chart III-14
DEFAULTS OF MULTIFAMILY MORTGAGES,
1950-60
Mortgages in default under all multifamily programs
20___ Number of dwelling units covered by mortgages
) 509
ation________________ 2, 531 2,047 17.2 809
Savings bank__________
Federal agency____ .. _
333 239 2.0 718
Finance company______ 1,505 629 5.3 418
All other_______________ 145 75 .6 517
Total________________ 20. 242 11,887 100.0 587
Claims paid 1950-60:
National bank_________ 140,066 60,094 50.4 429
State bank_____________ 75,120 33,176 27.9 442
Mortgage company_____ 1,459 721 .6 494
Insurance company_____
Savings and loan associ-
4 3 0) 750
ation________________ 23, 457 12,229 10.3 521
Savings bank__________ 3,512 1,584 1.3 451
Federal agency_________ 3 1 (>) 354
Finance company______ 25, 631 11,005 9.2 429
All other_______________ 858 377 .3 439
Total________________ 270,110 119,190 100.0 441
Net proceeds insured 1950-60:
National bank_________ 7, 227, 749 4, 646,441 49.7 643
State bank_____________ 4,337,068 2, 901, 588 31.0 669
Mortgage company_____ 72, 269 67, 412 .7 933
Insurance company_____
Savings and loan associ-
555 425 (>) 766
ation________________ 1,165, 923 872,344 9.3 748
Savings bank__________ 287,349 195, 770 2.1 681
Federal agency_________ 270 153 (>) 567
Finance company______ 927,307 628.971 6.7 678
All other_______________ 46,086 41, 935 .5 910
Total________________ 14,064,576 9,355,040 100.0 665
1 Less than 0.05 percent.
From the beginning of the insured property improvement
loan program in 1934, a total of 683,000
claims amounting to $240 million had been paid
through the end of 1960. Compared with the
volume insured, this represented a ratio of 1.80
percent, ranging from a low of 0.45 percent in
Guam to a high of 5.17 in Vermont.
Financing Institutions.—More than 9,100 institutions
have been approved to make insured property
improvement loans since the enactment of the
1950 Reserve. During 1960, approximately 4,000
of these institutions reported loans for insurance.
Table III-32 presents by type of institution the
claims paid in 1960 and the total claims as they relate
to total loans insured under the 1950 Reserve.
The year 1960 was the first year in which all
claims paid involved loans originally insured
under the 1950 Reserve. It was also marked by
the record high average claim amount of $587, 16
percent over the $508 average reported for 1959.
Of the total of $11.9 million in claims paid in 1960,
national banks received $5.4 million or 46 percent,
and State banks $3.4 million or 28 percent. Savings
and loan associations, accounting for $2 million
or 17 percent of the total, had the highest
average claim of $809. Finance companies, receiving
5 percent of all claims, had the lowest
average of $418.
Comparison of cumulative claims of $119
million paid under the 1950 Reserve through the
end of 1960 with the $9.4 billion of net proceeds
insured through the same date yields a claim
ratio of 1.27 percent. This represents a continuation
of the decline in this claim ratio reported
for each of the 3 preceding years from
the high ratio of 1.38 percent reported as of December
31, 1956. A comparison by type of institution
reveals that the relative amount of claims
paid varied within a narrow’ range of the percentage
of net proceeds insured. For example, the
cumulative claims paid to national banks constituted
50.4 percent of those paid to all institutions,
while their net proceeds insured were 49.7
percent of the total. More currently, the difference
is greater in that national banks received 45.6
percent of claims paid in 1960. Greater variation
Total Class 1 and 2 loans
Table III-33.—Humber of payments received prior to default by term of property improvement loans, 1960
Number of payments received prior to default Term of defaulted loan—percentage distribution Percentage distribution
Average
claim paid
6-11
months
12-23
months
24-35
months
36
months
37 or more
months
Total
number
Total
amount
0_____________________ _________ ... _ _ 25. 0 9.3 5. 9 4.2 8. 5 5. 7 9.2 $946
1-5_____________________________________________ 62. 5 37.3 22.9 16.0 25.2 19.9 28.0 822
6-11.. 12. 5 38. 2 27.0 19. 7 24.0 22. 4 26.2 687
12-17________________________________________________ 14.9 23.8 17.6 16.2 17.8 17.3 571
18-23________________________________________________ .4 15.8 15.3 10. 1 13.4 9.9 431
24-29________________________________________________ 4.2 14. 6 7.6 11.1 5.9 313
30-35________________________________________________ .4 12.5 5.3 8.9 2.7 178
36 and over . _ ...___....... __ _ _ ___ . 1 3.1 .8 .8 554
Total. .... 100.0 100.0 100.0 100.0 100.0 100. 0 100.0 587
Percent of total.. _ . _______ ______ . ... ______ . 1 4.8 10. 9 60. 9 23.3 100.0
Median___ _ . ____ ... ...___ 3.0 6. 5 10. 7 15.5 10.1 12.7
106
is found in the case of savings and loan associations,
for which the cumulative net proceeds insured
were 9.3 percent of the total, but claims paid
cumulatively and for the year 1960 were 10.3 and
17.2 percent, respectively.
Showing the four major types of institutions
and the grouping of all others into a single class,
Chart III-16 compares dollar amounts of loans
originated and claims paid along with their respective
claim ratios. State chartered banks, with
about one-third of the total volume insured, had
the lowest rate of claims among the leading types
of institution—1.12 percent. In contrast, finance
companies made 7 percent of the insured loans
but had a 1.75 percent claim ratio.
Payments Received Prior to Default.—Table
III-33 distributes the number of installments paid
by borrowers prior to default according to the
Chart HI-16
PROPERTY IMPROVEMENT LOANS UNDER
THE 1950 RESERVE, 1950-60
Million dollars
Claims Paid as a Percent of Loans Originated
for Each Type of Institution
Chart HI-17
PAYMENTS MADE PRIOR TO DEFAULT, 1960
Claims paid on property improvement loans
30 —
number of payments contracted for in the original
note. During 1960, 61 percent of the claims
stemmed from loans that had an original repayment
term of 36 months. The median number
of monthly payments received before default was
15.5 for this group as compared with 12.7 for
all defaults. Loans with terms of 37 months or
more comprised an additional 23 percent of the
default cases. Of this group, 58 percent defaulted
within the first year. Although data for
earlier years are not shown in this table it is of
interest to note that, since 1957, loans originated
for repayment in 37 months or more have increased
their relative volume of claims from 2 to
23 percent of the total even though most defaults
have continued to occur within the first year.
Nearly one-half of all claims paid in *1960
resulted from loans that were in default before
12 installments had been repaid. These claims
averaged $774 as compared with the $587 for all
claims.
Chart III-17 indicates that 6 percent of the 1960
claims and 9 percent of the dollar volume resulted
from loans on which the borrower had made no
payment. The next group, involving 20 percent
of claims and 28 percent of the total amount,
represented loans going into default between the
1st and 5th month. Over 80 percent of the dollar
volume reported for claims paid involved
loans on which fewer than 18 payments had been
made.
107
Section 3
Characteristics of Mortgage and Loan Transactions
Insured by FHA in 1960
This section of the report presents statistical
analyses of the characteristics of the individual
transactions insured by FHA in 1960 under
each of its principal types of program—home
mortgages, multifamily project mortgages, and
property improvement loans.
SECTION 203 HOME MORTGAGE
TRANSACTIONS
During 1960, about 1,216,000 new privately
financed dwelling units were started in the
nonfarm areas of the country. Construction
and sale of most of these units were made
possible by funds advanced by privately owned
financial institutions. About 261,000 units, or 1
out of every 5, were in structures approved for
FHA mortgage insurance before construction
started and subject to FHA compliance inspections
during the period of construction.
Almost 87 percent of these new units started
under FHA inspection were in one- to four-family
structures, the bulk of which secured mortgages
insured under the provisions of Section 203 of the
National Housing Act. This is the major home
insurance program of the Federal Housing Administration
and the following analysis deals
exclusively with cases processed under this program
covering the characteristics of the insured
mortgages, the properties securing them, and the
occupant mortgagors of the properties.1
The tables in this section of the report are
limited in scope to national activity. Similar
data are also published on a quarterly basis.
For the benefit of those interested in comparable
data by State and standard metropolitan statistical
areas, summary tables have been published
for 1960 and several prior years on a locality basis.
All of these data are available upon request to
the Division of Research and Statistics, Federal
Housing Administration, Washington 25, D.C.
During 1960, as indicated in the following table,
practically all of the mortgagors involved in onefamily
transactions were owner-occupants. Onefamily
properties constituted 99.6 percent of the
new homes and 95.8 percent of the existing
structures securing mortgages insured under Sec1
Discussion is based on a sample of Section 203(b) cases only
(see technical notes following Table 35). Cases insured under
the provisions of Section 203(i) and the Certified Agency Program
are excluded, although they are included in the data relating
to the volume of insurance written under the Section 203
program.
tion 203 in 1960 (see Table HI-34). Of the
transactions involving two- to four-family homes,
most of the two-family cases were processed as
owner-occupied properties, but about 55 percent
of the three- and four-family cases, practically
all existing properties, were processed as rental
properties.
Type of mortgagor
New homes Existing homes
1960 1959 1958 1957 1960 1959 1958 1957
Owner occupant_____
Landlord _ _ _ ___
99.9
. 1
(>)
99.9
.1
(■)
99.4
.2
.4
98.3
.2
1.5
99.9
.1
(*)
99.9
.1
(>)
99.7
.3
0)
99.7
.3
Builder___ ____ _____ (>)
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
i Less than 0.05 percent.
About 98 percent of the new-home mortgage
transactions involved the purchase by an owneroccupant
of a newly constructed dwelling erected
by a commercial builder. The remaining newhome
transactions involved the construction of a
house by or for a mortgagor on his own lot. The
pattern for existing-home cases was slightly different,
about 96 percent of the transactions financing
the purchase of an existing property and the remaining
4 percent refinancing existing loans or
financing improvements.
1 Less than 0.05 percent;
1-family amenity income cases
Purpose of loan
New homes Existing homes
1960 1959 1958 1957 1960 1959 1958 1957
Financing new construction_________
Financing purchase .
Refinancing existing
loans____________
Financing improvements___________
2.4
97.6
(>)
0)
3.4
96.6
4.6
95.4
(>)
(>)
9.7
90.3
(>)
(>)
0.3
96.4
3.2
.1
0.4
94.5
5.1
(*)
0.6
95.4
3.9
.1
1.2
93.7
4.8
.3
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Trends of Typical Section 203 Home
Mortgage Transactions
Medians and averages (arithmetic means) of
the principal characteristics of the new- and existing-
home transactions insured under Section 203
during 1960 are compared with those of selected
earlier years in Table HI-35. For purposes of
108
Table III-34.—Structures and dwelling units, 1- to 4-
family homes, Sec. 203, selected years
Units per structure 1960 1959 1958 1955 1950
Structures—percentage distribution
New homes:
One______________ 99.6 99.7 99.3 99.3 99.0
Two.. . _ . .4 .3 y .5 .9
Three___________ W (>) (•) .1 (')
Four_____________________ (>) (*) (>) .1 . 1
Total___________________ 100.0 100.0 100.0 100.0 100.0
Existing homes:
One___ 95.8 96.5 92.7 96.9 95.5
Two______________ ___ 3.6 3.1 6.4 2.8 4.1
Three___________ _ .5 .3 .7 .2 .2
Four_____________________ .1 .1 .2 .1 .2
Total___________________ 100.0 100.0 100.0 100.0 100.0
Dwelling units--percentage distribution
New homes:
One________________ ___ __ 99.2 99.3 98.4 98.2 97.7
Two______________________ .7 .6 1.4 .9 1.8
Three____________________ (') (*) . 1 .3 .1
Four_____________________ .1 .1 .1 .6 .4
Total___________________ 100.0 100.0 100.0 100.0 100.0
Average_________________ 1.00 1.00 1.01 1.01 1.01
Existing homes:
One______________________ 91.3 92.8 85.6 93.5 90.1
Two_____________________ 7.0 5.9 11.8 5.3 7.8
Three____________________ 1.3 .9 2.0 .7 .7
Four_____________________ .4 .4 .6 .5 1.4
Total___________________ 100.0 100.0 100.0 100.0 100.0
Average________________ 1.05 1.04 1.08 1.04 1.06
1 Less than 0.05 percent.
discussion, “typical'5 transactions are delineated in
terms of these medians and averages.
The typical new-home mortgage insured by
FHA during 1960 represented 93% percent of the
property value and amounted to $13,569. Repayment
was scheduled over an average term of 29.2
years with a monthly mortgage payment of
$103.81.
Securing this mortgage was a single-family
house with an average floor area of 1,091 square
feet, including 5% rooms of which 3 were bedrooms.
It was built on a site valued at $2,470,
which represented 16% percent of the total FHA
property value of $14,607. The typical new-home
purchaser had an annual effective income (before
taxes) of $7,168, out of which he expected to make
monthly payments of $128.98 for housing expenditures
(monthly mortgage payment plus cost of
household operation and repair and maintenance)—
this representing about one-fifth of his
monthly income.
Compared with the typical new-home transaction
reported for 1959, the 1960 mortgage amount
was 2 percent higher, the mortgage term about 6
months longer, and the monthly mortgage payment
6 percent greater. The typical property
value rose 2 percent and the average market price
of site increased almost 5 percent, accounting for
the one-half of one percent rise in the average
ratio of site to value. A slight upward movement
in the expense-income ratio was caused by tire
larger proportionate rise in housing expense
(5 percent) than for income (less than 4 percent).
The typical existing-home transaction involved
a mortgage of $11,978—representing 92% percent
of the total property value and scheduled to be
amortized over a period of 25.8 years by monthly
mortgage payments of $96.50. This mortgage was
secured by a property appraised by FHA at
$13,043, including a land price of $2,356. The
house was typically a one-family structure containing
1,057 square feet and provided 5.4 rooms
of which 3 were bedrooms. The typical existinghome
purchaser had an annual income of $6,784
and contemplated an estimated monthly housing
expense of $121.41. The ratio of his housing expense
to income was 1 to 5, about the same as for
new-home buyers.
Compared with the typical existing-home mortgage
insured in 1959, the 1960 mortgage amount
was 2 percent higher and the loan-value ratio
rose fractionally. The mortgage term was 8%
months longer and the monthly mortgage payments
5 percent higher. The typical property
value was up about 1 percent. The price of
an equivalent site receded fractionally, accounting
for the slight reduction in the site-value ratio.
As with new homes, the size of the structure was
practically unchanged, as were the room and bedroom
counts. The expense-income ratio for the
existing-home buyer rose % percentage point, reflecting
the 4% percent change in housing expense
compared with a 3 percent increase in income.
Postwar trends of selected characteristics of the
typical Section 203 new- and existing-home mortgage
cases are also shown in table HI-35. The
higher levels of mortgage amounts and ratios of
loan-to-value, and, consequently, of mortgage
payments for the Section 203 transactions insured
in 1960 result in part from the liberalization of
credit provisions effected by the Housing Act of
1959 and put into effect by the FHA on April 29,
1960.
In Table HI-35, the upward trends in property
value (Chart HI-21), land prices (Chart HI-23),
and mortgagor’s income (Chart HI-25) indicate
the general inflation in prices and rise in incomes
that have occurred since World War II.
Property values for new and existing homes
have at least doubled during the postwar period.
Land prices for new homes have more than
tripled and prices of equivalent sites for existing
homes are more than 2.8 times their 1946 level.
The rise in the price of land has been most significant.
For example, in new-home transactions,
the average site cost $761 in 1946. It had risen
to $1,035 in 1950, and jumped to $1,626 by 1955.
Moreover, it continued to rise an average of 10
percent a year since then to the $2,470 average
reported for 1960.
109
Table III-35.—Characteristics of 1-family home transactions, Sec. 203, selected years
Median 1 1960 1959 1958 1957 1956 1955 1954 1952 1950 1946
NEW HOMES
Mortgage:
Amount ____________ _____ $13,569 $13, 293 $12, 697 $11,823 $11,010 $10,034 $8, 862 $8, 273 $7,101 $5, 504
Term in years 2___ __ .. 29.2 28.8 27.3 25.5 25.5 25.6 22.9 21.7 24.1 21.0
Loan-value ratio (percent)_________________ 93.5 93.5 91.5 85.1 86.6 88.7 85.3 83.7 88.0 87.0
Taxes and assessments 2. _______ ______ _ $15.83 $15.19 $15. 06 $15.11 $13. 66 $12. 00 $10. 86 $10.04 $8. 73 $8.18
Total monthly payment3__ $103. 81 $98.08 $96.10 $90. 29 $81. 63 $74.14 $68. 62 $64.16 $54. 31 $46.18
Property:
FHA-estimated value____ $14, 607 $14, 329 $14, 207 $14, 261 $13, 203 $11, 742 $10, 678 $10,022 $8, 286 $6, 558
Market price of site 2__ _ $2, 470 $2, 362 $2,223 $2,148 $1,887 $1, 626 $1.456 $1, 227 $1,035 $761
Site-value ratio (percent) 2__ ___ 16.6 16.1 15.4 14.9 14.1 13.4 13.1 12.0 12.0 11.5
Sale price2 4 ___ ___ _ $14, 662 $14,448 $14, 283 $14, 541 $13,468 $12,113 $10, 985 $11,077 (6) (’)
Total acquisition cost2 4 . ... $14, 939 $14, 727 $14, 596 $14. 842 $13,752 $12,367 $11,185 $11, 294 (9) (’)
Percent with garages 5 _ _ _ ___ 74.0 70.9 72.7 76.6 72.8 69.8 66.6 53.4 48.7 58.1
Structure:
Calculated area (sq. ft.)_______ _ ____ 1,091 1,095 1,092 1,105 1,064 1,022 961 923 838 (9)
Number of rooms 2 . _ 5.5 5.4 5.4 5.3 5.2 5.1 4.9 4.8 4.6 5.0
Number of bedrooms 2-. .. _____ _ . - 3.0 3.0 3.0 3.0 2.9 2.9 2.7 2.6 (9) (9)
Mortgagor:3
Annual effective income _ _ __ $7,168 $6,912 $6, 803 $6, 632 $6,054 $5, 484 $5,139 $4. 811 $3, 861 $3, 313
Monthly housing expense . _ $128.98 $123. 21 $120. 87 $115.17 $104. 48 $95. 70 $88. 91 $83.16 $75.41 $62. 85
Expense-income ratio (percent)2___________ _ 20.7 20.5 20.4 19.7 19.5 19.7 19.6 19.6 21.6 20.9
existing homes
Mortgage:
Amount_______________ - ___ $11,978 $11,755 $11,325 $10, 498 $10,013 $9, 603 $9,030 $8,047 $6,801 $4, 697
Term in years2 _____ - _ _______ __ 25.8 25.1 24.2 22.5 22.5 22.7 20.1 19.7 20.2 18.9
Loan-value ratio (percent^__ _____ 92.6 92.0 90.2 84.9 82.9 85.0 78.5 77.9 77.8 78.4
Taxes and assessments2 $15. 55 $14.72 $14.59 $14. 21 $13.49 $12.12 $11.68 $9, 86 $9.30 $7.33
Total monthly payment3 ___ $96.50 $91. 66 $90. 30 $85. 54 $78. 62 $74.57 $74. 34 $65.08 $56. 65 $40.83
Property:
FHA-estimated value __ -__ ___ - - - $13,043 $12, 914 $12, 778 $12, 572 $12,261 $11,555 $11,549 $10, 289 $8, 865 $5,934
Market price of site 2 _ _____________ $2.356 $2,369 $2,150 $2,041 $1,931 $1,707 $1,591 $1,296 $1,150 $833
Site-value ratio (percent) 2 __ __ ____ 17. 7 17.9 16.5 15.7 15.1 14.2 13.3 12.3 12.4 13.3
Sale price4 _______ _ __ $13, 284 $13. 278 $13,133 $13, 201 $12,991 $12, 281 $12,344 $11,484 («) (’)
Total acquisition cost 4__ __ __ $13, 579 $13. 560 $13,446 $13, 507 $13, 274 $12, 558 $12, 578 $11, 689 (0) (’)
Percent with garages 5 _____________ 71.4 74.0 74.9 78.5 81.1 79.9 79.6 70.7 70.6 83.4
Structure:
Calculated area (sq. ft.) - ________ _ _ 1,057 1,059 1,053 1,060 1,060 1,030 1,035 992 1,006 (6)
Number of rooms 2_________ - ___ ___ 5.4 5.4 5.4 5.3 5.3 5.2 5.2 5.1 5.2 5.5
Number of bedrooms 2___ ___ - __ 2.8 2.7 2.7 2.7 2.7 2.6 2.6 2.6 (9) (6)
Mortgagor:3
Annual effective income.__ _____ - - $6, 784 $6, 575 $6, 502 $6, 296 $6, 033 $5, 669 $5, 696 $4, 938 $4, 274 $3,101
Monthly housing expense_____ ___ ____ - $121.41 $116. 26 $115.31 $110.12 $102.00 $97. 34 $97. 41 $86. 63 $78. 99 $58.11
Expense-income ratio (percent) 2_____________ 20.6 20.1 20.4 19.9 19.2 19.4 19.4 19.4 20.3 20.3
1 Throughout this report, medians are computed on the assumption that
distributions of all characteristics are represented by continuous data within
groups. For definition of sample and terms see technical notes on this page.
2 Average (arithmetic mean).
3 Throughout this report, data relating to monthly mortgage payment,
mortgagor’s income, and housing expense are based on 1-family occupant
cases only.
Technical
4 Throughout this report, data relating to sale price and total acquisition
cost are based on 1-family occupant purchaser transactions only.
6 Includes carports.
6 Not available.
Notes
Size of Sample.—Data presented in this section of the report are based on 46,600 new-home and 56,800 existing-home cases.
These cases represent 50 percent of the new- and existing-home cases reported as insured under Section 203(b) during the first 9
months of 1960, selected on the basis of case number in order to assure a random distribution.
Definition of Terms.—Throughout the FHA annual report the use of technical terms is in keeping with the following definitions
established for use in the underwriting system in connection with the appraisal of properties and the evaluation of mortgage risk:
Calculated Area is the area of spaces in the main building above basement or foundations, measured at the outside surfaces
of exterior walls. Garage space, finished spaces in attics when less than 50 percent of the ground floor area, and areas with
ceiling heights of less than 5 feet are excluded. .
Heating and Utilities include the cost of heating, electricity, gas, water and other items generally known as utilities, excluding
those services provided under the lien of a nonprepayable special assessment which continues indefinitely for supplying
water, sewage disposal, removal of garbage, or other services necessary for the occupancy of the premises.
Incidental Costs are the total estimated closing costs customarily chargeable to the mortgagor for items which are incidental
to the transaction regardless of whether included in whole or in part in the contract price. _ These costs include h HA
examination fee, mortgagee’s initial service charge, cost of title search, charges for the preparation of deed and mortgage
documents, mortgage tax, recording fees, and similar items. Deposits for unaccrued taxes, insurance premium, and similar
items are treated as prepayable expenses and are not included as incidental costs.
Maintenance and Repair Expense is the average yearly cost of maintaining the physical elements of the property to prevent
acceleration of deterioration and to assure safe and comfortable living conditions. ...... ,
Market Price of Site is the FHA-estimated price for an equivalent site including street improvements or utilities, rough
grading, terracing, and retaining walls, if any. .
Mortgagor’s Effective Income is the FHA-estimated amount of the mortgagor s earning capacity (before deductions tor
Federal income taxes) that is likely to prevail during approximately the first third of the mortgage term.
Number of Bathrooms is the number of full bathrooms having a tube or shower stall, a lavatory, and a water closet,
plus the number of half bathrooms having a lavatory and a water closet. Example: A full bath plus a half bath has been
considered as two baths for the purpose of this report.
Number of Rooms excludes bathrooms, toilet compartments, closets, halls, storage, and similar spaces.
Property Value is the FHA-estimated price that typical buyers would be warranted in paying for the property (including
the house, all other physical improvements, and land) for long-term use or investment, assuming the buyers to be well informed
and acting intelligently, voluntarily, and without necessity.
Prospective Monthly Housing Expense includes total monthly mortgage payments for the first year and the I'HAestimated
cost of monthly maintenance and repair, and heating and utility expenses. . . ,
Replacement Cost of Property is the FHA-estimated cost of the building (in new condition) and other physical improvements,
market price of site, and miscellaneous allowable costs for the typical owner. ,
Sale Price is the price stated in the sale agreement, adjusted to exclude any portion of closing costs, prepayable expenses,
or costs of nonreal estate items which the agreement indicates will be assumed by the seller.
Taxes and Assessments include property taxes and any continuing nonprepayable special assessments, as estimated by
^^ ^Total Monthly Mortgage Payment includes monthly payment for the first year to principal, interest, FHA insurance
premium, hazard insurance premium, taxes and special assessments, and miscellaneous items including ground rent, if any.
Total Acquisition Cost includes the total amount, including mortgage funds, necessary to close the transaction, less any
prepayable expenses such as unaccrued taxes, insurance premiums, and similar items.
no
The marked rise in the price of land is to a
considerable extent attributed to the exhaustion
of suitably developed sites and their consequent
scarcity, coupled with increased demand for land
and rising costs of site development. The typical
income of the FHA mortgagor in 1960 was more
than twice as high as that reported for 1946. In
contrast, the typical nonfarm income for the Nation
increased by 93 percent during the same
period. Mortgage amounts have kept pace with
the trend of values, reflecting the upward revisions
in Section 203 maximum insurable amounts
and loan-to-value ratios as authorized by Congress.
Mortgage Characteristics
Amount of Mortgage.—Table HI-36 shows the
distribution of mortgage amounts insured by FHA
in 1960 and in selected earlier years. Also
shown are averages and medians demonstrating
the sustained advance in the size of the mortgage
amounts insured during the last 10 years.
In 1960 the typical new-home mortgage
amounted to $13,569—2 percent higher than in
1959—one-third more than the $10,034 reported in
1955—and about 91 percent higher than the median
loan of $7,101 reported for 1950. During 1950,
insured mortages of $12,000 or more accounted for
only a small share (1 percent) of the total; by
1955, over one-fifth of the mortgages were in this
category; and by 1960 almost three out of every
four exceeded $12,000 (Chart HI-18).
Chart II1-18
AMOUNT OF MORTGAGE, 1960
Single family home mortgages, Section 203
7or less 8'9 10'11 I2~l3 I4"15 16~l7 I8or more
Amount of mortgage in thousand dollars
The size of the typical existing-home mortgage
has increased at a somewhat slower rate. The
median existing-home loan insured in 1960 was
$11,978, or about 2 percent higher than the typical
reported for 1959. It was 25 percent above the
$9,603 shown in the table for 1955 and about 76
percent higher than the median loan insured
in 1950. This trend is also evidenced in the
percentage distributions. For instance, in 1950
only about 4 percent of the existing-home mortgages
endorsed were for $12,000 or more. Five
years later, nearly 19 percent of the endorsements
were in this category, and by 1960 almost one-half
of all existing homes insured had mortgages of
$12,000 or higher.
On the average, new-home mortgages insured in
1960 amounted to $13,621, compared with $12,034
reported for existing homes. These higher levels
are at least partially attributed to the higher available
mortgage limits made effective during 1960
(see discussion under loan-value ratio) and are
reflected in the increased number of new-home
mortgages of $14,000 or more and of existing-home
mortgage in the $12,000 or more category. Only
about 6 percent of the new homes involved mortgages
of less than $10,000, while slightly more than
one-fourth of the existing homes fell into this
group.
Table III-36.—Amount of mortgage, 1-family homes,
Sec. 203, selected years
Amount of mortgage
Percentage distribution
1960 1959 1958 1955 1950
NEW HOMES
Less than $4,000. - _ . 0.1 0 4
$4,000 to $4,999_______ . 1 1 1
$5,000 to $5,999_______ (i) 0. 1 0.2 . 6 9 0
$6,000 to $6,999_______ 0.1 . 1 . 4 2 4 33 0
$7,000 to $7,999 _____ .2 . 3 . 7 9 0 28 5
$8^000 to $8,999_______ 1.4 2.0 3.7 17.9 16.0
$9,000 to $9,999___ __ 4. 4 6. 3 9 7 18 5 8 3
$10,000 to $10,999. ... 8. 7 9. 3 12 9 16 7 1 9
$1LOOO to $11^999_____ 11.5 12.4 12.9 13.0 .8
$12,000 to $12,999____ 13. 9 14.3 13 7 9 2 5
$13,000 to $13,999 .. 17. 2 17. 9 14 1 6 0 2
$14'000 to $14'999_____ 14.3 11.8 11.2 3.0 .1
$15,000 to $16,999 19.0 17. 2 14. 6 2 6 2
$17,000 to $19,999 ____ 7.9 7.2 5.1 . 7
$20,000 or more______ 1.4 1.1 .8 .2—
Total 100. 0 100.0 100 0 100 0 100 0
$13,621 $12 762 $10 305 $7 307
Median_____________ $13. 569 $13. 293 $12.697 $10. 034 $7’ 101
EXISTING HOMES
Less than $4,000 0 3 4 4
$4,000 to $4,999_______ 8. 3
$5,000 to $5,999_______ 0.9 0.9 1.0 2.3 16.3
$6,000 to $6,999_______ 2.2 2.4 2.7 6.0 22.0
$7,000 to $7,999______ 4.5 5.1 5.7 11.8 18.6
$8,000 to $8,999_______ 7.9 8.8 10.1 18.0 13.0
$9,000 to $9,999_______ 10.4 10.9 12.2 17.0 7.2
$10,000 to $10,999_____ 12.0 12.5 14.1 14. 5 4.5
$11,000 to $11,999___ 12.3 12.5 12.8 10.6 1.9
$12,000 to $12,999_____ 12.9 11.9 11.5 7.1 1. 7
$13,000 to $13,999_____ 11.7 11.0 9. 7 4.1 .7
$14,000 to $14,999_____ 8.3 7.8 7.1 2.9 .7
$15,000 to $16,999_____ 10.9 10.2 8.5 2.8 .7
$17,000 to $19,999_____ 4.8 5.0 3.8 1.5
$20,000 or more_______ 1.2 1.0 .8 .4—
Total__________ 100.0 100.0 100.0 100.0 100.0
Average_____________ $12,034 $11,875 $11,513 $9,898 $7,102
Median_____________ $11, 978 $11,755 $11,325 $9, 603 $6,801
1 Less than 0.05 percent.
Chart 111-19
TOTAL MONTHLY MORTGAGE PAYMENT, 1960
Single family home mortgages, Section 203
40 —
ing reported in nearly 14 percent of the cases. The
proportion of 25-year mortgages for new-home
owners declined somewhat during the year—from
19 percent in 1959 to 12 percent in 1960. For
existing-home cases, a much greater decline in the
use of the 25-year mortgage is apparent, as well
as a small reduction in the use of 20-year
mortgages.
Table III-37.—Term of mortgage, 1-family homes,
Sec. 203, selected years
Term of mortgage in
years
Percentage distribution
1960 1959 1958 1957 1955
NEW HOMES
10 _ ____________ (’) (>) (') 0.1 0. 1
15___________________ 0. 1 0.2 0.4 .9 .7
20__________________ 1.7 2.2 5.2 12.6 13.7
25 • _ ______ - 12. 1 19. 2 41.7 61.5 58.4
30___________________ 86.1 78.4 52.7 24.9 27.1
Total__________ 100.0 100.0 100. 0 100.0 100.0
Average_____________ 29.2 28.8 27.3 25.5 25.6
EXISTING HOMES
10 ___________ . 1 . 1 . 1 .3 . 4
15 1.9 1.8 3.3 7.1 4.9
20 _________________ 16.8 18. 2 26. 0 40.2 42. 1
25__________________ 43.6 54.8 53.1 46.4 45.2
30___________________ 37.6 25. 1 17.5 6.0 7.4
Total ______ 100.0 100.0 100.0 100. 0 100.0
Average_____________ 25.8 25. 1 24.2 22. 5 22.7
1 Less than 0.05 percent.
These trends in the amount of mortgage debt
being assumed by the home owner reflect the increasing
cost of housing and the fact that borrowers
have been able to obtain mortgages representing
higher percentages of property value made
available by National Housing Act amendments
in 1957, 1958, and 1959.
Term of Mortgage.—Mortgages insured by FHA
under Section 203 may have terms of not less than
10 years nor more than 30 years or three-fourths of
the remaining economic life of the building improvements,
whichever is the lesser, and are written
for durations of 10, 15, 20, 25, or 30 years.
The growing acceptance of the long-term mortgage
by lenders and the effect of legislation in
recent years permitting increased use of 30-year
mortgages is clearly shown in Table HI-37. For
example, in 1955, 58 percent of the new-home
mortgages insured by FHA had terms of 25 years
and 27 percent had durations of 30 years. By
1960, 30-year mortgages accounted for 86 percent
of the transactions while only one out of every
eight were of the formerly popular 25-year duration.
In general, the same trend is apparent in
existing home mortgages but the change has been
somewhat more gradual. Thirty-year mortgages
increased from 7 percent of the total in 1955 to
38 percent in 1960.
During 1960, almost seven out of every eight
new-home mortgages insured had 30-year terms,
while the 25-year mortgage instrument was most
commonly used in existing-home transactions, beTotal
Monthly Mortgage Payment.—All FHAinsured
home mortgages provide for repayment on
a monthly basis over the mortgage term. The
mortgagor makes a single payment to the mortgagee
each month, this payment covering the
major portion of the recurring charges which the
home owner is called upon to meet. It includes
payments at a fixed amount each month to principal
and interest, together with one-twelfth of
the amount required each year for FHA mortgage
insurance premium, hazard insurance, taxes and
special assessments, and any miscellaneous items
such as ground rent.
Chart III-19 depicts the distributions of total
monthly payments called for in the new and existing
single-family home mortgage transactions insured
under Section 203 during 1960. Despite
the longer terms previously noted, both new- and
existing-home cases required higher monthly payments,
reflecting higher mortgage limits made
available in recent years. In the chart, the bars
show that mortgage payments for new homes are
most commonly in the $100-$119 range and that
the existing-home owner most frequently pays between
$80 and $99 monthly. Of the mortgages
insured in 1960, more than one-half of the newhome
cases required monthly mortgage payments
exceeding $100.
The typical mortgage payment during 1960 for
both new- and existing-home transactions was
about 5 percent higher than required in 1959. The
trend toward higher payments in recent years can
easily be seen in the data presented in Table
112
III-38. For instance, in 1960 the median mortgage
payment required on a new home was
$103.81—40 percent more than was required 5
years earlier and 91 percent higher than reported
for 1950. The same general trend can be noted for
existing homes—although not quite so sharp. The
$96.50 required in 1960 was 29 percent above 1955
and 70 percent higher than 10 years ago.
Table III-38.—Total monthly mortgage payment,
1-f amity homes, Sec. 203, selected years
Total monthly
mortgage payment
Percentage distribution
1960 1959 1958 1955 1950
NEW HOMES
Less than $60___ _ _ 0.3 0. 7 1.0 15.2 69. 2
$60 to $69____________ 2. 4 3.9 5. 5 24.6 20.4
$70 to $79____________ 7. 5 11.0 14. 2 23.5 7.2
$80 to $89____________ 13.3 17.4 18.3 18.0 1.7
$90 to $99____________ 18.8 21.0 18.0 10.1 .7
$100 to $109__________ 20. 2 17.9 16.7 4.6 .4
$110 to $119__________ 15.3 12.6 11.9 2.2 .2
$120 to $139__________ 16.1 11.6 11.1 1.4 .2
$140 or more_________ 6.1 3.9 3.3 .4
Total__________ 100.0 100.0 100.0 100.0 100.0
Average_____________ $104. 90 $99. 53 $97. 48 $76.08 $55. 38
Median_____________ $103.81 $98.08 $96.10 $74. 32 $54.31
EXISTING HOMES
Less than $60 _ __ 2.4 3.8 4.0 16.4 59.0
$60 to $69____________ 8.1 10.9 11.1 22.3 19.3
$70 to $79____________ 13.0 15.5 16.4 23.3 10.2
$80 to $89____________ 16.3 17. 1 18.0 16. 5 5. 3
$90 to $99____________ 16.1 15.7 15.4 9.5 2.6
$100 to $109_______ .. 14.2 12.7 12.8 5.2 1.6
$110 to $119__________ 11.1 9.6 9.2 3.0 .9
$120 to $139__________ 12.5 9.9 8.9 2.6 1. 1
$140 or more 6.3 4.8 4. 2 1.2
Total__________ 100. 0 100.0 100.0 100.0 100.0
Average_____________ $98. 69 $94. 18 $93. 07 $77.15 $58. 94
Median_____________ $96. 50 $91. 66 $90. 30 $74. 81 $56. 65
Ratio of Loan to Value.—Mortgages insured in
1960 were processed under loan-to-value provisions
of the Emergency Housing Act of 1958
and, after April 29, 1960, under the more liberal
provisions of the Housing Act of 1959 which
were implemented by FHA on that date. The
Housing Act of 1958 limited Section 203 owneroccupant
home mortgages to 97 percent of the
first $13,500 of FHA appraised value plus 85 percent
of the value in excess of $13,500 but not in
excess of $16,000, and 70 percent of the remainder.
If the house was not subject to FHA inspection
during construction and had been completed for
less than 1 year, the maximum loan-value ratio
with respect to the first $13,500 was 90 percent.
For other than owner-occupant transactions, the
maximum insurable mortgage was limited to 85
percent of the amount available to an occupant
borrower.1 Provisions of the Housing Act of
1959 which, as previously noted, were not made
effective until April 29, 1960, permitted owneroccupant
mortgagors to borrow up to 97 percent
1 In Alaska, Hawaii and Guam, the specified amounts could be
as much as 50 percent more in recognition of higher construction
costs in these areas.
Chart 111-20
RATIO OF LOAN TO VALUE, 1950-60
Single family home mortgages, Section 203
Median
of the first $13,500 of value plus 90 percent of the
next $4,500 and 70 percent of any value over
$18,000. For existing construction completed less
than 1 year and not subjected to compliance
inspection, the mortgage could not exceed 90 percent
of the first $18,000 plus 70 percent of the
value in excess of $18,000.
Trends in the ratios of mortgage amount to
property value are shown in Table 111-39 and
Chart 111-20.
On the average, loan-value ratios for Section
203 cases insured during 1960 were at an all-time
high but only slightly above those reported for
1959. Reflecting the impact of the Housing Act
of 1959 on construction in the $16,000 to $21,000
price range, for new-home transactions, the 91-95
percent mortgages increased in relative frequency
over 1959. More than 7 out of 10 new-home mortgages
involved down payments of less than 10
percent. This trend toward lower down payments
is further reflected in movement of the
typical loan-value ratio, which was 93% percent
in 1960, up from 91% percent in 1958 and from
88 percent in 1955 and 1950.
A similar shift is also apparent for existinghome
mortgages, where the typical loan-value
ratio rose from 78 percent in 1950 to 85 percent
in 1955 and to 92.6 percent in 1960. Sixty percent
of the mortgages insured in 1960 had loanvalue
ratios of 91 to 97 percent—up from 56 percent
in 1959.
113
Table III-39.—Ratio of loan to value, 1-family homes,
Sec. £03, selected years
Ratio of loan to value
(percent)
Percentage distribution
1960 1959 1958 1955 1950
NEW HOMES
50 or less _ ______ 0.1 0.1 0.5 0.8 0.6
51 to 55______________ . 1 . 1 . 2 .4 .4
56 to 60______________ .2 .2 .3 .7 .5
61 to 65______________ .3 .4 .6 1.2 .9
66 to 70______________ .7 .8 1.3 2.1 1.6
71 to 75______________ 1.6 1.8 2.6 4.1 3.2
76 to 80______________ 3.3 3.6 5.6 9.5 8.8
81 to 85 ____ 6.3 7. 1 11. 5 14. 2 10.9
86 to 90_____________ 15.7 16.8 23. 2 33.7 57. 1
91 to 95. ___________ 42.9 38.2 39.7 33.3 16.0
96 to 97 28. 8 30.9 14. 5
Total__ 100.0 100.0 100.0 100. 0 100.0
Average_____________ 91.4 91.0 88.7 85.0 85.0
Median_____________ 93.5 93.5 91.5 88.5 88.0
EXISTING HOMES
50 or less. ________ .1 .1 .1 .6 2.1
51 to 55_____________ . 1 . 1 . 1 .4 1.4
56 to 60_____________ . 1 .2 .2 .9 2.2
61 to 65______________ .3 .4 .5 1.5 3.7
66 to 70_____________ .8 1.1 1.6 4.3 8.8
71 to 75______________ 1.7 2.1 2.8 5.9 13.5
76 to 80______________ 4.5 5.3 7.1 13. 2 51. 5
81 to 85______________ 9.7 10.7 14.3 30.2 4.4
86 to 90______________ 23.0 24.2 27.4 32.1 9.8
91 to 95_____________ 30.9 28.4 29. 1 10.9 2.6
96 to 97_____________ 28.8 27.4 16.8—
Total_________ 100.0 100.0 100.0 100.0 100.0
Average_____________ 90.5 89.7 88.1 82.2 76.4
Median_____________ 92.6 92.0 90. 2 84.8 77.8
Table III-40 shows loan-value distributions by
property value groups for Section 203 cases insured
during 1960. A great majority of the mortgages
were at or near the maximum amounts set
forth in the legislation and administrative rules.
For instance, in the value groups below $14,000,
which included the maximum 97 percent ratio
cases up to $13,500, median loan-value ratios of
over 96 percent were reported in all value classes,
with well over one-half of all loans in the 96-97
percent class. Smaller proportions of loans of
this class (96-97 percent) are shown for the $14,-
000 and $15,000 categories that became eligible
for these ratios on April 29, 1960. Response to
the change in the loan-value limitations was also
noted in the higher value groups ($18,000 to $22,-
000), where ratios of over 92 percent were recorded
for the first time. A median ratio of 91
percent was recorded for the $18,000 range and
87^2 percent for the $20,000-$21,999 mortgages,
with heavy concentrations of mortgages in the
two highest possible categories. The greatest
concentrations of maximum-limit cases are found
in the new- and existing-home valuations of $13,-
500 or less, where the law provides the most
favorable down payment terms. Significant
shares of maximum ratio mortgages are also evident
in the $14,000-$18,999 range, reflecting the
Table III-40.—Ratio of loan to value by property value, 1-family homes, Sec. 203, 1960
1 Less than 0.05 percent.
FHA estimate of
property value
Percentage
distribution
Median
loanvalue
ratio
Ratio of loan to value—percentage distribution
50 percent
or less
51 to 60
percent
61 to 70
percent
71 to 75
pei cent
76 to 80
percent
81 to 85
percent
86 to 90
percent
91 to 95
percent
96 to 97
percent
Total
NEW HOMES
Less than $8,000_____________ 0.1 91.4 ________ 3.2 3.2 3.2
1.0
38.7 19.4 32.3 100.0
$8,000 to $8,999______________ . 4 96. 2
0.2 0.3
1.0 4. 5 35. 5 58. 0 100.0
$9,000 to $9,999______________ 2. 2 96.3 ------------ . 5 . 8 .6 4.3 20.4 72.9 100.0
$10,000 to $10,999____________ 5.4 96.3 (’) (>) .3 . 2 1.5 1.7 4. 5 23.1 68.7 100.0
$11,000 to $11,999____________ 8.4 96.2 . 1 . 1 .4 .8 2.2 3.6 6.8 25.5 60.5 100.0
$12,000 to $12,999___________ 11.0 96.2 .1 (>) .5 .9 2.2 4. 1 8.0 25.9 58.3 100.0
$13,000 to $13,999____________ 13.8 96.1 . 1 .1 .6 1.2 2.1 4.8 8.0 26.7 56.4 100.0
$14,000 to $14,999____________ 14.6 93.8 (>) (■) .9 1.0 2.4 5.0 9.2 56.4 25.1 100.0
$15,000 to $15,999____________ 12.7 92.8 .1 .1 .8 1.1 3.0 4.9 12. 2 75.2 2.6 100.0
$16,000 to $16,999____________ 9.6 92.5 . 2 .3 .8 1.4 3.4 7.0 15.5 71.4 ________ 100.0
$17,000 to $17,999____________ 7.0 92.1 .3 .4 1. 2 1.7 4.0 9. 2 18.7 64.5— 100.0
$18,000 to $18,999____________ 5.0 90.9 .3 .6 1.5 2.8 6. 2 9.6 29.7 49.3— 100.0
$19,000 to $19,999____________ 3.2 88.1 .3 . 5 2.0 3. 2 6. 5 11.0 61.8 14.7— 100.0
$20,000 to $21,999____________ 3.7 87.5 .6 1.3 2.5 4.0 8.8 12. 6 65.3 4.9— 100.0
$22,000 to $24,999____________ 2.2 85.8 . 4 1.3 4. 6 10. 7 7.1 26.8 49.1 — 100.0
$25,000 and over_____________ .7 79.8 1.0 3.8 16.6 13.1 20.1 27.5 17.9 — 100.0 , , ■ - ... —■——— — — —
Total_________________ 100.0 93.5 .1 .3 1.0 1.6 3.3 6.3 15.7 42.9 28.8 100.0
■ ' ' -- •——-_ _ __ ___ —■— _------------—_________ _________
EXISTING HOMES
Less than $8,000_____________ 4.3 95.0 .1 .1 .6 .8 2.0 5.6 16.8 30.1 43.9 100.0
$8,000 to $8,999______________ 5.4 95.7 ________ . 1 .4 .9 2.3 4. 4 14.5 29.0 48.4 100.0
$9,000 to $9,999______________ 7.3 95.7 (*) . 1 . 5 . 5 2. 5 4. 5 15. 2 28. 4 48.3 100.0
$10,000 to $10.999___________ 10. 2 95.6 .1 . 2 .7 .7 3.0 5.1 15.4 26.9 47.9 100.0
$11,000 to $11,999____________ 10.7 94.7 (>) .1 .9 1.2 3. 5 5.8 17.9 27.7 42.9 100.0
$12,000 to $12.999____________ 11.6 94.5 (>) .2 .9 1.4 3.6 7.1 18.0 26.6 42.2 100.0
$13,000 to $13,999___________ 11.3 93.8 (*) .2 .9 1.7 3.6 7.8 21.5 25.5 38.8 100.0
$14,000 to $14,999____________ 9.5 92.0 . 1 .1 1.1 1.6 4. 1 10.3 24.7 39. 4 18.6 100.0
$15,000 to $15,999____________ 8.0 91.2 . 1 .2 1.4 1.8 5.6 10.1 29.3 48.0 3.5 100.0
$16,000 to $16,999____________ 6.5 90.4 .1 .4 1.3 2.5 5.7 11.9 31.7 46.4— 100.0
$17,000 to $17,999____________ 4.8 89.6 .1 .2 1.4 2.9 6.3 15. 9 32.0 41. 2— 100.0
$18,000 to $18,999____________ 3.4 88.7 .2 .5 1.6 3.3 6.9 17.9 37.0 32.6 100.0
$19,000 to $19,999____________ 2.1 87.0 .1 .3 1.8 4. 5 8 9 27.1 37. 9 19.4— 100.0
$20,000 to $21,999____________ 2.6 86.7 .1 .6 1.8 3.9 9. 6 27.4 48.4 8.2— 100.0
$22,000 to $24,999____________ 1.7 84.6 .5 .9 2.1 4.1 14. 5 38.9 39.0 100.0
$25,000 and over_____________ .6 80.6 2.2 3.3 10.0 10.0 26. 5 31.8 16.2— 100.0
■--- ------ ---- -------- — — —
Total_________________ 100.0 92.6 . 1 .2 1.1 1.7 4.5 9.7 23.0 30.9 28.8 100.0
114
Chart HI-21
FHA ESTIMATE OF PROPERTY VALUE, 1950-60
Single family home mortgages, Section 203
increased allowances of the Housing Acts of 1958
and 1959. It is interesting to note that the same
proportion—28.8 percent—of both new- and
existing-home mortgages were insured with the
highest loan-value ratios, reflecting the recent
equality of credit terms for new- and existinghome
transactions available since 1957. The
typical loan-value ratio for existing homes,
however, tended to be slightly lower in practically
all value classes, probably because of the more
conservative views of lenders and the inclusion of
refinancing transactions.
Property Value Characteristics
An important part of the FHA underwriting
procedure is the determination of an estimate of
value for each property proposed as security in an
application for mortgage insurance. In the preparation
of these estimates, consideration is given to
such items as the estimated replacement cost of the
property, sales prices of comparable houses, neighborhood
stability, market price of site, materials
and quality of construction, the size of the house,
and some of its characteristics. The following
pages are devoted to an analysis of some of the
interrelationships of the significant characteristics
of properties involved in Section 203 insured
mortgage transactions during 1960.
Property Value.—Three out of every five new
homes insured during 1960 were valued between
$12,000 and $16,999, and about one-half of the
existing homes fell in this range. New-home valuations
predominated in the $13,000-$15,999 class,
with the highest frequency—14^ percent—in the
$14,000 range. Existing homes tended to spread
evenly over a wider range of $10,000 to $15,999
with a slight concentration in the $12,000 class,
where over liy2 percent of the transactions were
reported. Seventeen percent of the existing
homes were appraised at less than $10,000, compared
with only about 2% percent of the new
homes (see Chart HI-22).
In contrast, almost equal proportions of all
Section 203 transactions—6y2 percent of the new
homes and 5 percent of the existing homes—were
valued at $20,000 or higher.
Compared with 1959, median valuations on new
homes rose about 2 percent in 1960 while existinghome
values were 1 percent higher, probably reflecting
increased costs of land and building. As
indicated by Table III-41 and Chart HI-21, the
trend in valuations has been persistently moving
upward, increasing at an average of about 7 percent
a year for new homes and about 4 percent for
existing homes. For example, the average 1960
valuation of a new home was $14,889, about 22 percent
higher than in 1955 and 73 percent above the
average of $8,594 in 1950. A somewhat slower
rate of increase is shown for existing-home
transactions. In 1960, the average existing dwelling
was appraised at $13,304—one-tenth higher
than in 1955 and about 43 percent above the
average valuation ($9,298) reported for 1950.
Valuation increases during the decade, of course,
reflect changes in structure size, quality, and
equipment for new construction as well as increases
in land and construction costs.
Chart III-22
FHA ESTIMATE OF PROPERTY VALUE, 1960
Single family home mortgages, Section 203
115
Table III—41.—Property value, 1-family homes, Sec. 203,
selected years
1 Less than 0.05 percent.
FHA estimate of
property value
Percentage distribution
1960 1959 1958 1955 1950
NEW HOMES
Less than $6,000 . . (>) (i) 2.0
$6,000 to $6,999_______ (>) (■) (>) 0.4 18.3
$7,000 to $7,999 _ _ _ - 0. 1 0.1 0.3 3.0 20. 8
$8,000 to $8,999 ______ .4 . 7 1.2 10.0 22.5
$9'000 to $9,999 ______ 2.2 2.9 4. 6 14.2 15. 9
$10,000 to $10,999 __ . . 5.4 6.5 9.9 12.3 10.0
$11,000 to $11,999 - -- 8.4 10. 1 9.6 12.3 4. 7
$12,000 to $12'999 _____ 11.0 10. 7 10. 6 11.9 2.3
$13,000 to $13,999 _____ 13.8 14.5 11.4 9. 9 1.4
$14,000 to $1L999 - 14.6 13.8 11.4 8.2 .7
$15,000 to $15/199 12. 7 10. 7 10. 9 6.3 . 5
$16,000 to $ Hi,999 9.6 9.0 9.2 4.4 .3
$17,000 to $17,999 - - 7.0 7.0 6. 7 2. 7 . 2
$18,000 to $18,999 5. 0 4. 4 4.8 1. 7 .1
$19,000 to $19^999 ___ 3.2 3.1 3.4 .9 . 1
$20,000 to $21,999 - 3. 7 3. 8 3. 5 1.1 . 2
$22^000 to $24/999_____ 2.2 2.2 1.9 .5 (>)
$25,000 and over_____ . 7 .5 .6 .2 (*)
Total 100.0 100.0 100.0 100.0 100.0
$14, 899 $14, 650 $14,394 $12,118 $8, 594
Median value_______ $14, 607 $14,329 $14, 207 $11, 742 $8, 286
EXISTING HOMES
Less than $6,000_____ .4 .4 .3 .6 6.8
$6,000 to $6,999 . 1.0 1.1 1.1 1. 9 10. 7
$7'000 to $7^999 ______ 2.9 3.2 3.4 4.9 15.8
$8/100 to $8,999 ______ 5.4 6.0 6.5 10.1 17.1
$9,000 to $9,999 7. 3 7. 9 8.4 12.2 14.5
$10,000 to $10,999 _____ 10. 2 10.3 10.8 12. 7 11.3
$11'000 to $11/199 _____ 10.7 10. 7 10. 7 11.6 7.6
$12,000 to $12,999 _____ 11.6 11.4 11.4 11.2 5.7
$13,000 to $13,999_____ 11.3 10.4 10.4 9.3 3.3
$14,000 to $14,999 _____ 9.5 9.0 8.6 7.1 2.0
$15,000 to $15,999 _____ 8.0 7.6 7.5 5.2 1.7
$16'000 to $16'999 _____ 6. 5 6.4 6.2 3.9 1.1
$17,000 to $17,999 _____ 4.8 4.5 4.4 2.7 .8
$18,000 to $18,999 _____ 3.4 3.4 3.4 2.0 .6
$19,000 to $19,999 ____ 2. 1 2.3 2.0 1.2 .3
$20,000 to $21,999 _____ 2.6 2.8 2.5 1.6 .4
$22,000 to $24,999_____ 1.7 2.1 1.9 1.2 .2
$25,000 and over_____ .6 .5 .5 .6 .1
Total_______ 100.0 100.0 100. 0 100.0 100.0
Average value_______ $13, 304 $13,236 $13,069 $12,047 $9, 298
Median value________ $13,043 $12, 914 $12, 778 $11,555 $8, 865
Transaction Characteristics.—Table III—42 presents
selected characteristics of the one-family
cases insured under Section 203 during 1960 by
property value groups.
Inasmuch as the data relating to total acquisition
cost, sale price, and incidental costs are based
on purchase transactions only, they are not strictly
comparable with the averages for property value,
mortgage amount, and replacement cost, which are
basecl on all types of one-family home transactions.
These data include, in addition to purchases, newhome
transactions involving the construction of a
single-family home for or by the owner on his
own lot; existing-home transactions in which the
existing indebtedness is refinanced with no change
in ownership; and existing-home transactions in
which a substantial portion of the mortgage funds
is used to finance improvements to the property.
Although purchase transactions predominated in
both new- and existing-home cases, varying proportions
of the different types of transaction in
the individual value classes may result in relationships
between FHA value data and data on total
acquisition and sale price which diverge somewhat
from normal.
As would be expected, increases in replacement
cost of properties, total acquisition costs (including
sale price and incidental costs), mortgage
amounts, and mortgagor’s annual income accompanied
increases in property value, while the reverse
tended to be true for the ratio of loan to
value.
A comparison of the new- and existing-home
averages of the various characteristics for corresponding
property value groups reveals that mortgagor’s
income, acquisition cost, property replacement
cost, and, for the most part, sale price
were higher for existing-home transactions than
for new-home cases. On a total basis, however,
the averages for new homes were higher, indicating
the variations in size of the respective groups.
Moreover, property values were higher for new
homes than for comparable existing dwellings,
probably reflecting higher building costs and the
longer prospective economic life of these properties.
Mortgage amounts and ratios of loan to
value were also higher for new homes, tending
toward the highest insurable limits for respective
values. Incidental costs, on the average, were $12
higher for new homes than for existing, but several
classes of existing dwellings, especially those
valued between $13,000 and $19,999 had higher
closing costs than corresponding new homes. The
average new-home buyer had an annual income of
$7,590, only slightly more than the $7,258 reported
for existing-home purchasers. However, in comparable
value classes, the incomes of existing-home
buyers were always higher.
Property Characteristics.—Table HI-43 shows,
by property value ranges, averages of property
value, price of site, site-value ratio, calculated
area, number of rooms and bedrooms, and the
percentage of structures with each of the following
characteristics: one story, more than one
bath, basement, and car shelter. The average
new home insured during 1960 consisted of 5%
rooms, of which 3 were bedrooms, with an area
of 1,142 square feet. It was a bit larger than
the average existing home, which included 1,101
square feet and a slightly smaller number of
rooms and bedrooms. Nine out of every 10 new
homes were of the single-story type, compared
with 76 percent of the existing homes. In addition,
53 percent of the new homes had more than
one bath, but only about half as many existing
homes contained this extra feature. Almost
48 percent of the existing homes had basements,
in contrast with only one-third of the new homes.
Garages were included in 62 percent of the existing
properties but in only 53 percent of the newhome
cases insured. On the other hand, more
than one-fifth of the new homes had carports, but
only about 10 percent of the existing homes
reported this facility.
116
Table III—42.—Transaction characteristics by property value, 1-family homes, Sec. 203, 1960
FHA estimate of property value
Percentage
distribution
Average
Ratio of
loan to
property
Property value
value
Property
replacement
cost
Total
acquisition
cost1
Sale price1 Incidental
cost1 1 2
Amount of
mortgage
Mortgagor’s
annual
income
NEW HOMES
Less than $8,000_________________________ 0.1 $7, 394 $8, 622 $7, 208 $7,078 $218. 75 $6, 685 $4, 598 90.4
$8,000 to $8,999___________________________ .4 8, 585 9,267 8, 623 8, 438 206. 40 8,168 4, 960 95.1
$9,000 to $9,999___________________________ 2.2 9, 563 10,162 9, 613 9,402 233. 91 9,116 5,421 95.3
$10,000 to $10,999_________________________ 5.4 10, 524 11,046 10, 563 10, 351 240.13 10,003 5, 751 95.0
$11,000 to $11,999_________________________ 8.4 11, 489 11, 936 11.496 11, 261 260. 95 10,830 6,057 94.3
$12,000 to $12,999_________________________ 11.0 12, 449 12, 930 12, 503 12,253 269. 59 11,715 6,391 94.1
$13,000 to $13,999_________________________ 13.8 13, 453 13, 919 13, 503 13, 245 268.62 12, 620 6,869 93.8
$14,000 to $14,999_________________________ 14.6 14, 436 14,962 14, 504 14, 248 273. 73 13, 447 7,283 93.1
$15,000 to $15,999_________________________ 12.7 15, 422 15, 979 15, 511 15, 248 281.33 14,244 7, 839 92.4
$16,000 to $16,999_________________________ 9.6 16, 422 16, 953 16, 561 16, 266 300. 50 14,961 8,296 91.1
$17,000 to $17,999. ______________________ 7.0 17, 417 17, 980 17, 596 17, 276 319. 24 15,642 8, 740 89.8
$18,000 to $18,999- _______________________ 5.0 18, 394 18, 933 18,600 18,262 333.32 16,253 9, 204 88.4
$19,000 to $19,999_________________________ 3.2 19, 397 19, 931 19, 623 19,261 357.05 16, 946 9, 762 87.4
$20,000 to $21,999_________________________ 3.7 20, 798 21,365 21,056 20,673 375.94 17, 780 10,487 85.5
$22,000 to $24,999_________________________ 2.2 23,059 23,504 23,073 22, 592 397.34 19,145 11, 456 83.0
$25,000 and over__________________________ .7 27, 774 28,414 26,177 25, 762 403. 20 21,830 12,905 78.6
Total______________________________ 100.0 14,899 15. 416 14,939 14, 662 289.12 13, 621 7, 590 91.4
EXISTING HOMES
Less than $8,000--------------------------------------- 4.3 7,007 10,185 7, 227 6,985 211.44 6, 517 5,025 93.0
$8,000 to $8,999___________________________ 5.4 8, 429 11,111 8, 624 8,387 215.86 7, 873 5, 450 93.4
$9,000 to $9,999___________________________ 7.3 9, 410 11,888 9. 619 9,369 228.82 8, 788 5, 769 93.4
$10,000 to $10,999 ________________________ 10.2 10,420 12, 690 10,643 10,383 242. 55 9,707 6,075 93.2
$11,000 to $11,999_________________________ 10.7 11,412 13,501 11,657 11, 393 254.08 10, 571 6,350 92.6
$12,000 to $12,999- _______________________ 11.6 12, 411 14, 372 12,684 12, 407 264. 52 11,459 6,753 92.3
$13,000 to $13,999_________________________ 11.3 13,403 15,273 13, 717 13, 429 274.13 12, 321 7,149 91.9
$14,000 to $14,999_________________________ 9.5 14,385 16,207 14,734 14,419 286,65 13,075 7,590 90.9
$15,000 to $15,999_________________________ 8.0 15, 365 17,165 15, 739 15, 413 304. 39 13, 825 7,965 90.0
$16,000 to $16,999_________________________ 6.5 16, 364 18,099 16, 755 16, 424 317. 73 14,590 8,458 89.2
$17,000 to $17,999_________________________ 4.8 17,355 19,061 17, 756 17, 401 330. 77 15,312 9,062 88.2
$18,000 to $18,999_________________________ 3.4 18, 344 20,220 18, 772 18, 399 347. 63 15, 969 9, 491 87.1
$19,000 to $19,999_________________________ 2.1 19,318 21,217 19*769 19, 385 360.10 16, 655 9, 990 86.2
$20,900 to $21,999_________________________ 2.6 20, 725 22, 611 21,305 20, 911 367. 50 17, 732 10, 649 85.6
$22,000 to $24,999_________________________ 1.7 23,063 24, 951 23, 675 23. 273 388.31 19, 259 11,690 83.5
$25,000 and over__________________________ .6 27, 502 29, 748 27, 495 27,065 399. 97 21,514 13, 807 78.2
Total______________________________ 100.0 13,304 15, 371 13, 579 13,284 276.81 12,034 7, 258 90.5
1 Data reflect purchase transactions only.
2 Includes estimated costs to mortgagor for items incidental to financing
purchase of property, but excludes prepayable expenses.
The average land price for a new home was
$2,470, 5 percent more than the $2,356 required
for an equivalent site for an existing home. However,
because of the smaller average value for
existing homes, the average price of site represented
almost 18 percent of the total property
valuation, compared to 16^ percent for new
homes. As would be expected, land prices rose
as property values increased. Moreover, the
price of land tended to increase more than proportionally
as values grew. An exception may
be noted for homes with valuations of $25,000 or
higher, many of which are built in the suburbs on
undeveloped land outside of subdivisions.
Rooms and Bedrooms by Property Value.—Table
III-A4 indicates that room and bedroom counts
increased as property values rose, but that the
number of bedrooms varied less than the number
of rooms.
The average room count for new homes was
5^, practically the same as reported for existing
homes. In practically all valuation classes, however,
the average number of rooms in new homes
exceeded the number reported for existing dwellings.
The typical new house also had a slightly
larger number of bedrooms—3, versus 2.8 bedrooms
for existing homes. In addition, there were
more bedrooms in new homes than in existing
homes for nearly all corresponding value classes,
reflecting the continuing demand for more bedrooms
in homes now coming on the market.
The bulk—57 percent—of the new homes insured
during 1960 had five rooms, with nearly 40
percent including six rooms or more. For existing
properties, comparatively fewer—40 percent—-
of the homes had five rooms but slightly more—
44 percent—homes contained six or more rooms.
One-sixth of the existing homes had four or less
rooms while only 3 percent of the new homes were
that small.
For new homes, the five-room house predominated
in all value classes from $8,000 through
$16,999, and the six-room home was reported
most frequently in properties valued at $17,000
or more. For existing construction the distribution
was more dispersed, showing more significant
portions both in the four-room size and in sizes
of six rooms or more.
591772—61------ 9 117
Table III-43.—Property characteristics by property value, 1-family homes, Sec. 203, 1960
FHA estimate of property
value
Percentage
distribution
Average
Price of
site as
percent
of value
Average Percent of structure with—
Property
value
Market
price of
site
Calculated
area
(sq. ft.)
Number
of rooms
Number
of
bedrooms
More
than
1 bath
1 Story
Full or
part
basement
Garage Carport
NEW HOMES
Less than $8,000_______ ___ 0.1 $7, 394
8, 585
$1, 381
1, 341
18.7 718 3 9 1.7 90.0 10. 0 16 1 6. 5-
$8,000 to $8,999______________ .4 15.6 839 4.7 2.6 5.6 98.8 3.5 30.5 26.0
$9,000 to $9,999______________ 2.2 9, 563 1,484 15.5 908 5.0 2.8 14.6 98.0 2.4 36.6 28.6
$16,000 to $10,999____________ 5.4 10, 524 1, 642
1,788
15.6 947 5.0 2.9 26.0 95.6 7.4 38.1 31.2
$11,000 to $11,999____________ 8.4 11, 489 15.6 986 5.1 2.9 23.7 92.9 19.5 40.8 29.1
$12,000 to $12,999____________ 11.0 12, 449 1,929 15.5 1,026 5.2 2.9 27.8 91.1 30.3 43.7 23.4
$13,000 to $13,999____________ 13.8 13,453 2,130 15.8 1, 073 5.3 3.0 37.9 90.8 32.1 46.2 20.1
$14,000 to $14,999____________ 14,6 14, 436 2, 348 16.3 1,108 5.4 3.0 50,3 92.2 37.3 52.8 18.2
$15,000 to $15,999____________ 12.7 15, 422 2, 559 16.6 1,165 5.5 3.1 61.5 90.4 39.3 56. 9 17.5
$16,000 to $16,999____________ 9.6 16,422 2, 737 16.7 1, 215 5.6 3.0 70.0 87.4 40.3 58.8 18.8
$17,000 to $17,999____________ 7.0 17, 417 2, 967 17.0 1,260 5.7 3.1 76.4 84.6 44.1 64.5 17.1
$18,000 to $18,999____________ 5.0 18, 394 3, 246 17.6 1,321 5.9 3.1 84.1 84.0 40.7 68.2 16.9
$19,000 to $19,999____________ 3.2 19, 397
20, 798
3,506
3,805
18 1 1,383
1,440
6.1
6.2
3 2 89.3
92.3
82.5
83.0
37.4
35.1
72.6
73.3
16.5
$20,000 to $2L999____________ 3.7 18.3 3.2 16.6
$22,000 to $24,999____________ 2.2 23. 059 4,394 19.1 1, 525 6.3 3.3 92.9 82.7 31.9 68.4 24.0
$25,000 and over_____________ .7 27, 774 4, 711 17.0 1,538 6.4 3.3 88.1 81.9 29.0 71.4 22.5
Total------ ------------------- 100.0 14, 899 2,470 16.6 1,142 5.5 3.0 52.5 89.6 33.1 53.2 20.8
EXISTING HOMES
Less than $8,000_____________4.3 7,007 1,115 15.9 941 5.0 2.4 2.4 64.7 43.9 35.1 6.2
$8,000 to $8,999______________ 5.4 8, 429 1,340 15.9 953 5.0 2.4 3.4 76.0 35.7 48.8 9.7
$9,000 to $9,999______________ 7.3 9,410 1, 543 16.4 975 5. 1 2.5 4.5 77.8 36.6 53.2 9.3
$10,000 to $10,999____________ 10.2 10, 420 1,779 17. 1 992 5.1 2.5 5.7 79.8 39.2 56.7 9.5
$11,000 to $11,999____________ 10.7 11,412 1,984 17.4 1, 015 5.2 2.6 8.8 79.2 42.7 58.6 8.7
$12,000 to $12,999____________ 11.6 12,411 2, 209 17.8 1,048 5.3 2.7 15.3 80.9 42.7 60.7 10.1
$13,000 to $13,999____________ 11.3 13, 403 2, 369 17.7 1,080 5.4 2.8 19.7 78.3 46.9 63.0 9.6
$14,000 to $14,999____________ 9.5 14,385 2,589 18.0 1,111 5.5 2.8 24.5 77.3 50.9 65.5 9.2
$15,000 to $15,999____________ 8.0 15, 365 2, 770 18.0 1,163 5.6 2.9 33.3 74.3 55.3 68.5 8.9
$16,000 to $16,999____________ 6.5 16, 364 2, 952 18.0 1, 209 5.7 3.0 41.4 73.2 58.4 69.9 9.5
$17,000 to $17,999____________ 4.8 17, 355 3,148 18.1 1, 252
1,310
5.8 3.0 50.9 71.6 59.2 71.7 9.6
$18,000 to $18,999____________ 3.4 18, 344 3,359 18.3 6.0 3.1 57.8 69.2 61.8 73.7 10.6
$19,000 to $19,999____________ 2.1 19, 318 3,625 18.8 1,352 6. 1 3.1 66.4 68.4 61.0 77. 1 10.5
$20,000 to $21,999____________ 2.6 20, 725 3,894 18.8 1,436 6.2 3.1 74.1 64.0 61.9 77.3 12.6
$22,000 to $24,999____________ 1.7 23,063 4, 366 18.9 1, 534 6.4 3.2 83.4 62.8 62.1 78.7 13.6
$25,000 and over_____________ .6 27, 502 4, 675 17.0 1, 641 6.5 3.3 84.3 62.2 63.3 78.3 13 0
Total_________________ 100.0 13,304 2, 356 17.7 1,101 5.4 2.8 23.5 75.8 47.6 61.9 9.5
Table III-44.—Number of rooms and bedrooms by property value, 1-family homes, Sec. 203,1960
FHA estimate of property value
Percentage
distribution
Number of rooms Number of bedrooms
Average
Percentage distribution
Average
Percentage distribution
4 or less 5 6 7 8 or more 1-2 3 4 or more
NEW HOMES
Less than $8,000_______________________ 0.1
.4
2.2
5.4
8.4
11.0
13.8
14.6
12.7
9.6
7.0
5.0
3.2
3.7
2.2
.7
100.0
$14, 607
4.3
5.4
7.3
10.2
10.7
11.6
11.3
9.5
8.0
6.5
4.8
3.4
2.1
2.6
1.7
.6
3.9
4.7
5.0
5.0
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.9
6.1
6.2
6.3
6.4
5.5
80.6
39.0
13.0
10.3
7.1
5.6
3.8
2.0
1.6
.9
.5
.6
.3
.1
.3
1.2
3.4
$12,128
39.0
37.2
32.0
27.9
21.5
16.9
12.3
9.9
6.5
4.8
3.0
2.4
1.6
1.4
1.6
3.3
12.9
57.5
78.2
81.0
77.1
73.8
66.9
60.9
54.9
46.0
41.5
29.2
22.3
19.7
21.2
17.3
56.8
$13,819
28.7
34.7
38.8
42.3
45.5
45.5
46.1
45.1
41.8
39.3
34.9
29.5
23.4
18.6
14.0
14.1
6.5 1.7
2.6
2.8
2.9
2.9
2.9
3.0
3.0
3.1
3.0
3.1
3.1
3.2
3.2
3.3
3.3
3.0
90.3
41.5
15.2
12.4
9.0
7.6
5.4
3.8
3.0
2.5
1.8
1.6
1.5
.6
1.7
3.9
5.1
$12,675
61.5
64.3
57.7
50.9
42.6
35.1
28.7
23.9
18.4
16.1
13.3
10.4
8.4
8.3
6.1
10.3
6.5
58.5
84.8
87.5
90.2
91.4
90.1
91.8
88.5
89.9
88.0
84.4
78.8
74.7
70.6
66.0
87.8
$14, 534
32.5
30.0
37.2
44.0
51.6
58.2
63.2
68.4
72.1
73.6
75.9
75.9
75.3
73.1
71.2
58.7
3.2
$8,000 to $8,999___________ ___________ 3.0
8.6
8.5
15.2
19.4
26.7
32.6
35.6
42.8
44.2
50.4
47.5
46.6
40.6
43.8
31.3
$15,693
22.9
20.6
21.9
23.1
26.4
30.3
31.9
34.9
38.1
39.9
43.6
43.2
47.4
46.4
43.8
37.8
0.5
.1
.1
.1
.2
.4
1.1
2.1
1.4
2.4
4.2
3.6
4.9
11.8
14.9
1.7
$18,106
2.9
2.3
1.9
2.0
1.9
1.7
2.1
1.8
2.9
3.6
3.6
5.7
5.8
8.5
10.8
17.9
$9'000 to $9^999 _______________________ .1
.1
.5
1.0
2.2
3.4
5.8
8.9
11.4
15.6
26.3
28.7
26.1
22.8
6.8
$18,049
6.5
5.2
5.4
4.7
4.7
5.6
7.6
8.3
10.7
12.4
14.9
19.2
21.8
25.1
29.8
26.9
$16,000 to $10,999______________________ .1
.8
1.0
4.5
4.4
8.5
7.6
10.2
14.0
19.7
24.7
27.7
30.1
7.1
$17,365
6.0
5.7
5.1
5.1
5.8
6.7
8.1
7.7
9.5
10.3
10.8
13.7
16.3
18.6
22.7
31.0
$11^000 to $11,999______________________
$12*000 to $12,999 _____________________
$13,000 to $13^999_______ ____ _______—-
$14^000 to $14'999______________________
$15^000 to $15'999______________________
$16,000 to $16'999______________________
$17^000 to $17'999______________________
$18^000 to $18',999______________________
$19'000 to $19,999______________________
$20,000 to $21, 999__________ _____ _____ -
$22,000 to $24,999______________________
$25^000 and over______________ _____ _
Total__________________________
Median value_________________________
EXISTING HOMES
Less than $8,000_______________________ 5.0
5.0
5.1
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
6.0
6.1
6.2
6.4
6.5
2.4
2.4
2.5
2.5
2.6
2.7
2.8
2.8
2.9
3.0
3.0
3.1
3.1
3.1
3.2
3.3
$8,000 to $8,999____________________ —
$9*000 to $9*999 ______________________
$16,000 to $10,999 _____________________
$lL000 to $11^999______________________
$12^000 to $12,999 _____________________
$13^000 to $13^999 ____________________
$14'o66 to $14^999 ____________________
$15,000 to $15^999 _____________________
$16^000 to $16^999 ____________________
$17^000 to $17,999 ____________________
$18,000 to $18^999 _____________________
$19*000 to $19/199 _____________________
$20J)00 to $2L999______________________
$22,000 to $24,999 _____________________
$25,000 and over___________________ ___
Total ____ _______________ - 100.0
$13,043
5.4 16.7
$10, 803
39.7
$12,899
31.7
$13,960
9.0
$15,350
2.9
$15,129
2.8 33.7
$11, 290
57.9
$13,909
8.4
Median value.- _________-____________ $14, 546
118
The distribution of bedrooms shown in Table
HI-44 indicates that the three-bedroom home predominated
in the market in 1960. In fact, 88 percent
of the new homes fell into this category, and
about 58 percent of existing homes had as many
bedrooms. In addition, one-third of the existing
homes had one or two bedrooms, in contrast to
only 5 percent of the new homes. Three-bedroom
homes were most often reported in practically all
value classes for new homes and in all value
ranges of existing homes appraised at $11,000 or
more.
Year Built.—Table HI-45, which is presented
for the first time in this report, indicates the age
of the structure by property value. In 1960, the
typical existing-home transaction involved a home
9.3 years old valued at $13,043. Moreover, the
table shows that over half (58 percent) of the
existing homes on which mortgages were insured
in 1960 were relatively new, that is, constructed
since the beginning of 1950. Twenty-two percent
of the existing dwellings were 10 to 20 years old,
and the remaining one-fifth were built more than
20 years ago. It is also evident from the median
age of structure that the older homes are valued
at lower prices than the more recently constructed
dwellings. For example, the typical age of the
$8,000 home is 12% years old, but the typical $20,-
000 home is only about 7 years old. The bulk of
the homes valued at more than $20,000 were constructed
in the last 5 years, with a significant
portion built in the 5-year period from 1950 to
1954.
Market Price of Site.—The available market price
of site as defined by FHA is the FHA-estimated
price of an equivalent site including street improvements
and utilities, rough grading, terracing,
and retaining walls, if any. Table III-46 shows
a cross tabulation of the FHA estimate of value
and available market price of equivalent site, and
Chart HI-23 reveals the upward trend in site
prices.
Chabt HI-23
MARKET PRICE OF EQUIVALENT SITE, 1950-60
Single family home mortgages, Section 203
Average
3 —
Average
o____ I_ _ I_ _ I_ _ I_ _ I_ _ I_ _ I_ _ I_ _ I_ _ i_ _ L
1950'51 *52 '53 '54 '55 '56 '57 !58 '59 '60
In 1960 the median price of a site for a new
home was $2,404 or 16% percent of the total FHA
property valuation. For existing homes, the land
price was 5 percent less ($2,285) but accounted
for a slightly larger (17% percent) share of the
total value. More than 45 percent of the new
homes and about 40 percent of the existing properties
securing insured mortgages were constructed
on sites valued between $1,500 and $2,499. In
addition, almost another one-third of the newhome
sites were valued between $2,500 and $3,499,
Table III-45.—Year built, by property value, 1-family homes, Sec. 203,1960
FHA estimate of property value Percentage
distribution
Median age
of structure
(years)
Year built—percentage distribution
Prior to 1920 1920 to 1929 1930 to 1939 1940 to 1944 1945 to 1949 1950 to 1954 1955 to 1959 I960 7
EXISTING HOMES
Less than $8,000______________ 4.3 15.2 21.2 14.7 5.3 8.2 17.5 28.0 4.1 $8,000 to $8,999_______________ 5.4 12.6 9.7 1.0 16.0 6.1 7.1 20.4 33.5 7.0 . 2
$9,000 to $9,999_______________ 7.3 11.2 5.6 14.9 6.3 7.9 18.5 37.0 9.4 .4 $16,000 to $10,999_____________ 10.2 10.1 4.8 11.2 6.1 7.9 17.5 40.6 11.5 .4 $11,000 to $11,999_____________ 10.7 9.7 3.5 9.7 5.7 6.8 18.4 41.2 14.0 . 7
$12,000 to $12,999_____________ 11.6 9.2 3.5 8.6 5.1 6.6 16.3 40.5 18.6 .8 $13,000 to $13,999_____________ 11.3 8.8 3.0 8.6 5.8 6.1 13.8 40.7 21.0 1.0 $14,000 to $14,999_____________ 9.5 8.6 2.6 8.6 5.1 5.3 13.7 40.4 23.4 . 9 $15,000 to $15,999_____________ 8.0 8.4 1.9 10.7 5.7 5.4 11.6 36.8 26.7 1. 2 $16,000 to $16,999_____________ 6.5 8.0 1.4 7.0 6.7 6.4 11.2 35.9 30.2 1.2 $17,000 to $17,999_____________ 4.8 7.5 1.8 6.2 6.6 6.4 11.4 30.5 35.4 1. 7 $18,000 to $18,999_____________ 3.4 7.5 1.4 8.2 7.1 5.8 9.0 32.6 34.3 1. 6 $19,000 to $19,999.....________ 2.1 7.1 1.7 6.5 6.9 5.2 9.4 30.6 37.2 2.5
$20,000 to $21,999_____________ 2.6 7.1 1.7 6.3 8.9 5.3 10.0 26.7 39.1 2.0 $22,000 to $24,999_____________ 1.7 6.8 1.8 6.0 7.8 10.4 6.8 24.4 41.0 1.8 $25,000 and over____ __________ .6 6.6 1.5 5.4 10.7 4.2 8.4 26.5 40.2 3.1
Total__________________ 100.0 9.3 4.4 10.0 6.0 6.7 15.1 37.3 19.6 . 9 Median value_____ ___________ $13,043— $10,363 $11,884 . $12,925 $12,319 $12,022 $12, 675 $14,485 $14,402
119
Table III-46.—Available market price of equivalent site, by property value, 1-family homes, Sec. 203,1960
1 Less than 0.05 percent.
FHA estimate of property value
Percentage
distribution
Median
market
price of
site
Available market price of equivalent site—percentage distribution
Less
than
$500
$500
to
$999
$1,000
to
$1,499
$1,500
to
$1,999
$2,000
to
$2,499
$2,500
to
$2,999
$3,000
to
$3,499
$3,500
to
$3,999
$4,000
to
$4,499
$4,500
to
$4,999
$5,000
or
more
NEW HOMES
Less than $8,000_______________________ 0.1 $1, 547
0.5
19.4 25.8 51. 6 3.2 -
$8,000 to $8,999________________________ . 4 1,386 22. 5 35. 0 33. 0 7. 5 1. 0 0.5
0.5 0.1
—
$9,000 to $9,999________________________ 2. 2 1,475 . 2 10. 4 41. 4 32. 7 10. 9 3. 7 — 0.1
$10,000 to $10,999______________________ 5. 4 1,680 . 1 4. 6 28. 3 47.1 12.1 5. 5 2. 2 . 1 0)
$11,000 to $11,999_______________________ 8.4 1,792— 2.3 24.5 39. 8 21.8 9. 4 1.9 . 1 . 2 0) 0)
$12,000 to $12,999______________________ 11.0 1,928 (?) .9 14.9 39.9 27. 2 13. 9 2. 5 . 5 . 2 (>) (?)
$13,000 to $13,999_______________________ 13.8 2,187 . 1 . 5 7.6 28. 2 36. 5 19. 3 6. 5 1. 0 . 2 0.1 w
$14,000 to $14,999______________________ 14.6 2, 397 . 2 3.6 20.5 32.4 25. 9 14.1 2. 9 . 2 . 1 . 1
$15,000 to $15,999_______________________ 12. 7 2,608 . 1 1. 6 13.1 28. 7 30. 2 17. 5 5. 7 2. 5 . 4 . 2
$16,000 to $16,999_______________________ 9.6 2, 766 (■) .2 1.2 9.4 25.2 26. 3 20. 3 12. 6 3.1 . 8 . 9
$17,000 to $17,999______________________ 7.0 3,020— .2 .5 5. 4 18.0 25. 0 23. 9 17. 0 7. 2 1. 4 1. 4
$18,000 to $18,999______________________ 5.0 3, 302 1.0 3.4 12. 2 18. 0 25. 5 19.1 12. 5 5. 3 3. 0
$19,000 to $19,999_______________________ 3.2 3, 516— . 1 . 5 2. 1 8. 6 13. 9 24. 2 19. 9 19.1 5. 0 6. 6
$20,000 to $21,999______________________ 3.7 3, 805 . 2 . 2 .3 1.1 4. 5 9. 5 19. 1 24. 8 19. 3 10. 6 10. 4
$22,000 to $24,999_______________________ 2.2 4, 251— .5 . 1 1.1 2.1 5. 4 11. 4 21. 2 16. 2 17. 5 24. 5
$25,000 and over_______________________ .7 4, 738 . 3 . 9 4.9 1. 5 3. 3 5. 8 4. 9 8. 8 10. 6 18. 9 40.1
Total____________________1_0_0_.0_____2,404 (*) 1.1 8.3 21.3 24.0 19. 1 12.4 6.8 3.6 1. 6 1.8
——— —— —
EXISTING HOMES
Less than $8,000_______________________ 4.3 1,153 1.0 34.9 45.9 14.6 2.5 .6 .2— 0) _______.3
$8,000 to $8,999________________________ 5. 4 1,392 . 1 14. 8 44. 7 30. 6 7. 6 1. 7 . 4 w . 1
$9,000 to $9,999________________________ 7.3 1, 592 . 1 7. 9 35. 6 34. 8 14. 7 5. 2 1. 4 . 2 . 1 (*)
$10,000 to $10,999_______________________ 10. 2 1, 796 . 1 3. 8 24. 7 36.2 18. 5 10. 5 4. 9 1.1 . 2 w (?)
$11,000 to $11,999______________________ 10. 7 1,962 (0 2. 0 16. 8 33.8 21.9 13. 6 7. 9 3.1 . 7 . 1 . 1
$12,000 to $12,999_______________________ 11.6 2, 221 . i 1. 1 10.9 26. 8 25.1 16.3 10. 6 6. 6 1. 7 . 5 . 3
$13,000 to $13,999______________________ 11.3 2, 401 (>) . 8 7.1 21. 8 25.3 20.1 12.8 8.1 2. 7 . 9 . 4
$14,000 to $14,999______________________ 9.5 2, 619 . i . 4 4. 5 16.1 23.8 21. 4 14.9 10. 3 5.1 2.1 1. 3
$15,000 to $15,999______________________ 8.0 2, 800 (') .3 3.2 12.3 21.1 21. 9 16. 4 11. 5 7. 8 3.1 2.4
$16,000 to $16,999______________________ 6.5 2,997 (?) .2 1.9 8. 8 18. 0 21.2 18.9 14. 2 9. 2 4. 3 3. 3
$17,000 to $17,999_______________________ 4.8 3,176 (?) . 2 . 9 6.8 14. 7 20. 5 19. 6 14. 0 10. 5 6. 4 6. 4
$18,000 to $18,999______________________ 3.4 3, 369 .4 1.1 4. 8 10. 7 18. 0 20. 3 15. 3 11. 6 7. 7 10.1
$19,000 to $19,999_______________________ 2. 1 3,607 — . 6 2.8 8.3 15. 5 19.1 17. 5 II. 3 8. 6 16. 3
$20,000 to $21,999_______________________ 2. 6 3, 885 . i .3 . 7 1. 9 6.3 10. 2 18. 5 15. 6 12.3 11. 3 22. 8
$22,000 to $24,999_______________________ 1. 7 4,432 . i .5 .5 1. 6 3. 3 6. 2 11. 6 14. 7 13.3 13.1 35.1
$25,000 and over_______________________ . 6 4, 763— .3 2. 4 2. 2 4. 9 6. 5 5.2 11. 4 11. 7 10. 3 45.1
Total___________________1_0_0_._0____ 2,285 .1 3.8 14.3 21.4 18.2 14.7 10.9 7.2 4.1 2.2 3.1
compared with, about one-fourth for existing
homes. It is of interest to note the variation
of site-value relationships by comparing several
value categories. For example, more than threefourths
of the new homes and 61 percent of the
existing homes in the $10,000 class were built on
sites valued between $1,000 and $1,999. In
the median price class, represented by the $15,000
house, the bulk—59 percent for new and 43 percent
for existing homes—were constructed on sites
worth $2,000 to $2,999. In the higher price brackets—$
22,000 or more—over three-fourths of all
homes were situated on lots with valuations in
excess of $3,500. In fact, lots values of $3,500 or
more were reported in 14 percent of all new homes
and 161£ percent of all existing-home cases.
Wafer and Sewer Supply.—Table HI-47 indicates
by property value classes the percentage
distributions of types of water and sewer supply
systems. It points out that almost 95 percent of
all homes insured by FHA are serviced by public
water supplies. The main exceptions are in the
least expensive and most expensive homes, of
which greater proportions are not in subdivisions
and consequently may be some distance from public
pipe lines. The table also reveals that three
out of four homes have public sewer systems. In
addition, one-fifth of the homes have individual
sewer systems, the bulk of which are of the septic
tank type. Only a small percentage of all FHA
home buyers reported community sewer systems.
Water and sewage disposal systems, 1-family homes,
1960
Water and sewage disposal—percentage
distribution
Total
Public
water
Community
water
Individual
water
NEW HOMES
Public sewer____________________ 76.9 81.1 6.1 14.2
Community sewer_______________ 4.9 1.9 70.5 .6
Individual septic tank___________ 15.3 14.1 20.7 78.9
Individual cesspool______________ 2.9 2.9 2.7 6.3
Total_____________________ 100.0 100.0 100.0 100.0
Percent of total____________ 100.0 94.2 4.3 1.5
EXISTING HOMES
Public sewer____________________ 76.1 79.7 4.3 10.0
Community sewer_______________ 1.1 .5 44.2 .3
Individual septic tank___________ 18.9 15.9 49.2 85.0
Individual cesspool______________ 3.9 3.9 2.3 4.7
Total_____________________ 100.0 100.0 100.0 100.0
Percent of total____________ 100.0 94.7 1.4 3.7
The text table shown above clearly indicates
that a public water system is almost always accompanied
by a public sewer line and that community
water systems are associated with a com120
munity sewer or an individual sewer system
(either septic tank or cesspool). This is true for
both new and existing homes. It is also of interest
to note that septic tank systems are found in significant
numbers among all property value
groups.
Table III-47.—Water supply and sewage disposal systems by property value, l-family homes, Sec. 203, 1960
FHA estimate of property value Percentage
distribution
Percentage distribution of —
Water supply Sewage disposal
Public Community
Private
well
Public Community
Individual system
Septic tank Cesspool
NEW HOMES
0.1 60.0 40.0 53.3 49. 0 6.7
$8,000 to $8,999 . __________ .4 90.7 8.8 0.5 67.4 9.8 22.3 0.5
$9/)00 to $9,999 - ______ 2.2 93.3 6. 1 .6 74.1 8.8 17. 0 . 1
$10,000 to $10,999_____ . — _____________ 5.4 92.8 6. 1 1.1 76.9 7.2 15. 1 .8
$11,000 to $11,999 ........_ - 8.4 92.5 6.3 1.2 75. 8 7.5 15.3 1.4
$12^000 to $12,999 ________ 11.0 94.0 4.8 1.2 74. 1 6.8 16. 1 3.0
$13^000 to $13'999 _______ 13.8 95.0 3.6 1.4 74. 4 4.4 18.3 2.9
$14,000 to $14'999— . - . . _______________ 14.6 94.6 3.8 1.6 78.2 3.6 15.0 3.2
$15'000 to $15,999 ___ _________ 12. 7 95.3 3. 1 1.6 79.2 3.6 14.7 2. 5
$16^000 to $16'999 __________ 9.6 95.0 3.3 1. 7 78.4 3.4 15.0 3.2
$17’000 to $17*999 - _______ 7. 0 92.2 5. 4 2.4 77.9 4.4 14.6 3.1
$18^000 to $18,999 - ______ 5. 0 95.3 3.2 1. 5 79. 3 4.0 13. 5 3.2
$19,000 to $19^999 - _ __________ 3.2 94. 4 4. 2 1.4 82.3 4. 3 10.5 2.9
$20,000 to $21’999 _ . _________ 3. 7 95.2 3.4 1.4 78.7 3.8 12.2 5.3
$22^000 to $24'999 . _ , _ — _ — __________ 2.2 94. 5 1.8 72.7 16. 5 7. 1
$25/100 and over_____________________ _______________ . 7 82.7 10.8 6.5 60.8 8.3 13.6 17.3
Total____________________________1_0_0_._0_________9_4.2 4.3 1. 5 76.9 4.9 15. 3 2.9
EXISTING HOMES
Less than $8,000 . __ 4.3 96. 3 .8 2. 9 85. 9 .3 12. 2 1.6
$8,000 to $8,999_________________________ - - --- - 5. 4 97.2 .6 83. 5 . 6 13.8 2. 1
$9,000 to $9,999 _____ - - 7. 3 96.3 . 8 2. 9 79. 0 . 5 17.4 3. 1
$16,000 to $10,999 _________________ 10.2 95.7 1.2 3. 1 79. 4 17.6 2.3
$11,000 to $11,999 - _ _________ 10. 7 96.5 1. 2 2.3 78.8 .9 17.3 3.0
$12'000 to $12^999 ____ ____________________ 11.6 94.4 2.0 3.6 76.2 1.8 18. 2 3.8
$13'000 to $13^999 _ __________________ 11.3 95.0 1. 7 3.3 74.3 1.8 19.4 4.5
$14'000 to $14,999 ___ ... 9. 5 95.0 1.2 3. 8 73. 7 1.2 19. 3
$15^000 to $15'999 _________ __________ 8. 0 94.2 1.3 4. 5 72.8 .8 20.3 6. 1
$16^000 to $16'999 - _______________ 6.5 93. 5 1. 6 4. 9 72. 6 1.2 20.6 5.6
$17^000 to $17,999 _ . _____________________________ 4.8 93.3 1.4 5.3 73.2 1.0 21.2 4.6
$18,000 to $18^999 ______________________ 3.4 94.0 1. 5 4. 5 .9 21.6 3.8
$19^000 to $19'999 - -- _ _________ 2.1 93.3 2. 4 4.3 69. 9 1.4 24.9 3.8
$20,000 to $2f999- _ — - _ ______________________ 2.6 93.2 1.6 5.2 70.9 .9 24.4 3.8
$22^000 to $24',999 _ _ _____________ 1. 7 91.0 2.3 6.7 66.9 1.2 28.6 3.3
$25/100 and over_____________________________________ .6 84.6 4.8 10.6 64. 5 1. 7 30.4 3.4
Total____________________________1_0_0_. _0________94.9 1.4 3.7 76.1 1. 1 18.9 3.9
Financial Characteristics.—Table III—18 indicates
that the average new-home mortgage in the
typical value class—$14,000—secured a property
worth $14,436 and was to be amortized over a
period of almost 29% years by a mortgagor with
a monthly income of $607. His monthly housing
payment totaled $128.03, the bulk ($103) of which
was debt services, including $15.08 for property
taxes. In addition, $18.49 was set aside for heating
and utilities and $6.81 for future repairs and
maintenance.
In contrast, the median existing home in the
typical value group ($13,000) was appraised by
FHA at $13,403 and secured a mortgage with a
term of 26% years. The house was purchased
by a buyer with a monthly income of $596 and
a prospective housing expense of $124.88, consisting
principally of a monthly mortgage payment
of $99 which included $15.21 for taxes. The
monthly expense also included an estimated $18.41
for heating and utility expenses, as well as $7.08
for maintenance.
On the average, new-home mortgages were
written for a term of 29.2 years and existing home
contracts had an average duration of 25.8 years.
Moreover, in all value classes new-construction
mortgage durations were consistently higher than
for corresponding existing-home groups. It may
also be observed that mortgage terms lengthened
as values increased, reaching a peak term of 29.4
years for new homes valued between $13,000 and
$15,999 and then receding slightly. For existing
homes, mortgage terms rose gradually to 26.7
years for the $15,000 to $17,999 homes and then
tended to be somewhat shorter as value increased.
Next to principal and interest, property taxes
were the most important item in the total monthly
mortgage payment—averaging more than 15 percent
of the total payment for both new- and existing-
home transactions. Average taxes were proportional
to property values and moved upward as
property values increased, indicating that wide
variations in local tax rates and in special assessments
affected all value classes about equally. In
all corresponding value classes, property taxes
were slightly higher for existing homes than for
new, although—because of differences in the two
121
Table III—48.—Financial characteristics by property value, 1-family homes, Sec. 203, 1960
FHA estimate of property value
Percentage
distribution
Average Monthly average
Property
value
Term of
mortgage
(years)
Property
taxes
Total
mortgage
payment
Prospective
housing
expense
Mortgagor's
income
Heating
and
utilities
Maintenance
and
repair
NEW HOMES
Less than $8,000__________________________ 0.1 $7,394 22.3 $5.03 $54.63 $73. 30 $383.13 $13.13 $5. 53
$8,000 to $8,999___________________________ .4 8, 585 28.4 8. 29 64.31 84. 70 413. 30 14.58 5. 82
$9,000 to $9,999___________________________ 2.2 9, 563 28.9 9.27 69. 57 90.41 451.77 15.08 5. 76
$10,000 to $10,999_________________________ 5.4 10, 524 29.2 10.10 75.93 98.36 479.23 16. 46 5. 96
$11,000 to $11,999_________________________ 8.4 11,489 29.2 11.53 82. 72 105. 72 504.76 16. 86 6.14
$12,000 to $12,999_________________________ 11.0 12.449 29.3 12. 95 89.71 113.66 532.61 17. 74 6.21
$13,000 to $13,999_________________________ 13.8 13, 453 29.4 13.81 96.32 121.09 572. 42 18.26 6. 51
$14,000 to $14,999_________________________ 14.6 14,436 29.4 15.08 102. 74 128. 03 606. 88 18. 49 6. 81
$15,000 to $15,999_________________________ 12.7 15, 422 29.4 16. 43 109.08 135.12 653. 24 18. 96 7.09
$16,000 to $16,999_________________________ 9.6 16,422 29.2 17. 97 115. 60 142. 73 691.34 19.46 7. 67
$17,000 to $17,999_________________________ 7.0 17,417 29.0 19.01 121.08 149.36 728.35 20.47 7.82
$18,000 to $18,999_________________________ 5.0 18,394 29.0 20. 51 126. 67 155. 20 767.00 20.09 8. 45
$19,000 to $19,999_________________________ 3.2 19, 397 29.0 22.40 133.02 162. 76 813.49 20.76 8. 98
$20,000 to $21,999_________________________ 3.7 20, 798 28.9 23.85 140.07 171.17 873. 95 21.50 9. 61
$22,000 to $24,999_________________________ 2.2 23,059 28.8 25. 32 151.29 184. 75 954. 68 23.08 10. 39
$25,000 and over__________________________ .7 27,774 28.8 28.19 175. 75 218.19 1,075.41 30. 71 11.74
Total______________________________ 100.0 14, 899 29.2 15. 83 104. 90 130. 82 632. 53 18. 78 7.13
EXISTING HOMES
Less than $8,000__________________________ 4.3 7,007 21.7 9.15 60.34 81.93 418. 77 15.71 5.88
$8,000 to $8,999___________________________ 5.4 8,429 23.6 9. 44 68. 08 90.36 454.20 16.10 6.18
$9,000 to $9,999___________________________ 7.3 9,410 24.5 10. 69 73.51 96. 54 480. 74 16.66 6.37
$10,000 to $10,999_________________________ 10.2 10,420 25.4 11.59 79. 55 102.97 506.22 16. 99 6.43
$11,000 to $11,999_________________________ 10.7 11,412 25.9 12.87 86.07 110.18 529.19 17.52 6. 59
$12,000 to $12,999_________________________ 11.6 12,411 26.3 13. 93 92.63 117.22 562. 72 17.79 6 80
$13,000 to $13,999_________________________ 11.3 13,403 26.5 15. 21 99.39 124. 88 595. 75 18. 41 7.08
$14,000 to $14,999_________________________ 9.5 14,385 26.6 16. 96 106.07 132.37 632.49 19.08 7.24
$15,000 to $15,999_________________________ 8.0 15,365 26.7 18.60 112.58 140.07 663. 76 19.99 7.50
$16,000 to $16,999_________________________ 6.5 16,364 26.7 19.68 118. 73 147.21 704.82 20. 56 7.93
$17,000 to $17,999_________________________ 4.8 17,355 26.7 20.80 124. 72 154.17 755.13 21.26 8.19
$18,000 to $18,999_________________________ 3.4 18,344 26.6 22. 54 131.08 161.90 790.88 22.12 8.70
$19,000 to $19,999_________________________ 2.1 19,318 26.6 23.34 136. 87 168. 09 832. 46 22.35 8. 87
$20,000 to $21,999_________________________ 2.6 20, 725 26.5 25.31 146.03 179.00 887.45 23.46 9.51
$22,000 to $24,999_________________________ 1.7 23,063 26.1 28. 35 159.99 195. 27 974.16 24.97 10.30
$25,000 and over__________________________ .6 27, 502 25.9 31.32 181.47 225.10 1,150. 60 32.01 11.62
Total______________________________ 100.0 13,304 25.8 15.55 98. 69 124. 60 604.87 18.73 7.17
value distributions-—the average for all new homes
was somewhat higher than for existing homes.
The total monthly payment grew as values increased,
reflecting the heavier debt service on
higher average mortgage amounts and increased
taxes. Although the average term for new-home
mortgages was longer, the mortgage principal was
still sufficiently larger than the corresponding
existing-home mortgage to require higher monthly
payments for new homes ($104.90) than for
existing homes ($98.69).
Prospective housing expense, consisting principally
of the mortgage payment, showed similar
tendencies, with the expenses for new homes ranging
from $73 for homes valued at less than $8,000
to $218 for those valued at $25,000 or more. Over
the same range of values, existing-home expenses
varied between $82 and $225. As in the case of the
mortgage payment, the housing expense was higher
for existing-home owners in all value classes,
but the overall average expense for new homes
($131) was somewhat higher than for all existinghome
transactions ($125). The monthly expenses
attributable to household operations and estimated
costs of repairs averaged about $26 for all FHA
home purchasers, and included estimated heating
and utility expense of $18.78 and $18.73 for newand
existing-home owners, respectively. In individual
value categories the average heating and
utility expense was greater for existing-home
buyers. Maintenance expenditures were higher
for existing homes below $19,000, but higher for
new homes above that point.
Incidental Costs.—Table HI-49 indicates the incidental
costs necessary to close a mortgage transaction.
Incidental costs are the total estimated
closing costs chargeable to the mortgagor for items
which are incidental to the transaction regardless
of whether included in whole or in part in the contract
price. These costs include FHA examination
fee, mortgagee’s initial service charge, cost of title
search, charges for the preparation of deed or
documents, mortgage tax, recording fees, and
similar items. Deposits for unaccrued taxes, insurance
premium, and similar items are treated as
prepayable expenses and are not included as incidental
costs. The typical amount of closing costs
for new homes during 1960 was $286, slightly higher
(4 percent) than the $275 required for existinghome
buyers. For both new and existing homes,
closing costs increase with property value, with
costs higher for existing-home owners in most
value categories. Two out of every five transactions
were reported with closing costs of
$200-$299. Another one-fourth of the cases were
closed with fees of $300 to $399. About one-sixth
122
Chakt III-24
CALCULATED AREA, 1960
Single family home mortgages, Section 203
40 —
of the cases were at each extreme—above $400 or
below $200—reflecting the wide geographic variation
in these charges.
Size of House Characteristics
This portion of the report deals with the sizes
of the homes securing mortgages insured by FHA
under Section 203. In addition to the distributions
by calculated areas (Table HI-50), valuations and
other characteristics of 1960 properties are shown
by various area groups (Tables HI-51), and distributions
by area of home are presented for mortgagors
in various age groups (Table HI-52).
Calculated Area.—Typically, one-family homes
securing Section 203 FHA mortgages insured in
1960 were slightly smaller than those insured in
1959. The median area for new homes was 1,091
square feet—3 percent larger than the 1,057
square feet typical house reported in existinghome
transactions. As indicated by Chart HI-24
and Table HI-50, 6 out of every 10 new homes insured
in 1960 were in the 900-1,199 square feet
size range, with the bulk (39 percent) between
1,000 and 1,099 square feet in area. On the other
hand, existing homes were spread over a wider
range and also showed heavier concentrations in
the smaller size homes.
Table III-49.—Incidental costs by property value, 1-family homes,1 Sec. 203,1960
1 In this table data are based on purchase transactions only. 2 Median not significant. 3 Less than 0.05 percent.
FHA estimate of property value
Percentage
distribution
Median
incidental
costs
Incidental costs—percentage distribution
than$100
$100 to
$199
$200 to
$299
$300 to
$399
$400 to
$499
$500 to
$599
$600 to
$699
$700 to
$799
$800 or
more
NEW HOMES
Less'than $8,000—___ ___ _ ___ _ 0.1 C2)
$215.19
243.62
25.0 62.5 6.3 6.2
■'$8,000 to $8,999________________________ .4 0. 6 42.3 46.5 10.0 .6
$9,000 to $9,999________________________ 2.2 2.1 23.1 56.9 13.4 3.9 0.6
$10,000 to $10,999______________________ 5.4 250. 75 1.9 18.8 57.8 17.4 3.2 .9
$11,000 to $11,999______________________ 8.4 265. 49 3.0 15.4 48.3 24.1 7.3 1.5 0. 3 0.1
$12,000 to $12,999______________________ 11.0 270. 88 2.6 11.8 50.2 24.3 9.2 1.6 .3 (3)
$13,000 to $13,999____________ 13.8 272.13 4. 4 9.8 49. 6 23.3 11.3 1. 2 . 3 1 $14,000 to $14,999______________________ (3) 14.6 276.23 4.0 9.2 48.2 23.2 13.0 2.0 .3 . 1
$15,000 to $15,999______________________ 12. 7 282.14 4.3 10.1 43.3 24.8 13.4 3. 3 . 7 . 1 (3)
$16,000 to $16,999_____________ 9.6 298. 85 1.8 8.2 40.5 28.4 15. 5 4.2 1 2 2 (3)
0.2
2
$17,000 to $17,999______________ _____ 7.0 320.31 .7 5.6 37.2 31.9 17.8 4.9 1. 6 . 1
$18,000 to $18,999________________ 5.0 334.63 . 8 5.7 31.8 33.9 18.0 6. 9 2. 3 4
$19,000 to $19,999______________________ 3.2 365.13 . 2 4.4 25.9 30.0 26.6 9.6 2. 6 .2 5
$20,000 to $21,999___________________ 3.7 398.57 .2 3.0 18.2 28.9 36.1 9. 9 2.2 8 7
$22,000 to $24,999______________________ 2.2 406.00 . 1 2.3 16.9 29.2 24.6 21. 8 2. 8 1 6 ’ 7
$25,000 and over________ _ _ _ ____ .7 389.47 2.9 .8 11.8 38.6 14.2 26.0 1.2 2.5 2^0
Total___________________ ______ 100.0 286. 05 2.7 9.9 43.4 25.5 13.7 3.7 . 8 2 .1
EXISTING HOMES
Less than $8,000______ _ _ __ ___ 4.3 224.83 3.4 37.0 38.5 19.0 2.1
$8,000 to $8,999________________________ 5.4 223. 78 1.8 38.3 41.6 15.3 2.9 .1
$9,000 to $9,999________________________ 7.3 238. 35 1.0 31.1 46.7 16.9 4.0 .3
$10,000 to $10,999______________________ 10.2 252. 64 .8 24.2 47.5 19.9 6.9 .6 . 1 (3)
$11,000 to $11,999______________________ 10. 7 260. 20 .8 19.1 49.9 21.2 7.6 1.3 . 1 (3) $12,000 to $12,999______________________ 11.6 268.91 .9 16.7 47.1 24.9 8.3 1. 9 .2 (3) (3)
$13,000 to $13,999______________________ 11.3 277.08 .7 14.7 44.8 26.6 10.5 2. 4 .2 . 1
$14,000 to $14,999______________________ 9.5 287. 93 .5 11.3 43.4 27. 5 13.1 3. 7 .4 . 1 (3)
$15,000 to $15,999________ 8.0 297. 79 .4 10.1 40.4 25.6 16.0 6.1 1 2 2 (3)
$16,000 to $16,999— 6. 5 313.53 .4 9.1 37.0 25. 6 17. 6 8 4 1 6 3 <3) $17,000 to $17,999______________________ 4.8 333.00 .4 6.0 33.9 29.6 18.0 9. 7 2.1 .3
$18,000 to $18,999_______________ 3.4 349. 50 .4 5.6 30.1 28.1 19.5 12.0 3 3 8 2
$19,000 to $19,999______________________ 2.1 366.08 .4 4.3 26.8 28.0 20. 5 14. 9 4. 4 . 6 .1
$20,000 to $21,999____________ 2.6 372. 94 .9 4. 4 24.8 27.3 20.0 17.0 4 2 1.0 4
$22,000 to $24,999______________________ 1.7 382. 50 . 1 2.9 22.2 30.1 16. 9 19. 7 5. 3 2 2 6
$25,000 and over- _________________ _ _ .6 395.00 2.7 21.3 27.4 19.5 17.5 5.8 2.7 3T
Total___________ ___________ __ 100.0 275.45 .8 17.3 42.2 23.7 10.7 4.2 8 .1
123
Table III-50.—Calculated area, 1-family homes, Sec. 203,
selected years
Calculated area (square feet)
Percentage distribution
1960 1959 1958 1955 1950
NEW HOMES
Less than 600_____ (’) (•) (l) 0.2 0.5
600 to 699____ 0.2 0.1 0.3 1.3 7.6
700 to 799_____ 1.6 1.8 2.8 7.5 30.6
800 to 899____ 6.5 7.4 7.4 15. 5 25.4
900 to 999_____ 20. 1 19.6 18.3 20.0 13.0
1,000 to 1.099. _ 23.8 22.3 23.0 20.1 9.9
1,100 to 1.199... 15.4 16.1 16.2 14.5 5.3
1,200 to 1,299.. 11.5 11.6 10.8 8.9 3.2
1,300 to 1,399. 7.3 7.6 7.9 5. 7 2. 0
1,400 to 1,499... 5.0 5.2 4.6 2.8 .9
1,500 to 1,599. 3.7 3.4 3.5 1. 7 .6
1,600 to 1,799________ 3.7 3.7 3.7 1.2 .6
1,800 to 1,999... .9 .9 1. 1 .4 .2
2,000 or more__________________ .3 .3 .4 .2 .2
Total_____ 100.0 100.0 100.0 100. 0 100.0
Average____ 1, 142 1, 140 1, 138 1,049 894
Median______________________ 1,091 1,095 1,092 1,022 838
EXISTING HOMES
Less than 600___ . 1 . 1 . 1 .4 . 5
600 to 699____ 1.9 1.8 2.2 2.6 3.3
700 to 799__________ 10.6 10.5 10.8 12.5 14.4
800 to 899_______ 14.1 14.1 14.0 15.4 16.5
900 to 999____ 14.2 14.1 14.1 14.4 14. 1
1,000 to 1,099... 15.8 15.9 15. 5 13.9 11. 7
1,100 to 1,199.. 12.9 12.6 12.1 11.1 9.3
1,200 to 1,299... 9.9 9.9 9.7 8.6 7.6
1,300 to 1,399__________ 6.7 6.8 6.8 6.4 5.8
1,400 to 1,499____ 4.5 4. 7 4.9 4.4 4.3
1,500 to 1,599... 3.2 3.2 3.3 3.0 3.2
1,600 to 1,799... 3.4 3.5 3.5 3. 7 4.2
1,800 to 1,999____________ 1.5 1.6 1.7 1. 7 2.2
2,000 or more__________________ 1.2 1.2 1.3 1.9 2.9
Total_______________ 100.0 100.0 100.0 100.0 100.0
Average_____________ 1, 101 1, 105 1, 105 1,096 1,100
Median______________________ 1, 057 1, 059 1,053 1, 030 1,006
1 Less than 0.05 percent.
Characteristics by Calculated Area.—Table HI-
51 shows average characteristics by calculated
areas of homes. They include the average floor
area, property value, total acquisition cost, sale
price, number of rooms and bedrooms, and the
proportion of homes with one story, more than one
bath, and carports or garages. The table indicates,
for instance, that the average house in the 1,000-
1,099 square-foot range had an area of 1,043 square
feet and was appraised by FHA at $14,197. It
contained five rooms, of which three were bedrooms,
and sold for $13,982. When closing costs
were added, the entire transaction cost the newhome
owner $14,240. Ninety-four percent of the
homes in this size range were one-story houses and
37 percent had basements. Moreover, 4 out of
every 10 had more than 1 bath. About half of
the homes had garages, and another fifth were
equipped with carports. On the average, the number
of rooms reported for new and existing homes
was about the same—5.5 and 5.4 rooms respectively—
and the number of bedrooms slightly
larger for new (3) than for existing (2.8) homes.
As might be expected, the number of multistory
and split-level homes increased as the floor area became
larger for both new and existing homes.
Split-level houses, although not shown in the table,
accounted for about 5y2 percent of the new- and
1.7 percent of the existing-home cases. The trend
toward more bathrooms in recent construction is
discernible in the table, since 52% percent of the
new homes, compared with 23% percent of the
existing homes, had more than one bath. In addition,
higher proportions of new homes with more
than one bathroom were reported in all area
ranges. Basements were reported in almost 48
percent of the existing homes but in only onethird
of all new homes, reflecting the trend toward
use of slab-type construction. Garages were reported
in 62 percent of the existing-home transactions
and in 53 percent of the new homes. In
contrast, carports were reported about twice as
often for new homes—almost 21 percent of the
new homes and 9% percent of the existing homes
included this facility.
Age of Principal Mortgagor.—Data in Table HI-
52, published for the first time in this report,
show the age of the principal mortgagor and sizes
of the houses purchased by mortgagors in each
age group during 1960. Three-eighths of all
home buyers using FHA mortgage insurance in
1960 were under 30 years of age, including one out
of four between the ages of 25 and 29. Slightly
over one-fifth more were in the 30 to 34 age group.
About 28 percent of all purchasers were between
the ages of 35 and 44. A wide range of home sizes
is recorded for each age class of mortgagors, but
slightly smaller homes, as indicated by median
sizes, are reported for the youngest and oldest
mortgagors, probably reflective both of income
characteristics of these families and of smaller
space requirements than for families with the
head of the family in the middle range of ages
between 30 and 49.
Mortgagor’s Income Characteristics
In determining the acceptability of a transaction
for mortgage insurance under the FHA
underwriting system, an evaluation is made of the
risk entailed in the mortgage credit elements of
the transaction. This involves consideration of
such items as mortgagor’s income, his financial
assets, current and anticipated obligations of a
recurring nature, and the mortgagor’s motivation
in the home-financing transaction. Owner-occupants
are the mortgagors in practically all the
Section 203 one-family cases. The mortgagor’s
ability to bear the cost of the home ownership is
determined principally by his effective income.
This is an estimate of the mortgagor’s probable
earning capacity during the first third of the
mortgage term, which experience has indicated is
likely to be the most hazardous portion of the life
of the mortgage. Incomes of co-mortgagors or
endorsers may be included partially, wholly, or
not at all, depending on specific circumstances.
This section of the report is devoted to a description
of the Section 203 owner-occupant transactions
insured in 1960 from the viewpoint of
mortgagor’s income and housing expense.
124
Table III-51.—Property characteristics by calculated area, 1-family homes, Sec. 203, 1960
1 Data reflect purchase transactions only.
Calculated area
(sq. ft.)
Percentage
distribution
Average Percent'of structure with—
Calculated
area
(sq. ft.)
Property
value
Total acquisition
cost 1
Sale
price 1
Number
of rooms
Number
of bedrooms
More
than 1
bath
1 story
Full or
part basement
Garage Carport
NEW HOMES
Less than 700. _. ____ 0.2 615 $10,065 $9, 981 $9, 833 4.2 1.7 9.3 92.5 17.7 14.8 15.9
700 to 799__________________ 1.6 758 11,357 11,424 11,176 4.5 2.4 2.5 95.2 42.4 21.1 22.4
800 to 899____________ 6.5 860 12,039 12,094 11,866 4.8 2.8 7.1 92.3 44.0 32.4 24.0
900 to 999________________ 20.1 948 12,975 13,034 12,792 5.1 2.9 14.5 95.5 44.5 38.6 19.2
1,000 to 1,099___________ 23.8 1,043 14,197 14, 240 13,982 5.3 3.0 38.3 94.1 37.0 49.4 20.3
1,100 to 1,199________________ 15.4 1,147 15,321 15,364 15,065 5.4 3.0 66,3 88.5 33.6 57.8 22.6
1,200 to 1,299_______________ 11.5 1,249 16,064 16,102 15,810 5.7 3.1 87.6 89.5 23.6 66.3 21.9
1,300 to 1,399_________ 7.3 1,347 16,844 16,928 16,627 5.9 3.2 90.9 80.3 22.8 72.8 18.8
1,400 to 1,499_______________ 5.0 1,444 17,081 17,202 16,897 6.0 3.1 93.0 85.3 16.4 63.9 23.3
1,500 to 1,599___________ 3. 7 1,550 18,237 18,383 18,024 6.4 3.3 94.9 80.1 19.0 71.8 18.3
1,600 to 1,699 ___ ________ 2.6 1,646 18, 774 18,930 18,614 6.7 3.5 98.2 71.2 14.5 75.8 16.9
1,700 to 1,799 ______ ___ 1.1 1,739 20,198 20,352 19,936 6.7 3.5 96.6 66.9 19.7 70.2 18.2
1,800 to 1,999 ______________ .9 1,872 20,016 19, 989 19, 549 6.8 3.4 94.8 74.9 18.2 67.8 22.9
2,000 or more________________ .3 2,173 22,213 22,534 22,132 7.1 3.6 98.1 60.2 21,1 63.8 28.2
Total_________________ 100.0 1,142 14, 899 14,939 14,662 5.5 3.0 52.5 89.6 33.1 53.2 20.8
EXISTING HOMES
Less than 700. _ _ _ 2.0 660 9,816 10,005 9, 777 4.2 2.0 2.4 86.9 58.0 50.5 4.2
700 to 799_________ 10.6 752 10, 986 11,296 11,034 4.4 2.2 2.4 87.1 51.6 52.9 4.6
800 to 899___ 14.1 848 11,671 11,918 11,651 4.8 2.4 4.1 88.3 44.8 57.0 7.2
900 to 999_____ 14.2 947 12, 406 12, 654 12,383 5.1 2.6 6.6 88.5 45.2 56.9 9.6
1.000 to 1,099________________ 15.8 1,047 13. Ill 13, 385 13, 104 5.4 2.8 14.4 84.6 41.3 61.1 10.5
1,100 to 1,199_______________ 12.9 1,146 13,845 14,167 13,856 5.6 2.9 28.9 73.1 44.4 66.0 11.3
1,200 to 1,299_______________ 9.9 1,245 14; 472 14, 778 14,462 5.8 3.0 40.6 65.6 48.3 67.1 11.4
1,300 to 1,399________________ 6. 7 1,344 15,004 15,368 15.038 6.1 3.0 50.2 61.5 48.4 68.5 12.0
1,400 to 1,499 ___ 4.5 1.444 15,633 15, 980 15, 643 6.3 3.1 54.2 56.3 51.0 69.4 11.9
1,500 to 1,599____ 3.2 1, 544 16,095 16,402 16,054 6.5 3.2 58. 5 49.5 55.3 70.7 11.0
1,600 to 1,699_________ 2.1 1,645 16, 594 16, 921 16, 574 6.7 3.3 62.3 42.8 59.9 72.0 11.1
1,700 to 1,799... . . 1.3 1,746 16, 711 17,053 16,626 6.9 3.5 65.7 40.7 60.1 70.6 10.7
1,800 to 1,999.. 1.5 1,886 16, 538 16, 866 16, 485 7.0 3.5 61.8 35.5 66.1 71.3 10.9
2,000 or more________________ 1.2 2,305 17', 567 17; 721 17,342 7.6 3.9 76.7 21.4 74.3 74.1 7.5
Total_________________ 100.0 1,101 13,304 13,579 13, 284 5.4 2.8 23.5 75.8 47.6 61.9 9.5
Table III-52.—Age of principal mortgagor, by calculated area, 1-family homes, Sec. 203, 1960
1 Less than 0.05 percent.
691772—61------ 10
Calculated area (sq. ft.) Percentage
distribution
Age of principal mortgagor
Median
age
(years)
Less than
25
25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 59 60 or more
Percentage distribution by calculated area
NEW HOMES
Less than 700 _______________ 0.2 36.8 0.3 0.1 0.1 0.1 0.1 0.2 0.5 5.3
700 to 799____________________ 1.6 31.7 2.0 1.6 1.2 1.0 1.3 1.6 2.9 5.3
800 to 899____________________ 6.5 30.1 10.8 7.1 5.2 5.0 5.2 5.3 5.5 11.3
900 to 999____________________ 20.1 30.1 32.5 23.1 17.6 15.6 14.8 15.9 16.6 22.5
1,000 to 1,099_________________ 23.8 31.5 27.0 27.1 22.7 20.7 21.2 21.3 23.2 18.5
1,100 to 1,199_________________
1,200 to 1,299_________________
15.4 33.1 13.0 15.2 16.0 16.2 16.5 16. 2 15.3 12.3
11.5 34.0 7.2 10.4 12.3 12.7 13.2 14.6 14.0 10.3
1,300 to 1,399_________________ 7.3 34.2 3.4 6.3 8.7 8.6 9.4 8.4 6.9 4.8
1,400 to 1,499_________________ 5.0 34.7 2.1 4.0 6.0 6.7 6.0 6.0 5.2 3.7
1,500 to 1,599_________________ 3.7 35.4 .8 2.6 4.4 5.2 4.9 4.2 4.1 2.7
1,600 to 1,699_____ __________ 2.6 36.4 .4 1.3 3.1 4.2 3.9 3.3 2.9 2.2
1,700 to 1,799_________________ 1.1 36.7 .2 .5 1.3 1.8 1.6 1.4 1.4 .2
1,800 to 1,999-. ______________ .9 36.1 .3 .6 1.0 1.5 1.4 1.1 1.0 . 7
2,000 or more_________________ .3 37.2 (’) .1 .4 .7 .5 .5 .5 . 2
Total__________________ 100.0 32.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Percent of total______________ 100. 0 __________ 12.9 25.4 22.3 17.0 10.4 6.5 4.6 .9
Median area_________________ 1.091 __________ 1,016 1,067 1. 120 1,147 1,145 1.135 1,109 1,031
—... — - ■---- — ■ -—■ ■ ■ ---- ’
EXISTING HOMES
Less than 700________________ 2.0 29.0 4.7 2.2 1.3 1.3 1.3 1.6 2.0 1.8
700 to 799____________________ 10.6 29.7 19.0 12.9 8.3 6.8 7.4 8.4 10.7 10.8
800 to 899____________________ 14.1 31.0 21.7 16.0 11.7 10.7 11.4 13.7 15.3 16.0
900 to 999____________________ 14.2 31.9 18.0 15.7 13.4 12.1 11.6 13.2 15.2 19.6
1,000 to 1,099_________________ 15.8 32.7 15.4 17.1 16.2 14.8 15.6 15.4 15.0 15.0
1,100 to 1,199_________________ 12.9 33.6 10.1 13.0 13.2 13.7 13.9 13.5 12.3 12.6
1,200 to 1,29'1_________________ 9.9 34.2 5.3 9.0 11.7 11.6 11.1 10.7 8.9 9.0
1,300 to 1,319_________________ 6.7 35.1 2.6 5.2 8.0 8.8 7.8 7.9 6.8 5.7
1,400 to 1,499 _______________ 4.5 35.6 1.3 3.3 5.4 6.3 6.0 5.0 4.0 3.9
1,500 to 1,599_________________ 3. 2 36.0 .9 2.2 3.7 4.7 4.2 3.3 3.6 1.5
1,600 to 1,699_________________ 2.1 36.3 .3 1.4 2.5 3.1 3.2 2.6 1.9 1.5
1,70(1 to 1,799 .. . 1.3 36.7 .3 .7 1.4 2.1 2.0 1.5 1. 2 .3
1,800 to 1,999_________________ 1.5 36.5 .3 .8 1.9 2.0 2.5 1.7 1.7 1.0
2,000 or more_________________ 1.2 37.6 .1 .5 1.3 2.0 2.0 1.5 1.4 1.3
Total__________________ 100.0 33.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Percent of t >tal______________ 100.0— 12.5 24.2 21.3 16.7 11.4 7.5 5.7 . 7
Median area_________________ 1,057— 926 1,019 1,095 1,131 1,120 1,085 1,046 1,012
125
Chart 111-25
MORTGAGOR’S EFFECTIVE ANNUAL INCOME,
1950-60
Single family home mortgages, Section 203
Table III-53.—Mortgagor's annual income, l-family
homes, Sec. 203, selected years
Mortgagor’s effective
annual income
NEW HOMES
Less than $3,000—
$3,000 to $3,999.—
$4,000 to $4,999...
$5,000 to $5,999...
$6,000 to $6,999...
$7,000 to $7,999...
$8,000 to $8,999...
$9,000 to $9,999....
$10,000 to $10,999..
$11,000 to $11,999_____
$12,000 to $12,999_____
$13,000 to $14,999_____
$15,000 or more_______
Total__________
Average_____________
Median_____________
EXISTING HOMES
Less than $3,000______
$3,000 to $3,999_______
$4,000 to $4,999_______
$5,000 to $5,999_______
$6,000 to $6,999_______
$7,000 to $7,999_______
$8,000 to $8,999_______
$9,000 to $9,999_______
$10,000 to $10,999_____
$11,000 to $11,999_____
$12,000 to $12,999_____
$13,000 to $14,999_____
$15,000 or more_______
Total__________
Average_____________
Median_____________
Percentage distribution
I960 1959 1958 1955 1950
0.1 0 6
1.3 1.9 2.2 10.6 43.4
7.6 10.0 12.0 26.5 24.0
17.0 18.9 18.4 21.0 9.7
21.2 20.7 20.4 16.8 5.8
17.1 16.2 16.9 10.6 2.5
12.6 12.0 10.5 5.6 1.0
9.2 8.3 8.0 3.7 .6
5.4 4.7 4.7 2.0 .3
3.3 2.7 2.3 .7 . 1
2.3 2.0 1.9 .8 .2
1.6 1.3 1.3 .5 .1
1.4 1.3 1.3 .6 .1
100.0 100.0 100.0 100.0 100.0
$7,590 $7, 327 $7,217 $5, 969 $4,213
$7,168 $6, 912 $6, 803 $5,484 $3,861
2
3.0 4.0 3.8 io'o 33.5
11.3 13.5 15.7 24.6 24.1
19.4 20.3 19.7 19.9 11.9
19.8 18.7 18.7 16.5 9.4
15.0 13.9 14.8 11.3 4.9
11.1 10.3 9.2 6.2 2.1
7.9 7.4 7.3 4.3 1.7
4.8 4.4 4.4 2.3 1.0
2.9 2.7 2.0 1.0 .3
2.0 2.0 1.8 1.3 .8
1.5 1.4 1.2 .9 .4
1.3 1.4 1.2 1.1 .6
100.0 100.0 100.0 100.0 100.0
$7,258 $7,107 $6,975 $6,223 $4,837
$6, 784 $6,575 $6,502 $5,669 $4,274
Mortgagor’s Income—As shown in Chart HI-
26 and in Table HI-53, there is considerable
similarity in the income distributions of the
new- and existing-home mortgagors. A pronounced
upward shift in incomes is evident during
the past decade, with the median income rising
on an average 9 percent annually for new-home
buyers in FHA programs and 6 percent for
existing-home buyers. The upward trend in incomes
of all FHA mortgagors was somewhat
steeper than the 6 percent concurrent rise in nonfarm
family incomes. In 1950, the typical FHA
new-home owner had an income of $3,861; by
1955 it had risen 42 percent to $5,484, and in
1960 had advanced another 31 percent to $7,168.
Although the growth was slower for existinghome
buyers, the same general pattern was
apparent.
During 1960, the incomes of FHA new-home
buyers averaged $7,590 and those of existinghome
purchasers $7,258. Two out of every
three home buyers were reported with annual incomes
(before taxes) of $5,000 to $8,999. The income
range most frequently reported for newhome
owners was $6,000 to $6,999, including more
than one-fifth of the insured cases. On the other
hand, the largest groups of the existing-home
transactions (19 percent) were in the $5,000 and
$6,000 income ranges. Incomes of $10,000 or
higher were reported in 14 percent of the new- and
12% percent of the existing-home transactions.
Only about one-tenth of the FHA home buyers
had incomes of less than $5,000, in contrast to 10'
years ago when 80 percent of the new- and twothirds
of the existing-home owners were in this
category. See Chart HI-25.
Characteristics by Mortgagor’s Monthly Income.—
Selected characteristics of 1960 Section 203
insured transactions involving occupant mortgagors
are presented according to mortgagor’s income
levels in Table HI-54 (transaction and
property characteristics) and Table HI-55 (financial
characteristics). A major use of these data
can be demonstrated by pointing out the characteristics
of the average income group, those earning
$600-$649 monthly. This group of new-home
owners were on the average 33% years of age and
had an annual income of $7,421. They purchased
a 5% room house containing 1,162 square feet of
floor area, which was appraised by FHA at $15,-
163. This property was sold for $14,962 and was
covered by a mortgage for $13,941 representing 92
percent of total valuation. When closing costs
were paid, the entire transaction cost the home
buyer a total of $15,249. The monthly obligation
to pay back the mortgage on the typical home
was $107.37 (including $16 in taxes) and was torun
for 29% years. The overall housing expense
was estimated to be $133.40 and covered $18.80
monthly for heating and utilities and $7.23 for
maintenance and repairs, in addition to debt service.
For both new and existing homes, the levels
126
Chart III-26
MORTGAGOR’S EFFECTIVE ANNUAL
INCOME, 1960
Single family home mortgages, Section 203
25 —
of sale price, property values, size of structure,
mortgage amount and monthly obligations, shown
in Table III-55, increased as the incomes rose but
not in the same proportion. For example, the
average mortgagor income in the $850 to $899 class
was twice as large as the average income in the
$400-$449 class, but sale price, property value,
mortgage amount and monthly obligations of the
mortgagors in the $850 class were noticeably less
than proportionally higher, ranging from 1.1 to
1.7 times as great.
Further evidence of this disproportionate relationship
between income and other items in FHAinsured
transactions is the steady downward trend
in the value-income ratios in Table HI-54 and
the ratios of housing expense and mortgage payment
to income shown in Table HI-55 and Chart
HI-28. This situation was not unique in 1960, but
has been apparent for FHA experience in prior
years where comparable information was available
for analysis. The concentration of home construction
under FHA programs in middle price ranges
(for reaching maximum marketability) without
equivalent concentration of purchasers by income
classes limits the significance of FHA experience
as a reflection of universal relationships. Higher
income families in particular frequently finance
their purchases of more expensive homes with con-
Table 111-54.—Transaction and property characteristics by mortgagor's income, l--family homes,1 Sec. 203, 1960
Mortgagor’s effective monthly income
Percentage
distribution
Average
Percent
ratio of
loan to
value
Ratio of
property
value to
income
Mortgagor’s
annual
income
Age of
principal
mortgagor
Total
acquisition
cost2
Sale
price 2
Property
value
Mortgage
amount
Calculated
area
(sq. ft.)
Number
of rooms
NEW HOMES
Less than $300________________________ 0.3 $3, 203 41.9 $9, 946 $9, 722 $10,030 $8, 952 864 4.7 89.3 3.13
$300 to $349___________________________ 1.4 3, 946 31.2 10, 766 10,554 10,812 9, 905 930 4.9 91.6 2.74
$350 to $399___________________________ 4.0 4, 512 29.4 11,483 11, 249 11.527 10, 627 963 5.0 92.2 2.55
$400 to $449___________________________ 9.2 5,093 30.0 12,385 12,146 12,400 11, 471 995 5.1 92.5 2.43
$450 to $499___________________________ 10.9 5, 665 30.7 13,222 12, 966 13, 206 12,211 1,036 5.2 92.5 2.33
$500 to $549___________________________ 14.0 6,250 31.8 13, 910 13, 656 13, 892 12,837 1,076 5.3 92.4 2.22
$550 to $599___________________________ 10.7 6,861 33.2 14, 681 14,416 14, 646 13, 495 1,120 5.4 92.1 2.13
$600 to $649___________________________ 10.6 7,421 33.8 15, 249 14,962 15,163 13, 941 1,162 5.5 91.9 2.04
$650 to $699___________________________ 8.7 8,033 34.6 15, 739 15, 456 15, 655 14,340 1,189 5.6 91.6 1.95
$700 to $749___________________________ 6.8 8,624 35.4 16,289 15,984 16,188 14, 750 1,218 5.6 91.1 1.88
$750 to $799___________________________ 5.8 9,223 36.1 16, 690 16, 380 16, 588 15,055 1,245 5.7 90.8 1.80
$800 to $849___________________________ 5.0 9, 857 36.5 17,140 16,834 17.024 15, 392 1,270 5.8 90.4 1.73
$850 to $899___________________________ 3.1 10,453 37.3 17,326 17,010 17, 250 15, 543 1,285 5.8 90.1 1.65
$900 to $999___________________________ 4.0 11, 275 37.9 17, 837 17, 523 17, 751 15,914 1.310 5.9 89.7 1.57
$1,000 to $1,199________________________ 3.8 12, 723 38.6 18,571 18,252 18, 586 16, 521 1,368 6.0 88.9 1.46
$1,200 or more________________________ 1.7 17,435 40.8 19, 516 19,139 19, 640 17,201 1,407 6.0 87.6 1.13
Total___________________________ 100.0 7,590 33.6 14,939 14, 662 14, 899 13,625 1,142 5.5 91.4 1.96
existing homes
Less than $300________________________ 1.0 3,218 31.7 8,144 7,934 8,039 7,339 889 4.8 91.3 2.50
$300 to $349___________________________ 3.0 3, 924 29.7 9,099 8,865 8, 993 8,241 931 4.9 91.6 2.29
$350 to $399___________________________ 6.4 4, 502 30.1 10,053 9,803 9,927 9,087 961 5.0 91.5 2.21
$400 to $449___________________________ 11.8 5,085 31.3 11,091 10, 824 10, 901 9, 992 985 5.1 91.7 2.14
$450 to $499___________________________ 11.6 5,662 32.1 11,991 11,723 11,792 10,771 1,022 5.2 91.3 2.08
$500 to $549___________________________ 13.3 6,246 33.1 12, 852 12,561 12, 580 11,469 1,059 5.3 91.2 2.01
$550 to $599___________________________ 9.7 6, 862 34.1 13, 671 13,381 13,390 12,177 1,092 5.4 90.9 1.95
$600 to $649___________________________ 9.1 7,435 34.9 14,301 13, 997 13, 975 12, 675 1,123 5.5 90.7 1.88
$650 to $699___________________________ 7.8 8,040 35.7 14.790 14,469 14,427 13,069 1,146 5.6 90.6 1.79
$700 to $749___________________________ 5.9 8, 634 36.3 15,226 14, 906 14, 923 13, 424 1,176 5.6 90.0 1.73
$750 to $799___________________________ 5.0 9,221 36.8 15,980 15, 649 15, 577 14,008 1,202 5.7 89.9 1.69
$800 to $849___________________________ 4.3 9,864 36.8 16, 468 16,128 16,053 14,379 1,237 5.8 89.6 1.63
$850 to $899___________________________ 2.8 10,455 37.9 16, 819 16,489 16, 362 14,600 1,252 5.8 89.2 1.56
$900 to $999___________________________ 3.5 11,261 38.2 17,499 17,164 17.008 15,047 1,281 5.9 88.5 1.51
$1,000 to $1,199________________________ 3.4 12, 766 38.8 18, 547 18,190 18,104 15, 932 1,349 6.0 88.0 1.42
$1,200 or more________________________ 1.4 17,367 40.9 19,936 19, 569 19, 539 16, 841 1,456 6.1 86.2 1.13
Total___________________1_0_0_.0_____ 7, 258 34.1 13, 579 13,284 13,305 12,037 1,100 5.4 90.5 1.83
1 In this table data are based on 1-family occupant cases. 2 Based on purchase transactions only.
127
Chart 111-27
AGE OF PRINCIPAL MORTGAGOR, 1960
Single family home mortgages, Section 203
Age of principal mortgagor by years
ventional loans, since they can better afford the
higher required down payment and monthly
obligations.
In practically all of the corresponding income
classes, total acquisition costs, sale price, property
value, mortgage amount, mortgage terms, and
monthly obligations (except taxes) were higher
for new-home buyers than for existing-home mortgagors.
In addition, the ratios of property value
to income and loan to value were also higher for
new-home mortgagors.
As indicated by Table HI-55, the mortgage
term for new homes was consistently longer than
for existing homes for all income ranges, reflecting
the longer economic life of new properties.
Despite the shorter repayment period for existinghome
mortgages, the higher average amount for
new-home owners was sufficiently great in corresponding
income groups to make the monthly
mortgage payments for new-home owners higher
in nearly all of the income groups. On the average,
the share of the home mortgagor’s income
required for mortgage payment was about 16i/2
percent of monthly income (before taxes). In
line with higher mortgage payments, total prospective
housing expenses were also higher, especially
for new-home owners whose incomes were
below $900. However, the cost of household operation
and maintenance and repairs were higher in
existing homes in many income classes. Taxes
were higher for most classes of existing-home buyers,
probably because the homes were situated in
more developed areas. It is also of interest to
note that, with the exception of mortgagors earning
less than $350 a month, the average age of the
principal mortgagor in an existing-home transaction
was higher for each income range than that
of the corresponding new-home buyer.
Age of Principal Mortgagor.-—Table HI-56 and
Chart HI-27 present information on the income
levels of the principal mortgagor in various age
classes. In general, incomes rise with the age of
the mortgagor, although wide ranges of income
are reported for each age group. The highest
typical income of new-home mortgagors—$686—
was reported for those buyers between the ages of
45 and 49 and for existing-home buyers—$644—
in the 40 to 44 years age class. The range of
median monthly incomes extends from $489 for
those mortgagors less than 25 years of age, gradually
increasing to a peak of $686 in the 45-year
class. The same pattern is discernible for existinghome
buyers, ranging from $452 for the youngest
to a highpoint in the 40-year group and declining
to $555 for the oldest group.
Housing Expense by Mortgagor’s Monthly Income.—
A basic consideration in the determination
of mortgage risk under the FHA underwriting
procedure is the relationship between the mortgagor’s
income and his prospective housing
expense. Table III-57 shows distributions of
Chart II1-28
MORTGAGE PAYMENT AND
HOUSING EXPENSE, 1960
Single family home mortgages, Section 203
40
Monthly effective income in hundred dollars
128
monthly housing expense by income classes of
owner-occupant mortgagors involved in Section
203 transactions insured in 1960.
The typical (median) housing expense for each
income group indicates that housing expense rose
with increases in mortgagor’s income but at a progressively
slower rate. For new-home owners,
estimated housing expenses ranged from $86.94
per month for those with monthly incomes under
$300 to $163.26 for those earning $1,200 or more
each month. For existing-home owners, the range
was slightly greater, with the corresponding low
and high housing expense ranging from $81.93 to
$175.06. In general, estimated housing expenses
were higher for new-home mortgagors with
monthly incomes less than $900 than for purchasers
of existing homes with comparable incomes.
Furthermore, Table III-57 indicates a
broad distribution of housing expenses at all income
levels. This situation is depicted more
clearly in Chart III-30, which shows the ranges
of housing expense by monthly effective income
for buyers of homes secured by Section 203 mortgages
insured in 1960. This chart reveals that
as mortgagor’s income rose the range of housing
expense expanded, and that, in the bulk of the
transactions, housing expense for the higher
income brackets rose at a slower rate than income.
Chart III-29
RATIO OF HOUSING EXPENSE TO INCOME,
1950-60
Single family home mortgages, Section 203
Average
25 —
Average
o
u
a.
10____ I I I I I I I I I I I
1950 '51 '52 '53 '54 '55 '56 '57 '58 '59 '60
Table JII-55.—Financial characteristics by mortgagor's income, 1-family homes,1 Sec. 203,1960
1 In this table data are based on 1-family occupant cases.
Mortgagor’s effective monthly income
Percentage
distribution
Average
monthly
income
Average Monthly average Percent of income
Mortgage
amount.
Term of
mortgage
(years)
Property
taxes
Total
mortgage
payment
Prospective
housing
expense
Heating
and
utilities
Maintenance
and
repair
Mortgage
payment
Housing
expense
NEW HOMES
Less than $300. ______________________ 0.3 $266.93 $8,952 28.5 $6.05 $66.44 $86. 55 $14. 73 $5. 38 24.9 32.4
$300 to $349___________________________ 1.4 328.81 9,905 28.9 8. 33 73.67 95. 48 16.13 5.68 22.4 29.0
$350 to $399___________________________ 4.0 375.97 10, 627 29.2 10.30 79.92 102.47 16. 68 5.88 21.3 27.3
$400 to $449_______________ _______ 9.2 424.41 11,471 29.4 11.82 86. 65 110.12 17.44 6. 02 20.4 25.9
$450 to $499___________________________ 10.9 472.10 12, 211 29.4 13.25 92.80 116.80 17.71 6.29 19.7 24.7
$500 to $549___________________________ 14.0 520.86 12, 837 29.4 14. 23 97.86 122. 51 18.00 6.65 18.8 23.5
$550 to $599___________________________ 10.7 571. 79 13, 495 29.3 15.33 103. 38 128.72 18.39 6.96 18.1 22.5
$600 to $649 ____ 10.6 618.45 13.941 29.3 16. 35 107. 37 133.40 18.80 7.23 17.4 21.6
$650 to $699____________ ____________ 8.7 669.42 14. 340 29.2 17.13 110.84 137. 55 19.23 7.49 16.6 20.5
$700 to $749___________________________ 6.8 718. 64 14, 750 29.1 17.89 114.27 141.49 19. 51 7.70 15.9 19.7
$750 to $799___________________________ 5.8 768.62 15,055 29.0 18.45 117.11 144.88 19.93 7.84 15.2 18.8
$800 to $849___________________________ 5.0 821.40 15, 392 29.0 19.15 120.08 148.46 20.21 8.17 14.6 18.1
$850 to $899_______ _ ____________ 3.1 871.07 15, 543 28.9 19. 57 121.73 150.42 20.47 8.22 14.0 17.3
$900 to $999______ _________________ 4.0 939.62 15,914 28.9 20.45 124.88 154.12 20.76 8.47 13.3 16.4
$1,000 to $1,199 - - -- 3.8 1,060.28 16, 521 28.8 21. 58 130. 34 160.61 21.41 8.87 12.3 15.1
$1,200 or more________________________ 1.7 1,452.93 17,201 28.7 23.90 137. 59 169.62 22.90 9.13 9.5 11.7
Total___________________________ 100.0 632. 53 13, 625 29.2 15.83 104.90 130.82 18.78 7.13 16.6 20.7
EXISTING HOMES
1.0 268.16 7,339 24.0 7.98 62.18 82.69 14.98 5.54 23.2 30.8
$300 to $349 ___________ ____________ 3.0 326.98 8, 241 24.7 9.13 68. 55 90. 33 15.83 5.94 21.0 27.6
$350 to $399 _______ - _____ -___ 6.4 375.17 9i 087 25.2 10.70 74.87 97. 52 16.48 6.16 20.0 26.0
$400 to $449_____ _______ _________ 11.8 423. 77 9,992 25.6 11.89 81.51 104. 80 16.95 6. 35 19.2 24.7
$450 to $499 ________ - -- ____ 11.6 471.80 10, 771 25.9 13.18 87.59 111.84 17.59 6. 66 18.6 23.7
$500 to $549 ________ __________ — 13.3 520. 51 11,469 26.1 14.23 93.12 118. 06 18.00 6.94 17.9 22.7
$550 to $599______ ____________ ____ 9.7 571.86 12,177 26.3 15.65 99.09 124.85 18.61 7.15 17.3 21.8
$600 to $649___________________________ 9.1 619. 56 12, 675 26.2 16. 72 103.62 130.14 19.17 7. 34 16.7 21.0
$650 to $699 _______ ______________ 7.8 670. 02 13, 069 26.1 17.47 107.08 134.19 19.64 7.47 16.0 20.0
$700 to $749 _____________________ -- 5.9 719.49 13,424 26.0 17.97 110.26 137.89 19.95 7. 68 15.3 19.2
$750 to $799 ____ ______________ ___ 5.0 768.44 14, 008 26.0 19.02 115. 06 143.11 20.20 7.85 15.0 18.6
$800 to $849___________________________ 4.3 822. 03 14, 379 26.1 19.68 118.43 147. 50 21.01 8.06 14.4 17.9
$850 to $899 - - _ _ _____________ 2.8 871. 21 14,600 25.7 20.24 121.02 150.02 20.75 8.26 13.9 17.2
$900 to $999 ______ _______ _____ - 3.5 938.42 15, 047 25.8 20.77 124.37 154.19 21.47 8. 35 3.3 16.4
$1,000 to $1,199 ______________________ 3.4 1,063.82 15,932 25.5 22.78 133.48 164.97 22. 52 8.98 2.5 15. 5
$1,200 or more________________________ 1.4 1,447. 29 16,841 24.9 24.91 143.54 178.01 24.80 9.66 9.9 12.3
Total___________________________ 100.0 604.87 16,841 25.8 15. 55 98.69 124. 60 18.73 7.17 16.3 20.6
129
Chart IH-30
HOUSING EXPENSE RANGE
BY MONTHLY INCOME, 1960
Single family home mortgages, Section 203 Percent of
Mortgagors
Monthly effective income in hundred dollars
Except for the highest income groups, new-home
mortgagors had higher housing expenses than existing
home buyers with similar incomes. One out
of 5 existing-home owners was estimated to have
housing expenses of less than $100, compared with
fewer than 1 out of 12 new-home purchasers; characteristically
these families earned less than $450
a month. About 43 percent of both new- and
existing-home mortgagors, most of whom earned
less than $600 monthly, were expected to have
housing expenses between $100 and $129 each
month. Almost half of the new-home buyers and
39 percent of existing-home purchasers were incurring
monthly expenses in excess of $130. Chart
III-29 shows the general stability of the relationship
of housing expense to mortgagor’s income
which has tended to maintain a 1 to 5 ratio over
the last decade.
Total Acquisition Cosf by Income.—Table III-58
shows for 1960 the relationship of total acquisition
cost of the property to the mortgagor’s monthly
income. The total acquisition cost is the total
amount necessary to close the transaction, including
mortgage funds but excluding prepayable expenses
such as unaccrued taxes, insurance premi-
Table III-56.—A.ge of principal mortgagor by mortgagor's income, owner occupant 1-famity homes, Sec. 203,1960
Mortgagor’s effective monthly
income
Percentage
distribution
Age of principal mortgagor
Median
age (years)
Less than
25
25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 59 60 or more
Percentage distribution by mortgagor’s income
NEW HOMES
Less than $300________________ 0.3 35.9 0.5 0.3 0.1 0. 1 0.2 0.1 0.3 11. 2
$300 to $349__________________ 1. 4 27.8 3.7 1.6 .8 .6 .6 . 6 1. 1 9. 4
$350 to $399__________________ 4.0 27.3 11.3 4.7 2.4 1.9 2.1 2.1 2.3 6.0
$400 to $449__________ ______ 9.2 28.5 19.9 11.3 7.4 5.5 5.1 5. 2 4. 7 5. 7
$450 to $499__________________ 10.9 29.2 18. 6 14.3 9.6 7.7 6.9 6.2 5. 7 6.4
$500 to $549__________________ 14. 0 30.5 17.6 17.5 14.0 11. 5 10.4 9.3 9. 7 11.2
$550 to $599___________________ 10. 7 32.2 9.2 12.1 11.5 10.4 10.0 9.4 9. 6 6.4
$600 to $649__________________ 10. 6 32.9 7.2 11.2 11.7 11.4 10.6 10.2 10.0 6. 7
$650 to $699__________________ 8. 7 33.7 4.7 8.1 10.1 9.8 9.5 9.5 9.9 4.0
$700 to $749_____ __________ 6. 9 34.8 2.4 5. 6 7.9 9.0 8.3 8. 7 7. 6 6.0
$750 to $799. ________________ 5. 9 35. 5 1.5 4.4 6.7 7.3 8.5 8.3 7.4 5.2
$800 to $849__________________ 4.9 36.1 1.2 3.3 5.5 6.9 7.3 7.4 6.1 4.0
$850 to $899__________________ 3.1 36.8 .7 1.6 3.4 4.6 3.8 5.3 5. 6 3.0
$900 to $999___________________ 4. 0 37.5 .6 2.0 4.1 5.9 6.4 6.8 7.5 4.2
$1,000 to $1,199_______________ 3. 7 38.3 .6 1.6 3. 6 5.2 7.0 6.7 7. 6 5.4
$1,200 or more________________ 1. 7 40. 7 .3 .4 1.2 2.2 3.3 4.2 4.9 5.2
Total „ ______________ 100. 0 32. 6 100.0 100.0 100.0 100.0 100.0 100. 0 100. 0 100. 0
Percent of total ______________ 100. 0 12.9 25.4 22.3 17. 0 10. 4 6. 5 4. 6 .9
Median income______________ $597. 37— $489.13 $551.10 $617. 79 $655.18 $672. 26 $686. 48 $683. 41 $550. 96
EXISTING HOMES
Less than $300_____________ 1. 0 28.3 2.9 .7 .6 .6 .4 . 7 1.1 5.4
$300 to $349__________________ 3. 0 27.3 8.9 3.4 1.8 1.4 1.4 1.8 1.8 6. 7
$350 to $399__________________ 6. 4 28.2 15.7 8.0 4.6 3.5 3.3 3.7 4.0 8.0
$400 to $449__________________ 11.8 29.3 21.8 15.1 9.7 7.9 7.8 7.8 8.7 9.8
$450 to $499__________________ 11.5 30. 4 16. 5 14.7 10.6 9.1 8.3 8.5 9.0 8.2
$500 to $549__________________ 13.3 32.0 13.4 15. 7 14.1 12.4 10.7 10.8 11.4 11.1
$550 to $599__________________ 9. 7 33.0 6.9 10.7 11.0 9.9 8.7 9.3 9.2 7. 7
$600 to $649__________________ 9.1 34.1 4.9 8.9 10.2 10.2 10.6 9.5 8.8 7.5
$650 to $699__________________ 7.8 34.9 3.1 7.1 8.5 9.3 9.9 9.0 8.5 5.4
$700 to $749__________________ 5. 9 35. 6 1.9 4.5 7. 1 7.2 7.8 7. 6 7.0 5.2
$750 to $799__________________ 5.1 36.3 1.3 3.5 5.9 6.3 7.4 6.4 7.0 4.1
$800 to $849__________________ 4.3 36.4 1.1 2. 7 5.0 6.1 5.7 5. 6 5.3 3.3
$850 to $899__________________ 2.8 37.6 . 5 1.4 2.9 4.2 4.1 4.3 4.2 2.6
$900 to $999 _____ _________ 3.5 38. 0 . 5 1.8 3. 6 4.9 5. 7 6.1 5. 1 5.2
$1,000 to $1,199_______________ 3.3 38. 5 .3 1.4 3.3 5.0 5. 6 5. 7 5.0 7.0
$1,200 or more________________ 1. 5 40.8 .3 .4 1.1 2.0 2.6 3.2 3.9 2.8
Total____________ _____ 100. 0 33.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Percent of total_____ ______ 100.0 12. 5 24.2 21.3 16. 7 11.4 7.5 5. 7 . 7
Median income______________ $565. 38— $451. 81 $525. 55 $589.14 $625. 81 $644. 47 $639. 02 $626. 93 $555. 00
130
Table HI-57.—Housing expense by mortgagor’s income, 1-family homes,1 Sec. 203,1960
Monthly housing expense—percentage distribution
Mortgagor’s effective monthly
income
percentage
distribution
monthly
housing
expense
Less
than
$70
$70
to
$79
$80
to
$89
$90
to
$99
$100
to
$109
$110
to
$119
$120
to
$129
$130
to
$139
$140
to
$159
$160
to
$179
$180
to
$199
$200
or
more
NEW HOMES
Less than $300__ 0.3 $86.94
95.75
4.8 19.7 36.7 32. 6 4.1 1.4 0.7
$300 to $349________ 1.4 .1 4.3 22.4 40.3 24.9 7.0 0.8 .1 0.1
$350 to $399. 4.0 102. 92 . 1 1.0 9.2 29.5 35.2 20.0 4.4 .5 .1
$400 to $449 9.2 111.03 (2) .4 3.4 15.0 27.9 32. 5 16.7 3.6 .5 (2)
$450 to $499_________________ 10.9 118.09 (2) .2 2.3 7.6 16.8 28.6 30.0 12.0 2.5 (2) (2)
$500 to $549_________ 14.0 124.06 .2 1.0 5.4 10.9 20.2 30.3 22.5 9.3 0.2 (2)
$550 to $599.. 10. 7 130. 81 .1 1.0 3.5 7.3 13.9 21.9 28.2 22.3 1.7 0.1
$600 to $649 _ 10. 6 134.92 .1 .7 2.7 6.0 10.9 18.3 23.1 33.4 4.6 .2
$650 to $699________ 8.7 138.81 .1 .4 2.8 5.2 9.4 14.7 19.8 35.5 11.1 .8 0. 2
$700 to $749. _ 6.8 140.78 .4 1.7 4.4 7.9 14.2 18.8 32.7 17.0 2.6 .3
$750 to $799. 5.8 142. 39 .1 .3 1.7 3.0 7.1 13.0 17.1 32.2 19.0 5.6 .9
$800 to $849 5.0 143. 84 .1 .9 2.9 6.8 11.9 15.4 31.3 19.8 8.6 2.3
$850 to $899 3.1 144. 74 .2 .9 2.1 4.6 11.0 16.2 31.5 22.1 9.2 2.2
$900 to $999____ 4.0 146. 23 .1 .2 .9 1.8 3.6 9.9 14.4 30.7 22.5 11.2 4.7
$1,000 to $1,199 _ 3.8 149.44 .1 .6 1.5 3.6 6.2 10.8 28.8 25.4 15.6 7.4
$1,200 or more 1.7 163. 26 .1 1.0 1.4 3.7 7.0 7.3 21.4 25.0 16.7 16.4
Total___________ _____ 100.0 128.98 (’) 0.3 1.8 6.1 10.4 15.1 18.2 16.7 19.9 7.9 2.6 1.0
Median income______________ $597. 35 $296.43 $370.83 $414.14 $443. 26 $473.56 $509. 25 $548. 50 $609. 93 $689.09 $799. 81 $899.81 $1,026. 44
EXISTING HOMES
Less than $300____ _ ____ _ 1.0 81.93 10.2 33.3 33.6 16.1 4.9 1.1 .4 .2 .2
$300 to $349 _______________ 3.0 90.14 3.0 14.3 32.2 28.9 16.2 4.5 .6 .1 .1 .1
$350 to $399 6.4 98.04 1.2 6.8 18.8 28.7 27.5 12.9 3.5 .5 .1
$400 to $449.. ________ _____ 11.8 105.70 .5 3.5 10.2 20.1 27.6 24.6 10.1 2.8 .6 (2) (2)
$450 to $499__________________ 11.6 112. 75 .2 1.5 6.8 13.3 21.6 24.2 20.0 9.7 2.6 .1 (2)
$500 to $549__________________ 13.3 119. 53 .1 1.3 4.6 9.7 15.1 20.2 21.7 16.9 10.0 .4 (2) (2)
$550 to $599__________________ 9.7 126. 64 .1 .9 3.5 6.5 11.0 15.5 18.8 19.7 21.9 1.9 .2 (2)
$600 to $649______________ .. 9.1 132.49 (2) .8 2.8 5.7 8.5 12.9 14.9 17.7 30.8 5.3 .6 (2)
$650 to $699__________________ 7.8 136. 24 . 1 .7 2.0 5.0 8.5 11.8 12.8 14. 6 30.0 13.2 1.1 . 2
$700 to $749__________________ 5.9 139.10 (2) .3 1.9 3.7 8.0 11.3 12.1 14.0 28.3 16.8 3.0 . 6
$750 to $799.. ___ ____ 5.0 141.82 .1 .2 1.0 3.1 6.6 9.1 11.4 13.6 26.7 20.1 6. 6 1.5
$800 to $849__________________ 4.3 143. 65 (2) .4 .9 2.7 5.5 8.6 10.2 12.6 24.9 20.6 10.2 3.4
$850 to $899__________________ 2.8 144. 42 .1 .9 2.3 4.8 7.7 11.5 12.1 23.9 19.4 12.1 5. 2
$900 to $999 _ _________ ___ 3.5 146.92 .1 .8 2.2 3.6 6.6 8.5 11.1 24.7 21.0 13. 6 7.8
$1,000 to $1,199_____ ___ ... 3.4 165.05 .1 .1 .6 .9 3.0 4.8 6.2 7.9 20.8 22.1 18.3 15.2
$1,200 or more___ ____________ 1.4 175.06 1.0 1.1 2.8 2.6 4.7 6.6 16.9 19.0 15.9 29.4
Total . . ____________ 100.0 121.41 0. 4 2.2 6.1 10.3 14.0 15.1 13.4 11.6 15. 6 6.9 2.8 1. 6
Median income_____________ $565.37 $352. 22 $391. 27 $423. 67 $448.07 $479.17 $516.39 $552.51 $604.01 $673. 87 $784.82 $889. 55 $1,036. 52
1 In this table data are based on 1-family occupant cases. 2 Less than 0.05 percent.
Table III-58.—Total acquisition cost by mortgagor’s income, 1-family homes,1 Sec. 203, 1960
1 In this table data are based on 1-family occupant purchase cases. 2 Less than 0.05 percent.
Mortgagor’s effective monthly
income
Percentage
distribution
Median
total
acquisition
cost
Total acquisition cost—percentage distribution
Less
than
$9,000
$9,000
to
$9,999
$10,000
to
$10,999
$11,000
to
$11,999
$12,000
to
$12,999
$13,000
to
$13,999
[$14,000
to
$14,999
$15,000
to
$15,999
$16,000
to
$16,999
$17,000
to
$17,999
$18,000
to
$19,999
$20,000
or
more
NEW HOMES
Less than $300__ ______________ 0.3 $9, 714
10, 567
11,332
12, 340
13, 249
13. 952
31.4 26.1 24.7 9.7 4.5 1.5 0. 7 0.7 0.7
$300 to $349_______ _______1_.4 7.9 24.4 31.2 18.4 10.0 4.5 1.9 0.8 .7 .2
$350 to $399_________________4_.0_ 2.9 10.8 27.5 26.5 17.6 8.5 3.9 1.4 .3 .2 0.3 0.1
$400 to $449_________________9_.2 1.1 5.4 14.2 21.4 23.2 18.4 9.9 4.0 1.7 . 4 . 3 (2)
$450 to $499________________1_0_. _9 .9 2.6 7.4 13.6 19.9 22.6 18.3 8.8 3.8 1.3 .7 .1
$500 to $549________ _____1_4_.0_ .3 1.7 4.9 9.3 14.8 20.0 21.6 14.2 7.8 3.3 1.8 .3
$550 to $599________________1_0_.7_ 14, 738
15,267
15, 764
16,207
16,515
16,859
17,072
17, 553
.2 1.3 3.7 5.8 9.7 14.7 19.8 18. 7 13.1 7.0 5.1 .9
$600 to $649________________1_0_.6 .2 .8 2.6 4.9 7.7 12.5 16.5 17.7 14.7 11. 3 8.9 2.2
$650 to $699_________________8_.7 . 1 1.0 2.3 4.1 7.2 10. 5 13.9 14.3 14.7 12.3 15.1 4.5
$700 to $749_________________6_.8 .2 .5 1.8 3.7 6.2 9.0 12.6 13.3 13.1 12. 5 17.4 9. 7
$750 to $799_________________5_.8 .1 .5 1.8 2.9 4.9 7.7 11.3 14.3 12.6 11.6 18.8 13. 5
$800 to $849___________________ 5.0 (2) .2 1.2 2.8 4.0 7.6 11.6 12.2 12.1 11.6 17. 7 19.0
$850 to $899 __________________ 3.1 .2 ‘ .6 2.5 3.8 6.7 11.2 12.0 12.1 11.1 20. 3 19. 5
$900 to $999____________ _____ 4.0 .2 .3 1.1 1.8 2.4 5.8 9.1 11.9 10.7 12.1 18.8 25.8
$1,000 to $1,199_________________ 3.8 18,157
19,271
.1 .1 .7 2.1 2.5 3.1 7.5 10.8 10.7 10. 9 18. 9 32.6
$1,200 or more ________________ 1.7 .4 1.6 1.3 2.1 4.1 5.9 8.1 9.8 6.6 15.8 44.3
Total______ __________ 100.0 14, 606 .7 2.3 5.7 8.4 11.0 13.3 14.4 12.3 9.5 7.1 8.6 6.7
EXISTING HOMES
Less than $300_______________1.0 8,075 72.3 15.1 9.2 1.8 1.0 .2 .2 .2
$300 to $349___________________ 3.0 8, 981 50.5 20.9 14.7 8.0 3.8 1.3 .5 .1 .1 . 1
$350 to $399___________________ 6.4 10.089 29.6 18.4 22.1 15.8 8.3 3.6 1.5 .5 .1 .1
$400 to $449___ ______________ 11.8 11,083 15.6 14.0 18.8 19.0 15.2 9.5 5.0 1.9 .5 .3 . 1 . 1
$450 to $499___________________ 11.6 12,093 9.6 9.4 13.5 15.8 17.5 15.9 10.2 4.9 2.1 .7 .3 . 1
$500 to $549____________________ 13.3 12, 972 6.4 6.8 9.7 12.8 14.7 16.3 14.4 9.4 5.3 2.8 1.2 .2
$550 to $599___________________ 9.7 13,878 4.9 5.1 7.1 9.0 11.7 13.9 15.6 13.5 9.6 5.2 3. 9 .5
$600 to $649___________________ 9.1 14,507 3.8 4.2 5.9 7.7 10.1 11.5 13.5 13.8 12.3 8.7 7.2 1.3
$650 to $699______________ ___ 7.8 14, 936 3.3 3.1 5.7 7.3 9.3 10.5 11.5 12.8 11.9 10.1 10.5 4.0
$700 to $749____________________ 5.9 15,238
15,887
2.6 2.9 4.8 6.3 9.5 10.9 10.5 10.6 11.8 9.3 13.8 7.0
$750 to $799____________________ 5.0 1.3 1.7 3.7 5.8 7.3 10.3 10.4 10.7 10.4 10.4 16.0 12.0
$800 to $849____________________ 4.3 16,371 1.4 2.2 3.6 4.5 5.8 10.0 8.7 9.8 10.8 9.9 16.1 17.2
$850 to $899____________________ 2.8 16,576 1.1 1.7 2.7 4.8 6.5 8.2 9.4 10.1 9.6 8.1 16.2 21.6
$900 to $999____________________ 3.5 17,281 1.0 1.4 2.2 2.9 4.2 7.0 8.1 10.1 9.9 11.3 16.4 25.5
$1,000 to $1,199_________________ 3.4 18,304 .7 .8 2.0 2.6 3.9 5.2 6.0 7.3 8.3 10.4 17.4 35.4
$1,200 or more. _______________ 1.4 19,391 .3 .7 2.7 1.4 4.5 2.6 5.4 5.0 6.7 7.6 18.6 44.5
Total___ ________________ 100.0 13,227 9.3 7.2 9.6 10.4 10.9 10.9 9.8 8.2 6.7 5.2 6.2 5.6
131
urns, and similar items. The typical acquisition
cost of a new property was $14,606, which was
about one-tenth higher than the reported cost of
an existing property ($13,227). Moreover, for all
mortgagor income categories below $1,000 a
month, the cost of a typical new property was
higher than the cost of a typical existing home.
As would be expected, the price of the house purchased
reflected size of the (family) income. The
median acquisition cost for new homes rose consistently
from under $10,000 for families with
incomes below $300 monthly to about $14,000 at
the $500 income level and to $19,000 for families
earning over $1,200 monthly. Despite the regularity
in the relationship of median cost to income
level, it is highly significant that for both new
and existing home purchasers a very wide range
of house prices was paid by every income class.
Homes in every transaction cost from less than
$9,000 to more than $20,000 were purchased by
families with incomes below $400 monthly and by
every other income group up to more than $1,000
monthly. Such diversity reflects varying needs
and desires of families in the same income range
as well as differences in accumulated resources
available for home purchases.
Table III-59.—Total acquisition cost, 1-family homes,1
Sec. 203, selected years
Total acquisition cost
Percentage distribution
1960 1959 1958 1955 1951
NEW HOMES
Less than $8,000______ (2) 0.1 0.4 3.2 19.7
$8,000 to $8,999 _____ 0.6 .7 .8 9.9 16.7
$9^000 to $9,999_______ 2.3 3.0 4.8 13.7 18.8
$16,000 to $10,999_____ 5.7 6.9 9.3 11.8 14.0
$11,000 to $11,999_____ 8.4 9.6 9.8 11.3 9.7
$12,000 to $12,999_____ 11.0 10.9 10.1 11.1 7.3
$13,000 to 813,999_____ 13.3 14.4 11.1 10.4 4.8
$14,000 to $14,999 ____ 14.4 13.3 11.0 8.2 3.0
$15,000 to $15,999_____ 12.3 10.3 10.3 7.0 2.0
$16,000 to $16^999 ____ 9.5 9.0 10.0 5.0 1.3
$17,000 to $17^999_____ 7.1 7.2 6.9 3.0 .8
$18,000 to $18^999_____ 5.2 4.6 5.3 2.0 .6
$19,000 to $19,999_____ 3.5 3.2 3.6 1.3 .4
$20,000 to $21,999_____ 3.8 3.9 3.8 1.2 .4
$22,000 to $24,999 ._ 2.2 2.4 2.1 .6 .3
$25,000 and over______ .7 .5 .7 .3 .2
Total 100.0 100.0 100.0 100.0 100.0
Average___ ___ _ $14,939 $14, 727 $14, 596 $12,367 $10,250
Median_____________ $14, 606 $14,333 $14,334 $12,003 $9,725
EXISTING HOMES
Less than $8.000______ 4.0 4.3 4.5 6.7 24.8
$8,000 to $8,999______ 5.3 5.9 6.2 9.1 11.2
$9/J00 to $9,999 ______ 7.2 7.7 7.9 11.2 11.2
$10 000 to $10,999 9. 6 9. 7 10.0 12.0 11.6
$11,000 to $11,999_____ 10.4 10.2 10.5 10.9 9.7
$12,000 to $12,999_____ 10.9 10.7 10.6 10.9 8.4
$13,000 to $13'999 10.9 10.4 10.4 9.7 6.8
$14,000 to $14,999_____ 9.8 9.0 8.8 7.6 4.9
$15,000 to $15,999_____ 8.2 7.9 7.7 5.8 3.9
$16^000 to $16,999_____ 6.7 6.6 6.7 4.5 2.6
$17,000 to $17/999_____ 5.2 5.0 4.9 3.3 1.6
$18^000 to $18^999_____ 3.8 3.7 3.8 2.4 1.1
$16700 to $19,999_____ 2.4 2.4 2.4 1.5 .7
$20,000 to $21^999____ 2.8 3.0 2.6 1.9 .7
$22'000 to $24/199_____ 2.0 2.6 2.2 1.6 .4
$25^000 and over______ .8 .9 .8 .9 .4
Total______ _ 100.0 100.0 100.0 100.0 100.0
Average____________ $13, 579 $13, 560 $13,446 $12, 558 $11,351
Median_____________ $13,227 $13,130 $13,025 $12,013 $10,274
i In this table data are based on 1-family occupant purchase cases.
2 Less than 0.05 percent.
Purchase Transaction Characteristics
The predominant purpose underlying the origination
of a Section 203 insured mortgage in
1960 was to finance the purchase of a home for
personal long-term occupancy. During 1960, almost
98 percent of the new-home and more than
96 percent of the existing-home transactions involved
purchases by occupant mortgagors.
Total Acquisition Cost.—Table 111-59 shows the
distribution of total acquisition costs in 1960 and
several selected earlier years. In brief, the total
acquisition cost to the mortgagor is the entire
cost of the transaction, excluding such prepayable
expenses as accrued taxes and insurance premiums.
Table HI-59 indicates the gradual increase in
average acquisition costs over the last 9 years.
In 1951, the typical acquisition cost (as measured
by the median) of a new home was $9,725;
by 1955, the cost had increased 23 percent to
$12,003, and by 1960 another 22 percent to $14,606.
For existing homes the trend was less marked, increasing
only half as much as for new homes and
ranging from $10,274 in 1951 to $13,227 in 1960.
During 1960, the average cost of purchasing a
new dwelling ($14,939) was about 10 percent above
the cost of buying an existing home ($13,579).
It is also interesting to note that only 3 percent
of the new homes and 17 percent of the existing
homes cost less than $10,000, while an almost equal
proportion of the new and existing transactions—
6 percent—exceeded $20,000.
Characteristics by Total Acquisition Cost.—Averages
of the property characteristics (Table HI-
60) and transaction characteristics (Table IH-61)
by total acquisition cost indicate that, as the total
acquisition cost rises, concurrent advances are also
found in average property values, land costs, size
of structure, replacement costs, mortgagor’s income,
and current investment.
Table HI-60 presents information about property
characteristics of homes within total cost
ranges. An average new house in the $10,000-cost
category was valued by FHA at $10,664 and built
on a site costing $1,672. The house had five rooms,
including three bedrooms, and a floor area of 958
square feet. It was a one-story structure with
only one bath. Likewise, it had no basement, and
in two-thirds of the cases had a garage or carport.
Inasmuch as downpayments generally are taken
from savings accumulated from current income, it
is of interest to note the relationship of current
investments required of home buyers to that income
(Table HI-61). In 1960, the current investment
was smaller than was required in 1959,
because of higher loan-to-value limitations made
available by the Housing Acts of 1958 and 1959
(see Loan-Value Ratio discussion). The required
investment amounted to 17% percent of annual income
for the average new-home buyer and to 21
percent for the average existing-home buyer,
ranging from 9 percent for buyers of new homes
costing less than $8,000 to 46 percent for the high132
est cost interval. The corresponding range for
existing-home buyers was from 12 percent to
almost 48 percent.
Not only did the amount of current investment
(down payment plus closing costs) increase as
total acquisition cost advanceci, but the ratio of investment
to income also rose steadily, primarily
because of regulations concerning downpayment
ratios. For new-home transactions, current investments
averaged $1,328 or about 9 percent of
acquisition cost, and ranged from $422 or 6 percent
of cost for the lowest price homes to $5,823
(21 percent) in those transactions requiring more
than $25,000 in acquisition costs. In contrast, the
average existing-home buyer invested a larger
amount—$1,532—ranging from $614 (9 percent)
to $6,310 (23 percent) for corresponding cost
ranges.
Closing costs as derived by differencing total acquisition
cost and sale price were somewhat higher
for existing-home mortgagors. The average
closing cost for existing-home transactions was
$295 in contrast to $277 for new-home cases. For
all groups with acquisition costs below $22,000,
closing costs were higher for existing-home buyers
than for new-home buyers. The level of closing
costs is related to the amount of the mortgage and
the number and amount of items included, such as
financing charges, recording fees and taxes, costs
of credit reports, property surveys, title examinations
and insurance, and other charges or fees
customary in the particular locality. Also affecting
the levels of closing costs is the practice of some
builders to absorb part or all of the closing costs in
the sale price in order to promote sales.
CHARACTERISTICS OF MULTIFAMILY
HOUSING MORTGAGE TRANSACTIONS
Multifamily housing characteristics data presented
in this report are based on commitments
issued by FHA in 1960 to insure mortgages on
newly-constructed rental housing projects or
management-type cooperative housing projects.
During 1960, FHA issued 862 commitments on
multifamily housing projects involving 69,300
dwell ing units. The analysis covers 55,600 of these
units—35,100 units in newly-constructed rental
housing available for general occupancy, 15,400
Section 803 units restricted to occupancy by military
personnel and their dependents, and 5,100
units in Section 213 management-type cooperative
projects. General occupancy rental housing includes
the regular long-term investment program
under Section 207 (27,500 units) ; urban renewal
program, Section 220 (6,200 units) ; and relocation
housing, Section 221 (1,400 units). A special discussion
of housing for the elderly and nursinghomes
under Sections 231 and 232 is presented in
the latter portion of this section of the report.
Table III-60.—Property characteristics by total acquisition cost, 1-family homes,1 Sec. 203, 1960
i In this table data are based on 1-family occupant purchase eases. 2 Less than 0.05 percent.
Total acquisition cost
Percentage
distribution
Average
Price of
site as
percent
of value
Average Percentage of structure with—
Property
value
Market
price
of site
Calculated
area
(sq. ft.)
Number
of
rooms
Number
of
bedrooms
More
than
1 bath
1 story
Full or
part
basement
Garage Carport
NEW HOMES
(2) $7,457
8, 890
$1,402 18.8 684 3.8 1.6 92. 6 7.4 17.9 7.1
$8,000 to $8,999______________ 0.6 1,454 16.4 859 4.7 2.6 4.7 90.7 1.7 29.1 27.9
$9,000 to $9,999______________ 2.3 9, 776 1, 547 15.8 919 5.0 2.9 21.0 95.8 3.6 37.3 26.8
$10,000 to $10,999____________ 5.7 10. 664 1.672 15.7 958 5.0 2.9 27.2 92.0 10.8 34.8 32.0
$11,000 to $11,999____________ 8.4 11.598 1,811 15.6 1,000 5.1 2.9 26.4 90.7 20.0 41.9 27.0
$12,000 to $12,999____________ 11.0 12, 525 1,971 15.7 1,032 5.2 3.0 29.0 90.1 28.8 44.2 24.4
$13,000 to $13,999____________ 13.3 13,486 2,142 15.9 1,067 5.3 3.0 38.0 93.4 33.3 46.6 19.8
$14,000 to $14,999______ 14.4 14, 425 2,360 16.4 1,112 5.4 3.0 49.8 91.9 36.2 52.7 18. 7'
$15,000 to $15,999____________ 12.3 15,374 2, 542 16.5 1,159 5.5 3.1 60.1 91.7 38.1 56.3 18.3
$16,000 to $16,999____________ 9.5 16,331 2,783 17.0 1,194 5.6 3.0 67.3 88.3 41.3 57.3 19.0
$17,000 to $17,999____________ 7.1 17, 263 2,970 17.2 1,244 5.7 3.1 76.1 84.8 43.0 65. 6 16.4
$18,000 to $18,999____________ 5.2 18,249 3,298 18.1 1,308 5.9 3.1 82.9 84.1 38.3 67.3 18.8
$19,000 to $19,999____________ 3.5 19,128 3,488 18.2 1,356 6.0 3.1 90.0 84.2 38.5 71.0 16.9
$20,000 to $21,999____________ 3.8 20, 638 3,749 18.2 1,434 6.2 3.3 92.9 82.3 34.9 75.6 14.8
$22,000 to $24,999__________ . 2.2 22, 560 4,066 18.0 1,530 6.4 3.3 94.3 80.8 36.0 73.7 17.0
$25,000 and over_____________ .7 25, 794 4,335 16.8 1,617 6.6 3.4 90.7 76.5 30.1 79.9 13.6
Total_________________ 100.0 14,855 2, 477 16.7 1,140 5.5 3.0 52.6 89.5 32.8 53.3 20.7
EXISTING HOMES
Less than $8,000 ---------------- 4.0 7,042 1.113 15.8 943 5.0 2.4 2.6 65.7 43.0 37.2 6.9
$8,000 to $8,999______________ 5.3 8, 409 1.330 15.8 951 5 0 2.4 3.4 74.7 36.6 46.9 9.1
$9,000 to $9,999______________ 7.2 9,381 1,522 16.2 980 5.1 2.5 4.2 76.9 37.6 52.1 9.2
$10,000 to $10,999____________ 9.6 10,358 1,760 17.0 993 5.1 2.5 5.9 79.9 38.7 55.8 9.7
$11,000 to $11,999___________ 10.4 11,289 1,939 17.2 1,016 5.2 2.6 8.3 78.8 43.2 59.2 8.8
$12,000 to $12,999____________ 10.9 12,254 2,151 17.6 1,043 5.3 2.7 13.6 79.9 44.0 61.0 9.9
$13,000 to $13,999____________ 10.9 13,210 2,330 17.6 1,070 5.4 2.8 17.9 78.5 46.9 61.6 9.8
$14,000 to $14,999____________ 9.8 14,136 2,530 17.9 1,101 5.4 2.8 23.0 78.0 50.1 64.0 9.5.
$15,000 to $15,999____________ 8.2 15,092 2. 745 18.2 1.143 5.6 2.9 29.0 76.0 53.4 69.3 8.2
$16,000 to $16,999____________ 6.7 16,057 2, 933 18.3 1,188 5.7 2.9 39.8 73.0 55.9 69.8 9.5
$17,000 to $17,999____________ 5.2 15, 957 3.087 18.2 1.231 5.8 3.0 45.9 71.3 60 1 71. 6 8.9
$18,000 to $18,999____________ 3.8 17,933 3,340 18.6 1,280 5.9 3.0 53.8 68.0 62.0 73.2 9.5
$19,000 to $19,999____________ 2.4 18, 826 3,528 18.7 1,329 6.0 3.1 62.5 67.5 61.2 78.1 9.5
$20,000 to $21,999____________ 2.8 20,227 3. 861 19.1 1,414 6.2 3.1 72 6 63.8 61.8 78.2 11.5
$22,000 to $24,999____________ 2.0 22,316 4.233 19.0 1.498 6.3 3.2 80.4 61.9 63.0 78.5 12.2
$25,000 and over_____________ .8 25,512 4,696 18 4 1,613 6.4 3.2 84.6 58.6 63.2 82.8 9.9
Total_________________ 100.0 13,268 2,354 17.7 1,098 5.4 2.7 22.9 75.4 47.9 62.0 9.3
133
Tables presented in connection with this discussion
ordinarily include a total column under
“Rental housing.” These aggregates are markedly
influenced from year to year by the relative
importance of the operations in the various special-
purpose programs. Section 207 data are
considered to be more representative of all rental
market operations than those under specialpurpose
programs. They are not, however, necessarily
representative of this segment of the
housing market for the country as a whole.
Excluded from the analysis of multifamily
housing characteristics are newly-constructed
sales-type cooperative projects, mobile home
courts, and all projects involving existing construction.
Sales-type cooperatives are excluded
because they more nearly typify home mortgage
operations. The cooperatives involved are primarily
temporary in nature, organized for the
planning and construction of individual homes,
which upon completion are released to the members
of the cooperative, as explained in the discussion
of terminations of Section 213 project
mortgages.
Table III-61.—Transaction characteristics by total acquisition cost, 1-family homes,1 Sec. 203, 1960
Total acquisition cost
Percentage
distribution
Average Mortgage as percent
of Current
investment
as
percent
of income
Total
acquisition
cost
Sale
price
Property
value
Market
price
of site
Property
replacement
cost
Mortgage
amount
Mortgagor’s
annual
income
Current
investment
2
Property
value
Total
acquisition
cost
NEW HOMES
Less than $8,000____ ____ _ (3) $7,236
8,620
9,622
10, 548
11, 517
12, 504
$7,104
8,438
9,426
10,352
11,292
12, 264
13, 259
$7,457
8, 890
9, 776
10, 664
11, 598
12, 525
13, 486
14, 425
15, 374
16, 331
17, 263
18, 249
19,128
20, 638
22, 560
25, 794
$1, 402
1, 454
1, 547
1, 672
1,811
1,971
2,142
2, 360
2, 542
$8, 241
9, 526
10,359
11, 173
12, 035
13, 040
13, 932
14, 937
15, 893
16, 859
17, 785
18, 785
19, 604
$6, 814
8,196
9,187
10, 033
10,892
11,777
12, 663
13, 456
$4, 745
5,086
$422 91.4 94.2 8.9
$8,000 to $8,999______________ 0.6 424 92.2 95.1 8.3
$9,000 to $9,999______________ 2.3 5, 470 435 94.0 95.5 8.0
$10,000 to $10,999____________ 5.7 5, 781 515 94.1 95.1 8.9
$11,000 to $11,999_________ _ 8. 4 6,120
6, 426
6, 835
625 93.9 94.6 10.2
$12,000 to $12,999_______ 11. 0 727 94.0 94.2 11.3
$13,000 to $13,999_______ _ _ 13.3 13. 508
14, 481
15, 467
16,467
17, 466
18, 449
19,470
20, 876
23,157
27, 372
845 93.9 93.7 12.4
$14,000 to $14,999_____ 14.4 14; 238
15,202
16,169
17,145
18. 094
19, 080
20,496
22, 704
26, 430
7, 309 1, 025 93.3 92.9 14.0
$15,000 to $15,999____________ 12.3 14, 234
14, 902
15, 570
16,173
7, 826 1,233
1, 565
1,896
92.6 92.0 15.8
$16,000 to $16,999___________ 9. 5 2, 783 8, 255
8,695
9, 138
91.2 90.5 19.0
$17'000 to $17.999_____ 7.1 2; 970
3, 298
3, 488
3, 749
4,066
4, 335
90.2 89.1 21.8
$18^000 to $18,999___ ______ 5.2 2, 276 88.6 87.7 24.9
$19,000 to $19,999____________ 3. 5 16, 817
17,717
19, 208
21, 549
9. 629 2, 653 87.9 86.4 27.6
$20,000 to $21,999____________ 3.8 21,217 10, 488 3,159 85.8 84.9 30.1
$22,000 to $24,999____ ______ 2.2 23, 009
26, 225
11,435 3, 949 85. 1 82.9 34. 5
$25,000 and over_____ ____ _ . 7 12, 746 5,823 83.5 78.7 45.7
Total______ ___________ 100. 0 14, 939 14, 662 14, 855 2, 477 15, 358 13, 611 7, 584 1,328 91.6 91.1 17.5
EXISTING HOMES
Less than $8,0C0_. __ _ __ 4.0 7,116
8, 518
9, 501
10, 498
11,490
12,494
13, 488
14,466
15, 469
16,469
17, 458
18,468
19, 457
20,889
23, 236
27,306
6, 896
8, 286
9, 260
10, 253
11, 229
12,228
13,210
14,170
15,143
16,132
17,080
18, 097
19, 053
20,490
22, 799
26, 608
7, 042
8, 409
9, 381
10,358
11,289
12, 254
13, 210
14,136
15, 092
16, 057
16,957
17, 933
18, 826
20,227
22, 316
25, 512
1,113
1,330
1, 522
1,760
1,939
10, 267
11, 091
11, 896
12, 670
13, 406
6, 502
7,817
8, 734
9, 642
10,485
5, 037 614 92.3 91.4 12.2
$8,000 to $8,999______________ 5.3 5, 400 701 93.0 91.8 13.0
$9,000 to $9,999______________ 7. 2 5, 736 767 93.1 91.9 13.4
$10,000 to $10,999____________ 9.6 6, 026 856 93. 1 91.8 14.2
$lL000 to $11,999____________ 10.4 6,306 1,005 92.9 91.3 15.9
$12,000 to $12,999____________ 10.9 2,151
2, 330
14, 242
15, 086
15,973
16,843
17, 762
18, 622
19, 777
20, 680
22,087
24,170
27, 928
11,340
12,189
6,685 1,154 92.5 90.8 17.3
$13/100 to $13,999________ 10.9 7, 065 1,299 92.3 90.4 18.4
$14/100 to $14,999____________ 9.8 2, 530
2, 745
2, 933
3, 087
3, 340
3,528
3,861
4, 233
4, 696
12, 913
13, 664
7,424 1, 553 91.3 89.3 20.9
$15^000 to $15^999____________ 8.2 7,892 1,805 90.5 88.3 22.9
$16/100 to $16,999____________ 6.7 14,444 8,322 2,025
2,354
90.0 87.7 24.3
$17'000 to $17^999____________ 5.2 15,104
15, 769
16, 448
17, 491
18, 988
8,865 89.1 86.5 26.6
$18^000 to $18,999____________ 3.8 9,324 2,699
3, 009
87.9 85.4 28.9
$19/100 to $19/199___________ 2. 4 9, 900 87.4 81.5 30.4
$20,000 to $21,999________ __ 2.8 10, 470 3,398 86. 5 83.7 32.5
$22/100 to $24'999____________ 2. 0 11,465 4,248 85. 1 81.7 37.1
$25/100 and over _________ _ .8 20, 996 13, 273 6,310 82.3 76.9 47.5
Total________________ 100.0 13, 579 13,284 13, 268 2,354 15,332 12, 047 7,243 1, 532 90.8 88.7 21.2
1 In this table data are based on 1-family occupant purchase cases.
2 Total acquisition cost less mortgage amount.
2 Less than 0.05 percent.
Table HI-62.—Characteristics of multifamily housing transactions, by section, 1960
Item
Total rental
and cooperative
housing
Rental housing Cooperative
housing Sec.
213 manageTotal
Sec. 207 Sec. 220 Sec. 221 Sec. 803 ment type
Projects:
Median size (in units) 1____________________________________________
Average size (in units)--------------------------------------------------------------------
Units:
Average number of rooms 2_________________________________________
Median monthly rental____________________________________________
Median mortgage amount4--------------------------------------------------------------
Median mortgage-cost ratio-------------------------------------------------------------
119.0
144.4
4.8
(3)
$15,401
89.4
119.0
145.9
4.7
(3)
$15,307
88.8
117.0
146.8
4.4
$171. 31
$14,088
86.2
132.0
215.7
4.0
$158.13
$14, 484
88.6
158.0
179.5
4.3
$89.07
$8, 653
100.0
118.0
125.8
5.7
(3)
$16,006
98.1
128.0
131.2
4.9
(3)
$16,211
90.0
The following footnotes apply to this and to all subsequent tables in this
section of the report:
i By inspection.
2 Determination of the number of rooms per unit includes baths, foyers,
terraces, balconies, and porches, but excludes closets, halls, and similar spaces.
3 Not available.
4 Amount of mortgage allocable to dwelling use.
134
Trends of Typical Multifamily Housing
Transactions
The typical FHA-approved rental project in
1960 contained 119 units with an average of 4.7
rooms. The $15,307 mortgage secured by this
unit represented 88.8 percent of the amount
estimated by FHA as necessary to cover construction
costs. Table HI-62 presents these data for
each of the several project programs. Section 207
projects were larger in 1960, typically 117 units
compared with 109 a year earlier, but the size of
the individual units changed only slightly, averaging
4.4 rooms as compared with 4.3 in 1959.
The median Section 207 mortgage per unit rose 14
percent to $14,088, and the monthly rental increased
to $171.31, 11 percent more than the
$154.98 reported for 1959.
The average management-type cooperative unit
remained the same size in 1960, 4.9 rooms, but
required a higher mortgage of $16,211—18 percent
above the $13,789 in 1959. This mortgage
represented 90 percent of the estimated cost of
replacement, reflecting the increase from 85 to 90
percent in the maximum permissible loan-toreplacement-
cost ratio authorized for investorsponsored
type projects by the Housing Act of
1959.
The median rental project mortgage (total
amount) approved for mortgage insurance in
1960 was $1,823,100. By program, the typical
project mortgage in order of size was: Section
220, $2,530,200; Section 803, $1,893,000; Section
207, $1,705,100; and Section 221, $1,340,250.
Except for Section 803, these mortgages wTere
larger than in 1959. Management-type cooperatives
had a typical mortgage of $1,918,300, also
larger than in 1959.
Table HI-63 and Chart HI-31 show trends of
selected characteristics for rental housing projects
covered by commitments issued in recent years.
Overall trends in characteristics are governed more
by the weights contributed to the total by individual
programs rather than by trends within
separate programs. This principle is well illustrated
by a comparison of the size of dwelling
units by year. Multifamily dwelling units in 1960
continued to decrease in size, 4.7 rooms compared
with 4.9 in 1959 and 5.1 in 1957 and 1958, despite
the fact that most rental programs reported an
increase in average unit size in 1960. The decrease
in unit size for all programs combined is
attributable to the declining proportion over this
period of Section 803 units, which are typically
larger in room count, coupled with an increasing
volume of Section 207 units which are typically
smaller.
Table III-63.—Characteristics of mortgages and projects in rental project transactions, selected years
1960 1959 1958 1957 1956 1955 1954 1952 1950 1947
Projects:
Median size (in units)____ ______ 2119.0
145.9
21.4
44.3
34.3
4.7
$166. 22
$14,875
14.1
56.8
29.1
$40.43
$3,139
2118.0
135.5
22.7
27.5
49.8
4.9
$145. 98
$14,124
15.3
38.5
46.2
$35. 22
$2,869
2 107.0
120.1
20.5
20.2
59.3
5.1
$143.13
$14,099
11.4
33.4
55.2
$35. 52
$2,782
2 142.0
161.8
27.5
14.0
58.5
5.1
$133. 80
$14,242
18.4
17.5
64.1
$34. 62
$2, 795
2 211.0
218.8
44.0
26.0
30.0
4.7
$120.87
$11, 944
23.3
30.5
46.2
$31.12
$2,564
69.0
115.6
47.5
32.2
20.3
4.5
$121. 83
$8,049
24.4
40.8
34.8
$28.47
$1,802
77.5
116.8
54.6
27.6
17.8
4.3
$115.43
$7,821
35.8
44.4
19.8
$26. 73
$1,817
87.5
154.8
53.5
5.6
40.9
4.5
$81.87
$7,179
39.4
4.4
56.2
$20.11
$1,579
48.6
97.6
59.0
18.0
23.0
3. 9
$80.69
$7,140
40.0
30.8
29.2
$21.37
$1,835
20.3
39.8
85.9
1.1
13.0
4.4
$84.13
$7, 505
83.6
2.7
13.7
4 $19.00
$1, 724
Average size (in units) _ _ ____ _
Percent with:
Walk-up structures_____ __________ ...
Elevator structures_________________
One-family structures____________________
Units:
Average number of rooms-__ _ _
Median monthly rental 3_ __________
Average mortgage amount, ___ _ _
Percent in:
Walk-up structures_______________ _
Elevator structures__________ ___
One-family structures___________ _ _
Rooms:
Average monthly rental3____________________
Average mortgage amount___________________
1 Based on commitments issued in 1947 under Sec. 608, in 1950 under Secs.
207, 608, 803, in 1952-1954 under Secs. 207, 803, 908, in 1955-56 under Secs.
207, 220, 803, and in 1957-60 under Secs. 207, 220, 221, 803.
2 By inspection.
3 Median and average monthly rentals exclude Sec. 803 for all years.
4 Estimated.
The average unit-mortgage amount of $14,875
in 1960 established a new FHA record. The previous
peak of $14,242 was reached in 1957, with
a preponderance of operations under the Section
803 program consisting mainly of one-family
houses which characteristically involve higher
unit mortgages. This most recent increase, however,
reflects the increased maximum mortgage
amounts permitted in recent years for rental programs,
other than Section 221, in recognition of
higher construction costs. Although in 1957 the
typical unit-mortgages reported for Sections 207
and 220 were some $4,000 below that for Section
803, this differential had decreased by 1960 to less
than $2,000 per unit. Paralleling the increases in
construction costs and mortgage amounts, the
typical rental increased in 1960 to $166.22 per
unit, reaching a record high for the fourth
consecutive year. Section 803 unit rentals are
excluded from these data, since the military
establishments do not report this item of information
to FHA.
135
Chart III-31
TREND OF CHARACTERISTICS OF RENTAL PROJECTS
Based on units covered by commitments issued
*Computed to exclude Section 803 for all years.
** Amount allocable to dwelling use.
Type of Structure
Multifamily housing projects are classified by
FHA into three principal types of structures;
walk-up, elevator, and one-family (row, semidetached,
and detached houses). Projects composed
of more than one type of structure are
classified according to the structural type accounting
for the greatest number of dwelling units.
In 1960, elevator structures accounted for nearly
three-fifths of the dwelling units approved in
rental housing projects—including more than
four-fifths of all dwelling units in Section 207
projects (Table III-64). Section 220 units were
also predominantly in elevator structures. In contrast,
more than three-fourths of the units in
Section 221 projects were in walk-up apartments,
and all but 8 percent of military units were in
one-family dwellings.
136
Table III-64.—Type of structure for multifamily housing, l)y section, 1960
Type of structure
Total rental
and cooperative
housing
Rental housing Cooperative
housing Sec.
213 manageTotal
Sec. 207 Sec. 220 Sec. 221 Sec. 803 ment type
Percentage distribution of projects:
Walk-up_________________________________________________________
Elevator_________________________________________________________
One-family.._____________________________________________________
All projects_____________________________________________________
Percentage distribution of dwelling units:
Walk-up_________________________________________________________
Elevator_________________________________________________________
One-family_______________________________________________________
All units_______________________________________________________
22.6
46.1
31.3
21.4
44.3
34.3
25.8
72.5
1.7
37.9
62.1
75.0
12.5
12.5
7.4
92.6
33.3
61.6
5.1
100.0 100.0 100.0 100.0 100.0 100.0 100.0
15.4
58.0
26.6
14.1
56.8
29.1
16.1
83.2
. 7
5.5
94.5
78.0
8.4
13.6
8.0
92.0
28.5
69.2
2.3
100.0 100.0 100.0 100.0 100.0 100.0 100.0
White the bulk (69 percent) of the Section 213
management-type cooperative dwelling units
were also in elevator structures, the proportion
was less than in 1959 when 85 percent were in
elevator structures. The decrease resulted from
a wider geographical dispersion of activity in
1960 as well as a decline in the relative volume
of activity in metropolitan New York.
Size of Project
Project size, summarized in Table III-65, is
reported on the basis of the number of dwelling
units covered by individual project mortgages,
although in many cases the individual mortgages
cover sections or parts of larger multiproject developments.
This may be true when the sections
are built simultaneously as well as when they
constitute later additions to existing developments.
In 1960, the typical rental project approved by
FHA contained 119 apartments—practically the
same as the 118 units reported a year earlier, and
following the pattern set by Section 207 and Section
803, which together accounted for almost
three-fourths of the projects approved by FHA.
In recent years, median rental project sizes
(Table HI-63) have been influenced by the predominance
of the larger projects committed under
Section 803. In 1960, Section 207 operations surpassed
those under the armed services program
and, in addition, involved an increase in size from
109 to 117 units. Section 803 projects remained
nearly the same size—118 units in 1960 compared
with 120 a year ago.
More than one-fourth of the rental projects
committed in 1960 ranged in size between 50 and
99 dwelling units, with an equal proportion containing
from 100 to 149 units. Over one-half of
the Section 207 projects and more than two-thirds
of those under Section 803 were in these two size
groups, while a fourth of the Section 220 projects
had fewer than 25 units. Cooperative projects
with 100 to 149 units (28 percent) were most popular
in 1960; one-fifth had 50 to 90 units, and
another fifth had 150 to 199 units.
Table III-65.—Size of project for multifamily housing, hy section, 1960
Number of dwelling units per project
Total rental
and cooperative
housing
Rental housing Cooperative
housing
Sec. 213
management
type
Total Sec. 207 Sec. 220 Sec. 221 Sec. 803
Percentage distribution of projects:
4.8 3.9 27.6
3.5
0.8
3.3
5 to 24____________________________________________________________ 4.7 5.2
25 to 49___________________________________________________________ 6. 5 6.6 8. 3 25.0 7. 8
50 to 99----------------------------------------------------------------------------------------- 25. 9 26. 4 28. 5 10. 4 12. 5 27. 9 20. 3
100 to 149_________________________________________________________ 27. 9 27. 7 22. o 10. 4 12. 5 41.0
18.8
28. 2
150 to 199_________________________________________________________ 17.1 16. 3 17.0 3. 5 12.5 23.1
200 to 299_________________________________________________________ 10. 2 10.0 12.1 10.3
13.7
25. 0 5. 7 12. 8
300 to 399_________________________________________________________ 4. 0 4.1 3. 8 12. 5 1. 7 2. 6
400 to 499_________________________________________________________ 1. 6 1. 8 2. 2 6. 9
500 or more_______________________________________________________ 2.1 2. 3 1. / 13. 7— . 8—
Total___________________________________________________________ 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Median__________________________________________________________ 119.0 119.0 117.0 132. 0 158.0 118.0 128.0
Percentage distribution of dwelling units:
5 to 24____________________________________________________________ 0.5 0.5 0.4 1.3 0.1 0.8
25 to 49___________________________________________________________ 1. 8 1.8 2. 2 . 8 5.4 1.0 2. 4
50 to 99___________________________________________________________ 13. 9 14.0 14. 7 3. i 6. 6 17. 7 12. 6
100 to 149_________________________________________________________ 23. 3 23. 1 18. i 6. 0 8. 4 39. 2 26. 3
150 to 199--------------------------------------------------------------------------------------- 20. 3 19. 2 20. 3 2. 7 13./ 24. 7 30. 5
200 to 299____________ _____________________________________________ 17.0 16. 5 20.1 12. 5 38. 4 10.1 21.1
300 to 399_________________________________________________________ 9. 3 9. 6 8. 9 22. 2 27. 5 3. 9 6. 3
400 to 499_________________________________________________________ 4. / 5. 2 6. 5 13. 5
500 or more_______________________________________________________ 9. 2 10.1 8. 2 37. 3— 3.3—
Total___________________________________________________________ 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Average__________________________________________________________ 144. 4 145. 9 146. 8 215. 7 179. 5 125. 8 131. 2
137
Detailed tabulations involving size of project
and type of structure are not presented in this
report. However, the following characteristics
may be observed. Rental elevator structures in
1960 were larger (141 units) than one-family
type apartments (116 units) or walk-ups (71
units). The typical 328-unit elevator structure
under Section 220 exceeded in size the typical
135-unit elevator structure under Section 207.
Section 803 armed services housing projects accounted
for practically all of the one-family type
apartments approved by FHA in 1960. While
more walk-up apartments were provided by Section
207, the bulk of operations under the minor
Section 221 program involved this type of structure.
Elevator buildings were the predominant
structure type under Section 213; the median size
was 147 units.
Size of Dwelling Units
Dwelling unit size (room count) in rental and
cooperative projects is determined under criteria
established to take into account the area and the
function and arrangement of living space. As
described later, room count standards have been
modified progressively in the last few years.
Currently, a separate kitchen meeting the minimum
area (square feet) and least dimension requirements
receives a one-room count in living
units of one or more bedrooms. In a living unit
with no separate bedroom, a kitchen now would
receive a one-half room count. In some instances,
spaces not meeting minimum standards are permitted
but without any credit toward room count.
For example, in a living unit with no separate
bedroom, kitchen space below the minimum requirements
(a kitchenette) would be permitted,
but no additional room count would be credited
to it. Bathrooms, half-baths, foyers, terraces,
balconies, and porches also receive partial room
count when they meet prescribed standards, but
halls, closets, and storage space are excluded from
room count credit. Currently, one other habitable
room (den, etc.) can receive room count credit.
Applications of these criteria are discussed more
fully under the discussion of monthly rentals..
Rental units approved for mortgage insurance
in 1960 contained an average of 4.7 rooms, slightly
smaller than the 4.9 rooms in 1959. As explained
earlier (Table HI-62), this resulted more from
differences in relative activity under the several
rental programs than from an actual decrease in
unit size under any of the individual programs.
Section 207 units, accounting for more than half
of the total, had an average of 4.4 rooms this year
(4.3 in 1959), Section 221 units increased in size
to 4.3 rooms over 4.1 a year earlier, and Section
803 units contained 5.7 rooms in 1960 compared
with 5.4 in 1959. Section 220 rental units
reflected the only decrease, 4.0 rooms in 1960,
down slightly from 4.1 in 1959. The average
management-type cooperative unit—4.9 rooms in
1960—was unchanged from 1959.
A fifth of all Section 207 apartments approved
in 1960 included four rooms, and an equal portion
414. rooms (Table HI-66). Over one-fourth of
the Section 220 dwelling units had three rooms
and one-fifth had 4% rooms. The major portion
of activity under each of these programs involved
elevator buildings. Section 803 projects, predominantly
one-family structures, reported threefifths
of all units contained six or more rooms.
Dwelling units of 4% rooms were most common
in Section 221 projects, with this size accommodation
accounting for more than a third of the
total units.
Table III-66.—Size of dwelling units for multifamily housing, hy section, 1960
Rooms per unit
Total rental
and cooperative
housing
Rental housing Cooperative
housing Sec.
213 manageTotal
Sec. 207 Sec. 220 Sec. 221 Sec. 803 ment type
Percentage distribution of dwelling units:
Less than 3__ ____ _ ___________ ____ _ 2.4
8.8
8.8
14.7
14.5
18.8
8.7
15.8
2.7
4.8
2.5
9.4
8.8
14.8
14.3
19.1
7.4
16.9
1.8
5.0
2.8
10.8
13.6
20.5
19.7
15.6
9.5
3.4
2.8
1.3
7.8
26.3
9.7
14.1
21.9
5.7
9.1
3.2
1.9
.3
0.8
10.1
9.2
27.5
35.2
5.4
3.8
8.0
1.2
3.3
9.2
14.5
16.0
15.2
21.0
4.9
12.2
2.5
3_________________________________ .
3J4________________________________________
4___________________________ 3.9
41'2________________________________________
5_________________________________________ 31.9
3.4
46.9
5H__________________________________ .
6_______________________________________ .
6H__________________________________________ .
7 or more_______ ______ _ _______ _______ 13.9
Total. __________ _________ _______ _ 100.0
4.8
100.0
4.7
100.0
4.4
100.0
4.0
100.0
4.3
100.0
5.7
100.0
Average___ _ . __ __________ ____ _______ _ 4.9
Units of 5y2 rooms were reported for one-fifth
of the cooperative projects in 1960, dropping from
23 percent in 1959, but projects with six or more
rooms increased to one-fifth of the total compared
with one-tenth in 1959.
The size of dwelling unit by type of structure
for rental projects approved in I960 is presented
graphically in Chart HI-32. Four-room units
predominated in elevator buildings (two-fifths).
Walk-ups had an equal proportion of units
of this size and of five-room units. About half of
the one-family type units had six rooms. In this
chart, units containing half rooms are included
with those of whole numbers (e.g. 3% room units
138
are shown in combination with those with three
rooms) ?
Mortgage Allocable to Dwellings
The typical dwelling unit in rental projects
approved for mortgage insurance in 1960 secured
a mortgage of $15,307. This amount, representing
that portion of the total mortgage allocated to
dwelling use, was $401 more than in 1959. The
part of the mortgage amount that covered garages,
stores, and other nondwelling, income-producing
parts of the project is excluded from these and
other data presented in Table HI-67.
All multifamily project programs reported increased
mortgages per unit in 1960. The largest
of these occurred under the Section 213 cooperative
housing (management-type) program, which
rose $2,422 over 1959 to $16,211 per unit. Section
207 was up by $1,704 to $14,088 per unit, Section
220 increased by $370 to $14,484, and Section 221
rose $146 to $8,653. Section 803 at $16,006 per
unit showed only a $43 increase over 1959.
The percentage distribution of proj ect units by
the average unit mortgage amount for the individual
programs is also shown in Table III-67.
This indicates a general upward shift from 1959
to larger unit mortgage amounts for all programs.
Taking construction costs into account, the amount
of mortgage allocated to dwelling use is greatly
influenced by FHA rules and regulations regarding
the maximum mortgage amounts permitted
for projects, the amounts allowed per family unit,
and the amounts allowed per room.
For instance, Sections 207, 213 (managementtype),
and 220 mortgages are generally based on
a limitation of $2,500 per room for walk-ups and
$3,000 for elevator-type structures, with provision
for $1,250 extra per room in certified high cost
areas. It is apparent that the distributions by
average mortgage amounts tend to be governed
to a great extent by the type of structure involved,
with the walk-ups in the middle and lower price
groups and elevator structures in the middle and
1 Typical unit compositions, excluding room count for bathrooms,
foyers, porches, etc., are listed below. In comparing
number of rooms by year (Table HI-63) the data may not be
comparable, since criteria governing room count differ according
to rulings in effect at a given time.
Fewer than 3 rooms,—combination living and sleeping room
/with dining alcove and kitchen or kitchenette.
3 rooms—living room, 1 bedroom and kitchen, with dining
■space in either living room or kitchen.
3% rooms—'living room, 1 bedroom, dining alcove, and
kitchen.
4 rooms—living room, 2 bedrooms,, with dining space either
in living room or in kitchen.
4% rooms—living room, 2 bedrooms, dining alcove, and
kitchen.
5 rooms—living room, 2 bedrooms, dining room, and
kitchen.
5% roomsl—living room, 3 bedrooms, dining alcove, and
kitchen.
6 rooms—living room, 3 bedrooms, dining room, and
kitchen.
6% rooms—living room, 4 bedrooms, dining alcove, and
kitchen.
7 rooms—living room, 4 bedrooms, dining room, and
kitchen.
Chabt III-32
SIZE OF DWELLING UNIT BY TYPE
OF RENTAL PROJECT, 1960
Distribution of units covered by commitments issued
40 —
Elevator Type
One Family Type
*Less than 0.5 percent.
upper price groups. In 1960, the greater percentage
of these units was in the upper half of these
distributions, since 83 percent of Section 207 units,
95 percent of Section 220 units, and 69 percent
of Section 213 units were in elevator-type
structures.
139
Table III-67.—Amount of mortgage allocable to dwellings for multifamily housing, by section, 1960
Average amount of mortgage per dwelling unit1
Total rental
and cooperative
housing
Rental housing
Total Sec. 207 Sec. 220 Sec. 221 Sec. 803
Cooperative
housing sec.
213 management
type
.'Percentage distribution of dwelling units:
Less than $7,000___________________________________________________
$7,000 to $7,999____________________________________________________
$8,000 to $8,999_______________ _________________________________
$9,000 to $9,999____________________________________________________
$10,000 to $10,999__________________________________________________
$11,000 to $11,999__________________________________________________
$12,000 to $12,999__________________________________________________
$13,000 to $13,999__________________________________________________
$14,000 to $14,999__________________________________________________
$15,000 to $15,999__________________________________________________
$16,000 to $16,999__________________________________________________
$17,000 to $17,999__________________________________________________
$18,000 to $18,999__________________________________________________
$19,000 to $19.999__________________________________________________
$20,000 or more____________________________________________________
0.3
1.7
1.9
1.3
5.0
5.5
7.7
8.7
12.3
18.4
16.9
9.3
6.3
.8
3.9
0.3
1.8
2.2
1.3
4.9
5.8
8.0
9.5
12.4
18.5
16.5
9.2
6.6
.3
2.7
0.7
1.6
2.6
1.4
3.9
10.7
11.8
16.0
11.8
9.0
8.9
8.5
7.8
.4
4.9
2.7
13.9
A 6
5.1
15.2
21.8
8.2
15.3
4.2
.6
34.1
25.4
2.1
38.4
0.8
13.6
35.3
34.7
8.8
6.4
.4
3.2
6.3
2.3
4.3
18.2
20.9
10.3
2. 6
5.4
15. 4
Total___________________________________________________________
Median_________________________________________________________
100.0
$15, 401
100.0
$15, 307
100.0
$14, 088
100.0
$14,484
100.0
$8,653
100.0
$16, 006
100.0
$16,211
i Data based on the average unit-amount per project.
All of the Section 221 projects, on the other
hand, fell in the class of $11,000 or less average
mortgage per unit, since mortgages in these projects
were limited to $9,000 per family dwelling
unit with a possible limit of $12,000 in high cost
areas. The maximum mortgage amount allocable
per dwelling unit for Section 803 was $16,500 with
special exceptions permitting as high as $19,800.
As a consequence, 70 percent of the distribution
of average unit mortgage amounts under Section
803 were concentrated in the $15,000 to $17,000
range. Since over 90 percent of these units are
single-family structures, there is less variation in
structure and cost of the units than is true under
the other rental housing programs.
The distribution of dwelling units by mortgage
amounts for each type of rental structure is presented
graphically in Chart III-33. The elevatorunit
distribution reflects almost entirely Section
207 and 220 projects, which account for 79 and 21
percent of these units, respectively. The largest
proportion of the walk-ups (61 percent) is accounted
for by Section 207 with the remainder
distributed between the other three sections, all
indicating the lower mortgage amounts for walkups.
The one-family type of structure chart is a
reflection of the rather high average unit mortgage
of Section 803 projects, since these projects
contain over 97 percent of the one-family
structures.
Ratio of Mortgage Amount to Replacement
Cost
The median ratio of mortgage amount to estimated
replacement cost for multifamily housing
projects approved in 1960 remained near the
statutory maximum for each program (Table HI-
68). Section 220 project mortgages were limited
to 90 percent of replacement cost (median 88.6 percent)
, and Section 803 mortgages could go as high
as 100 percent (median 98.1 percent). In Section
221 projects, nonprofit mortgagors could
receive 100 percent of the total replacement
cost but profit-motivated corporations were limited
to 90 percent. In 1960, all approved Section 221
projects were the nonprofit type and the resulting
median was at the 100 percent legal maximum.
Table III-68.—Ratio of amount of mortgage to replacement cost for multifamily housing, by section, 1960
Mortgage as a percent of replacement cost
Total
rental and
cooperative
housing Total
Rental housing
Sec. 207 Sec. 220 Sec. 221 Sec. 803
Cooperative
housing
Sec. 213
management
type
^Percentage distribution of dwelling units:
Less than 70___________ _______
70 to 74.9_______________________ _
75 to 79.9__________________________
80 to 82.4__________________________
82.5 to 84.9________________________
85.0 to 87.4_________________________
87.5 to 89.9_________________________
90.0_______________________________
90.1 to 92.4________________________
92.5 to 94.9_________________________
95.0 to 96.9_____________________
97.0_______________________________
97.1 to 99.9_________________________
100.0______________________________
Total___________________________
Median_________________________
(>)
0.8
3.6
4.3
12.3
16.6
18.3
13.4
2.3
2.4
3. 1
2.3
12.7
7.9
(>)
1.0
3.9
4.7
13.6
18.2
19.9
8.3
2.1
2.4
3.0
.2
14.0
8. 7
6.4
8.4
18.9
29.3
26.8
8.5
4.1 ________
1.3 ________
14.7 ________
15.9 ________
33.8 ________
30.2 ________
5.0
1. 5
3.8
7.0
7.9
9.8
.6
41.6
22. 7
1.7
3. 1
62. 4
3.6
2.4
4.2
22. 6
100.0
89.4
100.0
88.8
100.0
86.2
100.0
88.6
100.0
100.0
100.0
98. 1
100.0
90.0
1 Less than 0.05 percent.
140
Cooperative projects under Section 213 are alChart
III-33
lowed a mortgage-replacement cost ratio of 97
percent for management-type projects but are
limited to 90 percent for investor-sponsored projects.
The bi-modal character of the distribution
of cooperative units in Table III-68 displays the
proportion represented by each of these two types
of projects. The fact that nearly two-thirds of
the units approved were investor-sponsored gave
the total distribution a median of 90.0 percent;
but a fair representation of management-type
units (22.6 percent) appeared at the 97.0 percent
upper limit.
Section 207 project mortgages are limited by
law to 90 percent of FHA’s estimated value of
the project, rather than to a percentage of the replacement
cost as for other programs. The following
table shows the relationship that Section 207
mortgages bear to the estimated value of these
projects.
Mortgage as percentage
of value
Percentage
distribution
of units,
Sec. 207
Mortgage as percentage
of value
77.5-79.9____________
80.0-82.4____________
82.5-84.9____________
85.0-87.4____________
2.0
2.1
3.5
10.0
87.5-89.9____________
90.0________________
Total_________
38.8
43.6
100.0
Since estimated values generally are less than
replacement costs, percentages in the above table
tend to be somewhat higher than those in the general
table. For example, 44 percent of the dwelling
units were covered by mortgages involving the
maximum loan-value ratio (90 percent), compared
with less than 9 percent having mortgage-replacement
cost ratios this high. In 1959, only 26
percent of the Section 207 units had mortgages
which represented the maximum ratio of 90 percent
of value.
Proportionally fewer Section 220 dwelling units
(30 percent) were covered by mortgages involving
maximum loan-replacement cost ratios of 90 percent
in 1960 than a year earlier, when two-fifths
of all dwelling units involved such maximum
mortgages. The Section 221 program dropped off
proportionally in 1960 to three-fifths of units with
mortgages representing 100 percent of replacement
costs, compared with 65 percent in 1959. One
reason for this decline in 100 percent loans is that
criteria other than the ratio of mortgage to replacement
cost have determined the amount of the
mortgage. Conversely, Section 803 mortgages
representing the full amount of replacement cost
covered 23 percent of the units approved in 1960,
somewhat higher than the 13 percent reported in
1959.
Monthly Rental for Rental Projects
The distribution of dwelling units by monthly
rental shown in Chart III-33 and Table III-69
UNITS IN PROJECTS WITH INDICATED
AVERAGE MORTGAGE PER UNIT, BY TYPE OF
RENTAL PROJECT
Distribution of units covered by commitments issued
c 20 —
,o All Types
I W — - _
£ —
oo
0 _
Percentage
distribution
of units,
Sec. 207
141
relates to estimates made in the underwriting
analysis prepared at the time of loan commitment
for the Section 207, Section 220, and Section 221
programs. These rentals are those expected to
prevail when the projects are occupied. The
schedules actually in effect, however, may be revised
because of changes in construction or operating
costs. No data are available for Section 803
projects.
Table III-69.—Monthly rental for rental housing projects,
try section, 1960
Rental housing
Monthly rental per
dwelling unit
Total Sec. 207 Sec. 220 Sec. 221 Sec. 803 1
Percentage distribution
of dwelling
units:
Less than $60____
$60 to $79.99______
$80 to $99.99______
$100 to $119.99____
$120 to $139.99____
$140 to $159.99____
$160 to $179.99____
$180 to $199.99____
$200 to $219.99____
$220 to $239.99____
$240 to $259.99____
$260 to $279.99____
$280 to $299.99____
$300 or more_____
0.1
1.3
5.7
7.3
13.9
17.9
15.0
11.3
10.4
4.5
1.9
3.6
2.9
4.2
(1 2)
2.6
7.0
14.1
18.3
17.0
11.5
11.5
5.1
2.4
3.1
3.0
4.4
7.0
8.7
16.1
20.7
9.9
12.6
8.6
3.1
.2
6.5
2.6
4.0
3.3 ________
30.5 ________
57.0 ________
9.2 ________
Total__________
Median________
100.0 100.0 100.0 ________
$171.31 $158.13 $ 89.07 ________
1 Not available.
2 Less than 0.05 percent.
The typical dwelling unit covered by commitments
issued in 1960 was expected to rent for
$166.22. This represented a rise of 14 percent over
1959, continuing the upward trend of the last 4
years. Many factors have contributed to the
steady upward trend reported over this period—
higher construction costs, increasing proportions
of units contained in higher cost elevator structures,
and a rise in debt service resulting from the
increase authorized in interest rates in 1959.
These factors are only a part of all contributing
elements, since they deal only with capital expenditures
and disregard operating costs.
Paradoxically, changes in the average room
counts have not affected the monthly rental as
much during this 4-year period as the legislative
changes in the per-room amounts on which the
maximum mortgage amounts are based. Section
207 units in 1957 contained an average of 4.3 rooms
but increased to just 4.4 rooms in 1960, Section
220 units raised from 3.6 rooms (1957) to an average
of 4.0 rooms in 1960, and Section 221 dwelling
units decreased in size—4.3 rooms in 1960 compared
to 4.5 rooms in 1957—perhaps as a result of
the unit mortgage limitation imposed on this program.
When revisions in administrative procedures
are considered, the change in room count
becomes even less apparent. For instance, during
the period from early 1958 until mid-1960, balconies
and porches meeting prescribed standards
were allowed a one-half-room count and efficiency
living units having no bedroom could include a
0, one-half or one-room count, depending on room
area, for a kitchenette or kitchen. Previously
these areas were not counted. However in mid-
1960, changes in regulations limited room counts
to bathrooms (% room), half-baths (*4 room),
kitchenettes room), foyers (% room), and terraces
(14 room).
Section 207 living accommodations—mainly in
elevator-type structures—reported a median rental
of $144 in 1957, which had increased to $171 by
1960. Section 220 unit rentals, also predominantly
elevator, rose to $158 compared with $124 in 1957.
Section 221 dwelling unit rentals, basically walkups,
also increased—to $89 in 1960 from $78 in
1957.
The distribution of rentals by type of structure
(Chart HI-34) reflects for “all types” the preponderance
of elevator structures (82 percent of
total units). The one major exception was units
renting for less than $100. Walk-ups accounted
for nearly 7 of each 10 units in this low-rental
range.
Elderly Housing and Nursing Homes
The year 1960 saw a complete year of operation
of the elderly housing program under Section 231
and of the program for nursing homes under Section
232, both added to FHA’s program by the
Housing Act of 1959. In its functions Section 231
superseded the former special provisions for the
insurance of mortgages on elderly housing projects
under Section 207. There were no commitments
for projects for the elderly in 1960 under the latter
section.
Despite the many aspects in which housing for
the elderly and nursing homes appear to overlap,
they require distinctly different types of programs.
Projects for the aged are, by design and generally
by location, especially adapted to the convenience
and needs of elderly persons. Although in many
cases they offer facilities and special services
which approach the nature of institutional care,
their primary function is that of shelter. For
this reason, most projects for the elderly differ
but little from other rental projects. Nursing
homes, on the other hand, are inseparably associated
with the provision of health services and
institutional care. They may cater to elderly
persons, particularly in cases of chronic ailments
or infirmities, but their patronage is not restricted
to any age group.
Housing for the Elderly.—Structures in elderly
housing projects are ordinarily either one-story
garden type apartments or buildings with elevator
service. Forty-three percent of the projects were
of the one-story type. Elevator structures, constituting
57 percent of the total number of projects,
accounted for 63 percent of all dwelling:
units.
Twenty-nine percent of the projects contained
fewer than 50 dwelling units, and an additional 34
142
percent contained from 50 to 100 each. There were
a considerable number of larger projects, making
up the 17 percent involving from 200 to 300 units.
This latter group accounted for over 30 percent
of all the dwelling units reported.
As shown below, the dwelling units designed for
the elderly ranged in size from one room (combination
of bedroom and. living room) to 6%
rooms. Nonhousekeeping quarters shown in this
table are those containing no kitchen facilities.
(In practice, some with cooking facilities may also
fall in the same category since the residents may
elect to take advantage of common dining facilities
or other special meal services.)
Chart III-34
MONTHLY RENTAL BY TYPE OF
RENTAL PROJECT, 1960
Distribution of units covered by commitments issued
30 —
Number of rooms
1____________________________
__________________________
2____________________________
2J4______________________
3____________________________
3J4-------------------------------------
4____________________________
4^----------------------------------------
5____________________________
5^----------------------------------------
6____________________________
6^----------------------------------------
Total__________________
All units Housekeeping
units
Nonhousekeeping
units
29.4 2.7 60.0
6. 6 14.2
27.7 42.0 11.4
8.5 10.4 6.4
5.9 9.3 2.0
9.1 12.0 5.7
10.1 19.0
2.1 3.9
.5 .6 .3
(>) (0 ____________
.1 .1—
100.0 100.0 100.0
1 Less than 0.05 percent.
These figures show that the typical housekeeping
unit contained 2% rooms—the nonhousekeeping,
only one. No account is provided of the
number of occupants per unit. The one-room
nonhousekeeping units, for example, accommodated
either one or two occupants. Nonhousekeeping
units of more than one room generally
housed more than a single occupant. The housekeeping
units varied more widely, inasmuch as
the presence of cooking facilities gave them
somewhat more flexibility with regard to accommodation
of single persons, elderly couples, or
two or more persons living together.
The typical dwelling unit (median) had a pro
rata share of the project mortgage of $9,215. This
was less than that for rental units under any section
except Section 221 (Table III-67). The
range of mortgage amounts per unit is shown
below:
Average amount of
mortgage per
dwelling unit
Percentage of
dwelling
units
Under $7,000________ 2.0
$7,000 to $7,999______ 21. 5
$8,000 to $8,999______ 13.7
$9/00 to $9/99______ 32.6
Average amount of
mortgage per
dwelling unit
Percentage of
dwelling
units
$10,000 to $10,999____ 8.4
$11,000 to $11,999____ 9.1
$12,000 to $12,999____ 12.7
Total_________ 100.0
Monthly charges varied widely among projects,
according to the amount of entrance or founders’
fees involved, the degree of subsidy in some proj -
ects supported by churches or social service
agencies, the extent that the monthly charges
Monthly rental in dollars
■5fr Excludes armed services housing
143
include services not separable from shelter rent,
etc. Sufficient information was reported concerning
practically all of the 4,400 units committed
under Section 231 in 1960 to make possible
the limited analysis of monthly charges which is
shown in the table below. This information covered
2,500 housekeeping units and 1,900 nonhousekeeping.
Rents on housekeeping units are
shown along with charges per person in nonhousekeeping
accommodations, even though the two are
not strictly comparable. In general, per-unit
charges on housekeeping units take into account
the number of occupants only to a limited extent.
One-fifth of the housekeeping units indicated that
the monthly charge included at least two meals
per day, and, in a small number of cases, limited
medical care—factors which would affect the
charges for units capable of housing two or more
occupants. These units are not shown separately,
but are included in the percentages in the table,
practically all falling in the rental classes between
$140 and $180.
Monthly
charges
Percentage
of
housekeeping
units
Percentage of single
nonhousekeepiag units
with charges including—
Percentage of double
nonhousekeeping units
with per-person charges
including—
Meals
No Meals and
meals medical
care
Meals
No Meals and
meals medical
care
Under $60____
$60-$79_______
$80-$99_______
$100-$119_____
$120-$139_____
$140-$159_____
$160-$179_____
$180-$199_____
$200-$219_____
$220-$239_____
$240 or more__
2.5
22.5
7.6
18.1
10.1
8.1
21.2
9.3
.5
Total___ 100.0 100.0
Median charge. $115.00 $135.00
100.0 100.0
$100.00 $175.00
100. 0 100. 0
$50.00 $125.00
100.0
$189.00
Monthly charges for nonhousekeeping accommodations
have been reduced to a per-person basis
and are shown in detail in the table according to
whether the charges cover single or double quarters
and whether they include room only, room and
board, or room and board and varying degrees of
nursing or medical care.
More than 32 percent of the housekeeping units
rented for less than $100 per month. An almost
equal portion rented for $160 or more. This latter
group included practically all of the units for
which monthly charges also included meals or
limited medical care.
Single accommodations accounted for almost
two-thirds of the 1,900 nonhousekeeping units for
which detailed data were reported. Single rooms
or apartments were divided almost equally into
three groups—shelter only, shelter and meals, or
shelter, meals, and nursing or medical care.
Shelter rents alone ranged from $65 to $190, with
the median at $135. The concentration of 47 percent
of these units in rentals of $140 or more is
accounted for by elevator structures in downtown
metropolitan locations. Otherwise, the
median rental for these quarters would not be
expected to exceed the median charge of $100
for the units with charges including meals. Projects
providing board in addition to room had
a range of rentals from $100 to $200. Proj’ects
providing nursing or medical care in addition to
room and board had monthly charges ranging
from $125 to $250, the median being $175.
The pattern of per-person charges in units offering
double accommodations is less complex.
Shelter rents alone were all under $100 per month.
With meals, the charges ranged from $64 to $175,
with a median of $125. The further addition of
charges for nursing or medical care raised the median
to $189, in a range from $115 to $225.
Nursing Homes.—To be eligible for FHA mortgage
insurance, nursing homes must be licensed
or regulated by the State or other governmental
subdivision in which they are located. This
requirement, along with additional requirements
by FHA, influences to a great extent the characteristics
under discussion in the following paragraphs.
The analyses presented should be viewed
with caution, since the nine projects committed
in 1960 constituted too small a volume to warrant
generalizations.
Seven of the nine projects committed for FHA
insurance in 1960 were in one-story structures.
The remaining two were elevator buildings; these
accounted, however, for 36 percent of the accommodations
provided.
The size of nursing homes is measured in terms
of the number of beds. Homes committed for
insurance in 1960 varied in size from 50 beds to
150 beds, the median being 80 beds. By FHA
regulations, an insurable mortgage must cover a
minimum of 20 beds.
Mortgage amounts prorated according to the
number of beds resulted in a median per bed of
$5,606. The lowest average mortgage amount
was in the $2,500-$2,999 range, which accounted
for 9.4 percent of the beds provided. The highest
was $7,000, with 11.7 percent. A complete distribution
is shown below.
Average mortgage
amount per bed
$2,500-$2,999________
$3,000-$3,999________
$4,000-$4,999________
$5,000-$5,999________
Percentage
of beds
9.4
23.5
11.7
25.4
Average mortgage
amount per bed
$6,000-$6,999_______
$7,000______________
Total_________
Percentage
of beds
18.3
11.7
100.0
The figures assume greater significance when
viewed in relation to the extent the projects were
committed for insurance at their maximum allowable
amount. Five of the nine projects were committed
for 75 percent of their value as estimated
144
by FHA (the maximum). The remaining projects
had mortgage-to-value ratios ranging from
53.1 to 74.5 percent.
Monthly charges varied from $160 to over $400
per month, varying with the number of beds per
room, as seen in the distribution below. More than
one-third were from $350 to $374 per person.
Monthly charge per patient
Percentage distribution by type
accommodation
All types 1-bed 2-bed 3 and
4-bed
$160-$179 1.0 6.4
$180-$199 4.1 5.5
$200-$224
$225-$249 1.0 10.7
$250-$274 __________________ 13.7 14.8 16.1
$275-$299 6.8 9.0
$300-$324 2.9 19.4
$325-$349______________________ 15. 6 18.7 9.3 45.2
$350-$374______________________ 33.4 5.3 35. 1 12.9
$375-$399 8.0 8.0 15.4
$400 and over _.. _ . _ _ 13.5 57.3 10.9
Total 100.0 100.0 100.0 100.0
Semiprivate rooms (2-bed) accounted for threefourths
of the total accommodations. Monthly
charges in these rooms were as low as $185 per
person, but more than 60 percent were above $350.
Nine percent of all beds were in private rooms.
Almost 60 percent of these had monthly charges of
$400 or more. Three- and four-bed wards provided
15 percent of the total number of beds.
Monthly charges in these wards were, as would be
expected, generally lower. The lowest charge was
$165 per person, 45 percent ranged from $325 to
$349, and none exceeded $350.
CHARACTERISTICS OF PROPERTY
IMPROVEMENT LOANS
In 1960, the typical property improvement loan
insured under Title I provided an all-time high in
net proceeds to the borrower of $660, involving an
increased amount for the 10th consecutive year.
Repayment was contemplated in 37 monthly installments
of $20.58, including interest and principal.
The most popular major improvement was
additions and alterations, in 9 out of 10 cases
involving a single-family structure.
Amount of Loan
Table HI-70 presents information on the distributions
by size of loan of the number and net
proceeds of loans insured in selected years since
1950. The typical loan of $660 insured in 1960
was 9 percent higher than the $604 reported for
1959, and 86 percent higher than the 1950 median
of $354.
Comparison by years shows that the increase in
the number of loans with larger average net proceeds
has been continuous since 1950. For example,
the number of loans involving net proceeds of
$1,500 or more has increased from 4 percent of the
total in 1950 to 21 percent in 1960—a fivefold
increase—and the proportion of the total proceeds
involved has had a corresponding threefold increase
from 18 to 52 percent. Conversely, during
the same period the number of loans made under
$600 decreased from 75 to 46 percent, and the
proportion of total proceeds involved decreased
from 47 to 16 percent. Part of the increases in
loan amounts can, of course, be attributed to
increased costs of many kinds of improvements.
Duration of Loan
The distributions by repayment term for loans
insured in selected years presented in Table HI-
71 indicate that in 1960 the greatest number (44
percent) of loans financed had a repayment date
of 36 months, but that the largest proportion of
total proceeds was accounted for by notes with
terms of 60 months. Prior to August 1956, over 97
percent of all insured property improvement loans
made under the 1950 Reserve involved a statutory
Table III-70.—Amount of property improvement loans, selected years
[Total Class 1 and 2 loans]
Net proceeds of individual loan
Number of loans—percentage distribution Net proceeds—percentage distribution
1960 1959 1958 1955 1950 1960 1959 1958 1955 1950
Less than $100. __ 0.3 0.3 0. 5 1.2 2. 5 (>) (’) (') 0.1 0.4
$100 to $199__________________ 6.2 6.8 8.0 11.4 18. 7 1.0 1.2 1. 5 2.8 6.4
$200 to $299- ____ - _______ 11.3 12. 6 13.2 15.8 20. 5 2.9 3.5 3.9 6.2 11.3
$300 to $399__________________ 12. 6 13. 5 13.8 15.0 15.4 4.4 5.1 5.7 8. 1 10.9
$400 to $499__________________ 8.6 8.9 9.2 10. 4 9.6 3.9 4.3 4.9 7.3 8.8
$500 to $599__________________ 7.4 7.8 8.3 9.4 8.0 4. 1 4.6 5.3 8.0 8.8
$600 to $799__________________ 10.6 10.7 11.1 11.7 9.1 7. 5 8.1 9.1 12.8 13.0
$800 to $999__________________ 7.3 7.1 7.2 7.1 5.0 6.6 6.9 7.7 9.9 9.2
$1,000 to $1,499____ 14. 6 13.7 12.7 9.9 7.1 17.8 17.8 17.8 18.3 13.3
$L500 to $1'999 ______________ 8.3 7. 4 6.6 4.1 2.0 14.3 13.7 13. 1 10.7 6.8
$2/)00 to $2'499_______________ 4. 7 4.2 3.5 1.8 1.0 10.6 10. 1 9.1 6.2 4.2
$2'500 to $2,999- ___ 3. 4 3.2 2.8 1.9 1.0 9.3 9.3 8.9 7.9 5.2
$3^000 to $3,999, _____________ 4.3 3.5 2.8 .2 .1 14.9 13. 1 11.2 .8 .9
$4',000 to $4,999- _____________ .2 . 1 . 1 . 1 0) .8 .7 .5 .4 .4
$5,000 or more________________ .2 .2 .2 (9 (>) 1.9 1.6 1.3 . 5 .4
Total______ -- - 100. 0 100. 0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
$660 $604 $564 $464 $354
Average____________________ $971 $909 $836 $630 $479
1 Less than 0.05 percent.
145
Table III-71.—Term of property improvement loans, selected years
[Total Class 1 and 2 loans]
1 Less than 0.05 percent.
Term in months Number of loans—percentage distribution Net proceeds—percentage distribution1
Modal term Interval 1960 1959 1958 1955 1950 1960 1959 1958 1955 1950
6________________________ 6-8__________________ 0.5 0.6 0.5 0.6 0.8 0.2 0.2 0.3 0.3 0. 5
12_______________________ 9-14________________ 8.8 9.1 10.0 10.0 10.1 3.2 3.4 3. 9 4.4 4.9
18 ________________ 15-20________________ 5.0 5.2 5.6 6.9 6.0 2.1 2.2 2. 5 3.7 3.4
24 ____________ 21-26________________ 13.0 12.5 12.9 11.3 10.2 7.3 7.1 7.7 7.7 7.1
30 . __________________ 27-32________________ 2.1 2.1 2.3 3.0 9.8 1.3 1.3 1. 5 2.2 9.8
36 _________________ 33-41________________ 44.2 47.0 51.4 67.5 62.5 35.5 38.8 47.1 79.1 71.1
48._ ___________________ 42-53________________ 2.6 2.1 1.6 (l) (') 4.1 3.5 2.8 . 1 .1
60. __________________ 54-63________________ 23.3 21.1 15.4 .6 .4 43.9 41.7 32.7 2.0 1.7
Over 63_____________ .5 .3 .3 .1 .2 2.4 1.8 1.5 .5 1.4
Total ___________ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
36.7 36.6 36.5 36.3 36.4
Average _____________ 37.6 36.8 35.0 31.0 30.7
repayment limit of 36 months or less. As of that
date an amendment extended the maximum duration
to 5 years, but by regulation terms exceeding
36 months were limited to loans with net proceeds
in excess of $600. Loans with a repayment term
over 36 months accounted for one-fourth of the
total number and one-half of the total proceeds of
loans insured in 1960, a substantial increase in volume
compared to 1955 when they accounted for less
than 1 percent of the number and 3 percent of the
proceeds. Comparison of the distribution based
on net proceeds of the loans insured in 1955 and
1960 shows that the average repayment term has
increased from 31 months to nearly 38 months.
Type of Property and Improvement
Continuing the pattern established in prior
years, the major type of property improved with
an insured loan during 1960 was a single-family
dwelling. Table III-72 shows that 90 percent of
all loans and 85 percent of the net proceeds were
used to improve this type of property. An additional
7 percent of the loans and 11 percent of
proceeds were made to finance improvements on
multifamily structures.
It should be noted that the “type of improvement”
designation for an individual loan is determined
by the lending institution financing the loan
and reflects only the principal improvement
financed. As an example, a loan reported as
financing additions and alterations may also cover
any necessary minor plumbing, heating, or insulation
that is involved.
Properties improved by additions and alterations
were responsible for the largest segment of
the loans insured in 1960, with 20 percent of the
number and 30 percent of the proceeds (see Chart
III-35). Exterior finishing accounted for another
13 percent of the loans and 16 of the proceeds.
More loans (17 percent) were made for
insulation work but, because of the relatively
small expenditure involved, they represented only
7 percent of the proceeds.
Compared with the $971 average for all types of
improvements, insulation work had the smallest
average loan of $433, in contrast to the largest of
$1,427 for additions and alterations.
Table III-72.—Type of improvement by type of property
for property improvement loans, 1960
[Total Class 1 and 2 loans]
1 Less than 0.05 percent.
Major type of
improvement
Type of Property Improved
Total
Singlefamily
dwellings
Multifamily
dwellings
Commercial
industrial
Earm
homes
and
buildings
Other
Percentage distribution
of number of loans:
Additions and alterations____________
20.2 20.7 15.1 23.6 10.2 19.7
Exterior finish______ 12.6 12.5 14.5 7.4 9.9 10.6
Interior finish_______ 9.7 9.5 12.9 13.2 4.6 8.4
Roofing_____________ 5.4 5.3 6.7 6.5 6.4 4.2
Plumbing___________ 8.8 8.8 7.8 8.4 20.3 7.1
Heating____________ 11.7 11.0 20.9 16.8 8.0 15.2
Insulation_______ 16.5 17.0 13.6 6.1 8.9 7.4
New nonresidential
construction___ 3.5 3.1 1.1 8.8 28.3 14.2
Miscellaneous_______ 11.6 12.1 7.4 9.2 3.4 13.2
Total_____________ 100.0 100.0 100.0 100.0 100.0 100.0
Percent of total______ 100.0 90.2 6.8 1.1 1.6 .3
Percentage distribution
of net proceeds:
Additions and alterations____...____
30.4 27.5 1.9 .6 .3 .1
Exterior finish. . ___ 16.3 14.3 1.6 .1 .3 (>)
Interior finish_______ 11.8 10.0 1.4 .3 . 1 (?)
Roofing_____ 3.8 3.2 .4 . 1 (>) . 1
Plumbing___________ 5.6 4.5 .8 . 1 .2 (*)
Heating____________ 12.4 8.7 3.1 .4 . 1 .1
Insulation_______ _ 7.6 6.9 .7 (') (>) (1)
New nonresidential
construction_____ 4.8 3.6 . 1 .2 .9 (9 Miscellaneous_______ 7.3 6.1 .8 .2 .1 .1
Total_____________ 100.0 84.8 10.8 2.0 2.0 .4
Average net proceeds:
Additions and alterations___________
$1,427 $1,398 $1,770 $2,150 $1,491 $1,394
Exterior finish______ 1,231 1,201 1,487 1,818 1,370 1,862
Interior finish_______ 1,152 1,102 1, 512 1,823 1,203 1,637
Roofing_____________ 668 647 793 1,123 712 1,054
Plumbing___________ 601 530 1,499 1,215 666 754
Heating____________ 1,005 830 2,106 1,807 958 1,349
Insulation__________ 433 420 629 707 431 671
New nonresidential
construction_____ 1,315 1,210 1,345 2,106 1,815 1,199
Miscellaneous_______ 592 534 1,505 1,842 952 1, 593
Total_____________ 971 890 1, 500 1, 760 1,185 1,343
146
Table III-73.—Amount of property improvement loans
by type of property, 1960
[Total Class 1 and 2 loans]
Type of property improved
Net proceeds of
individual loan
Total Singlefamily
dwellings
Multifamily
dwellings
Commercial
and
industrial
Farm
homes
and
buildings
Other
Percentage distribution
of number of loans:
Less than $100----------
$100 to $199_________
$200 to $299_________
$300 to $399_________
$400 to $499_________
$500 to $599_________
$600 to $799_________
$800 to $999_________
$1,000 to $1,499______
$1,500 to $1,999______
$2,000 to $2,499______
$2,500 to $2,999______
$3,000 to $3,999______
$4,000 to $4,999______
$5,000 or more_______
0.2
6.3
11.6
12.9
8.7
7.5
10.5
7.1
14.4
8.1
4.6
3.4
4.3
.2
.2
0.3
6.7
12.2
13.5
8.9
7.6
10.6
7.1
14.2
7.8
4.4
3.1
3.6
(0
0)
0.1
3.0
6.2
7.5
6.4
7.2
10.7
7.7
15.9
9.4
6.6
5.5
8.2
2.4
3.2
1.3
4.0
4.6
5.4
5.4
7.4
4.7
14.0
11.8
8.1
9.9
22.9
0.2
3.3
6.7
10.4
9.9
6.0
9.6
8.7
14.1
10.9
5.7
5.9
8.6
2.6
3.6
8.4
4.2
6.5
11.9
9.4
19.0
8.7
9.0
6.1
10.3
Total_____________
Median________________
Average________________
100.0
$660
$971
100.0
$617
$890
100.0 100.0
$1,036 $1,636
$1,500 $1,760
100.0
$888
$1,185
100.0
$1,093
$1,343
i Less than 0.05 percent.
Distributions of the Title I notes insured in
1960 to improve the various types of property are
presented in Table III-73 by the amount of net
proceeds involved.
Improvements to single-family dwellings, which
accounted for 90 percent of the total loans insured
in 1960, in two out of three cases had proceeds of
less than $999, with $617 the typical amount received
by a borrower. In contrast, two-thirds of
the loans to improve commercial and industrial
properties, accounting for 1 percent of the total
volume insured, involved proceeds of over $1,000,
this group of transactions having the largest
typical loan amount of $1,636. A wide range of
loan amounts was reported in 1960 for improvements
for all types of properties, ranging from
less than $100 in 0.2 percent of the cases to an
equal percentage above $5,000. No significant
concentration of loan amounts appears with respect
to any type of property with the exception
of loan amounts of $3,000 to $3,999 for improvement
of commercial and industrial properties (23
percent). Comparable distributions of the
amount of loans by type of improvement presented
in Table III-74 show that notes to finance
additions and alterations were typically the
largest in amount of the loans insured in 1960, the
median amount for this group of transactions
being $1,274. At the other end of the scale were
loans to finance insulation—typically only $350.
Claims Paid by Type of Property and
Improvement
Distributions of claims paid by type of property
and type of improvement in Table III-75 show
that loans to improve single-family dwellings
accounted for 89 percent of the number and 84
percent of the amount of claims paid in 1960.
This parallels within 1 percent the proportion of
loans of this type insured since 1956. The average
claim on defaulted loans in 1960 ranged from
Table III-74.—Amount of property improvement loans by type of improvement, 1960
[Total Class 1 and 2 loans]
Net proceeds of individual loan Total
Major type of improvement
Additions
and
alterations
Exterior
finish
Interior
finish
Roofing Plumbing Heating Insulation
Newnonresidential
construction
Miscellaneous
Percentage distribution of number of loans:
Less than $200_________________________ 6.6 2.2 1.7 3.6 7.0 9.1 3.0 14.3 0.4 14.1
$200-$399___________________________________ 24. 5 10.0 9.2 15.5 33.6 43.0 13.6 47.7 4.3 39.4
$400-$599___________________________________ 16.2 11.0 11.1 15.6 21.5 21.2 17.4 20.7 8.2 19.9
$600-$799___________________________________ 10. 5 9.5 10.5 10.9 11.6 7.5 19.4 8.1 11.6 8.2
$800-$999___________________________________ 7.1 7.0 9.5 7.2 6.7 4.1 14.1 3.3 12.6 4.1
$l,000-$l,499________________________________ 14.4 18.8 26.0 17.9 9.9 7.2 17.2 3.6 30.3 6.2
$l,500-$l,999________________________________ 8.0 13.1 16.5 10.1 4.7 3.2 6.0 1.3 15.4 3.0
$2,000-$2,499________________________________ 4.6 9.5 7.5 6.6 2.0 1.6 2.8 .5 7.0 1.8
$2,500-$2,999________________________________ 3.4 7.7 4.3 5.5 1.5 1.4 1.8 .3 4.6 1.1
$3,000 or more_______________________________ 4.7 11.2 3.7 7.1 1.5 1.7 4.7 .2 5.6 2.2
Total_____ _ ----------------------------------- 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Median________________________________________ $660 $1, 274 $1,153 $922 $488 $390 $766 $350 $1,213 $382
Average________________________________________ $971 $1,427 $1,231 $1,152 $668 $601 $1,005 $433 $1,315 $592
Percentage distribution of net proceeds:
Less than $200___________________________ 1.0 0.2 0.2 0.4 1.6 2.3 0.5 5.0 0.1 3.6
$200-$399___________________________________ 7.6 2.0 2.2 3.8 14.9 21.9 4.0 32.5 1.0 18.9
$400-$599___________________________________ 8.2 3. 7 4.3 6.5 15.2 16.4 8.4 22.7 3.1 15.9
$600-$799___________________________________ 7.5 4.4 5.8 6.3 11.7 8.3 13.2 12.5 6.0 9.2
$800-$999___________________________________ 6.6 4.3 6.9 5.4 8.8 5.9 12.4 6.6 8.4 6.0
$l,000-$l,499________________________________ 17.6 15.2 25.4 17.5 16.8 13.6 19.9 9.8 27.4 11.9
$l,500-$l,999________________________________ 14.1 15.2 22.7 14.3 11.6 8.7 9.8 4.9 19.4 8.3
$2,000-$2,499________________________________ 10.4 14.1 13.2 12.1 6.3 5.7 6.1 2.7 11.3 6.4
$2,500-$2,999________________________________ 9.2 14.0 9.2 12.3 5.7 6.0 4.7 1.6 9.0 5.0
$3,000 or more________________________ ______ 17.8 26.9 10.1 21.4 7.4 11.2 21.0 1.7 14.3 14.8
Total_____________________________________ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
147
Chart IH-35
TYPE OF IMPROVEMENT FINANCED BY
FHA INSURED PROPERTY IMPROVEMENT LOANS
1960
Percent distribution
$550 for single-family dwellings to $983 for commercial
and industrial. By type of improvement,
loans for insulation (20 percent), additions and
alterations (18 percent), and exterior finish (14
percent) accounted for over half of the total claims
paid. Additions and alterations loans were responsible
for the largest volume—over $1 out of
every $4 paid in claims. Insulation claims averaged
$308, in contrast to $992 for those on
new nonresidential construction defaulted loans.
Claim payments on loans for new nonresidential
construction of commercial and industrial structures
averaged $1,495 but involved only two-tenths
of the total dollar volume.
Table III-75.-—Type of improvement by type of property
for claims paid on property improvement loans, 1960
[Total Class 1 and 2 loans]
Type of property improved
Major type of improvement
Percentage distribution
of number of claims
paid:
Additions and altertions____________
Exterior finish----------
Interior finish----------
Roofing_____________
Plumbing----------------
Heating---------- - ------
Insulation__________
New nonresidential
construction-------
Miscellaneous----------
Total--------------------
Percent of total---------
Percentage distribution
of amount of claims
paid:
Additions and alterations____________
Exterior finish----------
Interior finish----------
Roofing-------------------
Plumbing----------------
Heating-------------------
Insulation__________
New nonresidential
construction-------
Miscellaneous----------
Total_____________
Average claims p!'id:
Additions and alterations____________
Exterior finish----------
Interior finish-----------
Roofing_____________
Plumbing__________
Heating-------------------
Insulation__________
New nonresidential
construction-------
Miscellaneous----------
Total_____________
Total
Singlefamily
dwellings
Multifamily
dwellings
17.5 17. 6 16.0
13.8 14.1 11. 7
7. 5 7.1 13.1
4.2 4.1 5. 3
8. 7 8. 6 8.6
11.0 10.2 21.5
20.2 21.1 15.5
3.2 2.5 .9
13.9 14.7 7.4
100.0 100.0 100.0
100.0 89. 1 7.8
26.9 23.3 2. 6
18.9 16.9 1.5
9.2 7.2 1. 7
3.2 2.8 .3
5.9 4.6 . 9
11. 4 8.2 2.9
10. 6 9.6 .9
5.3 3.5 . 1
8. 6 7.5 .8
100.0 83.6 11. 7
$904 $868 $1, 246
802 788 979
712 670 950
446 436 439
395 355 778
608 531 992
308 299 437
992 929 989
360 335 784
587 550 876
Commercial
and
industrial
Farm
homes
and
buildings
Other
25.0 9.1 20. 4
10.3 10.3 6.1
10.8 5.4 8.2
6.9 2.8 4.1
6.9 16. 6 12.2
12.5 5. 7 8.2
11.6 4.6 4.1
6.5 40.9 26.5
9.5 4.6 10.2
100.0 100.0 100.0
1.1 1. 7 3
.6 .3 .1
.3 .2 (’)
.2 . 1 (*)
. 1 (>) (>)
. 1 .2 . 1
.2 . 1 (>)
. 1 (’) W
.2 1.4 .1
. 1 . 1 . 1
1.9 2.4 .4
$1, 275 $983 $1,105
1,186 706 364
950 517 1, 417
780 602 1 416
878 374 958
868 670 1,120
427 275 591
1,495 1,177 598
741 627 1, 010
983 830 916
i Less than 0.05 percent.
148
Section 4
Actuarial Analysis of Insuring Operations
This section of the report is devoted to a fourpart
actuarial analysis of insuring operations:
(1) reserves of FHA’s mortgage insurance funds;
(2) termination experience of FHA-insured home
mortgages; (3) participation payments to mortgagors
from the Mutual Mortgage Insurance
Fund; and (4) the debt retirement experience of
FHA-insured home and project mortgages.
In the first part of this section, the results of the
annual valuation of the reserve liabilities of the
mortgage insurance funds administered by the
Federal Housing Administration are presented.
These annual valuations of reserve liabilities are,
with noteworthy exceptions, similar to those made
by life insurance organizations. The 1954 annual
report presented a detailed discussion of the
nature of the reserve liabilities, the method of
valuing the reserve liabilities, and the determination
of the reserve factors used in valuations.
Discussed in the second part is the life expectancy
of home mortgages insured under Section
203. Estimates of life expectancy for mortgages
of various maturity classes are presented. The
life expectancy is developed from the termination
experience of these home mortgages. This experience
is summarized in actuarial schedules to
show rates of termination of home mortgage insurance
contracts for the various types of termination.
Schedules also provide decrement tables
for the various types of termination and
survivorship tables for the various maturity
classes.
The third part presents an analysis of participation
payments made from the Mutual Mortgage
Insurance Fund to eligible mortgagors who pay
off home mortgages insured under Section 203 at
maturity or prior to maturity. These participation
payments are similar to dividends paid by
mutual insurance organizations to policyholders,
except that they are paid only once at the termination
of the insurance contract. The payment
which an eligible mortgagor receives represents
a share of the Participating Reserve Account, one
of two statutory accounts in the Mutual Mortgage
Insurance Fund, and the basis for payment is
required to be equitable and in accordance with
sound actuarial and accounting practice.
In the fourth part of this section is included an
analysis of the rates of debt retirement for insured
home and project loans. Repayments of indebtedness
through regular amortization or prepayment
represent to the lending institution a backflow of
funds available for reinvestment. Rates of retirement
for both types of repayment when related
to outstanding investments measure the turnover
of the investment.
Analysis of Reserves of Insurance Funds
FHA operates 11 insurance funds under which
the fiscal provisions of the several insurance programs
are administered. Loan and mortgage insurance
contracts written under these programs are
assigned to a particular insurance fund in accordance
with statutory requirements. Each of the
funds is credited with fee, premium, and investment
income and is charged with administrative
expenses and insurance losses with respect to loan
and mortgage insurance contracts assigned to the
fund. The insurance reserves of a fund, representing
capital and the accumulation of earned
surplus, are available to cover future losses and related
expenses. The newer funds, those more recently
created by amendments to the National
Housing Act, have accumulated comparatively
little in earned surplus and operate in part from
capital contributed by other FHA funds in accordance
with statutory provisions. In the older funds
the insurance reserves are relatively substantial.
Detailed fiscal information on income, expenses,
losses, and insurance reserves including capital
contributions for each FHA fund is given in the
section on accounts and finance.
The adequacy of the insurance reserves of a fund
to cover its future contingent losses and related
expenses can be established by a valuation of such
future losses and expenses. In the practice of life
insurance organizations such valuations measure
reserve liabilities not only for the purpose of establishing
whether a fund is solvent but also for the
purpose of determining how much of earned surplus
may be available for distribution to policyholders
or stockholders. With mortality experience
well established, expected mortality-—one of
the major elements in the valuation of reserve
liabilities—can be predicted reasonably well.
Consequently, the reserve liabilities of life organizations
can be determined with a fair degree of
accuracy and are the expected future liabilities.
There is a noteworthy difference between the
reserve liabilities of life organizations and those
of FHA’s mortgage insurance funds. The future
losses and expenses which the liabilities of FHA’s
mortgage insurance funds measure are principally
contingent upon a general deterioration of business
conditions—a development which does not
readily lend itself to prediction. Since the incidence
of an economic reversal cannot readily be
predicted, the most conservative basis for reserve
/591772—61------ 11 149
valuations for such future losses and expenses is
to assume that adverse economic conditions of approximately
depression magnitude might develop
immediately. The reserve valuations are designed
to measure' the liabilities resulting from the development
of such a contingency. Thus, the liabilities
of FHA’s mortgage insurance funds are
contingent liabilities.
The risks which the funds underwrite are in
the nature of a catastrophe hazard which may be
characterized as economic in nature and cyclical
in pattern. The events insured against do not
occur in substantial proportions except under the
contingency of a depression. In this sense, FHA’s
reserve liabilities are not designed to measure the
solvency of the funds according to its accepted
meaning in the underwriting of conventional risks.
To emphasize this distinction, the reserve liabilities
of FHA’s mortgage insurance funds are described
as “estimated reserve requirements.” .They
are thus the amounts of reserves which an insurance
fund requires to cover the insurance losses and
administrative expenses which the fund might
incur if an economic reversal of approximately depression
magnitude were to develop immediately.
Although based on accepted actuarial principles,
such valuations of reserve requirements for insurance
funds underwriting risks which are predominantly
economic in nature are unique in insurance
practice.
Distinct from the reserve requirements are the
“insurance reserves,” i.e., the capital and surplus
which an insurance fund has accumulated from
its operation. Capital and surplus of FHA’s insurance
funds are identified in its financial statements
as insurance reserves. A balance status for
a fund exists when its insurance reserves are equal
to or greater than the estimated reserve requirements.
When a balance status is attained, the
fund has sufficient resources to meet such future
insurance losses and expenses as might be incurred
in the event that adverse economic conditions of
approximately depression magnitude were to develop
immediately.
The comparative reserve position of a fund is
thus determined by changes in insurance reserves
and reserve requirements. Insurance reserves of a
fund are principally affected by the net income it
earns during an accounting period. Reserve requirements
are affected by the volume of new
insurance written, the aging of the insurance contracts
in force, and terminations of the insurance
contracts in force. A substantial increase in the
amount of new insurance written has the effect
of raising significantly the reserve requirements,
for the reason that reserve requirements are at
their highest level for new insurance. Aging of
the insurance in force lowers reserve requirements
for the reason that reserve requirements for contracts
in force become progressively lower the
longer the insurance has remained on the books.
Terminations of insurance, of course, reduce reserve
requirements.
One of the principal purposes served by the
excess of insurance reserves over reserve requirements
is to protect the reserve position of the fund
from a more rapid increase in the volume of new
insurance than that for insurance reserves. In
the case of the Mutual Mortgage Insurance Fund,
another purpose served is in the allocations from
this fund’s net income to the Participating Reserve
Account from which participation payments
are distributed to eligible mortgagors upon the
termination of mortgage insurance. Such allocations
will tend to remain relatively high as long
as favorable economic conditions prevail.
Another noteworthy feature of the reserve requirements
is that they take into account the fact
that, when a claim under mortgage insurance is
paid by an insurance fund, the mortgage insurance
fund acquires a property in exchange for its
debentures. As properties are sold, the proceeds
of sales are used to redeem the fund’s debentures.
It is the expected future acquisitions and their
expected future losses on sale, among other things,
that are reflected in the reserve requirements when
they are valued with respect to the mortgage insurance
contracts in force. Some of the other
items which are included in the determination of
reserve requirements are expected future premiums,
investment income, and administrative
expenses.
Attention is invited to the adjustment in the
estimated reserve requirements. This adjustment
is for the unearned premiums estimated to be retained
by the fund after refunds of unearned
premiums upon prepayment of insured mortgages
prior to maturity. FHA’s accounting system is
on an accrual basis and, consequently, earned surplus
figures do not include unearned premiums.
To take these unearned premiums into account
for reserve purposes, the reserve requirements are
adjusted by the amounts of unearned premiums
estimated to be retained by the fund. The insurance
reserves of each fund also are exclusive
of the amounts contributed by that fund to establish
and operate other insurance funds. Seven of
the 10 mortgage insurance funds have received,
through the end of 1960, capital contributions in
the amount of $20,310,000. Over 90 percent of
this amount, or $18,310,000, was contributed by
the War Housing Insurance Fund.
Only one of the FHA’s mortgage insurance
funds, the Mutual Mortgage Insurance Fund (the
first of the funds to be established and the largest
in terms of insurance in force), is authorized by
statute to distribute part of its earned surplus to
eligible mortgagors upon the termination of mortgage
insurance. Reserve requirements for this
fund are used, as in life insurance practice, to
determine how much of surplus may thus be distributed.
That part of the earned surplus which
is available for distribution is in the statutory
150
Table III-76.—Outstanding balance of insurance in force, insurance reserves, and estimated reserve requirements in
the insurance funds of the Federal Housing Administration
Insurance fund
As of Dec. 31, 1960
Outstanding balance
of insurance
in force
Insurance reserves1
Estimated reserve
requirements,
adjusted i 2 3 4
Excess of insurance
reserves over estimated
reserve
requirements,
adjusted
Title I Housing Insurance Fund_______________________________________
Mutual Mortgage Insurance Fund_____________________________________
Housing Insurance Fund______________________________________________
Sec. 220 Housing Insurance Fund______________________________________
Sec. 221 Housing Insurance Fund______________________________________
Servicemen’s Mortgage Insurance Fund________________________________
War Housing Insurance Fund_________________________________________
Housing Investment Insurance Fund
$132,875,136
23,942,176, 701
1, 571,922,116
293,425,308
228,741,645
1,056,910, 680
2,907,134,001
$5,885,246
3 603,164,201
14, 716,389
3, 270,478
-66,012
12,273,868
185,651, 640
913,692
15,268,766
-14,262,872
$4,601, 506
629,994, 297
56,605, 094
18,535,939
10, 565, 732
37,001, 566
68,729, 561
$1,283, 740
-26,830,096
-41,888, 705
-15,265,461
-10, 631, 744
-24, 727,698
116,922,079
913,692
-27, 540,625
-22,730,902
Armed Services Housing Mortgage Insurance Fund_____________________
National Defense Housing Insurance Fund_____________________________
Total all mortgage insurance funds_______________________________
Title I Insurance Fund
2,125, 576,381
371,030,457
i 42,809,391
8,468,030
32,629,792,425
1,609,086,926
826,815,396
5 95, 286,026
877,311,116
(6)
-50,495,720
Total all funds 34, 238,879,351 922,101,422
1 Includes earned surplus of certain insurance funds transferred to other
FHA insurance funds as capital contributions in the amount of $20,310,000.
2 For mortgage insurance contracts in force. Adjusted for estimated
unearned premiums in all 9 mortgage insurance funds in the amount of
$44,048,373 to be retained after refunds of unearned premiums upon prepayment.
s Includes $161,820,950, as of Dec. 31, 1960, in the Participating Reserve
Account, representing balances available for participations, which account
may be charged with any net loss sustained by the Mutual Mortgage
Insurance Fund in any semiannual period.
4 Excludes reserve requirements for the mortgages endorsed for insurance
under Sec. 809 with respect to which the Military will guarantee the fund
from loss. Includes reserve requirements for armed services housing mortgages
initially endorsed for insurance under Sec. 803 of the act, as amended,
and securing housing projects not yet completed with respect to which the
Military will, upon completion and final endorsement, guarantee the
mortgage payments.
s Does not include unearned piemiums in this fund amounting to $25,942,135,
as of Dec. 31, 1960.
6 Reserve requirements are not estimated for the Title I Insurance Fund.
The maximum potential liability under this fund was $386,816,386, as of
Dec. 31, 1960, representing the balance of reserves available to qualified
lending institutions for the payment of claims. This potential liability was
calculated at 10 percent of net proceeds of insurance written less claims paid
and reserve adjustments.
Table III-77.—Insurance reserves and estimated reserve requirements in the insurance funds of the Federal Housing
Administration, as of Dec. 31,1958-60
Insurance fund
Insurance reserves 1 as of— Estimated reserve requirements,
adjusted,2 as of—
Excess of insurance reserves over estimated
reserve requirements, adjusted, as of—
Dec. 31, 1958 Dec. 31, 1959 Dec. 31, 1960 Dec. 31, 1958 Dec. 31, 1959 Dec. 31, 1960 Dec. 31, 1958 Dec. 31, 1959 Dec. 31, 1960
Title I Housing Insurance
Fund _ - __ _ $4, 575,079
3 438,262,824
10,984,322
1,191,947
906,691
5,145,979
157,103, 784
900,103
11,463, 585
-11,144,441
$5,191,071
3 515,202,350
13, 738,244
2,141,184
1,329,799
8,480,302
173, 599,092
919,021
13,858, 546
-5,981,384
$5,885,246
3 603,164, 201
14,716,389
3,270,478
-66,012
12,273,868
185,651, 640
913,692
15, 268,766
-14.262,872
$6,459,779
384,193,412
37,322,830
6,964,529
3,088,137
20,317,881
101,008,007
$5,462, 219
529,341,973
43,194,556
13,628,319
6,883,628
29,683,694
84,118,822
$4,601, 506
629,994,297
56,605,094
18,535,939
10, 565,732
37,001, 566
68,729, 561
-$1,884, 700
54,069,412
-26,338, 508
-5, 772, 582
-2,181,446
-15,171,902
56, 095, 777
900,103
-68, 210, 211
-24, 573, 749
-$271,148
-14,139,623
-29,456,312
-11,487,135
-5, 553,829
-21,203,392
89,480, 270
919,021
-45,383,188
-16,831, 538
$1,283, 740
-26,830,096
-41,888, 705
-15,265,461
-10,631,744
-24, 727,698
116,922,079
913,692
-27, 540,625
-22,730,902
Mutual Mortgage Insurance
Fund_ ___
Housing Insurance Fund.
Sec. 220 Housing Insurance
Fund__________
Sec. 221 Housing Insurance
Fund_______
Servicemen’s Mortgage
Insurance Fund_______
War Housing Insurance
Fund_______________
Housing Investment Insurance
Fund _
Armed Services Housing
Mortgage Insurance
Fund ____ ___ ______ 479,673, 796
13,429,308
4 59,241,734
10,850,154
4 42,809, 391
8.468,030
National Defense Housing
Insurance Fund__
Total all Mortgage
insurance funds_
Title I Insurance Fund__
Total all funds_____
619,389,873
73, 507,057
728,478,225
84,642,167
826,815,396
95,286,026
652,457,679
(5)
782,405,099
(5)
877,311,116
(5)
-33,067,806 -53,926,874 -50,495, 720
692,896,930 813,120,392 922,101,422
i Includes earned surplus of certain insurance funds transferred to other
FHA insurance funds as capital contributions in the amount $20,310,000, as
of Dec. 31,1958, Dee. 31,1959, and Dec. 31, 1960.
2 For mortgage insurance contracts in force. Adjusted for estimated unearned
premiums to be retained after refunds of unearned premiums upon
prepayment.
3 Includes $161,820,950, as of Dec. 31, 1960, in the Participating Reserve
Account representing balances available for participations, which account
may be charged with any net loss sustained by the Mutual Mortgage Insurance
Fund in any semiannual period. The comparable figure for Dec. 31, 1958 is
$116,990,147 and for Dee. 31, 1959 is $136,723,560.
4 Excludes reserve requirements for the mortgages endorsed for insurance
under Sec. 809 with respect to which the Military will guarantee the fund
from loss. Includes reserve requirements for armed services housing mort
gages initially endorsed for insurance under Sec. 803 of the act, as amended,
and securing housing projects not yet completed with respect to which the
Military will, upon completion and final endorsement, guarantee the mort
gage payments.
5 Reserve requirements are not estimated for the Title I Insurance Fund
Unearned premiums in this fund amounted to $20,389,838 as of Dec. 31,1958
$22,677,292 as of Dec. 31, 1959, and $25,942,135 as of Dec. 31, 1960.
The maximum potential liability under this fund representing the
balance of reserves available to qualified lending institutions for the payment
of claims was $320,011,251 as of Dec. 31, 1958, $359,895,509 as of Dec. 31, 1959,
and $386,816,386 as of Dec. 31, 1960. This potential liability was calculated
at 10 percent of net proceeds of insurance less claims paid and reserve
adjustments.
151
reserve called the Participating Reserve Account.
This account is authorized to receive allocations
from the net income of the fund which are made
in accordance with sound actuarial and accounting
practice.
The results of the 1960 valuation of reserve requirements
of the mortgage insurance funds are
presented in Tables HI-76 and HI-77. The former,
in addition to showing their reserve positions
at the end of 1960, shows the year end outstanding
balances of the insurance contracts in force
assigned to the separate funds. The latter shows
the comparative reserve positions of the funds on
the basis of the 1958-60 valuations.
The December 31, 1960 valuation of reserve
requirements for all mortgage insurance funds
combined shows a deficiency in insurance reserves
of approximately $50.5 million in meeting reserve
requirements. This figure represents an improvement
in the combined reserve position over that
for the year end valuation, as of December 31,
1959, when the reserve deficiency was approximately
$53.9 million. The insurance in force in
the mortgage insurance funds during the calendar
year 1960 increased by 11.5 percent and their reserve
requirements increased by 12.1 percent.
However, the year’s increase in insurance reserves,
exceeding both changes, was 13.5 percent.
In the six mortgage insurance funds under
which the National Housing Act, as amended, authorizes
new insurance to be written, there was
an approximate increase of $3.6 billion. In three
other funds under which new insurance is no
longer authorized, the Title I Housing Insurance
Fund, the War Housing Insurance Fund, and the
National Defense Housing Insurance Fund, there
was a decrease of insurance in force of about $300
million, leaving a net change in mortgage insurance
in force of $3.3 billion. Under the Housing
Investment Insurance Fund, no insurance has as
yet been written.
The current valuation shows three funds with
a balance status, i.e., where the insurance reserves
equal or exceed estimated reserve requirements.
These are the Title I Housing Insurance Fund,
the War Housing Insurance Fund, and the Housing
Investment Insurance Fund.
Among the remaining mortgage insurance
funds which have not attained a balance status
with the 1960 valuation, the most important in
terms of insurance in force is the Mutual Mortgage
Insurance Fund. For this fund, it is the
second time since the 1954 valuation, when the
fund first attained a balance status, that the reserve
position shows a reserve deficiency. The
reserve position of this fund improved continuously
between the 1954 and 1957 valuations, with
the excess of insurance reserves over estimated
reserve requirements rising to over $90 million.
This reserve excess, declining to $54 million with
the 1958 valuation, changed to a reserve deficiency
of $14 million with the 1959 valuation, and to a reserve
deficiency of $27 million with the current
valuation.
The adverse changes in the reserve position of
this fund are attributable in recent years in part
to the record and near-record volume of new insurance
written and in. part to the increasing importance
of longer maturities in the distribution
of new business. As was pointed out in an earlier
paragraph in this section, reserve requirements
are highest foi* new insurance written and they
decline as this insurance ages. Moreover, mortgages
with longer maturities command higher reserve
requirements than mortgages with shorter
maturities. For example, mortgages with 30-year
maturities, the maximum term eligible for mortgage
insurance under this fund, accounted for
61.7 percent of the insurance written and tabulated
in 1960. For the 1959 insurance written, the
comparable figure was 48.1 percent. In 1958, 30-
year maturities comprised only 35.0 percent of the
insurance written in that year.
Second in importance in terms of insurance in
force is the War Housing Insurance Fund, which
first attained a balance status with the 1957 valuation.
Emergency home and project mortgage insurance
contracts written under Title VI during
the defense preparedness and war periods of
World War II and during the postwar period of
the veterans’ emergency housing program were
assigned to this fund. The reserve position of this
fund has shown steady improvement since the 1954
valuation. With the current valuation, the excess
of insurance reserves over estimated reserve requirements
amounts to almost $117 million, an increase
of $27 million over the excess disclosed in
the 1959 reserve position.
Among the other two funds with the reserve
position in a balance status is the Title I Housing
Insurance Fund. This fund was established by the
statutory amendment of April 20, 1950, which
authorized a separate insurance program “to assist
in providing adequate housing for families of low
and moderate income, particularly in suburban
and outlying areas.” This authority was terminated
by the amendment of August 2,1954, which
also authorized, a similar program of insurance
within the Mutual Mortgage Insurance Fund.
With the December 31, 1960 valuation of reserve
requirements, this fund attained a balance status
for the first time. This favorable reserve position
reflects a decline in reserve requirements as a result
of the aging of insurance in force, as well as
terminations, and the increase in insurance
reserves.
The third fund which shows a balance status is
the Housing Investment Insurance Fund, which,
as was indicated above, has no insurance in force
as yet. The balance status of this fund is accounted
for by unexpended capital contributed by
the War Housing Insurance Fund.
There are six other mortgage insurance funds
which have not yet attained a balance status. This
152
is either because they were recently established or
because the bulk of the insurance covered by them
is of recent origin. Consequently, these funds have
not had sufficient time to accumulate the necessary
earned surplus. They are: (1) the Housing Insurance
Fund for multifamily rental housing
under Section 207 of the Act, for cooperative housing
under Section 213 of the Act, for housing for
the elderly under Section 231 of the Act, and for
nursing homes under Section 232 of the Act; (2)
the Section 220 Housing Insurance Fund for redevelopment
housing; (3) the Section 221 Housing
Insurance Fund for relocation housing; (4)
the Servicemen’s Mortgage Insurance Fund, which
provides for the purchase of housing by personnel
in the U.S. Armed Forces and Coast Guard on active
duty for more than 2 years; (5) the Armed
Services Housing Mortgage Insurance Fund covering
housing for military and defense-certified
civilian employees under Title VIII of the Act;
and (6) the National Defense Housing Insurance
Fund for programed housing for Korean emergency
defense workers provided for by Title IX
of the Act.
With respect to the mortgage insurance funds
which have not yet attained a balance status, it is
noteworthy that the Commissioner of the Federal
Housing Administration has authority under Section
219 of the National Housing Act, as amended,
to transfer resources among nine of the funds as
assistance may be required. They are the Title I
Housing Insurance Fund, the Housing Insurance
Fund, the War Housing Insurance Fund, the
Armed Services Housing Mortgage Insurance
Fund, the National Defense Housing Insurance
Fund, the Section 220 Housing Insurance Fund,
the Section 221 Housing Insurance Fund, the Servicemen’s
Mortgage Insurance Fmid, and the Housing
Investment Insurance Fund. This device of
flexibility in the use of resources of separate funds
can provide important financial support to the separate
funds. The Mutual Mortgage Insurance
Fund is not authorized by Section 219 to transfer
or receive assets from other funds. The aggregate
reserve position of the funds which are authorized
under Section 219 to receive or transfer resources
among them indicates the importance of the War
Housing Insurance Fund's insurance reserves to
this group of funds. The growing excess of this
fund’s insurance reserves over estimated reserve requirements
has improved the aggregate reserve
position for all funds in this group. Their reserve
deficiency has been reduced from $87 million at the
end of 1958 to $24 million at the end of 1960.
Tables HI-76 and HI-77 also show figures on
the outstanding balance of insurance in force and
the insurance reserves for the Title I Insurance
Fund. The fiscal provisions of FHA’s property
modernization and improvement program are administered
under this fund. Reserve requirements
have not been estimated for the fund, but its financial
position can be appraised on the basis of insurance
reserves and insurance in force. The insurance
reserves together with the unearned
premiums on December 31, 1960 amounted to
$121,228,161. With outstanding balances of loan
insurance in force amounting to $1,609,086,926, the
insurance reserves and unearned premiums represented
7.53 percent of the outstanding balance of
insurance in force as compared with 6.91 percent
a year ago.
The maximum potential liability under this
fund at the year end was $386,816, 386, which represented
the balance of reserves available to qualified
lending institutions for payment of future
insurance claims on loans outstanding. The comparable
figure for December 31, 1959 was $359,-
895,509. The potential liability is calculated in
accordance with the administrative regulations for
property improvement loans under Title I, Section
2 at 10 percent of the net proceeds of insurance
written less claims paid and reserve adjustments.
This Title I fund was created by an amendment
of June 3,1939, and the total claims paid from the
fund through the end of 1960, prior to any recoveries
on defaulted notes, amounted to 1.65 percent
of the net proceeds of loans insured. Actual losses
(after recoveries) and reserves for future losses
on such notes represent a little less than 1 percent
of the net proceeds of notes insured. The maximum
claim rate under Title I amounted to 4.04
percent of the net proceeds of the notes insured
during the period from mid-1934 to mid-1939.
After recoveries from collection efforts, the actual
losses for this period of insurance amounted to 1.89
percent of notes insured.
Analysis of Termination Experience
The estimated life expectancy of one- to fourfamily
home mortgages insured under Section
203 is estimated to be 9.33 years. The life expectancy
is the period of time for which such
mortgages can, on the average, be expected to
remain in force. It is based on the cumulative
termination experience of the first of FHA’s home
mortgage insurance programs, and calculated by
the standard actuarial method described as “the
temporary complete expectation of life.” This
termination experience has been observed over the
24-year period since the inauguration of this
regular home mortgage program which operates
under fiscal provisions of the Mutual Mortgage
Insurance Fund. Experience covers all home
mortgage insurance contracts written under Section
203 from 1935 through 1958 and exposed to
their policy anniversaries in 1959.
This estimate of life expectancy on the basis
of the 1935-59 termination experience is about a
fifth of a year higher than the comparable figure
of 9.12 years shown in the 1959 annual report.
An increase in life expectancy has been evident
since an estimate of this kind was first presented
in the 1951 report. The life expectancy in that
report was estimated to be 7.55 years and was
based on termination experience covering all home
153
mortgage insurance contracts written under Section
203 from 1935 through 1949 and exposed to
their policy anniversaries in 1950. The trend
toward longer life expectancies can be expected
to continue as the effect of the relatively high
levels of terminations in the late war and early
postwar years continues to be offset by the relatively
lower levels which have been obtaining
since then and as the relative importance of terms
in excess of 20 years increases. The relatively
high levels of terminations, i.e., terminations in
relation to insurance in force, occurred in the
period 1944-48, with the peak rate obtaining in
1946. Prepayments accounted for most of these
terminations and were the results of mortgagors’
paying off their mortgages or selling their
homes—both developments reflecting a combination
of the high personal savings and incomes
and the shortages of consumer goods and housing
in that war and postwar period.
The life expectancies for mortgages of various
maturity classes included in the 1935-59 termination
experience have also been estimated. The
maturity classes selected for observation are as
follows: Less than 13 years, 13 through 17 years,
18 through 22 years, 23 through 25 years, and
26 through 30 years. The significant maturities
in these classes are the quinquennial ones: 10, 15,
20, 25, and 30 years. Prior to 1944, mortgages of
various maturities within the statutory limits
were eligible for insurance under Section 203.
Beginning in 1944, insurance was restricted to
the quinquennial maturities within the statutory
limits.
For mortgages in the maturity class of less than
13 years, the estimated life expectancy is 5.83
years. Mortgages with maturities of 13 through
17 years have an estimated life expectancy of 7.38
years. The life expectancy for mortgages with
maturities of 18 through 22 years is 9.10 years.
For mortgages in the 23 through 25 years maturity
class, the estimated life expectancy is 11.06
years and is based on cumulative termination experience
observed over a 21-year period and a
projection of that experience through the 25-year
period. Life expectancies for mortgages of various
maturity classes are calculated by the standard
actuarial method described as “the complete
expectation of life.” An estimate of life expectancy
for mortgages in the longest maturity class
was not made, since the period of observation was
too short. Mortgages with terms of 30 years were
first endorsed for insurance beginning in 1949.
These life expectancies for the various maturities,
like the estimated life expectancy for all
maturities combined, also reflect the relatively
high levels of terminations of the 1944-48 period.
The termination experience of these various maturity
classes during the 1948-59 period was
analyzed to determine whether or not life expectancies
are longer in the postwar period than in
the 1935-59 period. On the basis of this limited
termination experience, the indication is that
longer life expectancies are in process of developing
for the 20- and 25-year maturities.
The data on the 1935-59 termination experience
for all mortgages are organized as a survivorship
table which is presented in Actuarial Schedule 1.
It is from this schedule that the estimate of life
expectancy for all home mortgages is made.
Among the things that the schedule shows for
the one- to four-family home mortgages insured
under Section 203 are their total annual termination
rates by policy year. When these termination
rates are applied to an initial hypothetical
group of 100,000 home mortgage insurance contracts,
they produce a survivorship table giving
the number of mortgages in force at the beginning
of a policy year, the number terminating during
that policy year, and the number surviving to
the beginning of the next policy year.
A policy year covers the annual period beginning
with the date on which a mortgage contract
is endorsed for insurance. Thus, a mortgage insurance
contract which has not passed its first
anniversary is in force or exposed to the risk of
termination during its first policy year. If the
contract is terminated before this anniversary, it
is terminated during its first policy year. Determined
by the standard method of computing
probabilities, the rate of termination for the first
policy year is the number of mortgage insurance
contracts terminated during this policy year divided
by the number of mortgage insurance contracts
in force (i.e., exposed to the risk of termination)
at the beginning of the first policy year.
Likewise, the rate of termination for the second
policy year is the number of mortgages terminated
during the second policy year divided by the number
of mortgages in force at the beginning of the
second policy year.
The interpretation of the rate of termination,
number of terminations, and number of survivors
is as follows: the 1935-59 termination experience
of Section 203 mortgages produces an overall annual
rate of termination of 0.0257072 in the first
policy year. When the 100,000 mortgage entrants,
the initial hypothetical group, are multiplied.
by this first policy year rate, the product
of 2,571 represents the number of mortgages which
can be expected to terminate for various reasons
during the first policy year after the date of their
insurance. When these terminations during the
first policy year are subtracted from the 100,000
entrants, it leaves 97,429 mortgages as survivors
at the beginning of the second policy year. In the
second policy year, the annual rate of termination
shown in the schedule is 0.0407812. When this
rate is applied against the 97,429 surviving mortgages
at the beginning of the second year, it gives
3,973 as the number of mortgages which can be
expected to terminate during the second policy
year. Subtracting this number of terminated
mortgages from the number in force at the beginning
of the second policy year leaves 93,456
154
Actuarial Schedule 1.—Survivorship table of a group of 1- to Jf-family home mortgages based on aggregate termination
experience by policy year for Sec. 203 mortgages insured from 1935 through 1958 and exposed to policy anniversaries
in 1959 or prior termination dates
i The method of determining these rates is identical with the standard method of computing probabilities.
Policy year
Mortgage
survivors at
the beginning
of policy year
Annual termination
rates i
Mortgage
terminations
during the
policy year
Policy year
Mortgage
survivors at
the beginning
of policy year
Annual termination
rates 1
Mortgage
terminations
during the
policy year
1st ___________________ 100,000 0.0257072 2, 571 12th_____________________ 34,018 0.1242533 4,227
■2d 97, 429 . 0407812 3,973 13th____________________ 29, 791 .1244322 3,707
3d___________________ 93,456 . 0588323 5, 498 14th_____________________ 26,084 .1309156 3,415
4th ____ ______ _____ 87,958 . 0768105 6,756 15th_____________________ 22, 669 .1644624 3,728
3th 81'202 . 0957197 7, 773 16th_____________________ 18,941 .1533470 2, 905
■6th ___________________ 73,429 . 1097918 8,062 17th_____________________ 16,036 .1241639 1,991
7th ____________ . 65, 367 . 1155021 7, 550 18th_. __________________ 14,045 .1222995 1,718
"Sth _______ 57, 817 . 1164055 6,730 19th_____________________ 12,327 . 1851838 2,283
■9th 51,087 .1211017 6,187 20 th_____________________ 10,044 .5126467 5,149
10th ____________ 44, 900 . 1275562 5, 727 21st . __________ 4, 895 . 4360642 2,135
11th 39,173 .1315985 5,155 22d______________________ 2, 760 1.0000000 2,760
mortgage survivors at the beginning of the third
policy year.
The composition of the total annual termination
rates shown in the survivorship table is presented
in Actuarial Schedule 2. Included are two types
of prepayments—prepayments in full and prepayments
by supersession; two types of titles acquired—
titles retained by mortgagees and titles
transferred to FHA; and other types of terminations,
which are predominantly maturities.
These annual rates of termination for the different
types of terminations are determined by the
same method of computing probabilities as the
total annual termination rates and are, therefore,
additive. Thus, the annual rate of prepayment
in full for a given policy year can be added to the
annual rate of prepayment by supersession for the
same policy year to give the total rate of prepayment
for the given policy year. The rate for a
particular policy year for titles acquired by mortgagees
and retained by mortgagees can be combined
with the rate for the same policy year for
titles acquired by mortgagees and transferred to
FHA to give a total default termination or foreclosure
rate for that policy year. When the annual
rates for the different types of termination
are added together, they give the total annual termination
rates shown in both actuarial schedules.
The annual rates by policy year for the different
types of terminations measure the distribution
of expected terminations during a policy year.
These rates of termination for the different types
of terminations when applied against the initial
group of 100,000 mortgages and their survivors
provide numbers of terminations for each type
during a policy year. These numbers are shown
Actuarial Schedule 2—-Annual termination rates1 for 1- to ^-family home mortgages by type of termination based on
aggregate termination experience by policy year for Sec. 203 mortgages insured from 1935 through 1958 and exposed
to policy anniversaries in 1959 or prior termination dates
i The method of determining these rates is identical with the standard method of computing probabilities.
Policy year
Type of termination
Prepayments
in
full
Prepayments
by
supersession
Titles acquired by
mortgagees
Others Total
Retained by
mortgagee
Transferred
to FHA
1st_________ ________ ____ ________________ —_ _ _ ____ 0.0188287 0.0064801 0.0001111 0.0002595 0 0000278 0 0257072
2d. ___________________________________________________________ .0299014 . 0099469 .0002122 .0006979 .0000228 0407812
•3d______________________________________________________________ .0437528 . 0138208 . 0003569 .0008727 .0000291 .0588323
4th... ..... ........ ... ..... ___ _______ ____ .0586720 .0169546 . 0003657 . 0007565 .0000617 .0768105
5th_____________________________________________________________ .0756590 . 0190667 . 0003806 .0004477 .0001657 .0957197
6th_____________________________________________________________ .0890061 .0199194 . 0003132 . 0003642 .0001889 1097918
7th_____________________________________________________________ .0965156 . 0182562 .0003184 . 0002737 .0001382 .1155021
8th_____________________________________________________________ .0987301 .0169556 .0003016 .0001679 . 0002503 1164055
■9th_____________________________________________________________ . 1027021 .0174813 . 0002649 .0001639 0004895 .1211017
10th____________________________________________________________ .1079939 .0155465 . 0001717 .0000504 0037937 1275562
Hth— ____________ ___ _ ______ .1153905 .0119482 0001307 .0000047 0041244 1315985
12th_____ ____________________________________________________ .1118757 .0091833 . 0000557 .0000093 0031293 ’1242533
13th ___________________ . — .1140679 . 0073383 .0000653 0029607 1944322
14th ... .1226296 .0056574 0000605 0025681 1309156
15th ________ .1325173 . 0047425 0000445 ’ 0271581 1644624
16th.. ____________________________________________ . .1241656 .0039404 .0000482 .0251928 1533470
17th_____ .1162065 . 0033149 . 0000592 0045833 1241639
18th ______________ ____ ... ... .1178417 .0032621 .0000348 0011609 122^995
19th_______ .1679260 .0025251 .0000380 0146947 * 1851838
20th_____________________ ________ ___________ . .2943961 . 0023854 2158652 5126467
21st— ___ _____ __ _ ___________________________________ . .0741223 . 0028175 3591244 4360642
22d. ___________________________________________________________ 1.0000000 1.0000000
155
in the decrement table presented in Actuarial
Schedule 3, where the different types of terminations
during a policy year appear as decrements
from the survivors at the beginning of a policy
year.
The decrement table is a convenient form for
viewing the relative importance of the different
types of terminations at each duration, i.e., the
number of policy years during which an insurance
contract is exposed to the risk of termination.
A comparison of the numbers of prepayments
in full with total terminations by policy year
discloses the extent to which these prepayments
account for total terminations. Prepayments in
full in 14 of the 21 policy years in which prepayments
obtain represent more than four-fifths of
the total terminations. They account for about
three-fourths in the first 4 policy years.
Prepayments by supersession, which account for
a little over a fourth of total terminations during
the first policy year, become progressively less
important a decrement as the duration increases.
Most of the terminations are accounted for by
these two types of terminations.
on their decrements or rates of termination. Exposure
to adverse changes in economic conditions
could change their rates significantly.
Actuarial Schedule 4 presents a survivorship
table for all maturities and the separate classes of
maturities along with their respective estimated
life expectancies. This table is designed to show
the survivors at the beginning of a policy year on a
comparative basis.
Actuarial Schedule 4.—Survivorship table for a group
of 1- to If-family home mortgages of various maturity
classes based on aggregate termination experience by
policy year for Sec. 203 mortgages insured from 1935
through 1958 and exposed to policy anniversaries in
1959 or prior termination dates
Mortgage survivors at the beginning of policy year
Policy year
All ma-
Maturity class of mortgage
turi- Less 13 18 23 26
ties 1 than 13 through through through through
years 1 17 22 25 30
years 1 years 1 years 2 years 3
Actuarial Schedule 3.—Decrement table of a group of
1- to lf-family home mortgages based on aggregate termination
experience by policy year for Sec. 203 mortgages
insured from 1935 through 1958 and exposed to
policy anniversaries in 1959 or prior termination dates
lst.
2d.
3d.
4th.
5th
Policy
year
Mortgage
survivors
at the
beginning
of
policy
year
6 th___________________
7th___________________
8 th___________________
9th___________________
10th__________________
11th__________________
12th__________________
13th__________________
1st.
2d.
3d.
4th.
5 th.
6th.
7th_____
8th_____
9th_____
10th____
11th____
12th____
13th____
14th____
15th____
16th____
17th____
18th____
19th____
20th____
21st_____
22d_____
100,000
97,429
93,456
87,958
81, 202
73, 429
65,367
57,817
51, 087
44, 900
39,173
34,018
29, 791
26,084
22, 669
18, 941
16,036
14, 045
12, 327
10,044
4, 895
2, 760
Decrement by type of termination
PrePre-
paypay-
ments
ments by
in full supersession
Titles acquired by
mortgagees
Others Total
Retained
by mortgagee
Transferred
to
FHA
14th__________________
15th__________________
16 th__________________
17th__________________
18th__________________
19th__________________
20 th__________________
21st__________________
22d___________________
100,000
97, 429
93, 456
87, 958
81, 202
73, 429
65,367
57,817
51, 087
44, 900
39, 173
34,018
29. 791
26, 084
22, 669
18, 941
16, 036
14, 045
12,327
10, 044
4,895
2, 760
100, 000
94, 796
87, 606
78,454
67,905
56, 703
45,897
36, 274
27, 710
19, 823
11,131
4,706
2, 223
100,000
96,127
90, 478
82,858
74, 068
64,893
55, 749
47, 124
39, 449
33,014
27, 498
22.943
19,318
16,120
12,379
5, 309
918
100,000
96, 565
91,866
85,655
78, 545
71,059
63,487
56, 050
49,362
43,387
38,120
33,460
29, 275
25, 596
22,371
19, 544
17,013
14, 726
12, 478
9,179
1,763
32
100,
98,
96,
92,
86,
79,
71,
64,
58,
52,
46,
41,
37,
33,
30,
26,
24,
21,
19,
17,
15,
13,
000
659
096
188
699
331
223
209
049
066
604
516
310
681
075
829
011
595
516
603
735
988
100,000
99,330
97, 655
95,360
91,865
85, 743
79,861
75, 735
71,902
68. 097
65, 010
1,883
2,913
4,089
5,161
6,144
6, 535
6, 309
5,708
5,247
4,849
4, 520
3, 806
3,398
3,199
3,004
2,352
1,863
1,655
2,070
2, 957
363
648
969
1,292
1,491
1.548
1,463
1,193
980
893
698
468
312
219
147
107
75
53
46
31
24
14
11
21
33
32
31
23
21
17
14
85222111
26
68
81
67
36
27
18
10
8
323
5
14
14
9
15
25
170
162
107
88
67
616
477
74
16
181
2,168
1,758
2, 760
2, 571
3, 973
5, 498
6, 756
7, 773
8,062
7, 550
6,730
6,187
5,727
5,155
4,227
3, 707
3,415
3,728
2,905
1,991
1,718
2, 283
5.149
2,135
2,760
Estimated life expectancy
in years_____ 5. 83 7. 38 9.10 * 11. 06
1 Based on aggregate termination experience for mortgages insured from
1935 through 1958 and exposed to their policy anniversaries in 1959 or prior
termination dates.
2 Based on aggregate termination experience for mortgages insured from
1938 through 1958 and exposed to their policy anniversaries in 1959 or prior
termination dates.
3 Based on aggregate termination experience for mortgages insured from
1949 through 1958 and exposed to their policy anniversaries in 1959 or prior
termination dates.
4 Based on termination experience observed over a 21-year period and its
projection to 25 years.
8 Not estimated.
1 Less than 1.
Default terminations or foreclosures, the combination
of titles acquired by mortgagees and retained
by mortgagees and those transferred to
FHA, are considerably less important decrements
than either type of prepayment. These relatively
small decrements reflect the favorable economic
climate to which this regular home mortgage insurance
program has been exposed. Consequently,
it would be premature to describe a pattern based
The rates of termination shown in the actuarial
schedules from which survivors, decrements, and
expectancies are estimated are “crude” or actual
rates as distinguished from “graduated” or
smoothed rates. They are based on numbers of
mortgages only and include mortgages with the
various terms of financing eligible for insurance
under the administrative rules and regulations for
Title II, Section 203. Because this insurance program
has not been in operation long enough for
many of its long-term mortgages to mature, the
rates of termination for later policy years are
based on a smaller aggregate amount of experience
than those for earlier years. The rates of
termination for the first policy year for all mort-
156
gages are based on the terminations from contracts
endorsed for insurance in each calendar year from
1935 through 1958. For the second policy year,
they are based on the terminations from endorsements
in each calendar year from 1935 through
1957.
With time, the accumulation of termination
data will provide the merged experience of home
mortgage insurance contracts through that policy
year which will represent the longest maturity
eligible for insurance under this program. Not
only can additional termination experience influence
these rates by duration, particularly in the
later durations where the aggregate experience is
smaller, but changing economic conditions will
also influence the rates of termination. It should
be noted that the FHA mortgage insurance programs
have not been exposed to a serious reversal
of economic conditions. The cumulative experience
of foreclosures, therefore, reflects only the
most favorable period of exposure. Accordingly,
it must be emphasized that the pattern of termination
rates shown in the actuarial schedules is
only an emerging one and cannot be said to be
definitive for total terminations or for the different
types of terminations.
Mutual Mortgage Participation Payments
The Mutual Mortgage Insurance Fund is the
only FHA insurance fund in which mortgagors
are authorized by statute to share in any excess
premiums—charges in excess of expenses, insurance
losses, and provisions for reserve liabilities.
In this respect, for home mortgage insurance written
under Section 203 the fund is operated like a
mutual insurance organization. The payments
which mortgagors receive are similar to policyholders’
dividends. A noteworthy difference, however,
is that dividends (or participation payments,
as they are called) are terminal dividends, payable
at termination of the mortgage insurance contract,
when the mortgage is paid off at maturity
or prepaid prior to maturity, as distinct from
annual dividends which most mutual insurance
organizations pay to their policyholders.
Provision for the operation of the principle of
mutuality for mortgages insured under Section
203 of the National Housing Act was made in the
original legislation approved June 27, 1934, and,
except for subsequent technical amendments to
improve on the operation of mutual insurance,
such provision has remained a part of the legislation
in effect today. The mutual mortgage insurance
system as far as practicable was to be
self-supporting and was to cost the mortgagor no
more than the amount needed to cover the risk
involved plus necessary administration expenses.
Premium charges in excess of those needed for
its operation were to be returned to the mortgagor
as “dividends.”
Mortgagors who pay off their mortgages—
whether paid off at the maturity of the mortgage
note, or paid off prior to maturity, as, for example,
in the case of a mortgagor who prepays from
savings or from the proceeds of the sale of his
home—are eligible to receive dividends or participation
payments from the Mutual Mortgage Insurance
Fund. Thus, mortgagors with mortgage
insurance contracts that were terminated as a result
of a default are not eligible to receive such
payment. Since 1959 termination of insurance
contracts has been permitted through agreement
between the mortgagor and mortgagee, with appropriate
notice to FHA. Participation payments
are payable in such cases as if the mortgage had
been prepaid. Payments are made to the mortgagor
of record as reported by the mortgagee at
the date the final payment is made.
During 1958, a special tabulation of mortgages
paid in full and participation payments made
to the mortgagor of record revealed that, in threefourths
of these terminations, the recipient of the
participation payment had been the mortgagor at
the time the mortgage debt was originated by the
lender and insured by FHA. No doubt a high
proportion of the remaining terminations of this
kind involved mortgagors who had assumed the insured
mortgage debt from builders or other original
mortgagors soon after FHA endorsement of
the insurance contract and had, accordingly, made
most, if not all, of the annual payments of the
mortgage insurance premium.
Payments to mortgagors are made from the
Participating Reserve Account, one of two insurance
reserve accounts in the fund. This account,
a statutory reserve, is authorized to receive allocations
semiannually from the net income of the
fund, or be charged with any net loss in a semiannual
period. The amounts are required to be
allocated in accordance with sound actuarial and
accounting practice.
Because of the statutory requirements for allocating
the net income of the Mutual Mortgage
Insurance Fund semiannually or charging any net
loss to the Participating Reserve Account, participation
shares—the rate of payment per $1,000
of the original face amount of mortgage terminated—
are established semiannually as of June 30
and December 31 for paying participations to
eligible mortgagors with insurance terminating in
the subsequent 6-month period.
Table HI-78 shows selected participation shares
for eligible mortgagors paying off their mortgages
during the 6-month period ending June 30, 1961.
Participation shares may in no event exceed the aggregate
scheduled annual premiums on the mortgage
to the year of termination of the insurance.
As of December 31, 1960, the account had
$161,820,950 available for distribution to eligible
mortgagors as participation payments. Since
January 1, 1944, when participation payments
were first made, a total of $114,050,047 has been
distributed to 938,528 mortgagors. In the aggregate,
these amounts equal 31 percent of total FHA
'591772—61—12 157
premium collections through the end of 1960 under
this home mortgage insurance program. The
average dividend was approximately $122.
The basis for distributing dividends or participation
payments from the Participating Reserve
Account is an adaptation of the method
known in actuarial science as the asset share
method. According to this method, a class of
insurance business contributing to a fund or
account shares in that fund in relation to its
net contribution to the fund. Classes with more
favorable insurance experience share more favorably
than classes with less favorable experience.
This method thus provides an equitable basis for
distributing an amount from a fund among different
classes of business. The amount in a fund
or account which is to be distributed is determined
separately on the basis of actuarial and accounting
considerations.
Table III-7S.—Selected participation shares per $1,000 of
original face amount of mortgage payable from the
Mutual Mortgage Insurance Fund to eligible mortgagors
with insurance contracts terminating between January
1, 1961 and June 30, 1961
Year mortgage was
endorsed for insurance
Maturity class of mortgage
10 years 15 years 20 years 25 years 30 years
1955_________________ $2. 63
6.20
11.40
$5.81
11.22
18.41
28. 06
40. 97
$7. 27
13.89
21.10
31.26
46. 65
54. 37
$1.98
9.99
19.05
27. 51
42.06
57.69
1953______ $4.06
11.79
15.54
1951___________
1949_________________
1947_________________
1945_________________
The participation payment which an individual
mortgagor receives when he pays off his mortgage
is determined on the basis of the average
insurance experience for his class of business and
its respective reserve requirements. The characteristics
identifying a class of business are maturity,
i.e., the original term of the mortgage;
and duration, i.e., the number of policy years a
contract has been in force at the time of termination.
For example, one class of business would be
all 20-year mortgages which had been in force
for 12 years. At the end of 1960, it would be
made up of 20-year mortgage insurance contracts
endorsed in 1949 and also all other 20-year mortgages
endorsed for insurance in prior years which
had had a 12th policy year of experience.
The insurance experience of a given class of
business reflects the estimated combined fee, premium,
and investment income as well as the initiation,
maintenance, and settlement expenses and
insurance losses of that class. In other words,
the insurance experience of a class represents its
estimated earned surplus. In the above example,
it would be the combined earned surplus for all
20-year mortgages which had attained a 12th anniversary.
When the combined earned surplus is
related to the total amounts of insurance in force
for businesses in the class, an average earned surplus
per $1,000 of original amount of insurance in
force is provided. Thus all classes of business are
put on a comparable basis.
The average earned surplus per $1,000 of original
amount of insurance in force is known as the
asset share factor. When the reserve factors for
each class of business—the same factors per $1,000
of insurance in force that are used in making the
semiannual valuations of the reserve liabilities of
the Mutual Mortgage Insurance Fund to determine
its reserve position—are taken out of the
asset share factors, the so-called relative share factors
are obtained. These relative share factors
for each class of business together with the
amount of insurance currently in force in each
class, and the amount in the Participating Reserve
Account then provide the basis for determining
the mortgagors’ participation share factors. They
are literally rates for sharing in the account on an
equitable and actuarially sound basis.
These factors are so determined that if all mortgagors
eligible to receive dividends were to pay
off their mortgages during the designated 6-month
period, the total amount in the Participating Reserve
Account would be paid out to those mortgagors.
Since only a part of the total mortgages
will actually be terminated during the semiannual
period, the part which is not paid out during the
period remains in the account and, together with
whatever allocation of net income is made to it,,
is available for distribution in the next semiannual
period.
In the early durations mortgage classes do not
on the average accumulate sufficient resources to
meet insurance costs and reserve requirements.
Consequently, mortgagors prepaying their mortgages
within the early years after endorsement do
not receive participation payments. Beyond
these years, the payments made increase with duration
: that is, the longer a mortgage insurance contract
has been in force at the time of termination,
the higher the participation payment. For many
classes of business with durations of 15 years or
more, participation payments currently are equal
to the cumulative premiums paid by the mortgagor.
The statute provides that no mortgagor
with a mortgage insured under Section 203 has any
vested right in the Participating Reserve Account
of the Mutual Mortgage Insurance Fund.
The share amounts, of course, depend on the
amount in the Participating Reserve Account and
the amount of insurance in force. The size of the
account is based on considerations of the reserve
position of the fund, for, as the statute requires,
the amount of net income which may be allocated
to this account must be determined in accordance
with sound actuarial and accounting practice.
These share amounts will vary from time to
time, reflecting changes in insurance loss experience
as well as changes in current reserve requirements
because of fluctuations in new mortgage
insurance volume. The share amounts have been
158
relatively high because the Mutual Mortgage Insurance
Fund has not been exposed to a serious
economic reversal. As a consequence of the fund’s
favorable insurance experience, the semiannual
allocations from the net income of the fund to the
Participating Reserve Account have been relatively
high. It should, therefore, be noted that, if
adverse economic conditions of serious proportions
were to develop, the attendant insurance loss experience
of the fund could be such as to reduce or
even eliminate income allocations to the account.
Under such conditions, the levels of the share
amounts would be reduced.
Analysis of Debt Retirement Experience
Related to the termination experience of mortgages
is the experience of mortgage debt retirement.
The termination experience discussed in a
preceding part of this section is based on numbers
of mortgages terminated. Debt retirement is
measured in terms of dollar amount. The main
kinds of retirement of insured mortgage indebtedness
are (1) amortization of principal paid in
accordance with the terms of the loan, and (2)
prepayment in part in advance of scheduled
amortization, or prepayment in whole in advance
of maturity. To the lending institution both kinds
of retirement of principal represent a backflow of
mortgage funds available for reinvestment.
When such retirements are related to the outstanding
balances of mortgages in force, they measure
the rate of turnover of the mortgagee’s investment.
From the rate of turnover, the average life of the
dollar amount invested would also be indicated.
Table III-79.—FHA-instired home mortgage debt
retirements, 1940-60 1
[Dollar amounts in thousands
Year
Insurance
written
during
period i 2 3
Retirements
during
period
Average
outstanding
balance
during
period 2
Percent
retirements
to average
outstanding
balance
during
period
Pet cent
retirements
to insurance
written
during
period
1935-39 $2.007, 776 $252, 663
1940 ______ 762,084 167, 723 $2,030, 747 8.26 22.01
1941_______ 910, 770 230,185 2, 679,856 8. 59 25. 27
1942 _______ 973,271 260,846 3,397,476 7. 68 26.80
1943 _______ 763, 097 445, 553 3, 896, 735 11.43 58. 39
1944_______ 707,363 577,488 4,150,922 13. 91 81.64
1945 ______ 474,245 586, 529 4,151,717 14.13 123. 68
1946 _______ 421, 949 807, 245 3,932,811 20. 53 191.31
1947_______ 894, 675 805,651 3, 607, 722 22. 33 90. 05
1948_______ 2,116. 043 628,139 4, 454, 546 14.10 29.68
1949_______ 2, 209, 842 573, 402 6, 067, 503 9. 45 25. 95
1950 _______ 2,492,367 834,747 7,986, 363 10. 45 33.49
1951_______ 1,928, 433 814,828 9,184, 849 8. 87 42.25
1952 _______ 1,942,307 849, 088 10,155, 407 8. 36 43.72
1953_______ 2,288, 626 1, 069,017 11, 402, 361 9. 38 46. 71
1954_______ 1, 942, 266 1,153,208 12,409,193 9. 29 59. 37
1955________ 3, 084, 767 1, 525, 969 13, 541, 335 11.27 49. 47
1956 _______ 2,638, 226 1, 470,281 14,967, 555 9.82 55. 73
1957________ 2,251,064 1,255,183 15, 925, 535 7. 88 55. 76
1958 _______ 4, 551,483 1,327,343 17, 888, 985 7.42 29.16
1959________ 6, 069, 418 1,940, 609 21, 840, 293 8.89 31.97
1960_______ 4, 600, 506 1, 707,867 25,258,063 6. 76 37.12
i Retirements are estimated and represent scheduled amortization and
estimated outstanding balances of all terminations including default terminations.
2 Includes Title I, Class 3, Sec. 8; Title II, Secs. 203, 213, 220, 221, 222, 225;
Titles VI, Sees. 603, 603-610, 611; Title VIII, Sec. 809; Title IX, Sec. 903.
3 Averages are based on estimated semiannual, quarterly, or monthly outstanding
balances during the calendar year, depending on the availability
of data.
Table III-80.—FHA-insured project mortgage debt
retirements, 1940-60 1
[Dollar amounts in thousands!
Year
Insurance
written
during
period 2
Retirements
during
period
Average
outstanding
balance
during
period 2
Percent retirements
to average
outstanding
balance
during
period
Percent retirements
to insurance
written
during
period
1935-39. - $114,428 $9,493
1940_______ 12i 949 13^ 503 $105,467 12. 80 104. 28
1941________ 13,565 10,678 106, 539 10. 02 78. 72
1942_______ 21,215 4,261 116, 617 3. 65 20.08
1943_______ 84,622 7,093 158, 892 4. 46 8. 38
1944_______ 56,096 17,328 222; 961 7. 77 30.89
1945________ 19,817 23,244 240,732 9. 66 117. 29
1946________ 13,175 36,837 223, 703 16. 47 279. 60
1947________ 359, 944 24,155 326,182 7.41 6. 71
1948-.- -- 608,711 15,599 871,253 1.79 2. 56
1949_______ 1,021,231 29,310 1,591,947 1.84 2. 87
1950________ 1,156,681 72,258 2, 681,150 2.70 6.25
1951_______ 583,774 96,838 3,462,936 2.80 16.59
1952_______ 321,911 107,489 3, 818,915 2. 81 33.39
1953________ 259,194 150,934 3,971,078 3.80 58. 23
1954________ 234,022 151, 786 4,072, 972 3.73 64.86
1955________ 76,489 193,281 4,050,954 4. 77 252. 69
1956_______ 130,247 186,175 3,948,493 4. 72 142. 94
1957________ 597,348 169,318 4,177,770 4. 05 28.34
1958________ 908,671 242,881 4; 682,627 5.19 26.73
1959________ 674, 682 277,474 5,238, 716 5. 30 41.13
1960________ 723,501 264; 860 5,595,749 4.73 36. 61
1 Retirements are estimated and represent scheduled amortization and
estimated outstanding balances of all terminations including default terminations.
2 Includes Title II, Secs. 207-210, 213, 220, 221, 231, 232; Title VI, Secs. 608,
608-610, 611; Title VIII, Sec. 803; Title IX, Sec. 908.
s Averages are based on estimated semiannual, quarterly, or monthly
outstanding balances during the calendar year, depending on the availability
of data.
Tables HI-79 and III-80 present measures of
gross debt retirement for all FHA-insured home
and project mortgages in force. Retirements are
estimated from insurance written and outstanding
balances in force. Since the estimates of outstanding
balances reflect scheduled amortization of
principal and outstanding balances of all types of
terminated mortgages, the retirements (1) include
outstanding balances of mortgage default termination,
i.e., for mortgage notes and property titles
transferred to FHA and property titles retained
by mortgagees with termination of FHA mortgage
insurance contracts, and (2) do not include
partial prepayments.
With respect to the former, their outstanding
balances do not reflect a backflow of cash, since
the mortgagee receives debentures of one or more
FHA insurance funds for approximately the
amount of the outstanding balance, or the mortgagee
takes title to property which is acquired
through foreclosure proceedings or deed in lieu
of foreclosure and retains title in lieu of making
a claim for insurance. To the extent that such
default terminations do not reflect a backflow of
cash, the amount of mortgage debt retirement exceeds
the amount of repayments available for reinvestment.
The overstatement of retirements as
cash repayments of indebtedness is probably not
significant, because (1) the majority of mortgage
foreclosures and all mortgage assignments involve
debentures; (2) the debentures are negotiable and
callable and can also be used for the payment of
mortgage insurance premiums; and (3) the rela-
159
Chart 111-36
DEBT RETIREMENTS*
tive amounts involved in default terminations are
not substantial. With respect to the partial prepayments,
what understatement of retirement as
repayments there may be is offset by the overstatement
from foreclosures and assignments of mortgages,
although the extent of this offset cannot
now be estimated.
Estimated retirements for insured home mortgage
indebtedness amounted to about $168 million
in 1940. After that year the amount continued to
rise, reaching a little over $800 million in 1946.
In the subsequent period a postwar low of $573
million was reached in 1949. Since that year there
was an overall growth in retirements resulting in
a top figure of $1,941 million in 1959. This 21-
year record of retirements of home mortgages is
illustrated in Chart III-36.
The retirement figures for home mortgages
under all sections are largely determined by the
retirements of Section 203 mortgages. These account
for almost all of the retirements in 1940, over
three-fifths in 1947, and over seven-eighths in
1960.
The annual rates of debt retirement for home
and project mortgages shown in the tables cover
the period 1940 through 1960, and are based on
the ratio of estimated retirements during the calendar
year to estimated average outstanding
balances during the calendar year. These averages
are based on semiannual, quarterly,
or monthly estimates of outstanding balances,
depending on the availability of the data,
of mortgages in force during the calendar
year. For home mortgages insured under all
sections, the pre-World War II retirement rates
were about 8 percent, rising throughout the war
period and reaching a peak rate in the postwar
year of 1947 of over 22 percent, and then dropping
to a lower level in subsequent years.
The prewar rate of retirement for 1940 means
that, for all FHA-approved mortgagees holding
insured mortgages in that year, about 8 percent
of the average dollar amount of home mortgages
in force was retired, principally by amortization
or prepayment. At this rate the investment was
being turned over about once every 12% years,
or, in other words, the amount of investments in
the 1940 portfolio of insured home mortgages
would on the average have remained outstanding
about 12% years. The peak rate would indicate
an estimated average life of a dollar invested of
somewhat more than 4% years for the 1947 portfolio.
A rate of 6.76 percent for 1960 would
indicate an average life of an insured home mortgage
dollar of a little more than 14% years.
Chart III-37 shows the pattern of the annual
rates of retirement over this 21-year period.
The tables on retirements also show relationships
between estimated retirements and insurance written.
In the prewar years, estimated home mortgage
retirements represented about one-fourth of
the insurance written. For 1945 and 1946, they
exceeded the amount of insurance written in those
years. Retirements of all home mortgages in the
year of 1960 represented more than one-third of
the amount of insurance written in that year.
Retirements of project mortgage indebtedness
are comparatively less significant in amount than
those of home mortgages. They approached the
$100 million mark for the first time in 1951, but
since then have exceeded that amount by substantial
margins. The record amount reached in
1959 exceeded the $277 million mark. The bulk
of project mortgage retirements since 1947 is accounted
for by the mortgage retirements under
Section 608. More than 50 percent of the $265 million
in estimated project mortgage retirements in
1960 were on Section 608 and Section 608-610
mortgages.
Although less significant in amount, the retirement
experience of project mortgages as measured
by their annual rates of retirement reflects roughly
the same pattern as that for home mortgages, but
at relatively lower levels for most of the period
under observation, as Chart III-37 shows. This
pattern shows retirements declining in 1942 to a
rate of about 4 percent of the estimated average
amount outstanding, climbing to a peak rate of
over 16 percent in 1946, and then declining sharply
to lower levels. Since 1948 the trend in these annual
rates has been gradually upward. For the
year 1960, the rate is 4.73 percent. This rate would
160
indicate an estimated average life of 21 years for
the investments in the 1960 portfolio of insured
project mortgages in force.
The lower rates of retirement for project mortgages
reflect not only their typically longer maturities
but also some differences in their termination
experience. Prepayments were the significant
factor in the late war and early postwar years.
Default terminations, i.e., mortgage notes assigned
and property titles transferred to FHA and projects
retained by mortgagees with termination of
FHA mortgage insurance contracts, have in recent
years become a relatively more significant
factor in project mortgage termination and retirement
experience. Of the default terminations,
mortgage notes assigned and property titles transferred
to FHA account for the preponderant share.
Both types involve debentures of the insurance
funds to which the original project mortgages
were assigned, and the debentures represent approximately
the outstanding balances of the mortgages
at the time of default. Since 1951 the project
mortgage retirement experience has also been
affected by the terminations of Section 213 blanket
mortgages for sales-type cooperative housing.
Such mortgages are in effect construction loans
which are paid off when all the individual properties
are released to members of the cooperative organization.
The blanket mortgages are classified
as project mortgages, and, when all the properties
in the project are released the blanket mortgage
is terminated. Nearly all of the mortgages on the
individual properties have been refinanced with
FHA insurance under the home mortgage provisions
of Section 213, when they are then classified
as home mortgages. A detailed analysis of
terminations of project mortgages is presented in
Section 2 under “Terminations, Defaults, and
Claims Paid.”
When estimated project mortgage retirements
are related to insurance written, the resulting annual
percentages over the 21-year period show
fluctuations over a wide range. These percentages,
presented in Table HI-80, range between a
high of 280 percent in 1946 to a low of about 2^2
Chart IH-37
DEBT RETIREMENT RATES*
25— Home Mortgages
* Retirements are estimated and represent scheduled
amortization and estimated outstanding balances of all
terminations including default terminations.
+ Averages are based on estimated semi-annual, quarterly,
or monthly outstanding balances during the calendar year.
percent in 1948. The wide range in these percentages
is influenced to a greater degree by the yearto-
year variations in the volume of project mortgage
insurance written rather than annual changes
in retirements. Estimated retirements in relation
to insurance written were comparatively high in
the prewar year of 1940, reaching a low in 1943,
climbing to the peak percentage in 1946, dropping
sharply to the low in 1948, and then climbing to
another peak in 1955. For 1960, estimated retirements
for project mortgages amounted to about
37 percent of insurance written in that year.
161
Section 5
Accounts and Finance
The figures for 1959 and 1960 in the financial
statements of this report are on an accrual basis
and are shown for the fiscal year rather than the
calendar year. Section 2 of the report, Volume
of Mortgage and Loan Insurance Operations, is
on a calendar year basis to coincide with the housing
year. In order to provide comparable figures,
those statements in the Accounts and Finance section
which are coordinated with the statistical
tables shown in Section 2 have been prepared on a
calendar year basis.
Prior to July 1, 1939, there was no provision in
the National Housing Act for collecting premiums
on insurance granted under Title I, Section 2;
therefore, moneys for salaries and expenses and
for the payment of insurance claims were advanced
by the Federal Government, and recoveries
of claims paid were required to be deposited to the
general fund of the Treasury. The account which
was established for insurance operations prior to
July 1, 1939 and identified in the accounting
records as the Title I Claims Account was terminated
as of August 1, 1954, at which time all the
remaining assets and liabilities of the account were
transferred to and merged with the Title I Insurance
Fund in accordance with the Housing Act
of 1954, approved August 2, 1954.
An amendment of June 3, 1939 to the National
Housing Act created the Title I Insurance Fund
and authorized the collection of premiums, and an
amendment of June 28, 1941 authorized the retention
of recoveries on insurance granted on and
after July 1, 1939. Therefore, only the results
of operations with respect to insurance granted on
and after July 1, 1939 are included in the June
30, 1960 combined statement of financial condition
(Statement 1) and the combined statement of
income and expense (Statement 2).
COMBINED FUNDS
Gross Income and Operating Expenses,
Fiscal Year 1960
Gross income of combined FHA funds for fiscal
year 1960 under all insurance operations totaled
$203,516,940 and was derived from fees, insurance
premiums, and income on investments. Operating
expenses of the FHA for the fiscal year 1960
totaled $54,486,957.
Cumulative Gross Income and Operating
Expenses, by Fiscal Years
From the establishment of FHA in 1934 through
June 30, 1960, gross income totaled $1,856,266,522
and operating expenses totaled $617,587,109.
Gross income and operating expenses for each
fiscal year are detailed below:
Income and operating expenses through June 30, 1960
Fiscal year
1935________________________________
1936________________________________
1937________________________________
1938________________________________
1939________________________________
1940________________________________
1941________________________________
1942________________________________
1943________________________________
1944________________________________
1945________________________________
1946________________________________
1947________________________________
1948________________________________
1949________________________________
1950________________________________
1951________________________________
1952________________________________
1953________________________________
1954________________________________
1955________________________________
1956________________________________
1957________________________________
1958________________________________
1959________________________________
1960________________________________
Total_________________________
Income from
fees, premiums,
and investments
Operating
expenses
$539,609 $6,336,905
2, 503,248 12,160,487
5, 690,268 10,318,119
7,874, 377 9,297,884
11,954,056 12, 609, 887
17, 860,296 13, 206, 522
24,126,366 13,359, 588
28,316, 764 13,471,496
25, 847, 785 11,160,452
28,322,415 11,148,361
29, 824, 744 10,218,994
30, 729,072 11,191,492
26, 790,341 16,063,870
51,164,456 20,070, 722
63,983,953 23,378, 483
85,705, 342 27,457,924
98,004,922 31,314,326
103,021,039 30,622,486
115,288,193 31,344, 804
125,223,448 31,395,077
138,823, 312 36,198,364
145, 532,774 40,644,220
146,969,012 41, 252, 284
157,158, 560 45,992,388
181,495,230 52, 885,017
203, 516,940 54,486,957
1, 856, 266, 522 617,587,109
The above income was derived from the following
insurance operations: Title I Insurance
Fund (property improvement loans), $222,430,-
110; Title I Housing Insurance Fund (home mortgages),
$8,077,520; Title II Mutual Mortgage
Insurance Fund (home mortgages), $1,128,591,-
508; Title II Housing Insurance Fund (homes
and rental housing projects), $50,491,047; Title
II, Section 220 Housing Insurance Fund (urban
renewal housing), $4,187,219; Title II, Section 221
Housing Insurance Fund (relocation housing),
$2,389,635; Title II Servicemen’s Mortgage Insurance
Fund (servicemen’s housing), $12,179,745;
Title VI War Housing Insurance Fund (war
and veterans’ emergency housing), $365,111,294;
Title VII Housing Investment Insurance Fund
(yield insurance), $195,995; Title VIII Armed
Services Housing Mortgage Insurance Fund
(home mortgages and rental housing projects),
$42,188,225; and Title IX National Defense
Housing Insurance Fund (home mortgages and
rental housing projects), $20,424,224.
Salaries and Expenses
The current fiscal year is the 21st in which the
Federal Housing Administration has met all
162
expenditures for salaries and expenses by allocation
from its insurance funds.
The amount that may be expended for salaries
and expenses during a fiscal year is fixed by Congress.
Under the terms of the National Housing
Act, expenditures for the operations of each title
and section are charged against the corresponding
insurance fund.
The amounts charged against the various titles
and sections of the Act during the fiscal year 1960
to cover operating costs and the purchase of furniture
and equipment are as follows :
Salaries and expenses, fiscal year 1960 (July 1, 1959 to June 30, 1960)
Title and section Amount Percent
Title I:
Sec. 2___ _____________ _ _____________ $4, 648, 268 8.43
Sec. 8__________________________________
Title II:
115, 021 .21
Sec. 203_________ ____________________ 41,035,417 74.41
Sec. 207-210____________________________ 2,325, 772 4.22
Sec. 213_________ _____________________ 1,175, 578 2.13
Sec. 220________________________________ 696, 631 1.26
Sec. 221________________________________ 615,169 1.12
Sec. 222________________________________ 539,451 .98
Sec. 231________________________________ 275, 727 .50
Sec. 232________________________________
Title VI:
132, 944 .24
Sec. 603 _ ____________________________ 390,646 .71
Sec. 608________________________________ 1,479,415 2.68
Sec. 611________________________________ 62 (>)
Title VII__________________________________
Title VIII:
21,434 .04
Sec. 803________________________________ 695, 349 1.26
Sec. 809________________________________ 104,439 .19
Sec. 810________________________________
Title IX:
24,050 .04
Sec. 903________________________________ 804,306 1.46
Sec. 908________________________________ 66, 955 .12
Total________________________________ 55,146,634 100.00
1 Less than .005 percent.
Capital and Statutory Reserves of Combined
FHA Funds
The combined capital including statutory reserve
of all FHA funds on June 30, 1960
amounted to $866,648,060, and consisted of
$718,052,733 insurance reserves and $148,595,327
statutory reserve, as shown in Statement 1.
Statement 1.—Comparative statement of financial condition,
all FHA funds combined, as of June 30, 1959
and June 30, 1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury---------
Investments:
U.S. Government securities
(amortized)--------------------
Other securities (stock in
rental housing corporations) -
Total investments_______
Loans receivable:
Mortgage notes and contracts
for deed________________
Less allowance for losses-------
Net loans receivable_____
$41,042,390 $60, 984, 696 $19, 942,306
596, 726, 870
461, 660
659,309,207
459, 960
62,582,337
-1,700
597,188, 530 659,769,167 62, 580, 637
144,099,458
4, 572, 579
166, 666,137
5,202,866
22, 566, 679
630,287
139,526,879 161,463,271 21,936,392
Statement 1.—Comparative statement of financial condition,
all FHA funds combined, as of June 30, 1959
and June 30, 1960—Continued
June 30, 1959 June 30, 1960 Increase or
decrease (—)
Assets—Continued
Accounts and notes receivable:
Accounts receivable—Insurance
premiums________ 5,087,633 5,190,768 103,135
Accounts receivable—Other— 662,366 965,417 303,051
Total accounts and notes
receivable___________ 5,749,999 6,156,185 406,186
Accrued assets:
Insurance premiums________ 20,072,978 31,347,134 11,274,156
Interest on U.S. Government
securities. _ ____________ 2,415,899 2, 577,816 161,917
Other______________________ 1,246,439 1, 831, 542 585,103
Total accrued assets_____ 23, 735,316 35, 756,492 12,021,176
Land, structures, and equipment:
Furniture and equipment___ 3,457, 271 1 3, 714, 528 257,257
Less allowance for depreciation____________________
1, 707,019 1, 903, 804 196,785
Net furniture and equipment_______________
1, 750,252 1,810,724 60,472
Acquired security:
Real estate (at cost plus expenses
to date)__________ 150,159, 789 184, 664,987 34, 505,198
Less allowance for losses_____ 58, 503, 507 77, 602, 520 19,099,013
Net real estate_________ . 91,656,282 107,062,467 15,406,185
Mortgage notes acquired under
terms of insurance___ 129, 342.687 150,025,297
54,268,377
20,682, 610
Less allowance for losses_____ 46,763,281 7, 505, 096
Net mortgage notes acquired
under terms of
insurance___________ 82, 579, 406 95, 756,920 13,177, 514
Defaulted Title I notes____ _ 44, 615, 529 43, 576,188 -1,039,341
Less allowance for losses_____ 28,851,067 26,483,964 -2,367,103
Net defaulted Title Inotes. 15,764,462 17,092,224 1,327, 762
Net acquired security___ 190,000,150 219,911,611 29,911,461
Other assets—held for account
of mortgagors_____________ 3,054, 449 4,221, 959 1,167, 510
Total assets_____________ 1,002,047, 965 1,150,074,105 148,026,140
LIABILITIES
Accounts payable:
Bills payable to vendors and
Government agencies______ 5, 367, 608 2 5, 812,140 444, 532
Group account participations
payable_________________ 4, 726, 408 3,320, 777 -1,405, 631
Total accounts payable... 10, 094,016 9,132, 917 -961, 099
Accrued liabilities: Interest on
debentures_______________ 2,220, 876 2, 702, 640 481, 764
Trust and deposit liabilities:
Fee deposits held for future
disposition____________ 9, 058,050 7, 393,050 -1, 665,000
Excess proceeds of sale______ 1,359, 115 1, 536,340 177,225
Deposits held for mortgagors,
lessees, and purchasers... __ 8,148,817 10,804, 525 2, 655, 708
Due general fund of the U.S.
Treasury_________________ 859 132 -727
Employees’ payroll deductions
for taxes, etc_______ 1,732, 694 1, 740, 609 7,915
Total trust and deposit
liabilities____________ 20,299, 535 21,474, 656 1,175,121
Deferred and undistributed
credits:
Unearned insurance premiums.
_______________ 68,978, 686 69,148, 731 170,045
Unearned insurance fees.. ... 435, 228 534,039 98, 811
Other______________________ 1,263,961 1,861, 254 597,293
Total deferred and undistributed
credits______ 70, 677,875 71, 544,024 866,149
1 Excludes unfilled orders in the amount of $32,515.
2 Excludes unfilled orders in the amount of $138,020.
163
Statement 1.—Comparative statement of financial condition,
all FHA funds combined, as of June 30, 1959
and June 30, 1960—Continued
June 30, 1959 June 30, 1960 Increase or
decrease (—)
Liabilities—Continued
Bonds, debentures and notes
payable: Debentures payable.
Other liabilities: Reserve for
foreclosure costs—Mortgage
notes acquired under terms of
insurance _______________
139, 449, 750 176,946, 850 37,497,100
1,393, 742 1,624, 958 231,216
Total liabilities________ 244,135, 794 283,426,045 39, 290,251
RESERVES
Statutory reserve for participation
payments and future
losses _______________ - 125,814,081
632,098,090
148, 595,327
718,052, 733
22, 781,246
85,954,643
Insurance reserve—available for
future losses and expenses__
Total reserves__________ 757,912,171 866, 648,060 108,735,889
Total liabilities and reserves.
_ _____________ 1,002,047,965 1,150,074,105 148,026,140
Certificates of claim relating to
properties on hand__ ____ 6,912,496 8, 570,982 1,658,486
The insurance reserves of $718,052,733 are available
for future contingent losses and related expenses.
The statutory reserve of $148,595,327
under the Mutual Mortgage Insurance Fund is
earmarked for participation payments to mortgagors
under the mutual provision of Title II of
the National Housing Act.
The insurance and statutory reserves of each
fund are given below:
Deferred
fee
income
Deferred
premium
income
Total deferred
fee and premium
income
Title I Insurance Fund_______ $24, 554,451 $24, 554, 451
Title I Housing Insurance Fund. 339,136 ' 339,136
Mutual Mortgage Insurance
Fund_________ . ... _____ 27, 719, 598 27, 719, 598
Housing Insurance Fund. ___ $444, 419 3, 394, 385 3, 838,804
Sec. 220 Housing Insurance
Fund______________________ 66, 357 668, 581 734, 938
Sec. 221 Housing Insurance
Fund_____________ _______ 14, 482 97, 620 112,102
Servicemen’s Mortgage Insurance
Fund_________________ 710, 137 710,137
War Housing Insurance Fund.. 7, 758, 455 7, 758, 455
Armed Services Housing Mortgage
Insurance Fund________ 8, 782 2, 903,118 2,911,900
National Defense Housing Insurance
Fund_______________ 1,003, 248 1,003, 248
Total___________________ 534, 040 69,148, 729 69, 682,769
Combined Income, Expenses, and Losses,
All FHA Funds
Total income from all sources during the fiscal
year 1960 amounted to $213,276,138, and total
expenses and insurance losses amounted to $66,-
454,202, leaving net income, before adjustment of
valuation allowances, of $146,821,936. Increases
in valuation allowances for the year amounted to
$24,867,293, leaving $121,954,643 net income for
the period. Cumulative income from June 30,
1934 through June 30, 1960 was $1,909,085,742,
and cumulative expenses were $771,604,285, leaving
net income of $1,137,481,457 before adjustment
of valuation allowances.
Statement 2.—Combined statement of income and expenses
for all FHA funds through June 30, 1959 and
June 30, 1960
Fund
Insurance reserves
(including statutory
reserve)
Title I Insurance Fund_______________________________
Title I Housing Insurance Fund______________________
Mutual Mortgage Insurance Fund-------------------------------
Housing Insurance Fund---------------------------------------------
Sec. 220 Housing Insurance Fund______________________
Sec. 221 Housing Insurance Fund______________________
Servicemen’s Mortgage Insurance Fund________________
War Housing Insurance Fund_________________________
Housing Investment Insurance Fund__________________
Armed Services Housing Mortgage Insurance Fund____
National Defense Housing Insurance Fund_____________
$89, 852,213
5, 551,709
558,256,066
15,303,664
2, 551,202
775, 919
10,120,644
181,100,180
916, 526
16,992, 647
-14,772, 710
Total__________________________________________ 866, 648,060
In addition, the various insurance funds had
collected or accrued $534,040 unearned insurance
fees and $69,148,729 unearned insurance premiums
as shown below which will be allocated to income
each month as they are earned.
June 30, 1934
to
June 30, 1959
July 1, 1959
to
June 30,1960
June 30,1934
to
June 30,1960
Income:
Interest and dividends:
Interest on U.S. Government
securities________
Interest on mortgage notes
and contracts for deed_
Interest and other income
on defaulted Title I notes.
Interest—Other___________
Dividends on rental housing
stock_____________
Insurance premiums and fees:
Premiums____ _ .
$114,230, 413
196,134
8, 945,340
32, 781, 538
25, 398
$20,105,326
14,361
1,172,034
7, 513,184
2,929
$134, 335, 739
210,495
10,117,374
40,294, 722
28,327
156,178, 823 28,807, 834 184,986, 657
1,285,322, 770
251,707, 747
163, 851,486
19, 557,199
1,449,174, 256
Fees_______________________ 271,264, 946
Other income:
Profit on sale of investments..
Miscellaneous income_______
Total income___________
1,537,030, 517 183,408,685 1, 720,439,202
1,463, 254
1,137,010 1,059, 619
1,463, 254
2,196, 629
2, 600, 264 1,059, 619 3, 659, 883
1, 695,809, 604 213, 276,138 1,909,085, 742
164
Statement 2.—Combined statement of income and expenses
for all FHA funds through June 30, 1959 and
June 30, 1960—Continued
i Excludes unfilled orders in the amount of $105,505
June 30,1934
to
June 30,1959
July 1, 1959
to
June 30,1960
June 30,1934
to
June 30,1960
Expenses:
Interest expenses:
Interest on funds advanced
by U.S. Treasury_____
Administrative expenses:
Operating costs (including
adjustments for prior
years)________________
Other expenses:
Depreciation on furniture
and equipment________
Miscellaneous expenses____
Losses and charge-offs:
Loss on acquired security...
Loss (or profit —) on equipment_________________
Loss on defaulted Title I
notes_________________
Total expenses__________
Net income before adjustment
of valuation allowances____
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans
receivable______________
Allowance for loss on real
estate__________________
Allowance for loss on mortgage
notes acquired under
terms of insurance_______
Allowance for loss on defaulted
Title I notes_____
Net adjustment of valuation
allowances______
Net income_____________
20, 385, 529 20,385, 529
553, 697, 475 > 54,360, 715 608,018,483
2, 781,011
460, 270
237,005
37,170
3,057, 723
497, 440
3,241,281 274,175 3, 555,163
67,804,992
-55,088
60,075,894
6,927,044
-1,819
4, 894,087
74, 732,036
-56,907
64,969,981
127,825,798 11,819,312 139, 645,110
705,150,083 66,454,202 771,604,285
990, 659, 521 146,821,936 1,137,481,457
-4, 572, 579
-58, 503, 507
-46, 763,281
-28, 851,067
-630,287
-19,099,013
-7, 505,096
+2, 367,103
-5,202, 866
-77, 602, 520
-54, 268,377
-26, 483, 964
-138, 690, 434 -24, 867, 293 -163, 557,727
851,969,087 121,954, 643 973,923, 730
ANALYSIS OF INSURANCE RESERVES
June 30, 1934
to
June 30, 1959
July 1, 1959
to
June 30, 1960
June 30, 1934
to
June 30, 1960
Distribution of net income:
Statutory reserve—Participating
reserve:
Balance at beginning of
period________________
Adjustments during the
period________________
Net income allocated for the
period________________ 219, 870,997
125, 814,081
36,000,000 255, 870, 997
Participations in mutual
earnings distributed....
219,870,997
-94,056,916
161,814, 081
-13,218, 754
255, 870,997
-107,275, 670
Balance at end of period.. 125, 814,081 148, 595,327 148, 595,327
Insurance reserve:
Balance at beginning of period.
Adjustments during the
period____________________
Net income for the period___ 632, 098,090
632,098,090
85,954, 643 718,052, 733
Capital contributions to other
FHA insurance funds_____
Capital contributions from
other FHA insurance funds.
632, C98,090
-20,310,000
20,310,000
718,052, 733 718,052, 733
-20,310,000
20,310,000
Balance at end of period.. 632,098,090 718,052, 733 718,052, 733
Total reserves at end of
period___7_5_7_, _9_1_2_,1_7_1__ 866, 648,060 866,648,060
Contributed Capital
Contributed capital of $20,310,000 representing
funds transferred from earnings of insurance
funds to establish other insurance funds and transfers
under the provisions of Section 219 of the National
Housing Act, as amended, is added to or
deducted from the insurance reserves of the insurance
funds affected. An analysis of capital contributions
at December 31, 1960 is shown in Statement
3.
165
Statement 3.—Analysis of capital contributions to FHA insurance funds from other FHA insurance funds as of
December SI, 1960
Capital contributions
Total contri- Contributions Contributed
Fund
To establish
insurance funds
Pursuant to
Sec. 219
butions returned capital
TITLE I HOUSING INSURANCE
From: Title I Insurance______________________________________________ $1,000,000. 00 $1,000,000.00 $1,000,000.00
HOUSING INSURANCE
From:
Mutual Mortgage Insurance_______________________________________
National Defense Housing Insurance_______________________________
Housing Investment Insurance____________________________________
War Housing Insurance___________________________________________
1,000,000. 00
$3,200,000.00
90,000.00
4,400,000. 00
1,000,000.00
3, 200,000.00
90,000. 00
4, 400,000.00
—$3,200,000.00
-90,000. 00
1,000,000.00
4,400,000.00
Total__________________________________________________________ 1,000,000.00 7, 690,000. 00 8, 690,000. 00 -3,290,000.00 5,400,000. 00
SECTION 220 HOUSING INSURANCE
From: War Housing Insurance________________________________________ 1,000,000. 00 ____1_,_0_0_0_,0_0_0_._ 00 ______________ 1,000,000.00
SECTION 221 HOUSING INSURANCE
From: War Housing Insurance________________________________________ 1,000,000. 00 ____1_,_0_0_0_,000.0_0 ______________ 1,000,000.00
SERVICEMEN’S mortgage insurance
Prom: War Housing Insurance________________________________________ 1,000,000.00 ______________ 1,000,000.00 ______________ 1,000,000.00
HOUSING INVESTMENT INSURANCE
From:
National Defense Housing Insurance_______________________________
War Housing Insurance___________________________________________
To: Housing Insurance_______________________________________________
1,000,000.00
910,000. 00
-90, 000. 00
1,000,000.00
910,000.00
-90, 000.00
-1,000,000.00
90,000.00
910,000. 00
Total__________________________________________________________ 1, 820,000. 00 1,820,000.00 -910,000. 00 910,000.00
ARMED SERVICES HOUSING MORTGAGE INSURANCE
From: War Housing Insurance------------------------------------------------------------- 1,900,000. 00 1,900,000.00 -1,900,000.00 ______________
NATIONAL DEFENSE HOUSING INSURANCE
From: War Housing Insurance-------------------------------------------------------------
To:
Housing Insurance_______________________________________________
Housing Investment Insurance____________________________________
10,000,000. 00
-3,200,000.00
-1,000,000.00
10,000,000.00
-3, 200,000. 00
-1,000,000.00
3,200,000. 00
1,000,000. 00
10,000,000. 00
Total__________________________________________________________ 10,000,000. 00 -4,200,000.00 5, 800,000.00 4, 200,000. 00 10,000,000. 00
Total All Funds---------------------------- ------------------------------------ ------ - 15,000,000.00 7, 210,000.00 22, 210,000. 00 -1,900,000.00 20,310,000.00
General Mortgage Insurance Authorization
The general mortgage insurance authorization
established under Section 217 of the National
Housing Act, as amended, provides that the
aggregate amount of principal obligations of all
mortgages which may be insured and outstanding
at any one time under insurance contracts or commitments
to insure pursuant to any section or title
(except Section 2 and Section 803) shall not exceed
the sum of (a) the outstanding principal
balances, as of July 1, 1956 of all insured mortgages
(without taking into account prepayments
or delinquencies), (b) the principal amount of all
outstanding commitments to insure as of July 1,
1956, and (c) $15 billion. This general insurance
authorization applies to all mortgage insurance
programs except new insurance written under
Title VIII pursuant to commitments issued on or
after August 11, 1955. The total amount of the
general mortgage insurance authorization at
December 31,1960 was as follows:
Outstanding principal balance at July 1,
1956______________________________$18, 869, 514,132
Commitments outstanding at July 1,
1956____________________________ 3, 914, 479, 464
Additional authorized amount________ 15, 000, 000, 000
Total authorization____________ 37, 783, 993, 596
The status of the general mortgage insurance
authorization at December 31, 1960 is shown in
Statement 4 below.
166
Statement 4.—Status of general mortgage insurance
authorisation as of December 31, 1960
Estimated outstanding
balance
of insurance
in force
Outstanding
commitments
and statements
of eligibility
Sec. 217 general mortgage
insurance authorization.
Title I, Sec. 8___________
Title II:
Sec. 203____________
Sec. 207-210_________
Sec. 213____________
Sec. 220____________
Sec. 221____________
Sec. 222____________
Sec. 231____________
Sec. 232____________
$132,875,136 ______________
23, 941,831,473
837, 482,885
700, 854, 647
293, 425,308
228, 741, 645
1,056,910, 680
33, 229,301
621,200
$4,943,346,588
271,238,050
141,421,950
70,035, 564
69,088, 648
43,096,750
20,946,400
3, 992, 700
27,093,097,139 5, 563,166,650
716,001,808 ______________
2,180,689,965 ______________
6,312,467 ______________
3,767,516 ______________
362,245 ______________
Title VI:
Sec. 603_________
Sec. 608_________
Sec. 610 (Sec. 603)
Sec. 610 (Sec. 608)
Sec. 611..................
2,907,134,001
Title VIII, Sec. 803 (prior
to Aug. 11, 1955)____
Title IX:
See. 903................
Sec. 908____________
553,225,846
330,934,802 ______________
40,095,655 ______________
371,030,457
Total charges to
Sec. 217_________
Unused insurance
authorization__
31,057,362, 579 5, 563,166, 650 36,620, 529,229
1,163,464,371
Cost Certifications on Multifamily Projects
To prevent the possibility of the builder’s
“mortgaging out” on multifamily housing projects
financed with FHA insured mortgages, the
mortgagor is now required to certify, before final
endorsement of the mortgage for insurance, to the
actual cost of the project, and, if the mortgage
amount is more than the statutory ratio applied to
such actual costs as recognized by FHA, the
mortgage amount must be correspondingly
reduced.
During 1960 cost certifications were received on
completed multifamily housing projects and the
mortgages insured by the Federal Housing Administration
as follows:
$37, 783, 993,600
No. Costs certified
and recognized
Amount
insured
Sec. 207____ _____________ 105 $187,821, 540 $161,092,141
Sec. 213-. __ _ _ 23 40,887, 694 36, 894,193
Sec. 220-.___ _ ___ - - . 21 59,323,161 51'945,119
Sec. 221____________________ 8 3,211,495 3,058, 766
Sec. 231____________________ 2 2, 732', 556 2, 630,300
159 293,976,446 255, 620, 519
TITLE I: PROPERTY IMPROVEMENT LOANS
Loans Insured and Claims Paid
Operations under Section 2 of Title I cover the
insurance of qualified institutions against loss on
loans made to finance the alteration, repair, and
improvement of existing structures, and loans not
exceeding $3,500 for the construction of new nonresidential
structures.
Loans aggregating 24,414,548 in number and
$13,479,677,117 in amount (net proceeds) had been
reported for insurance and 683,867 claims had been
paid, for $241,602,603 under this section through
December 31, 1960. The total claims paid represent
approximately 1.79 percent of the total net
proceeds of loans insured, as shown in Statement 5.
In the calendar year 1960, 1,011,858 loans were
insured for an aggregate of $982,405,476, and
20,241 claims were paid for $11,886,124.
Recoveries
Upon payment of insurance claims, the notes
and other claims against the borrowers become the
property of the Federal Housing Administration
for collection or other disposition.
Real properties acquired are managed and sold
by the Property Management Division of the Federal
Housing Administration, which also handles
the acquisition, management, and disposition of
real properties acquired under the various other
FHA insurance programs.
Through December 31, 1960, there had been acquired
under the terms of insurance a total of 590
real properties at a total cost of $1,666,857. All
properties acquired had been sold at a net loss of
$133,166, including all expenses (such as taxes, repairs,
and sales commissions) incurred by FHA in
acquiring, managing, and disposing of the properties.
167
Insurance losses and reserves for losses through
December 31, 1960 amounted to $108,078,064.
These losses and reserves represent 0.80 percent of
the total amount of loans insured ($13,479,677,-
117). A summary of transactions through December
31,1960, follows:
Statement 5.—-Summary of Title I transactions for the period June SO, 1934 to December 31,1960
Calendar years Net proceeds of
notes insured
Insurance
claims paid
Recoveries Losses
Net notes in
process of collection
at Dec. 31,
1960
Cash on notes
and sale of
equipment
Real properties
On real properties
and
equipment
On defaulted
notes 1
1934 39 -- ______ $859,246, 581
3, 086,327,627
700,224, 528
706,962, 734
848,327,393
1,334,287,124
890, 606,372
645,644,843
691,991, 502
868, 567, 542
868,443,342
996, 642, 053
982,405,476
$23,967,882
68, 292,898
18, 168,052
12,164, 740
11,524,344
14,995,408
21,047,414
17,648,408
12, 241, 718
9, 725, 663
9,851,305
10, 088,647
11,886,124
$4, 739, 788
28,442,867
5,187, 283
6, 510, 539
7, 202,922
7, 533, 730
6,949,184
8, 534,191
9,363, 273
9,115,263
7,612,859
7, 310,933
6,401, 634
$3, 779, 748
578, 793
-706
9,442
8,973
-5, 680
1,190
4,648
-4, 542
69, 207
-198
310
1,905
$3,400, 665
35, 553,660
8,636, 224
8, 534,967
5, 683,450
7,418,982
10,484,346
8, 217, 259
1, 883,867
6,042, 735
2,167,427
1,955,766
3,655,626
1940-49_______________________________
1950 -- - --- ---
$770,872
21, 580
200,930
256,807
72,172
13, 564
13, 759
10,374
38,927
4,859
-310
1,004
—
1951 _________ ________
1952 . ____ - -____ - -
1953 ___________ ___________
1954 ______ _ ____ ___
1955 __ __ _________ _
1956 _ _________ _ __ -
1957 ___________ _____ _ _
1958 ________________ - ____ ______
1959 ______ ________
I960 _______________________________
Totals___________________________
Percent to claims paid_________________
13,479,677,117 241,602, 603 114,904,466 1, 404, 538 4,443,090 103,634,974 17, 215, 535
100.000 47. 559 .581 1.839 42.895 7.126
i Includes reserve for losses on defaulted Title I notes in process of collection
at December 31,1960, in the amount of $24,290,955.
Notes.—In addition to the above recoveries, $12,924,934 interest and other
income on outstanding balances of Title I notes, and $258,146 interest on mortgage
notes had been collected through December 31, 1960.
Included in the losses is $3,979,705 representing the cost (claim amount) of
equipment repossessed by FHA and subsequently transferred to other Government
Agencies for their use and without the exchange of funds.
Title I Insurance Fund
The Title I Insurance Fund was established by
amendment of June 3, 1939 to the National Housing
Act for the purpose of carrying out the provisions
of Title I (Section 2) on insurance granted
on and after July 1, 1939. This is not a mutual
insurance fund in the sense that any portion of
the net income from operations will be shared by
mortgagors in the form of participation payments.
Section 2(f) of the Act provides that moneys
in the Title I Insurance Fund shall be available
for defraying the operating expenses of the Federal
Housing Administration under this title, and
any amounts which are not needed for such purpose
may be used for the payment of claims in
connection with the insurance granted under this
title. Section 2(f) of the Act as amended August
2, 1954 provides that moneys in this fund not
needed for current operations may be invested in
bonds or other obligations of, or in bonds or other
obligations guaranteed as to principal and interest
by the United States Government. During the
fiscal year 1960, net investments amounting to
$10,119,000 (principal amount) were made for the
account of this fund, and at June 30, 1960 the
fund held bonds in the principal amount of
$87,308,000 yielding 3.47 percent as follows:
Investments of the Title I Insurance Fund, June 30,1960
Series
Interest
rate
(percent)
Purchase
price Par value
Book value
(amortized)
I960— __________ 2% $1, 348,102 $1,350, 000 $1, 349,832
1961 . ______ _ 21/’ 404,814 422, 000 409, 521
1961______________ 3% 399, 500 400, 000 399,820
1962______________ 2 23, 179, 000 23,179, 000 23,179, 000
1962__ _ 33A 3, 870, 937 3, 800, 000 3,837, 048
1962______ ____ 4 2,100, 000 2,100, 000 2,100, 000
1963___ ___ 29i 928,125 1, 000, 000 943, 440
1963______________ 4Ji 14, 745,875 14. 750, 000 14, 746, 466
1964______________ 3 4,172, 066 4,150, 000 4,165,879
1964____ _ 3% 2, 398, 000 2, 398, 000 2,398, 000
1964______________ 4)1 5, 536, 800 5; 519, 000 5, 534,825
1965______________ 2% it 944, 580 18, 710, 000 18,100, 244
1965. ______ _____ 45A 7, 281,975 7, 280, 000 7, 281,945
1966______________ 3 2,177i 344 2, 250, 000 2,180,185
Average
annual
yield 3.47
percent___— 86,487,118 87, 308, 000 86, 626, 205
Since the establishment of the Title I Insurance
Fund, all operating expenses have been paid out of
earnings of the fund, and since July 1, 1944 all
insurance claims relating to this fund have been
paid out of accumulated earnings and recoveries
in the fund. Prior to July 1, 1944, a portion of
the insurance claims was met from income and
recoveries and the remainder was paid from
funds advanced by the Federal Government;
168
The total insurance reserve of the Title I Insurance
Fund as of June 30, 1960, as shown in Statement
6, was $89,852,213, consisting entirely of
earnings. In accordance with Public Law 5, 83d
Congress, approved March 10, 1953, the amount
of capital contributed to this fund by the U.S. Government,
$8,333,314 was established as a liability
of the fund as of June 30, 1953. On July 1, 1953,
the entire amount was repaid and the liability
liquidated.
Statement 6.—Comparative statement of financial condition,
Title I Insurance Fund as of June 30, 1959 and
June 30, 1960
For the fiscal year 1960, Title I Insurance Fund
income totaled $18,565,193, and expenses and
losses amounted to $9,628,403, leaving $8,936,790
net income before adjustment of valuation allowances.
After the valuation allowances were decreased
by $2,367,720, there remained $11,304,510
net income for the year.
Statement 7.—Income and expenses, Title I Insurance
Fund, through June 30, 1959 and June 30, 1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury______ $5,264, 716 $9, 018, 243 $3, 753, 527
Investments: U.S. Government
securities (amortized)_____ 76, 699, 893 86, 626, 206 9, 926, 313
Loans receivable:
Mortgage notes and contracts
for deed________________
Less allowance for losses_____
367, 657
5, 515
326, 508
4, 898
-41,149
-617
Net loans receivable_____ 362,142 321, 610 -40, 532
Accounts and notes receivable:
Accounts receivable—Insurance
premiums__________
Accounts reveivable—Interfund___________________
2, 252, 292
220, 044
2,147, 689
225, 340
-104, 603
5,296
Total accounts and notes
receivable_____2_, _4_7_2, 336 2, 373, 029 -99, 307
Accrued assets:
Interest on U.S. Government
securities_______________
Other______________________
462,468
3,102
473, 738
1,553
11,270
-1, 549
Total accrued assets_____ 465, 570 475, 291 9, 721
Acquired security:
Real estate (at cost plus expenses
to date)__________
Less allowance for losses_____
—
Net real estate__________ —
Defaulted Title I notes______
Less allowance for losses_____
44. 615, 529
28, 851,067
43, 576,188
26, 483, 964
-1,039,341
-2, 367, 103
Net defaulted Title I
notes____1_5_, _7_6_4, 462___ 17,092, 224 1, 327, 762
Net acquired security___ 15, 764, 462 17, 092, 224 1,327, 762
Total assets_____________ 101, 029,119 115, 906,603 14,877, 484
LIABILITIES
Accounts payable: Bills payable
to vendors and Government
agencies_____________ 943, 685 1,484, 712 541, 027
Trust and deposit liabilities:
Deposits held for mortgagors,
lessees and purchasers__ 8, 944 9, 968 1,024
Deferred and undistributed
credits:
Unearned insurance premiums_________________
Other______________________
21, 558, 781
7, 164
24,554, 451
5, 259
2, 995, 670
-1,905
Total deferred and undistributed
credits_____ 21, 565, 945 24, 559, 710 2, 993, 765
Total liabilities_________ 22, 518, 574 26, 054, 390 3, 535, 816
RESERVE
Insurance reserve—available for
future losses and expenses__ 78, 510, 545 89, 852,213 11, 341, 668
Total liabilities and
reserve___1_0_1_,_0_2_9_,1_1_9___ 115,906, 603 14, 877, 484
June 3,1939
to
June 30,1959
July 1,1959
to
June 30,1960
June 3,1939
to
June 30,1960
Income:
Interest and dividends:
Interest on U.S. Government
securities_______
Interest on mortgage notes
and contracts for deed_
Interest and other income
on defaulted Title I notes.
$6,427, 530
196,134
8,945,340
$2,816,605
14,361
1,172,034
$9, 244,135
210,495
10,117,374
15, 569,004 4,003,000 19, 572,004
Insurance premiums and fees:
Premiums________________
Fees_____ . . . _ _____
198, 259, 293
369,304
14, 557,378 212,816,671
369,304
198,628, 597 14, 557, 378 213,185, 975
Other income: Miscellaneous
income_________________ 32,998 4,815 37,813
Total income___________ 214. 230, 599 18. 565,193 232, 795, 792
Expenses:
Administrative expenses: Operating
costs (including adjustments
for prior years).. 45,024,155 4, 673, 794 49, 660,958
Other expenses:
Depreciation on furniture
and equipment_______
Miscellaneous expenses____
220, 892
401, 599
23, 521
37,096
244,230
438,695
622, 491 60,617 682,925
Losses and charge-offs:
Loss on acquired securityproperties____________
Loss on equipment________
Loss on defaulted Title I
notes_________________
103,711
37, 221
60,075,894
59
-154
4, 894,087
103, 770
37,083
64, 969,981
60, 216,826 4,893, 992 65,110,834
Total expenses__________ 105,863,472 9,628,403 115,454,717
Net income before adjustment
of valuation allowances____ 108, 367,127 8,936, 790 117,341,075
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans
receivable______________
Allowance for loss on real estate
.... . . ___ _ .
- 5, 515 +617 -4,898
Allowance for loss on defaulted
Title I notes_____ -28,851,067 +2,367,103 -26,483,964
Net adjustment of valuation
allowances______ -28,856, 582 +2,367,720 -26,488,862
Net income_____________ 79, 510,545 11,304,510 90,852, 213
ANALYSIS OF INSURANCE RESERVE
Distribution of net income:
Insurance reserve:
Balance at beginning of
period 78, 510, 545
Adjustments during the
period__ . .. +37,158
Net income for the period.. 79, 510, 545 11,304, 510 90,852, 213
Capital contributions to
other FHA insurance
79, 510, 545 89,852, 213 90,852, 213
funds__________________ -1,000,000— -1,000,000
Balance at end of period.. 78,510,545 89,852, 213 89,852, 213
169
Title I Insurance Authority
The Title I, Section 2 insurance authorization
was extended in unlimited amount through
September 1961, by Public Law 86-788, 86th Congress,
approved September 14, 1960. The estimated
outstanding balance of insurance in force
at December 31, 1960, was $1,609,086,926.
Title I Insurance Liability
The maximum amount of claims that a qualified
institution may present for payment is limited to
10 percent of the eligible loans reported by that
institution for insurance. Section 2(a) of the
Act, as amended August 2,1954, provides that with
respect to any loan, advance of credit, or purchase
made after the effective date of the Housing Act
of 1954, the amount of any claim for loss on such
individual loan, advance of credit, or purchase
paid by the Commissioner under the provisions
of this section to a lending institution shall not
exceed 90 per centum of such loss. The coinsurance
provision of Title I became effective October
1, 1954, and from that date the lender is required
to bear 10 percent of the loss sustained on any one
loan. As of December 31, 1960, the maximum
possible liability of the Title I Insurance Fmid for
claims was $386,816,386.
Insurance reserves under Title I, established, released, and outstanding at December 31, 1960, as provided under
Sections 2 and 6, National Housing Act
Item
Insurance reserves:
Section 2:
20 percent, original act_____________
10 percent, amendment Apr. 3, 1936-
10 percent, amendment Feb. 3, 1938..
10 percent, amendment June 3, 1939_.
10 percent, reserve of July 1, 1944___
10 percent, reserve of July 1, 1947___
10 percent, reserve of Mar. 1, 1950___
Estimated loan reports in process___
Section 6:
20 percent, amendment Apr. 22, 1937.
10 percent, amendment Apr. 17, 1936.
Total_______________________________
Title I Claims Account
In accordance with Public Law 560, 83d Congress,
approved August 2,1954, the Title I Claims
Account was terminated as of August 1, 1954 and
the remaining assets transferred to and merged
with the Title I Insurance Fund.
Through August 1, 1954, the Federal Government
had advanced a total of $38,243,525 to cover
operations under Title I (Section 2) on insurance
granted prior to July 1, 1939. Of this amount,
$6,613, 811 had been advanced for salaries and expenses
and the remaining $31,629,714 for the payment
of insurance claims and loans to insured institutions.
In addition, $2,330,360 had been collected
as interest and other income, making a total of
$40,573,885 accountable funds.
Funds accounted for at August 1, 1954 amounted
to $40,541,285: $19,218,917 representing recoveries
and interest on claims deposited in the
general fund of the Treasury, and $21,322,368 representing
expenses and losses, leaving a balance of
$32,600 for transfer to the Title I Insurance Fund.
This balance was represented by the net assets on
hand at August 1, 1954, which consisted of $798
real property and $31,802 accounts and notes
receivable.
TITLE I HOUSING INSURANCE FUND
Gross reserves
established
Reserves
released
Annual reserve
adjustments Claims paid
Outstanding
contingent
liability
$66,331,509
17, 257, 563
27,302,148
86, 068,194
85,450, 557
163, 058,938
935, 503,960
4,650,812
$50, 769, 729
10,647, 672
18,041, 547
65, 650, 691
61,219,350
112,085,307
$438,846,839
$15, 561, 780
6,609,891
9, 260,601
20, 417, 503
24,231,207
46, 275, 576
119,189,602
$4,698,055’
377,467, 519
4,650,812
297,366
11,913
246,498
6,339
— 50. 868
5, 574
—
1,385,932,960 318,667,133 438,846,839 241, 602, 602 386,816,386.
An amendment of April 20,1950 to the National
Housing Act (Public Law 475, 81st Congress)
created the Title I Housing Insurance Fund to be
used by the FHA Commissioner as a revolving
fund for carrying out the provisions of Section 8
of Title I of the Act. This section provides for
the insurance of mortgages to assist families of
low and moderate income, particularly in suburban
and outlying areas. For the purposes of this fund,
the Act authorized the Commissioner to transfer
the sum of $1 million from the Title I Insurance
Fund. This is not a mutual insurance fund in the
sense that any portion of the net income from
operations will be shared by mortgagors in the
form of participation payments.
Capital and Net Income
Assets of the Title I Housing Insurance Fund
at June 30, 1960 totaled $6,724,200, against which
there were outstanding liabilities of $1,172,492,
leaving $5,551,708 insurance reserve. Included in
the insurance reserve is the sum of $1 million which
was transferred from the Title I Insurance Fund
in accordance with Section 8(h) of the Act.
170
Statement 8.—Comparative statement of financial condition,
Title I Housing Insurance Fund, as of June 30,
1959 and June 30, 1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury__ _ $364,145 $538,319 $174,174
Investments: U.S.Government
securities (amortized)_ 2,075, 505 2,019, 892 -55,613
Loans receivable:
Mortgage notes and contracts
for deed. _.. _____ _ 2, 886,121
43, 292
3, 458,984
51,885
572,863
Less allowance for losses_____ 8,593
Net loans receivable____ 2, 842, 829 3,407,099 564,270
Accounts and notes receivable:
Accounts receivable—Insurance
premiums _. ______ 27,088
56
1,734
11,275
9
1,851
-15,813
-47
117
Accounts receivable—Other...
Accounts receivable—Interfund___________________
Total accounts and notes
receivable _____ ___ 28, 878 13,135 -15, 743
Accrued assets:
Interest on U.S. Government
securities ____________ 4, 870
14,892
4, 870
Other. ___________________ 17, 493 2,601
Total accrued assets ___ 19, 762 22,363 2,601
Acquired security:
Real estate (at cost plus expenses
to date) __ _____ 869, 568
275,201
1,005, 594
282,202
136,026
Less allowance for losses____ 7,001
Net acquired security___
Total assets . ___
594,367 723,392 129,025
5,925,486 6, 724, 200 798, 714
LIABILITIES
Accounts payable: Bills payable
to vendors and Government
agencies ______ ____ 5, 474 9,925 4, 451
Accrued liabilities: Interest on
debentures .____ _______ 12, 618 13, 696 1,078
Trust and deposit liabilities:
Fee deposits held for future
disposition _______
Excess proceeds of sale 18, 647
39,111
29,256
52, 586
10, 609
13, 475
Deposits held for mortgagors,
lessees and purchasers__ _
Total trust and deposit
liabilities _____ ___ 57, 758 81,842 24,084
Deferred and undistributed
credits:
Unearned insurance premiums.
__________ __ _ 369, 808
15, 538
339,136
17,493
-30,672
Other _ ___ _ . _____ 1,955
Total deferred and undistributed
credits__ 385, 346 356, 629 -28, 717
Bonds, debentures and notes
payable: Debentures payable.
Total liabilities______
593, 250 710,400 117,150
1,054,446 1,172,492 118,046
RESERVE
Insurance reserve-available for
future losses and expenses_
Total liabilities and reserve
__ ______________
4, 871,040 5. 551,708 680,668
5,925, 486 6, 724,200 798, 714
Certificates of claim relating to
properties on hand________ 47, 705 49, 788 2,083
The total income of the Title I Housing Insurance
Fund for fiscal year 1960 amounted to
$923,015, and expenses and losses totaled $231,-
231, leaving net income of $691,784 before adjustment
of the valuation allowances. The valuation
allowances were increased $15,594 resulting in a
net income of $676,190 for the year.
Statement 9.—Income and expenses, Title I Housing Insurance
Fund, through June 30, 1959 and June 30, 1960
Apr. 20, 1950
to June 30,
1959
July 1, 1959
to June 30,
1960
Apr. 20, 1950
to June 30,
1960
Income:
Interest and dividends:
Interest on U.S. Government
securities . __ $338, 956
167, 767
$59, 889
78,922
$398,845
Interest—Other____ ______ 246,689
Insurance premiums and fees:
Premiums. __ ___________
506, 723 138,811 645, 534
5,252,996
1,664,197
761,482 6,014,478
Fees.. ________________ __ 1, 664,197
Other income: Miscellaneous
income__ _ __ _______
6,917,193 761,482 7,678, 675
4,836 22, 722 27, 558
Total income___________ 7,428, 752 923,015 8, 351, 767
Expenses:
Administrative expenses:
Operating costs (including
adjustments for prior
years)__ ____ ______ 2,900,206 97, 516 2,993,264
Other expenses: Depreciation
on furniture and
equipment___ _____ 13, 726 581 14,285
Losses and charge-ofis:
Loss on acquired security.
Loss (or profit —) on
equipment___ ______
325,457
-170
133,138
-4
458, 595
-172
Total expenses__ ___
325,287 133,134 458,423
3,239,219 231,231 3,465,972
Net income before adjustment
of valuation allowances____ 4,189, 533 691, 784 4, 885, 795
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans
receivable_____ ____ _. _ -43,292
-275,201
-8, 593
-7,001
— 51,885
-282,202
Allowance for loss on real
estate____ ___ _______ _
Net adjustment of valuation
allowances______
Net income_____________
-318,493 -15,594 -334,087
3,871,040 676,190 4, 551, 708
ANALYSIS OF INSURANCE RESERVE
Distribution of net income:
Insurance reserve:
Balance at beginning of
period. _ 4, 871,040
+4,478
676,190
Adjustments during the
period
Net income for the period.. 3,871,040 4, 551, 708
Capital contributions from
other FHA insurance
funds_________________
3, 871,040
1,000,000
5, 551, 708 4, 551, 708
1, 000, ooo
Balance at end of period. 4, 871,040 5, 551, 708 5, 551, 708
Investments
Section 8(i) of the Act provides that moneys
in the Title I Housing Insurance Fund not needed
for current operations shall be deposited with the
Treasurer of the United States to the credit of the
fund, or invested in bonds or other obligations of*
or in bonds or other obligations guaranteed as to
principal and interest by the United States; or the
171
Commissioner may, with the approval of the Secretary
of the Treasury, purchase debentures issued
under the fund, provided that such purchases are
made at a price that will produce an investment
yield not less than the yield obtainable from
other authorized investments. During fiscal year
1960, $300,250 of debentures were redeemed in payment
of mortgage insurance premiums and
$430,400 were redeemed by debenture calls.
During the fiscal year 1960, net redemptions of
investments amounting to $55,000 (principal
amount) were made for the account of this fund
and at June 30, 1960 the fund held U.S. Government
securities in the principal amount of $2,-
015,000 yielding 2.37 percent as follows:
Investments of the Title I Housing Insurance Fund,
June 30, 1960
i Average annual yield 2.37 percent.
Series
Interest
rate
(percent)1
Pui chase
price Par value
Book value
(amortized)
1960______________ $24, 699 $25,000 $24, 778
1961______________ 2 500, 000 500,000 500,000
1963______________ 2 190, 000 190, 000 190,000
1964 ____________ 3 351, 382 350, 000 351,081
1967-1972_________ 2J4 958^ 367 950,000 954; 033
Total_____—_ 2, 024, 448 2,015,000 2, 019,892
Properties Acquired Under the Terms
of Insurance
During the calendar year 1960, 146 properties
insured under Title I, Section 8 were acquired by
the Commissioner under the terms of insurance.
Through December 31, 1960, a total of 944 homes
had been acquired under the Title I Housing Insurance
Fund at a total cost of $5,922,082 and 802
had been sold at prices which left a net charge
against the fund of $619,082, or an average of
$772 per case.
Statement 10.—Statement of profit and loss on sale of
acquired properties, Title I Housing Insurance Fund,
through Dec. 31,1960
1 Analysis of terms of sales.
Items
Total TIHI
Fund (802
properties)
Proceeds of sale:
Sales price1 . . _ ___ ______ __ $4, 465,988
Less commission and other selling expense_____________ 197,617
Net proceeds of sales______________________________ 4, 268,371
Income:
Rental and other income (net)------------------------------------- 33.096
Mortgage note income------------------------------------------------ 389,411
Recovery prior to acquisition on defaulted notes________ 8,148
Total income___ _____ __ - - _____ 430,655
Total proceeds of sold properties________________________ 4,699,026
Expenses:
Debentures and cash adjustments-------------------------------- 4,384,510
Asset value acquired after default of purchase money
mortgages ______ _ _ _____________ ______ -___ -35, 239
Interest on debentures------------------------------------------------ 397, 671
Taxes and insurance_________________________________ 99, 679
Additions and improvements_________________________ 665
Maintenance and operating expense___________________ 358,084
Service charge _ __________ ___ 34,762
Miscellaneous ___ __ ___ 1,544
Total expenses _ _____ __ __________ 5, 241.676
Net profit (or loss —) before distribution of liquidation
profits _____ ____ __________ - -- - -- -542, 650
Less distribution of liquidation profits:
Certificates of claim__________________________________ 40,519
Increment on certificates of claim-------------------------------- 1,138
Refunds to mortgagors_______________________________ 34,775
Loss (—) to Title I Housing Insurance Fund----------- -619,082
Terms of sales
Number
of properties
Number
of
notes
Cash
Mortgage
notes
Sales
price
Properties sold for
all cash_ _____58 $159, 228 $159, 228
Properties sold for
cash and notes (or
contracts for deed). 744 744 220,345 $4,086,415 4,306,760
Total________ 802 744 379,573 4,086,415 4,465,988
The turnover of Section 8 properties acquired
and sold, by calendar year, is given below:
Statement 11.—Turnover of properties acquired under Sec. 8 of Title I contracts of insurance by years, and cumulative
through Dec. 31,1960
Properties acquired Properties sold, calendar years
Year Number 1952 1953 1954 1955 1956 1957 1958 1959 1960
Properties
on hand
Dec. 31,
1960
1952________________________________
1953________________________________
1954________________________________
1955________________________________
1956________________________________
1957________________________________
1958________________________________
1959________________________________
1960________________________________
2
55
25
46
141
219
155
155
146
2
13
218
56
60
1
5
22
11
17
86
Total_________________________ 7 55 26 102 162 166 142 142 142
Note.—On the 802 properties sold, the average time between acquisition and sale by the Federal Housing Administration was 7.59 months. The number
of properties sold has been reduced by 22 properties repossessed because of default on mortgage notes. Of these repossessions, 16 had been sold by Dec. 31, 1960.
172
On December 31, 1960, there remained on hand
142 properties insured under the Title I Housing
Insurance Fund. The cost of these properties
was:
Title I Housing Insurance Fund, statement of properties
on hand at Dec. SI, 1960
Title I, Sec. 8
(142 properties)1
Expenses:
Acquisition costs___________________________________
Interest on debentures______________________________
Taxes and insurance________________________________
Maintenance and operating_________________________
Additions and improvements_______________________
Miscellaneous______________________________________
Total expenses___________________________________
Income: Rent and other income (net)___________________
Net acquired security on hand____________________
$754,652
40,311
19,268
32,619
281
192
________847, 323
10,~311
837,012
1 Includes 6 properties repossessed and carried at the asset value at time of
repossession.
Section 8 of the Act provides that if the net
amount realized from any property acquired by
FHA under the terms of insurance with respect
to which Section 8 is applicable, after deducting
all expenses incurred in handling, dealing with,
and disposing of such property, exceeds the face
value of debentures issued and cash paid in exchange
for such property plus all interest paid on
such debentures, such excess shall be applied to
the certificate of claim issued to the mortgagee,
and that any excess remaining after payment of
the certificate of claim and increment thereon shall
be refunded to the mortgagor.
Certificates of claim issued in connection with
the 802 Section 8 properties which had been acquired
and sold through 1960 totaled $243,457.
The amount paid or to be paid on these certificates
of claim totaled $40,519, and certificates of claim
totaling $202,938 had been or will be canceled.
In addition there were excess proceeds on 160
of the 802 properties sold, amounting to $34,775
for refund to the mortgagors.
TITLE II: MUTUAL MORTGAGE
INSURANCE FUND
The Mutual Mortgage Insurance Fund was
established by Section 202 of the National Housing
Act of June 27, 1934 as a revolving fund for
carrying out the provisions of Title II with respect
to insurance under Section 203 (mortgages
on one- to four-family homes) and Section 207
(rental housing projects). An amendment to the
Act approved February 3, 1938 established the
Housing Insurance Fund to carry the insurance
on rental housing projects insured under Section
207 after that date.
In accordance with Section 202 of the Act, the
Mutual Mortgage Insurance Fund was originally
allocated the sum of $10 million by the Federal
Government. It has been credited with all income
received in connection with insurance granted
under Section 203, and that received with respect
to insurance granted prior to February 3, 1938
under Section 207.
Prior to the Amendment of August 2,1954, Section
205 of the Act, as amended, provided that
mortgages insured under Section 203 should be
classified into groups in accordance with sound
actuarial practice and risk characteristics. Each
group account was credited with the income and
charged with the expenses and losses of the mortgages
in the group. If such income exceeded the
expenses and losses, the resultant credit balance
was distributed in the form of participation payments
to mortgagors of the group upon payment in
full of their mortgages, or upon termination of
the group account, except that a mortgagor might
not receive an amount in excess of the aggregate
scheduled annual premiums to the year of termination
of the insurance.
The General Reinsurance Account was established
by Section 205(b) of the Act, and, in
accordance with this section, was credited with
the original allocation of $10 million provided by
Section 202 of the Act.
An Amendment to Section 205 of the Act,
approved August 2, 1954, provided that the Commissioner
establish as of July 1, 1954 a General
Surplus Account and a Participating Reserve Account.
The balance of the General Reinsurance
Account, amounting to $64,198,363, was transferred
to the General Surplus Account, whereupon
the General Reinsurance Account was abolished.
There was transferred from the various group accounts
to the Participating Reserve Accounts as of
July 1, 1954, $56,387,716, an amount equal to the
aggregate amount which would have been distributed
under the provisions of Section 205 in effect
on June 30, 1954, if all outstanding mortgages in
the group accounts had been paid in full on that
date. All of the remaining balances of the group
accounts in the amount of $71,371,016 were transferred
to the General Surplus Account, whereupon
all of the group accounts were abolished. The
aggregate net income received or net loss sustained
by the Mutual Mortgage Insurance Fund in any
semiannual period is credited or charged to the
General Surplus Account and/or the Participating
Reserve Account in such manner and amount as
the Commissioner may determine to be in accord
with sound actuarial and accounting practice.
Upon termination of the insurance obligation of
the Mutual Mortgage Insurance Fund by payment
of any mortgage insured thereunder, the Commissioner
is authorized to distribute to the mortgagor
a share of the Participating Reserve Account in
such manner and amount as the Commissioner
shall determine to be equitable and in accordance
with sound actuarial and accounting practice, except
that a mortgagor may not receive an amount
in excess of the aggregate scheduled annual
premium to the year of termination of the
insurance.
Capital
As of June 30, 1960, the assets of the Mutual
Mortgage Insurance Fund totaled $621,120,121,
173
against which there were outstanding liabilities of
$62,864,055, leaving $558,256,066 insurance reserves.
In accordance with Public Law 94,83d Congress,
approved June 30,1953, the amount of capital contributed
to this fund by the U.S. Government in
the amount of $41,994,095 ($10 million to establish
the fund and $31,994,095 for salaries and
expenses) was established as a liability of the
fund as of June 30, 1953. The principal liability
of $41,994,095, together with interest thereon in
the amount of $17,059,847, was repaid during fiscal
year 1954, the final payment being made on March
11,1954.
Statement 12.—Comparative statement of financial condition,
Mutual Mortgage Insurance Fund, as of June
30, 1959, and June 30, I960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury______
Investments:
U.S. Government securities
(amortized)_______________
Other securities (stock in
rental housing corporations)
___________________
Total investments_______
Loans receivable:
Mortgage notes and contracts
for deed________________
Less allowance for losses_____
Net loans receivable_____
Accounts and notes receivable:
Accounts receivable—Insurance
premiums__________
Accounts receivable—Other..
Accounts receivable—Interfund___________________
Total accounts and notes
receivable___________
Accrued assets:
Insurance premiums________
Interest on U.S. Government
b securities_________________
Other______________________
Total accrued assets_____
Acquired security:
Real estate (at cost plus expenses
to date)__________
Less allowance for losses_____
Net acquired security___
Total assets_____________
LIABILITIES
Accounts payable:
Bills payable to vendors and
f Government agencies_____
Group account participations
payable_________________
Total accounts payable...
Accrued liabilities: Interest on
debentures_______________
Trust and deposit liabilities:
Fee deposits held for future
! disposition________________
Excess proceeds of sale_______
Deposits held for mortgagors,
lessees, and purchasers__
Total trust and deposit
liabilities___________
$15.371, 630 $26,831,444 $11,459, 814
458, 730,104
100
501,713,889
100
42, 983, 785
458, 730, 204 501, 713,989 42,983,785
25,374,111
380, 612
35,154,620
542,302
9, 780, 509
161, 690
24, 993, 499 34, 612,318 9, 618,819
1, 880, 725
596
1, 412, 773
2,147,861
482
1,458, 635
267,136
-114
45,862
3, 294,094 3, 606,978 312, 884
18, 455,041
1,837, 783
96,836
28,834,043
1,960, 088
139,426
10,379, 002
122,305
42,590
20, 389, 660 30,933, 557 10, 543,897
22, 771,435
8,294,346
37,339. 400
13, 917, 565
14, 567,965
5, 623,219
14, 477,089 23, 421,835 8, 944, 746
537,256,176 621,120,121 83,863,945
482, 001
4, 726,408
311,942
3,320, 777
-170,059
-1,405,631
5,208, 409 3, 632, 719 -1,575,690
370, 655 459, 710 89,055
8, 769,170
440, 742
399,936
7,093, 636
492,853
578,198
-1,675,534
52, 111
178,262
9, 609, 848 8,164, 687 -1, 445,161
Statement 12.—Comparative statement of financial condition,
Mutual Mortgage Insurance Fund, as of June 30,
1959, and June 30, 1960—Continued
June 30, 1959 June 30, 1960 Increase or
decrease (—)
liabilities—continued
Deferred and undistributed
credits:
Unearned insurance premiums___________________
Other______________________
Total deferred and undistributed
credits______
Bonds, debentures, and notes
payable: Debentures payable.
Total liabilities_________
RESERVES
Statutory reserve-for participation
payments and future
losses_____________________
Insurance reserve-available for
future losses and expenses__
Total reserves__________
Total liabilities and reserves______________
Certificates of claim relating to
properties on hand________
30, 997,161
102,133
27,719, 598
146,141
-3,277, 563
44,008
31,099,294 27,865, 739 -3,233, 555
14, 979, 900 22,741,200 7, 761,300
61,268,106 62, 864,055 1, 595, 949
125,814, 081
350,173, 989
148, 595,327
409, 660, 739
22, 781,246
59,486, 750
475,988,070 558,256,066 82,267,996
537,256,176 621,120,121 83,863,945
939,119 1, 428, 624 489, 505
Income and Expenses
During fiscal year 1960 the income to the fund
amounted to $144,035,659, and expenses and
losses amounted to $42,791,121, leaving $101,-
244,538 net income before adjustment of valuation
allowances. After the valuation allowances had
been increased $5,784,909 the net income for the
year was $95,459,629.
The cumulative income of the Mutual Mortgage
Insurance Fund from June 30, 1934, to June 30,
1960 amounted to $1,130,705,253 and cumulative
expenses amounted to $449,713,650, leaving $680,-
991,603 net income before adjustment of valuation
allowances. After $14,459,867 had been allocated
to valuation allowances, the cumulative net income
amounted to $666,531,736.
Statement 13.—Income and expenses, Mutual Mortgage
Insurance Fund, through June 30, 1959 and June 30,
1960
June 30,1934
to
June 30,1959
July 1, 1959
to
June 30, 1960
June 30, 1934
to
June 30, 1960
Income:
Interest and dividends:
Interest on U.S. Government
securities ______ $87, 993, 558
700,971
286
$15,049, 511
783,851
$103,043,069
1, 484,822
286
Interest—other
Dividends on rental housing
stock
Insurance premiums and fees:
Premiums. .. _________
88,694, 815 15,833,362 104, 528,177
720,435, 783
175, 553,673
112, 775, 787
14,953,095
833,211, 570
Fees. ____________________ 190, 506,768
895, 989, 456 127, 728,882 1,023, 718,338
174
Statement 13.—Income and expenses, Mutual Mortgage
Insurance Fund, through June 30, 1959 and June 30,
1960—Continued
lune 30, 1934
to
June 30, 1959
July 1, 1959
to
June 30, 1960
June 30, 1934
to
June 30, 1960
Other income:
Profit on sale of investments..
Miscellaneous income. ____
1,829,815
155,508
1,829,815
473,415 628,923
Total income..___ _______
1, 985,323 473,415 2,458,738
986,669, 594 144,035,659 1,130,705,253
Expenses:
Interest expense: Interest on
funds advanced by U.S.
17,059,847 17,059,847
Administrative expenses: Operating
costs (including
adjustments for prior years) _
Other expenses:
Depreciation on furniture
and equipment- __
381,843,341 41,113,830 422,930,171
1, 911,805
17, 724
207,394
40
2,119,066
Miscellaneous expenses____ 17,764
Dosses and charge-offs:
Loss on acquired security. __
Loss (or profit —) on equipment.
. _ _ _ -
1, 929, 529 207,434 2,136,830
6,179,803
-62,870
1,471,220
-1,363
7,651,023
-64,221
Total expenses.. ______
6,116, 933 1,469,857 7, 586,802
406, 949,650 42,791,121 449, 713, 650
Net income before adjustment
of valuation allowances------
Increase (—) or decrease (+) In
valuation allowances:
Allowance for loss on loans
receivable _____ ______ -
579,719,944 101,244, 538 680,991,603
-380,612
-8,294,346
-161,690
-5,623,219
-542,302
-13,917,565
Allowance for loss on real
estate _ _ __ -
Net adjustment of valuation
allowances_____ -8, 674,958 -5, 784,909 -14,459,867
Net income. __________ 571,044,986 95,459, 629 666, 531, 736
ANALYSIS OF INSURANCE RESERVE
Distribution of net income:
Statutory reserve:
Balance at beginning of
125,814,081
Adjustments during the
Net income allocated for
the period _ - - ___ 219,870,997 36,000,000 255,870,997
Participations in mutual
earnings distributed-----
Balance at end of periodinsurance
reserve:
Balance at beginning of
219, 870,997
-94,056.916
161,814,081
-13, 218, 754
255,870,997
-107,275, 670
125,814,081 148,595,327 148, 595,327
350,173,989
+27,121
59, 459, 629
Adjustments during the
Net income for the period...
Capital contributions to
other FHA insurance
351,173,989 410,660, 739
351,173,989
-1,000,000
409,660, 739 410,660, 739
-1,000,000
Balance at end of period..
Total reserves at end of
period -- - - __
350,173, 989 409, 660, 739 409, 660, 739
475, 988,070 558,256,066 558,256,066
Investments
Section 206 of the Act provides that excess
moneys in the Mutual Mortgage Insurance Fund
not needed for current operations shall be deposited
with the Treasurer of the United States
to the credit of the fund, or invested in bonds or
other obligations of, or in bonds or other obligations
guaranteed as to principal and interest by
the United States; or the Commissioner may, with
the approval of the Secretary of the Treasury,
purchase debentures issued under the fund, provided
that such purchases are made at a price
which will produce an investment yield not less
than the yield obtainable from other authorized
investments.
During the fiscal year 1960, $11,292,550 in
debentures was redeemed in payment of mortgage
insurance premiums and $6,522,700 was redeemed
by debenture calls or by reason of maturity.
' Net purchases of United States Government securities
made during the fiscal year increased the
holdings of the fund by $42,227,000 (principal
amount). These transactions increased the average
annual yield from 2.89 percent to 3.14 percent.
On June 30, 1960, the fund held United States
Government securities in the amount of $507,-
571,350, principal amount, as follows:
Investments of the Mutual Mortgage Insurance Fund,
June 30, 1960
1 Average annual yield 3.14 percent.
Series
Interest
rate
(percent)1
Purchase
price Par value
Book value
(amortized)
1961___ 2^ $7, 470, 762 $7, 762, 000 $7, 653,146
1962- _____ 2 15,109, 000 15,109, 000 15,109, 000
1962____ 3% 8,344, 594 8,100, 000 8, 227,405
1962-67 _ _ _ 2H 5, 000, 000 5, 000, 000 5, 000, 000
1963____ . ___ 2^ 3,376, 563 3, 500, 000 3, 443,759
1963— ______ 2% 7, 713, 416 7,890, 000 7, 753,821
1963 — _ _ 4% 19, 287, 625 19, 300, 000 19, 289,412
1963-68 ... 2^ 26, 778, 078 27, 200, 000 26, 921,709
1964___ 3 16, 636,870 16,400, 000 16,557,552
1964. ______ 3M 43, 988, 000 43,988, 000 43,988, 000
1964. _ . 4% 12, 200, 600 12, 117, 000 12,188,192
1964-69 _ 2% 60, 544, 626 63, 225, 000 61.180,634
1965 ______ _ . 2% 24,466, 516 26, 550, 000 24,870,781
1965. . _______ 38,829, 041 38, 820, 000 38,828,901
1965-70 _ _ 2J4 35,191,984 35, 900, 000 35, 440, 416
1966 _____ 3 5,478, 312 5, 950, 000 5,499, 418
1966-71 _ 2Vi 26, 089,805 26, 700, 000 26, 288,830
1967-72. 2V1 137, 244,134 137, 567, 000 136, 979, 562
NDHI debentures. 2J4 3, 227, 700 3, 227, 700 3, 227, 700
NDHI debentures. 2% 3, 265,650 3, 265, 650 3, 265, 650
Total_______—500, 243, 276 507, 571,350 501,713, 888
Properties Acquired Under the Terms
of Insurance
Five thousand and eighty-two homes insured
under Section 203 were acquired by the Commissioner
during the calendar year 1960 under the
terms of insurance. Through 1960, a total of 16,-
917 homes had been acquired under the Mutual
Mortgage Insurance Fund at a total cost of
$148,042,143. Statement 14 shows the turnover
of Section 203 acquired properties since the acquisition
of the first such property in 1936.
Through December 31, 1960, 11,125 acquired
properties insured under Section 203 had been sold
at prices which left a net charge against the fund
of $9,550,038, or an average of approximately $858
per case. One Section 207 rental housing project,
insured under the Mutual Mortgage Insurance
Fund prior to February 3,1938, had been acquired
and sold in 1941 at no loss to the fund.
175
Statement 14.—Turnover of properties acquired under Sec. 203 of Title II contracts of insurance by years, and
cumulative through Dec. 31, 1960
Propert ies acquired
Year Number
1936-47________
1948__________
1949__________
1950__________
1951__________
1952__________
1953__________
1954__________
1955__________
1956__________
1957__________
1958__________
1959__________
1960__________
4,067
4
37
225
407
282
263
427
485
1,572
910
1,328
1.828
5, 082
Total_____ 16,917
Properties sold by calendar years
1936-47 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960
4,067
2 2
17 19
65
1
102
188
25
173
142
11
17
86
88
8
10
13
84
162
7
8
20
49
174
199
16
5
28
36
213
279
448
10
21
20
391
372
1
-1
7
4
14
7
80
17
53
682
1,214
9
50
273
501
7
51
34
337
648
4,067 2 19 84 291 340 202 277 457 568 830 845 1.076 2,067
Properties
on
hand
Dec. 31,
1960
20
30
721
214
437
498
3,868
5, 792
Note.—On the 11,125 properties sold the average time between acquisition and sale by the Federal Housing Administration was 7.49 months. The number
of properties sold has been reduced by 102 properties repossessed because of default on mortgage notes. Of these repossessions, 81 had been sold by Dec. 31, 1960.
Statement 15.—Statement of profit and loss on sale of
acquired properties, Mutual Mortgage Insurance Fund,
through Dec. 31, 1960
1 Analysis of terms of sales.
Item
Sec. 203
(11,125
properties)
Sec. 207
1 property
(265 units)
Total MMI
fund (11,126
properties)
Proceeds of sales:
Sales price 1______________
Less commission, and other
selling expenses_________
$79, 282,129
3, 575, 748
$1, 000,000 $80, 282,129
3, 575, 748
Net proceeds of sales____ 75, 706, 381 1. 000, 000 76, 706, 381
Income:
Rental and other income (net).
Mortgage note income_______
Recovery prior to acquisition
on defaulted notes_______
1, 648, 813
6, 854, 255
78, 491
— 1, 648, 813
6, 854, 255
78, 491
Total income___________ 8, 581, 559— 8, 581, 559
Total proceeds of sold properties- 84, 287, 940 1, 000,000 85,287, 940
Expenses:
Debentures and cash adjustments
__________________
Asset value acquired after default
of purchase money
mortgages______________
Interest on debentures______
Taxes and insurance________
Additions and improvements.
Maintenance and operating
expense_________________
Service charge______________
Miscellaneous expense_______
77, 087, 352
-162, 847
8, 028, 756
1, 556, 972
151, 565
4, 758, 780
199, 894
8,621
942,145
18, 387
5,012
1,669
78, 029, 497
-162, 847
8, 047,143
1, 561, 984
151, 565
4, 758, 780
199, 894
10, 290
Total expenses__________ 91,629, 093 967, 213 92, 596,306
Net profit (or loss—) before distribution
of liquidation profits.
Less distribution of liquidation
profits:
Certificates of claim_________
Increment on certificates of
claim___________________
Refunds to mortgagors______
-7,341,153
1, 272, 876
68, 558
867, 451
32, 787
31, 532
1,255
-7,308,366
1, 304, 408
69,813
867, 451
Loss (—) to Mutual Mortgage
Insurance Fund... -9, 550, 038— -9, 550, 038
Terms of sales
Number
of properties
Number
of
notes
Cash
Mortgage
notes
Sales
price
Properties sold for
all cash__ 1, 435
9,691
$9,158, 236
5,193, 432
$9,158, 236
71,123, 893
Properties sold for
cash and notes
(or contracts for
deed)________
Total______
9,626 $65, 930, 461
11,126 9,626 14, 351, 668 65, 930,461 80, 282,129
On December 31, 1960, 5,792 properties insured
under the Mutual Mortgage Insurance Fund were
held by this Administration. The cost of these
properties was :
Mutual Mortgage Insurance Fund, statement of properties
on hand at Dec. 31, 1960
1 Includes 21 properties repossessed and carried at the asset value at time
of repossession.
Sec. 203 (5,792
properties) 1
Expenses:
Acquisition costs___________________________________ $54, 558, 837
Interest on debentures______________________________ 2, 737, 683
Taxes and insurance . _____________ _ __ 1,280,216
Additions and improvements_______________________ 94, 536
Maintenance and operating_________________________ 2,010, 235
Miscellaneous __ _ 1,964
Total expenses_________________________ _ . 60, 683, 471
Income: Rental and other income (net)__________________ 1,473, 495
Net acquired security on hand__________________________ 59, 209, 976
Certificates of Claim and Refunds
to Mortgagors
Section 204(f) of the Act provides that if the
net amount realized from any property acquired
by the FHA under the terms of insurance with
respect to which Section 204(f) is applicable,
after deducting all expenses incurred in handling,
dealing with, and disposing of such property, exceeds
the face value of debentures issued and cash
paid in exchange for such property plus all interest
paid on such debentures, such excess shall
be applied to the certificate of claim issued to the
mortgagee, and that any excess remaining after
paying the certificate of claim and increment
thereon shall be refunded to the mortgagor.
Certificates of claim issued in connection with
the Section 203 properties which had been acquired
and sold through 1960 totaled $5,107,804.
The amount paid or to be paid on these certificates
of claim totaled $1,272,876 (approximately 25 percent),
and certificates of claim totaling $3,834,928
(approximately 75 percent), had been, or will be
canceled.
176
In. addition, there were excess proceeds on approximately
20 percent (or 2,195) of the 11,125
sold properties amounting to $867,451, for refund
to mortgagors. This amount represents $437,592
paid and $406,250 payable on 2,077 cases, and
$23,609 held in trust for 118 payees whose whereabouts
are unknown. The average refund per
case amounted to $395.
Mutual Mortgage Participation Payments
The first participation payments in connection
with insured loans prepaid in full were made as of
January 1, 1944, and during the 16% years following
that date total payments of $107,275,670
were made or accrued on 892,212 insured loans.
This amount represents $103,954,893 paid and
$2,938,583 payable on 885,468 cases, and $382,194
held in trust for 6,744 payees whose whereabouts
are unknown.
TITLE II: HOUSING INSURANCE FUND
The insurance risks on rental and group housing
insured under Section 207 and 210 after
February 3, 1938, on cooperative housing insured
under Section 213, on housing for the elderly insured
under Section 231, and on housing for
nursing homes insured under Section 232 are
liabilities of the Housing Insurance Fund, which
was established by an amendment to the National
Housing Act approved February 3, 1938.
Section 213, which was added to the Act by an
amendment approved April 20, 1950, authorizes
the insurance of mortgages on cooperative housing
projects. To be eligible for insurance under Section
213, the mortgagor must be a nonprofit cooperative
ownership housing corporation, the
permanent occupancy of the dwellings being restricted
to members (management-type project),
or a nonprofit corporation organized for the purpose
of building homes for members (sales-type
project), or a corporation intending to sell the
project to a nonprofit cooperative housing corporation.
In a mortgage on a sales-type project, provision
is made for the release from the blanket
mortgage of individual properties for sale to members
and for the insurance of individual mortgages
under Section 213 on such released properties.
Sections 231 and 232 were added to the Act by
an amendment approved September 23, 1959..
Section 231 authorizes the insurance of project
mortgages to assist in relieving the shortage of
housing for elderly persons and to increase the
supply of rental housing for elderly persons..
Section 232 authorizes the insurance of project
mortgages to assist in providing urgently needed
nursing homes for the care and treatment of convalescents
and other persons who are not acutely
ill and do not need hospital care, but who require
skilled nursing care and related medical services.
Appraisal fees, insurance premiums, interest on
investments, and income from security acquired
under the terms of insurance are deposited with
the Treasurer of the United States to the credit
of the Housing Insurance Fund. Foreclosure
losses and general operating expenses of the Fed^-
eral Housing Administration under Section 207
and 210 since February 3, 1938, and under Sections
213, 231, and 232 are charged against the
fund.
This is not a mutual insurance fund in the sense
that any portion of the net income from operations
will be shared by mortgagors in the form
of participation payments. Any increase in the
fund resulting from operations is retained as a
general reserve to meet possible insurance losses
and future expenses in connection with Sections
207, 210, 213, 231, and 232 insurance. In accordance
with Section 207 (h) of the Act, the excess
proceeds, if any, from the sale of an acquired
project, after deducting all costs incident to the
acquisition, handling, and final disposition of the
project, are applied to the mortgagee’s certificate
of claim and increment thereon, and any remaining
balance is credited to the Housing Insurance
Fund (except that with respect to individual
mortgages insured under the provisions of Section
213(d) any excess remaining after payment
of the certificate of claim and increment thereon
is for refund to the mortgagor). Prior to enactment
of the amendments of August 10, 1948 to
the National Housing Act, any excess remaining
after payment of the certificate of claim and increment
thereon was refunded to the mortgagor.
Capital and Net Income
Assets of the Housing Insurance Fund as of
June 30, 1960 totaled $31,153,911, against which
there were outstanding liabilities of $15,850,247.
The insurance reserve of the fund amounted to
$15,303,664, represented by $5,400,000 capital contributions
from other FHA insurance funds and
earnings of $9,903,664.
In accordance with Public Law 94, 83d Congress,
approved June 30, 1953, the amount of
capital contributed to this fund by the U.S. Government
for salaries and expenses in the amount
of $4,170,024 was established as a liability of the
fund as of June 30, 1953. This amount, together
with interest thereon in the amount of $1,386,666,
was repaid during fiscal year 1954, the final payment
being made on October 31,1953.
Statement 16.—Comparative statement of financial condition,
Housing Insurance Fund, as of June 30, 1959
and June 30,1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
assets
Cash with U.S. Treasury______
Investments:
U.S. Government securities
(amortized)_____________
Other securities (stock in
rental housing corporations).
Total investments_______
$1, 883,199 $2, 369, 822 $486, 623
7, 068, 634
72,900
7, 266, 791
80,100
198,157
7, 200
7,141, 534 7,346, 891 205, 357
177
Statement 16.—Comparative statement of financial condition,
Housing Insurance Fund, as of June 30, 1959
and June 30, I960—Continued
June 30, 1951 June 30, 1960
Increase or
decrease (—)
Assets—Continued
Loans receivable:
Mortgage notes and contracts
for deed _________ 7, 230, 270 6, 990,394
231,854
-239, 876
Less allowance for losses. . ' 263' 136 -31, 282
Net loans receivable___ 6, 967,134 6, 758, 540 -208, 594
Accounts and notes receivable:
Accounts receivable—Insurance
premiums__ _ . 163, 322
6,635
219, 241
280
55, 919
Accounts receivable—Other. -6,355
Accounts receivable—Interfund_______________
54,455 57, 672 3,217
Total accounts and notes
receivable___________ 224,412 277,193 52, 781
Accrued assets:
Insurance premiums____ _ 305, 023 355, 313 50, 290
Interest on U.S. Government
securities___________ ____ 3, 437
93,104
3, 437
Other_________________ 66, 808 -26, 296
Total accrued assets_____ 401, 564 425, 558 23, 994
Acquired security:
Real estate (at cost plus expenses
to date)_ 8, 324, 305 14, 059, 812 5, 735, 507
Less allowance for losses_____ 3, 626,463 6,654,887 3,028,424
Net real estate__________ 4,697,842 7,404,925 2,707,083
Mortgage notes acquired under
terms of insurance___ 10,078, 961 10,149,280 70,319
Less allowance for losses_____ 3,549, 569 3,655,369 105, 800
Net mortgage notes acquired
under terms of
insurance__ _________ 6, 529,392 6,493,911 -35,481
Net acquired security___ 11,227,234 13,898, 836 2, 671,602
Other assets—held for account
of mortgagors_____________ 32,277 77,071 44,794
Total assets_____________ 27,877,354 31,153, 911 3,276,557
LIABILITIES
Accounts payable: Bills payable
to vendors and Government
agencies_____________ 2,352 15,735 13,383
Accrued liabilities: Interest on
debentures_______________ 149, 714 180,858 31,144
Trust and deposit liabilities:
Excess proceeds of sale____ 42,085 44,166 2,081
Deposits held for mortgagors,
lessees and purchasers___ 410, 516 462,058 51,542
Total trust and deposit
liabilities_______4_5_2_, _60_1 506,224 53,623
Deferred and undistributed
credits:
Unearned insurance premiums____________________
2,885,145 3,394,385 509,240
Unearned insurance fees_____ 285,172 444, 419 159,247
Other__________________ ___ 93,104 66,808 -26,296
Total deferred and undistributed
credits_____ 3, 263, 421 3, 905,612 642,191
Bonds, debentures, and notes
payable: Debentures payable. 11,304,650 11,133,800 -170,850
Other liabilities: Reserve for
foreclosure costs—Mortgage
notes acquired under terms of
insurance_________________ 103,660 108,018 4,358
Total liabilities_________ 15,276,398 15,850,247 573,849
RESERVE
Insurance reserve—available for
future losses and expenses__ 12, 600, 956 15,303, 664 2,702, 708
Total liabilities and reserve_______________
27,877,354 31,153, 911 3,276,557
Certificates of claim relating to
properties on hand________ 400, 585 520, 548 119,963
During the fiscal year 1960 the income of the
fund amounted to $9,768,723, and expenses and
losses amounted to $3,899,583, leaving $5,869,140=
net income before adjustment of valuation allowances.
After the valuation allowances had been
increased by $3,102,942, a net income of $2,766,-
198 resulted for the fiscal year.
Statement 17.—Income and expenses, Housing Insurance-
____ Fund, through June 30, 1959 and June 30, 1960
ANALYSIS OF INSURANCE RESERVE
Feb. 3, 1938,
to
June 30, 1959
July 1, 1959,
to
June 30, 1960
Feb. 3, 1938,
to
June 30, I960'
Income:
Interest and dividends:
Interest on U.S. Government
securities_ __ $1, 617, 747
1, 721, 894
3, 518
$226,034
469, 210
481
$1, 843, 781
2,191,104
3,999
Interest— O ther_..
Dividends on rental housing
stock _
Insurance premiums and fees:
Premiums...
3,343,159 695, 725 4, 038, 884
26, 382, 364
13,104, 619
5, 903,812
3,157,056
32, 286,176
Fees_____ 16,261,675.
Other income:
Profit on sale of investments_
39,486, 983
95, 416
9, 060,868 48, 547, 851
95,416
Miscellaneous income.. 12,130 12,130
Total income..
95,416 12,130 107, 546
42, 925, 558 9,768, 723 52, 694,281
Expenses:
Interest expenses: Interest on
funds advanced by U.S.
Treasury.... 1,386, 666 1, 386, 666
Administrative expenses: Operating
costs (including adjustments
for prior years)_
Other expenses:
Depreciation on furniture
and equipment.
25, 059, 799 3, 658, 738 28, 781, 743:
131, 732
200
18, 596 150, 640*
Miscellaneous expenses 206
Losses and charge-ofls:
Loss (or profit —) on acquired
security.
131, 932 18, 596 150,846
1, 710, 917
-3,880
222,371
-122
1,933, 288=
-4, 036
Loss (or profit —) on equipment_____
Total expenses.. .
1, 707,037 222, 249 1, 929,258:
28, 285,434 3,899, 583 32,248, 507
Net income before adjustment
of valuation allowances 14, 640,124 5, 869,140 20, 445, 774
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans
receivable- _ -263,136
-3,626, 463
-3, 549, 569
+31,282
-3, 028, 424
-105, 800
-231,854
-6, 654, 887
-3, 655, 366
Allowance for loss on real
estate_______
Allowance for loss on mortgage
notes acquired under
terms of insurance_____
Net adjustment of valuation
allowances_ ... -7,439,168 -3,102, 942 -10, 542,116
Net income_____________ 7,200, 956 2,766,198 9, 903, 664-
Distribution of net income:
Insurance reserve:
Balance at beginning of
period____ ___ 12, 600, 956
-63,490
2, 766,198
Adjustments during the
period. .
Net income for the period... 7, 200, 956 9, 903, 664:
Capital contributions from
other FHA insurance funds.
7,200, 956
5,400,000
15, 303, 664 9,903, 664
5,400,006
Balance at end of period.. 12, 600, 956 15, 303, 664 15,303, 6644
178
Investments
Section 207(p) of the National Housing Act
provides that excess moneys not needed for current
operations under the Housing Insurance Fund
shall be deposited with the Treasurer of the United
States to the credit of the Housing Insurance Fund
or invested in bonds or other obligations of, or in
bonds or other obligations guaranteed as to principal
and interest by the United States, or, with the
approval of the Secretary of the Treasury, used
for the purchase of debentures issued under Section
207 and Section 204. In the fiscal year 1960,
$1,715,950 of debentures were redeemed in payment
of mortgage insurance premiums, $661,500
were exchanged for mortgage notes, and $4,731,600
were redeemed by debenture calls. During the
fiscal year 1960, net investments amounting to
$200,000 (principal amount) were made for the
account of this fund, and at June 30, 1960 the
fund held United States Government securities in
the principal amount of $7,268,000, yielding 2.26
percent as follows:
Investments of the Housing Insurance Fund, June
30, 1960
Series
Interest
rate
(percent)
Purchase
price Par value
Book value
(amortized)
1960______________ $197, 591
148, 000
1, 500, 000
3, 620, 000
1,801, 437
$200, 000
148, 000
1, 500, 000
3, 620, 000
1,800,000
$198,225
148, 000
1, 500, 000
3, 620, 000
1, 800, 566
1962____________ 2
2izi
2
Wi
1962-67__________
1963___________
1967-72__________
Average annual
yield
2.26 percent-
___ 7,267,028 7, 268,000 7,266, 791
Properties Acquired Under the Terms
of Insurance
During 1960,13 additional project properties or
assigned mortgage notes (1,754 units) were acquired
by the FHA Commissioner under the
terms of mortgage insurance of Section 207, and
partial sales of 26 units were made on 1 project.
Three Section 213 project properties or assigned
mortgage notes were acquired during the calendar
year, and partial sales of 59 units were madeon
2 projects. Under Section 213 home properties,
111 were acquired under the terms of insurance
and 100 were sold during 1960. Through
December 31, 1960, a cumulative total of 61 rental
housing properties or assigned mortgage notes
(9,054 units) insured under Section 207-210 had
been acquired under the terms of insurance; 8-
project properties or project mortgage notes (581
units) and 402 home properties insured under
Section 213 had been acquired. Twenty-four
projects (3,546 units) and one mortgage note
(1,102 units) insured under Section 207-210, and
under Section 213 one project (85 units), one
mortgage note (144 units) and 260 home properties
had been sold. The acquired security on hand
at December 31, 1960 in the Housing Insurance-.
Fund was as follows:
Housing Insurance Fund, statement of properties and assigned mortgage notes on hand as of Dec. 31, 1960
Sec. 207 Sec. 213
Sec. 213 homes,
142 properties,4
142 units
Total 157 properties,
27 mortgage
notes,
4,900 units
13 projects,
1,591 units i
23 mortgage
notes, 2,815
units
2 projects,
33 units 2
4 mortgage
notes, 319
units 3
Expenses:
Acquisition costs____________________________________
Interest on debentures_______________________________
Taxes and insurance_________________________________
Additions and improvements________________________
Maintenance and operating__________________________
Service charge______________________________________
Miscellaneous_______________________________________
$11,463,801
1,284,292
468, 635
16,750
823,217
33, 709
« $20,214, 377
850,661
25,802
3,068
$957,307
98,368
55,140
23,022
4,181
3 $3,096,043
166,708
3,030
1,009
$1,353.026
74,940
23,270
21,431
365
$37,084,554
2,474,969
547,045
16,750
867,670
28,832
42,332
Total expenses__________________________________ 14,090,404 21,093,908 1,138,018 3,266,790 1,473,032 41,062,152
Income and recoveries:
Rent and other (net)________________________________
Collections on mortgage notes________________________
1, 467,106 1,106,388
363,885
149,400 159,945
208,895
1,958 2,884,797'
572,780
Total income___ ________________________________ 1,467,106 1,470,273 149,400 368.840 1,958 3, 457,577
Proceeds from partial sales of projects:
Estimated net investment (sales price)______________ -145,500— -649,600— -795,100 •
Net acquired security on hand____________ ____ _______ _ 12,477,798 19,623,635 339,018 2,897,950 1,471,074 36,809,475
1 Excludes 26 units in one partially sold project -with estimated net invest- 3 Includes 16 units released in accordance with the provisions of the
ment of $145,500. mortgage.
2 Excludes 59 units in one partially sold project with estimated net invest- 4 Includes 4 properties repossessed and carried at the asset value at time of
ment o f $649,600. repossession.
5 See table below:
Section 207 Section 213 Total
Outstanding balance of notes receivable at date of acquisition______________ $20,214,377
363, 885
$3,096,043
208, 895
$23,310,420
Less: Collection to principal___________________________________ -__ 572,780
Unpaid principal balance_________________________________________ 19,850,492 2,887,148 22,737,640
179
An analysis of properties sold and assigned
notes liquidated is shown in Statement 18.
Statement 18.—Statement of profit and loss on sale of
acquired properties, and assigned mortgage notes liquidated,
Housing Insurance Fund, through Dec. 31,1960
Secs. 207- Sec. 213 Total HI
210 Fund 285
24 projects
and 1
mortgage
note (4,648
units)2
Projects, 1
property, 1
mortgage
note (229
units)3
Homes,
260 properties
(260
units)
properties,
2 mortgage
notes
(5,137
units)
Proceeds of sales:
Sales price 1____________ 2 $18,510, 492 3 $2, 374, 400 $1,960, 567 $22,845, 459
Less commissions_______ 10,078 9, 228 84, 750 104,056
Net proceeds of sales. 18,500,414 2, 355,172 1,875, 817 22. 741,403
Income:
Rental and other income
(net)_________________
Mortgage note income...
2. 434, 653
3, 491,388
18, 390
525,856
7, 667
120, 588
2, 460, 710
4,137, 832
Recovery prior to acquisition
on defaulted
notes________________ 8,037 309 1,349 9, 695
Total income_______ 5, 934,078 544, 555 129, 604 6,608, 237
Total proceeds of sold
properties____________ 24, 434. 492 2, 909, 727 2,005. 421 29, 349, 640
Expenses:
Debentures and cash adjustments____________
Asset value acquired
after default of pur-
19, 308, 549 1,703,327 2,115,028 23,126, 904
chase money mortgages-------------------------
Estimated net invest-
— -26,033 -26,033
ment on partial sales of
projects---------------------
Interest on debentures...
145, 500
4,333, 862
649, 600
377,092 160,048
795,100
4, 871,002
Taxes and insurance____ 663, 301 3,937 31,214 698, 452
Additions and improvements______________
Maintenance and oper-
217,322 82— 217, 404
ating expense_________
Service charge--------------
1.112, 727
12,120
22,384
11, 778
99, 490
8, 991
1,234,601
32, 889
Miscellaneous expense__ 43,140 551 607 44, 298
Total expenses______ 25, 836, 521 2, 768, 751 2, 389, 345 30, 994, 617
Net profit (or loss —) before
distribution of liquidation
profits___________
Less distribution of liqui-
-1,402,029 140,976 -383, 924 -1,644, 977
dation profits:
Certificates of claim____ 146, 795 30,242 5,350 182, 387
Increment on certificates
of claim______________
Refunds to mortgagors...
13, 413
172,289
7,383 174
2,706
20, 970
174, 995
Loss (—) to Housing
Insurance Fund_ -1,734, 526 103, 351 -392,154 -2,023,329
i Analysis of terms of sales.
3 Includes $145,500 for 26 units of 1 partially sold project.
3 Ineludes $649, 600 for 59 units of 1 partially sold project.
Terms of sales
Number
of
properties
Number
of
notes
Cash Mortgage
notes
Sales
Price
Properties sold for all
cash 42
245
$3, 527,197
651, 689
$3, 527,197
19,318, 262
Properties sold for
cash and notes (or
contracts for deed).
Total... .. ..
485 $18,666, 573
287 485 4,178,886 18,666, 573 22,845, 459
In addition to the rental housing projects acquired
under the Housing Insurance Fund, one
Section 207 project insured under the Mutual
Mortgage Insurance Fund had been acquired and
sold, at no loss to that fund.
The turnover of Section 207 and Section 213
acquired securities, by calendar year, is shown
in Statements 19 and 20.
Certificates of Claim and Refunds
to Mortgagors
Certificates of claim issued in connection with
the 24 projects sold and 1 mortgage note liquidated
under Section 207-210 through December
31, 1960 totaled $385,763. The amount paid or to
be paid on these certificates totaled $146,795, and
the amount canceled or to be canceled $238,968.
In addition, excess proceeds on three projects had
been refunded to mortgagors in the amount of
$172,289, in accordance with provisions of the Act
prior to the amendment of August 10,1948.
As a result of insurance under Section 213, two
certificates of claim in the amount of $39,337 had
been issued in connection with one project acquired
and sold and one mortgage note assigned under
terms of insurance and subsequently liquidated,
with $30,242 of this amount to be paid and $9,095
to be canceled. In addition, certificates of claim
in the amount of $101,022 were issued on 260 Section
213 homes sold. The amounts paid or to be
paid on the certificates of claim issued on Section
213 home properties totaled $5,350, and the
amounts canceled or to be canceled totaled $95,672.
In addition, there were excess proceeds on nine
Section 213 home properties amounting to $2,706
for refund to mortgagors.
The certificate of claim issued in connection with
the only rental housing project acquired under the
Mutual Mortgage Insurance Fund amounted to
$31,532. This certificate of claim had been paid
in full, with increment thereon in the amount of
$1,255.
TITLE II: SECTION 220 HOUSING
INSURANCE FUND
The Section 220 Housing Insurance Fund was
created by Section 220 of the National Housing
Act, as amended August 2, 1954 (Housing Act of
1954, Public Law 560, 83d Congress). This section
authorizes insurance by the FHA of mortgages
on homes and rental properties located in an
urban redevelopment area for which a Federal-aid
contract was executed or approved before August
2,1954, or in an urban renewal area which the
Housing and Home Finance Administrator has determined
to be appropriate for an urban renewal
project and located in a city for which the Administrator
has approved a workable program presented
by the local authorities for preventing the
spread of blight and. eliminating and preventing
slum conditions. This is not a mutual insurance
fund in the sense that any portion of the net income
from operations will be shared by mortgagors
in the form of participation payments.
For the purposes of this fund, the Act authorized
the Commissioner to transfer the sum of $1
million from the War Housing Insurance Fund.
180
Statement 19.—Turnover of properties acquired and mortgage notes assigned under Sec. 207 of Title II contracts of
insurance by years and cumulative through Dec. 31,1960
Properties and notes acquired Properties and notes sold, by calendar years Properties
and notes
on hand
Dec. 31,
1960
Year Number 1940-52 1953 1954 1955 1956 1957 1958 1959 1960
1940-52 ____________________________
1953_______________________________
1954_______________________________
1955________________________________
1956_______________________________
1957 _____________________________
18
23
10
2
18
—
2
—
12
1
1
-1
1
1
—
72
1958________________________________
1959________________________________
1960________________________________
8
6
13
— 8
6
13
Total____________________6_2___ 18— 2— 3 2— 1— 36
Note.—The number of properties and notes sold has been reduced by one property repossessed because of default on mortgage notes. The repossessed
property has been resold. On the 26 properties sold the average time between acquisition and sale by the Federal Housing Administration was 32.63 months.
Statement 20.—Turnover of properties acquired and mortgage notes assigned under Sec. 213 of Title II Contracts
of insurance by years and cumulative through Dec. 31,1960
Properties and notes acquired Properties and notes sold, by calendar years
Properties
and notes
on hand
Dec. 31,
1960
Year Number 1952 1953 1954 1955 1956 1957 1958 1959 1960
1952________________________________
1953________________________________
1954________________________________
1955________________________________
1956________________________________
1957________________________________
1958________________________________
1959________________________________
1960________________________________
2
3
14
64
72
53
87
114
Total_________________________ 410
1 Includes 142 of the 402 home properties acquired.
Note.—On the 260 home properties sold, the average time between acquisition and sale by the Federal Housing Administration was 8.31 months; on the
2 projects sold the average time was 25.37 months.
The number of properties sold has been reduced by 10 properties repossessed because of default on mortgage notes. Six of the repossessed properties had been
resold by Dec. 31, 1960.
Capital and Net Income
At June 30, 1960, assets of the fund totaled $3,-
319,151. There were outstanding liabilities of
$767,949 and insurance reserve of $2,551,202, of
which $1,000,000 was transferred from the War
Housing Insurance Fund and $1,551,202 was net
operating income.
Statement 21.—Comparative statement of financial com
dition, Section 220 Housing Insurance Fund, as of June
30,1959 and June 30,1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury_____
Investments:
U.S. Government securities
(amortized)_______________
Other securities (stock in
rental housing corporations)
__________________
Total investments_______
$464,115 $380,931 —$83,184
1,766, 952
5,000
2,815,831
6,900
1,048, 879
1,900
1,771,952 2,822, 731 1,050, 779
Statement 21.—Comparative statement of financial condition,
Section 220 Housing Insurance Fund, as of June
30, 1959 and June 30, 1960—Continued
June 30, 1959 June 30,1960 Increase or
decrease (—)
Assets—Continued
Accounts and notes receivable:
Accounts receivable—Insurance
premiums__________ $7,845
7,688
$44,308
8,411
$36,463
723
Accounts receivable—Interfund_____
____________
Total accounts and notes
receivable __ ____ 15, 533 52, 719 37,186
Accrued assets: Insurance premiums.
_ _______ . 24.804 34,148 9, 344
Acquired security:
Real estate (at cost plus
expenses to date)_______ 33,379
4, 757
33, 379
Less allowance for loss______ 4,757
Net acquired security. .. 28,622 28, 622
Total assets. _________ 2,276,404 3,319,151 1,042,747
LIABILITIES
Accounts payable: Bills payable
to vendors and Government
agencies____________ _____ _______ 820 820
Accrued liabilities: Interest on
debentures._ ___________ 515
=====
===== 515
591772—61------ 13 181
Statement 21.—Comparative statement of financial condition,
Section 220 Housing Insurance Fund, as of June
30, 1959 and June 30, 1960—Continued
J une 30, 1959 June 30, 1960 1 Increase or
decrease (—)
l iab ilities— Continued
Trust and deposit liabilities:
Fee deposits held for future
disposition_______________
Deferred and undistributed
credits:
Unearned insurance premiums____________________
Unearned insurance fees_____
Total deferred and undistributed
credits___
Bonds, debentures and notes
payable: Debentures payable.
Total liabilities_________
RESERVE
Insurance reserve-available for
future losses and expenses__
Total liabilities and reserve_______________
Certificates of claim relating to
properties on hand_____ ..
$2, 925 $10,125 $7,200
469, 900
63,055
668, 582
66,357
198,682
3,302
532,955 734,939 201, 984
— 21, 550 21,550
535,880 767,949 232,069
1, 740, 524 2, 551,202 810,678
2,276, 404 3,319,151 1,042,747
998 998
During the fiscal year 1960, the income to the
fund amounted to $1,503,324 while expenses and
losses amounted to $674,097, leaving $829,227 net
income before adjustment of valuation allowances.
After the valuation allowances had been increased
$4,757, the net income for the year was $824,470.
Statement 22.—Income and expenses, Sec. 220 Housing
Insurance Fund, through June 30, 1959 and June 30,
1960
Aug. 2, 1954
to
June 30, 1959
July 1, 1959
to
June 30, 1960
Aug. 2, 1954
to
June 30, 1960
Income:
Interest and dividends:
Interest on U.S. Government
securities________ $88, 505 $76, 033
44
$164, 538
Interest—Other___________ 44
Insurance premiums and fees:
Premiums______________
88, 505 76, 077 164, 582
1, 015, 488
1, 579, 945
926, 982
500,265
1, 942,470
Fees___________________ . 2,080, 210
Total income_____.____
2, 595,433 1,427, 247 4, 022, 680
2, 683, 938 1, 503, 324 4,187, 262
Expenses:
Administrative expenses:
Operating costs (including
adjustments for prior years).
Other expenses: Depreciation
on furniture and equipment.
Losses and charge-ofis: Loss
(or profit —) on equipment.
Total expenses .._____
1, 935,390 670, 744 2, 619,864
8, 695 3, 376 12,139
-671 -23 -700
1, 943,414 674, 097 2, 631, 303
Net income before adjustment
of valuation allowances___
________ 740, 524 829, 227 1, 555, 959
Increase (—) or decrease (+) in
valuation allowances: Allowance
for loss on real estate ... -4, 757 -4, 757
Net adjustment of valuation
allowances____ -4, 757 -4, 757
Net income___________ 740.524 824,470 1, 551,202
Statement 22.—Income and expenses, Sec. 220 Housing
Insurance Fund, through June 30, 1959 and June 30,
1960—Continued
ANALYSIS OF INSURANCE RESERVE
Aug. 2, 1954
to
June 30, 1959
July 1, 1959
to
June 30, 1960
Aug. 2, 1954
to
June 30, i960
Distribution of net income: Insurance
Reserve:
Balance at beginning of
period.. __ _______ _ $1, 740, 524
-13, 792
824, 470
Adjustments during the period.
_ _ ____ __ ...
Net income (or loss —) for the
period__ ____$7_4 0, 52_4____ $1, 551,202
Capital contributions from
other FHA insurance funds.
Balance at end of period..
740, 524
1, 000, 000
2, 551, 202 1, 551, 202
1, 000, 000
1, 740, 524 2, 551, 202 2, 551, 202
Investments
Section 220(g) of the Act provides that moneys
in the Section 220 Housing Insurance Fund not
needed for current operations shall be deposited
with the Treasurer of the United States to the
credit of the fund, or invested in bonds or other
obligations of, or in bonds or other obligations
guaranteed by the United States; or the Commissioner
may, with the approval of the Secretary of
the Treasury, purchase debentures issued under
this fund, provided that such purchases are made
at a price which will produce an investment yield
not less than the yield obtainable from other
authorized investments. In the fiscal year 1960,
$10,050 of debentures were redeemed in payment
of mortgage insurance premiums. During the
fiscal year 1960 net investments of $1,050,000
(principal amount) were made for the account of
this fund, and at June 30,1960 the following U.S.
Government securities were held by the fund:
Investments of the Sec. 220 Housing Insurance Fund,
June 30, 1960
i Average annual yield 3.25 percent.
Series
Interest
rate
(percent)1
Purchase
price Par value
Book value
(amortized)
1960 ____________ $443,879 $450,000 $446,249
1961______________ 2^ 14j 484 15,000 14, 582
1961______________ 4% 1,130,000 1,130,000 1 130,000
1962______________ 2 450.000 450,000 450,000
1963._ __________ 2 140.000 140,000 140,000
1964______________ 2 550,000 550,000 550,000
1964______________ 3% 85,000 85,000 85,000
— 2,813, 363 2, 820,000 2,815,831
Properties Acquired Under the Terms
of Insurance
During the calendar year 1960, six home properties
insured under Title II, Section 220 were acquired
by the Commissioner under the terms of
insurance and three were sold. These represent
the first acquisition and sale activity under this
Title and Section. Total cost of the six acquisitions
was $65,588. The three sales resulted in a
182
net charge against the fund of $3,177, or an
average of $1,059 per case. Certificates of claim
issued on the three properties sold amounted to
$1,241, all of which is to be canceled.
Statement 23.—Statement of profit and loss on sale of
acquired properties, Sec. 220 Housing Insurance Fund,
through Dec. 31, 1960
Items
Sec. 220 homes,
3 properties, 3
units
Proceeds of sale:
Sales price 1________________________________________
Less commission and other selling expenses___________
$32,600
1,630
Net proceeds of sales______________________________ 30,970
Expenses:
Debentures and cash adjustments___________________
Interest on debentures______________________________
Taxes and insurance________________________________
Maintenance and operating_________________________
32,057
748
292
1,050
income from operations will be shared by mortgagors
in the form of participation payments.
For the purposes of this fund, the Act authorized
the Commissioner to transfer the sum of
$1 million from the War Housing Insurance
Fund.
Capital and Net Income
At June 30, 1960, assets of the fund amounted
to $4,692,606. There were outstanding liabilities
of $3,916,688 and insurance reserve of $775,918,
consisting of net operating loss of $224,082 and $1
million transferred from War Housing Insurance
Fund.
Statement 24.—Comparative statement of financial condition,
Sec. 221 Housing Insurance Fund, as of June 30,
1959 and June 30, 1960
Total expenses___________________________________
Loss (- ) to Sec. 220 Housing Insurance Fund____________
1 Analysis of terms of sales.
Terms of sales
Number
of properties
Number
of notes Cash
Mortgage
notes
Sales
price
Properties sold for
cash and notes--
3 3 $1,250 $31,350 $32, 600
On December 31, 1960, the cost of the three
properties which remained on hand under this
fund is shown in the following table. The average
time between acquisition and sale by the FHA was
6.77 months.
Sec. 220 Housing Insurance Fund, statement of properties
on hand at Dec. 31,1960
Sec. 220
homes, 3
properties,
3 emits
Expenses:
Acquisition cost__________
Interest on debentures____
Taxes and insurance______
Maintenance and operating
Net acquired security on hand.
$29,250
453
82
25
29,810
TITLE II: SECTION 221 HOUSING
INSURANCE FUND
Section 221 Housing Insurance Fund was
created by Section 221 of the National Housing-
Act, as amended August 2, 1954 (Housing Act
of 1954, Public Law 560, 83d Congress), which
authorized the insurance, in communities that
have requested it, of mortgages on low-cost housing
for families displaced because of urban renewal
projects. This is not a mutual insurance
fund in the sense that any portion of the net
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury_____
Investments: U.S. Government
securities (amortized)_____
Loans receivable:
Mortgage notes and contracts
for deed________________
Less allowance for losses_____
Net loans receivable_____
Accounts and notes receivable:
Accounts receivable—Insurance
premiums_________
Accounts receivable—Interfund___________________
Total accounts and notes
receivable___________
Accrued assets:
Insurance premiums________
Interest on U.S. Government
securities_________________
Other______________________
Total accrued assets_____
Acquired security:
Real estate (at cost plus expenses
to date)____________
Less allowance for losses_____
Net real estate__________
Mortgage notes acquired
under terms of insurance_
$224,366 $334, 645 $110,279
1,029,769 920,000 -109, 769
38, 379
576
223, 828
3, 357
185,449
2, 781
37,803 220,471 182,668
22, 582
4.887
9,928
5,464
-12,654
577
27,469 15,392 -12,077
168,271
1, 477
12
343, 751
1,860
24,462
175,480
383
24,450
169, 760 370,073 200,313
158,064
23,199
2,620,759
507,280
2,462,695
484,081
134,865 2,113,479 1,978,614
1,095,235
376,689
1,095,235
Less allowance for losses_____ 376,689
Net mortgage notes acquired
under terms of
insurance_ _______
------- - ---------
718,546 718,546
Net acquired security___
Total assets___ _________
LIABILITIES
Accounts payable: Bills payable
to vendors and Government
agencies__________________
Accrued liabilities: Interest on
debentures_______________
Trust and deposit liabilities:
Fee deposits held for future
disposition______________
Deposits held for mortgagors,
lessees and purchasers-----
Total trust and deposit
liabilities------------------
134,865 2,832,025 2,697,160
1,624,032 4,692,606 3,068,574
1,280 8,092 6,812
2,786 52,115 49,329
223,765
748
223,125
6,115
-640
5,367
224,513 229, 240 4,727
183
Statement 24.—Comparefive statement of financial condition,
Sec. 221, Housing Insurance Fund, as of June 30,
1959 and June 30, 1960—Continued
June 30, 1959 June 30, 1960 Increase or
decrease —
liabilities—continued
Deferred and undistributed
credits:
Unearned insurance premiums
____________________
Unearned insurance fees_____
Other______________________
Total deferred credits___
Bonds, debentures and notes
payable: Debentures payable.
Other liabilities: Reserve for
foreclosure cost—Mortgage
notes acquired under terms
of insurance________________
$101,947
13, 593
423
$97,620
14,482
26,526
$-4,327
889
26,103
115, 963 138,628 22,665
155,300 3,477,850 3,322,550
10, 763 10, 763
Total liabilities_________
RESERVE
Insurance reserve-available for
future losses and expenses__
Total liabilities and reserve_______________
Certificates of claim relating to
properties on hand________
499, 842 3, 916,688 3,416,846
1,124,190 775, 918 -348, 272
1,624,032 4, 692,606 3,068, 574
6, 257 69,674 63, 417
During the fiscal year, the income to the fund
amounted to $1,174,065 while expenses and losses
amounted to $633,538, leaving an operating income
of $540,527 for the period before adjustment of
valuation allowances. Valuation allowances were
increased in the amount of $863,551, resulting in
net loss of $323,024 for the year. From inception
August 2, 1954 to June 30, 1960, operations resulted
in a net loss of $224,082 as shown on Statement
25.
Statement 25.—Income and expenses, Sec. 221 Housing
Insurance Fund, through June 30, 1959 and June 30,
1960
Aug. 2, 1954
to
June 30, 1959
July 1, 1959
to
June 30, 1960
Aug. 2, 1954
to
June 30, 1960
Income:
Interest and dividends:
Interest on U.S. Government
securities. _____ $80,935
-26
$25,623
1,430
$106, 558
Interest—Other___________ 1,404
Insurance premiums and fees:
Premiums________________
80, 909 27,053 107,962
375,891
764,242
732,897
410,047
1,108,788
Fees___ ________ _________ 1,174, 289
Other income: Miscellaneous
income______________ _
1,140,133 1,142, 944 2, 283,077
444 4,068 4, 512
Total income ________ 1, 221,486 1,174,065 2, 395, 551
Expenses:
Administrative expenses—
Operating costs (including
adjustments for prior years).
Other expenses: Depreciation
on furniture and equipment.
1,063, 304 593,324 1,681,763
4,872 2,989 7,985
Statement 25.—Income and expenses, Sec. 221 Housing
Insurance Fund, through June 30, 1959 and June 30,
1960—Continued
ANALYSIS OF INSURANCE RESERVE
Aug. 2, 1954
to
June 30, 1959
July 1, 1959
to
June 30, 1960
Aug. 2, 1954
to
June 30, 1960
Losses and charge-ofis:
Loss on acquired security...
Loss (or profit —) on equipment_____________
$5, 753
-408
$37,245
-20
$42,998
-439
5,345 37, 225 42, 559
Total expenses__________ 1,073, 521 633, 538 1, 732,307
Net income (or loss —)
before adjustment of
valuation allowances_ 147,965 540, 527 663, 244
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans
receivable______________
Allowance for loss on real
estate__________________
-576
-23,199
-2, 781
-860,770
-3,357
-883,969
Net adjustment of valuation
allowances______-23,775 -863, 551 -887,326
Net income (or loss —)__ 124,190 -323,024 -224,082
Distribution of net income:
Insurance reserve:
Balance at beginning of period____
_____ ____ 1,124,190
-25, 248
-323,024
Adjustments during the period_
_ ______________
Net income (or loss —) for
the period____________
Capital contributions from
other FHA insurance funds.
Balance at end of period..
124,190 -224,082
124,190
1,000,000
775, 918 -224,082
1,000,000
1,124,190 775, 918 775, 918
Investments
Section 221 (h) of the Act provides that moneys
in the Section 221 Housing Insurance Fund not
needed for current operations shall be deposited
with the Treasurer of the United States to the
credit of the fund, or invested in bonds or other
obligations of, or in bonds or other obligations
guaranteed by the United States; or the Commissioner
may, with the approval of the Secretary of
the Treasury, purchase debentures issued under
this fund, provided that such purchases are made
at a price which will produce an investment yield
not less than the yield obtainable from other
authorized investments. In the fiscal year 1960,
$335,150 of debentures were redeemed in payment
of mortgage insurance premiums and $18,900 by
debenture calls. During the fiscal year 1960 net
redemptions of $110,000 (principal amount) were
made for the account of this fund, and at June
30, 1960 the fund held U.S. Government securities
as follows:
184
Investments of the Sec. 221 Housing Insurance Fund,
June 30, 1960
1 Average annual yield 2.40 percent.
Series
Interest
rate
(percent)1
Purchase
price Par value
Book value
(amortized)
1961______________ 4% $70,000 $70,000 $70,000
1962______________ 2 50,000 53, 000 50,000
1962______________ 4 100,000 100,000 100,000
1963____ 2 50,000 50, 000 50, 000
1964______________ 2 650.000 650,000 650,000
— 920, 000 920,000 920.000
Properties Acquired Under the Terms
of Insurance
During the calendar year 1960, 398 home properties
insured under Title II, Section 221 were
acquired by the Commissioner under the terms of
insurance and 66 were sold. Through December
31, 1960, a total of 443 home properties had been
acquired at a total cost of $3,954,699 and 81 had
been sold at prices which left a net charge against
the fund of $97,147, or an average of $1,199 per
case. The certificates of claim issued on the 81
properties sold amounted to $24,873, $43 of which
is to be paid, $2,855 has been canceled and $21,975
is to be canceled.
Statement 26.-—Statement of profit and loss on sale of
acquired properties, Sec. 221 Housing Insurance Fund,
through Dec. 31,1960
1 Analysis of terms of sales.
Items
Sec. 221 homes,
81 properties,
81 units
Proceeds of sale:
Sales price 1_________ _____ ________ ______ $653,405
Less commissions and other selling expenses__________ 25,110
Net proceeds of sales______________________________ 628, 295
Income: Rental and other income (net)__________________ 1,505
Total proceeds of sold properties___________________ 629,800
Expenses:
Debentures and cash adjustments___________________ 685, 678
Interest on debentures______________________________ 12, 341
Taxes and insurance______________________________ _ 9, 000
Maintenance and operating_________________________ 19,885
Total expenses___________________________________ 726, 904
Net profit (or loss —) before distribution of liquidation
profits ___ __ _ _ _ _ __ _______ __ -97,104
Distribution of liquidation profits: Certificates of claims___ 43
Loss (—1 to Sec. 221 Housing Insurance Fund______ -97, 147
Terms of sales
Number
of properties
Number
of
notes
Cash
Mortgage
notes
Sales
price
Properties sold for
cash_____________
Properties sold for
cash and notes (or
contracts for deed) _ .
Total__________
3
78 78
$17,355
20,800 $615,250
$17, 355
636, 050
81 78 38,155 615,250 653,405
During the calendar year 1960, 5 projects (930
units) were acquired under the terms of insurance.
These are the first project acquisitions under this
program and none had been sold at December 31,
1960.
On December 31, 1960, the cost of the 362 home
properties and the 5 projects which remained on
hand under this fund was as follows:
Sec. 221 Housing Insurance Fund, statement of properties
on hand at Dec. 31, 1960
Sec. 221
Sec. 221
homes, 362
properties,
362 units
Total 366
properties,
1 mortgage
note, 1,292
units
4 projects,
814 units
1 mortgage
note, 116
units
Expenses:
Acquisition costs_____
Interest on debentures.
Taxes and insurance.
Additions and improvements_______
Maintenance and operating___________
Service charge________
Miscellaneous________
$6, 608, 229
133,366
17,306
52, 810
46,185
284
i $1,076, 253
36,133
1,009
$3,088,795
66,651
22, 227
26,476
$10, 773, 277
236,150
39, 533
52,810
72,661
1,009
284
Total expenses____ 6,858,180 1,113, 395 3, 204,149 11,175,724
Income and recoveries:
Rent and other income
(net)___________
Collections on mortgage
note_________
125, 613— 2 125,615
Total income_____ 125, 613— 2 125,615
Net acquired security on
hand______________ 6, 732, 567 1,113, 395 3, 204,147 11,050,109
1 Outstanding balance of notes receivable at date of acquisition.. $1,076,253
Less: Collection to principal__________________________ __________
Unpaid balance___ ____ ______________________________ 1,076, 253
Statement 27 shows the turnover of Section 221
Housing Insurance Fund acquired security since
the first such acquisition in 1958.
Statement 27.—Turnover of properties acquired and
mortgage notes assigned under Sec. 221 of Title II contracts
of insurance by years and cumulative through
Dec. 31, 1960
Properties acquired Properties sold, by calendar
year
Properties
on hand
Dec. 31,
1960
Year Number 1958 1959 1960
1958_______________ 2
43
403
1 1
1959_______________ 13
1960_______________
12
54
18
349
Total________ 448 1 14 66 1 367
1 Includes 362 of the 443 home properties acquired.
Note.—On the 81 home properties sold, the average time between acquisition
and sale by the Federal Housing Administration was 5.14 months.
TITLE II: SERVICEMEN’S MORTGAGE
INSURANCE FUND
The Servicemen’s Mortgage Insurance Fund
was created by Section 222 of the National Hous185
ing Act, as amended August 2, 1954 (Housing
Act of 1954, Public Law 560, 83d Congress). The
purpose of this section is to aid in the provision
of housing accommodations for servicemen in the
Armed Forces of the United States and in the
Coast Guard of the United States, and their families.
Section 222 provides for the insurance of
mortgages which would be eligible for insurance
under Section 203, except that when executed by
a mortgagor who is a serviceman and who, at the
time of insurance, is the owner-occupant of the
property the maximum ratio of loan to value may,
in the discretion of the Commissioner, exceed the
maximum ratio of loan to value prescribed in Section
203 but not to exceed $20,000. This is not a
mutual insurance fund in the sense that any portion
of the net income from operations will be
shared by mortgagors in the form of participation
payments.
For the purposes of this fund, the Act authorized
the Commissioner to transfer the sum of $1
million from the War Housing Insurance Fund.
Capital and Net Income
As of June 30, 1960, the fund had assets of
$12,822,295 and outstanding liabilities of $2,701,-
651, leaving $10,120,644 insurance reserve. Included
in the insurance reserve is the sum of $1
million from the War Housing Insurance Fund.
Housing Insurance Fund.
Statement 28.—Comparative statement of financial condition,
Servicemen’s Mortgage Insurance Fund, as of June
30, 1959 and June 30, 1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury_____
Investments: U.S. Government
securities (amortized)______
Loans receivable:
Mortgage notes and contracts
for deed________________
Less allowance for losses_____
Net loans receivable_____
Accounts and notes receivable:
Accounts receivable—Insurance
premiums_________
Accounts receivable—Other
$1, 203, 388 $1, 394, 333 $190,945
5, 053,023 7,978,687 2, 925, 664
179,196
2,688
448,457
6, 727
269, 261
4,039
176, 508 441, 730 265, 222
62, 503 107, 693 45,190
Accounts receivable—Interfund____________________
Total accounts and notes
receivable___________
Accrued assets:
Insurance premiums________
Interest on U.S. Government
securities_______________
Other______________________
Total accrued assets_____
Acquired security: Real estate
(at cost plus expenses to
date)_________________
Less: Allowance for losses___
Net acquired security___
Total assets_____________
6,841 7,376 535
69,344 115,069 45, 725
1,041,495
36, 515
469
1, 669,142
57, 646
1,937
627, 647
21,131
1,468
1,078,479 1, 728, 725 650, 246
195, 683
27,807
1, 869, 261
705, 510
1,673, 578
677, 703
167, 876 1,163, 751 995,875
7, 748, 618 12, 822, 295 5,073,677
Statement 28.—Comparative statement of financial condition,
Servicemen’s Mortgage Insurance Fund, as of June
30, 1959 and June 30, 1960—-Continued
June 30, 1959 June 30, 1960 Increase or
decrease (—)
LIABILITIES
Accounts payable: Bills payable
to vendors and Government
agencies_______ _ - $3,494 $7,690 $4,196
Accrued liabilities: Interest on
debentures_ ____ -____ 4,645 35, 595 30, 950
Trust and deposit liabilities:
Fee deposits held for future
disposition _______ 41,040 42,989
413
10,939
1,949
413
7,833
Excess proceeds of sale _ __
Deposits held for mortgagors,
lessees and purchasers_ 3,106
Total trust and deposit
liabilities__ ______ 44,146 54,341 10,195
Deferred and undistributed
credits:
Unearned insurance premiunis
____ ___ _ 744,174
469
710,137
1,938
-34,037
Other _ _______ ___ 1,469
Total deferred and undistributed
credits______ 744,643 712,075 -32, 568
Bonds, debentures, and notes
payable: Debentures payable.
Total liabilities_________
210,350 1, 891,950 1,681,600
1,007, 278 2, 701, 651 1,694, 373
RESERVE
Insurance reserve-available for
future losses and expenses--
Total liabilities and reserve
____ __
6, 741, 340 10,120,644 3, 379, 304
7,748, 618 12,822, 295 5,073, 677
Certificates of claim relating to
properties on hand _ __ 6, 822 66, 563 59,741
For the fiscal year 1960, income of $4,637,090
was earned, while expenses and losses were
$582,819, leaving net income of $4,054,271 before
adjustment of valuation allowances. Valuation
allowances were increased in the amount of
$681,742, resulting in a net income of $3,372,529 for
the year. Total net income from inception,
August 2, 1954, to June 30, 1960 was $9,120,644 as
shown in Statement 29.
Statement 29.—Income and expenses, Servicemen’s Mortgage
Insurance Fund, through June 30, 1959 and June
30, 1960
Aug. 2, 1954
to
June 30, 1959
July 1, 1959
to
June 30, 1960
Aug. 2, 1954
to
June 30, 1960
Income:
Interest and dividends:
Interest on U.S. Government
securities___________
Insurance premiums and fees:
Premiums________________
Fees_____________________
Other income:
Profit on sale of investments
_ ___________
$293, 900 $274, 810 $568, 710
6, 762,288
498,167
4, 320, 998
29, 563
11, 083,286
527, 730
7, 260, 455 4, 350, 561 11, 611, 016
19
4, 961
19
Miscellaneous income_____ 16, 680
Total income___________
11,719
4,980 11,719 16, 699
7, 559,335 4, 637, 090 12,196, 425
186
Statement 29.—Income and expenses, Servicemen's Mortgage
Insurance Fund, through June 30, 1959 and June
30, 1960—Continued
ANALYSIS OF INSURANCE RESERVE
Expenses:
Interest expense: Interest on
debenture obligations____
Administrative expenses:
Operating costs (including
adjustments for prior years).
Other expenses: Depreciation
on furniture and equipment____________________
Losses and charge-offs:
Loss on acquired security...
Loss (or profit —) on equipment__________________
Total expenses___________
Net income before adjustment
of valuation allowance_____
Increase (—) or decrease (+) in
valuation allowances-
Allowance for loss on loans receivable_________________
Allowance for loss on real
estate____________________
Net adjustment of valuation
allowances______
Net income______________
$276
1, 752,103
$820
544,155
$1, 096
2,289, 513
1, 752, 379 544, 975 2, 290, 609
7,835 2, 739 10, 541
27, 862
— 576
35,122
-17
62, 984
-590
27,286 35,105 62. 394
1, 787, 500 582, 819 2, 363, 544
5, 771, 835 4, 054, 271 9, 832, 881
-2, 688
-27, 807
-4, 039
-677, 703
-6, 727
-705, 510
-30, 495
5, 741, 340
-681,742
3, 372, 529
-712, 237
9,120, 644
Distribution of net income: Insurance
reserve:
Balance at beginning of period..
.._ . 6, 741, 340
+6, 775
3,372, 529
Adjustments during the period__
Net income for the period____ 9,120, 644
Capital contributions from
other FIIA insurance funds.
Balance at end of period..
5, 741, 340
5, 741, 340
1, 000, 000
10,120,644 9,120, 644
1, 000,000
6, 741, 340 10,120, 644 10,120, 644
Investments
Section 222(f) of the Act provides that moneys
in the Servicemen’s Mortgage Insurance Fund not
needed for current operations shall be deposited
with the Treasurer of the United States to the
credit of the fund, or invested in bonds or other
obligations of, or in bonds or other obligations
guaranteed by the United States; or the Commissioner
may, with the approval of the Secretary of
the Treasury, purchase debentures issued under
this fund, provided that such purchases are made
at a price which will produce an investment yield
not less than the yield obtainable from other
authorized investments. In the fiscal year 1960,
$120,950 of debentures were redeemed in payment
of mortgage insurance premiums and $116,400 by
debenture calls. During the fiscal year the fund
increased its investment in U.S. Government securities
by $3,003,000 (principal amount), and as of
June 30,1960 held the following U.S. Government
securities:
Investments of the Servicemen’s Mortgage Insurance
Fund, June 30, 1960
1 Average annual yield 3.60 percent.
Series
Interest
rate
(percent)1
Purchase
price Par value
Book value
(amortized)
1960_______________ $355, 664 $360, 000 $356, 805
1961_______________ 2 550, 000 550, 000 550,000
1961_______________ 2^ 110,802 116, 000 112,149
1961_______________ 3^ 99, 875 100,000 99, 955
1962_______________ 2 925, 000 925, 000 925,000
1962_______________ 4 1, 575, 000 1, 575, 000 1, 575, 000
1963_______________ 2«4 250, 762 270, 000 255,316
1963_______________ 4% 240,000 240; 000 240, 000
1964_______________ 3 524, 062 540, 000 524, 745
1964____ . 344 664,000 664, 000 664, 000
1964_______________ 4-M 531, 000 528, 000 530, 554
1964-1969__________ 2^ 85, 813 100, 000 87,166
1965_______________ 2?s 2, 025, 075 2,195, 000 2,057,997
— 7, 937, 053 8,163,000 7. 978. 687
Properties Acquired Under the Terms
of Insurance
During calendar year 1960, 294 properties were
acquired by the Servicemen’s Mortgage Insurance
Fund and 72 were sold. Through December 31,
1960, a total of 362 properties had been acquired of
which 101 were sold, leaving 261 properties on
hand.
1 Analysis of terms of sales.
Statement 30.—Statement of profit and loss on sale of
acquired properties, Servicemen’s Mortgage Insurance
Fund, through Dec. 31, 1960
Item
Sec. 222
(101
properties)
Proceeds of sales:
Sales price1 . ._ __ _ $1,161,121
Less commission and other selling expenses___________ 59,177
Net proceeds of sales________________________________ 1,101, 944
Income:
Rental and other income (net). _____________________ 4, 236
Mortgage note income________________________________ 2,828
Total income______________________________ .. ___ 7,064
Total proceeds of sold properties____________________ 1,109,008
Expenses:
Debentures and cash adjustments____ ______________ 1,156,611
Interest on debentures____ _______________________ 30, 820
Taxes and insurance________________ _______ _________ 18,857
Additions and improvements_________________________ 120
Maintenance and operating___________________________ 43, 722
Service charge________________ . _____ _____________ 180
Total expenses _____________________________________ 1, 250,310
Net profit (or loss —) before distribution of liquidation
profits _ _ __ . _ __ -141,302
Distribution of liquidation profits:
Certificates of claim ... ..... 1,009
Increment on certificates of claim_____________________ 4
Refund to mortgagors_________________________________ 939
Loss (—) to Servicemen’s Mortgage Insurance Fund. -143, 254
Terms of sales
Number
of properties
N umber
of notes Cash
Mortgage
notes
Sales
price
Properties sold for
all cash_________
Properties sold for
cash and notes (or
contracts for deed).
Total_________
8
93 93
$79, 250
55, 621 $1,026, 250
$79,250
1,081,871
101 93 134,871 1,026, 250 1,161,121
187
On December 31, 1960, the cost of the 261 properties
which remained on hand under the Servicemen’s
Mortgage Insurance Fund was as follows:
Servicemen’s Mortgage Insurance Fund, statement of
properties on hand at Dec. 31, 1960
Sec. 222 (261
properties)
Expenses:
Acquisition costs______________________________________
Interest on debentures________________________________
Taxes and insurance__________________________________
Maintenance and operating___________________________
Additions and improvements_________________________
Total expenses______________________________________
Income: Rent and other (net).
Net acquired security on hand.
$2,829,366
82,485
29,084
23,526
25
2,964,486
2,963,644
Statement 31 shows the turnover of Section 222
acquired properties since the acquisition of the
first such property in 1957.
Statement 31.—Turnover of properties acquired under
Sec. 222 of Title II, contracts of insurance by years and
cumulative through Dec. 31, 1960
Note.—On the 101 properties sold, the average time between acquisition
and sale by the Federal Housing Administration was 5.67 months.
Section 222 of the Act contains provisions identical
to Section 204 (f) under the Mutual Mortgage
Insurance Fund with respect to the issuance of
certificates of claim on properties acquired. Certificates
of claim issued in connection with the 101
Section 222 properties which had been acquired
and sold through 1960 totaled $44,510, of which
$1,009 is to be paid and $43,501 has been or is to be
canceled. One mortgagor will also receive a refund
of $939 as a result of excess proceeds of sale.
TITLE VI: WAR HOUSING
INSURANCE FUND
The insurance risks on privately financed emergency
housing loans insured under Title VI are
liabilities of the War Housing Insurance Fund,
established by an amendment of March 28, 1941
to the National Housing Act. Section 603 of Title
VI authorized the insurance of home mortgages
(one- to four-family); Section 608, the insurance
of mortgages on rental and group housing; Section
609, the insurance of loans to finance the manufacture
of housing; Section 610, the insurance under
Sections 603 and 608 of any mortgage executed in
connection with sales by the Government of specified
types of permanent housing; and Section 611,
the insurance of mortgages, including construction
advances, on projects of 25 or more single-family
dwellings.
The War Housing Insurance Fund was originally
allocated the sum of $5 million by the Federal
Government. It has been credited with all income
received in connection with insurance granted
under Title VI, and has been charged with all expenses
and losses relating to such insurance.
This is not a mutual fund in the sense that any
portion of the net income from operations will be
shared by mortgagors in the form of participation
payments.
Capital
Assets of the War Housing Insurance Fund as
of June 30, 1960 totaled $241,127,605, against
which there were outstanding liabilities of $60,-
027,425. The fund had an insurance reserve of
$181,100,180, consisting entirely of earnings.
In accordance with Public Law 94, 83cl Congress,
approved June 30, 1953, the amount of
capital contributed by the U.S. Government to
establish this fund in the amount of $5 million
was established as a liability as of June 30, 1953.
This principal amount, together with interest
thereon in the amount of $1,390,010, has been repaid,
the final payment being made on September
30, 1953.
Statement 32.—Comparative statement of financial condition,
War Housing Insurance Fund, as of June 30, 1959
and June 30, 1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury______ $6,953,593 $10, 847, 540 $3, 893,947
Investments:
U.S. Government securities
(amortized)________________ 29,316,416 34,149, 943 4,833,527
Other securities (stock in
rental housing corporations)____________________
364, 960 356,360 -8, 600
Total investments_______ 29,681,376 34, 506,303 4, 824, 927
Loans receivable:
Mortgage notes and contracts
for deed--------8--2-,- -9-3--4-,- -5-0--9---- 91,806,058 8, 871, 549
Less allowance for losses_____ 3,358,301 3, 709, 328 351,027
Net loans receivable___ 79, 576,208 88,096, 730 8, 520, 522
Accounts and notes receivable:
Accounts receivable—Insurance
premiums__________ 345. 960 286, 525 -59,435
Accounts receivable—Other. 101,163 157, 582 56, 419
Accounts receivable—Interfund_____________________
23, 502 25, 626 2,124
Total accounts and notes
receivable____________ 470, 625 469, 733 -892
Accrued assets:
Interest on U.S. Government
securities________________ 46,484 46, 484
Other________________________ 743, 976 998, 765 254, 789
Total accrued assets_____ 790, 460 1,045, 249 254, 789
188
Statement 32.—Comparative statement of financial condition,
War Housing Insurance Fund, as of June 30, 1959
and June 30,1960—Continued
June 30, 1959 June 30, 1960 Increases or
decrease (—)
Assets—Continued
Acquired security:
Real estate (at cost plus expenses
to date).. ______ $55,101,358
22, 657, 433
$56, 981, 491 $1,880,133
Less allowance for losses____ 22, 626,342 -31,091
Net real estate___________ 32, 443, 925 34, 355,149 1,911,224
Mortgage notes acquired
under terms of insurance_
Less allowance for losses.- ..
98,152,589
35, 810,695
106, 973,381
38, 980, 452
8, 820, 792
3,169, 757
Net mortgage notes acquired
under terms of
insurance_______ _____ 62, 341, 894 67, 992, 929 5, 651,035
Net acquired security____ 94, 785, 819 102, 348,078 7, 562, 259
Other assets—held for account
of mortgagors__________ ____ 3.012, 225 3, 813,972 801.747
Total assets______________ 215, 270,306 241,127, 605 25, 857,299
LIABILITIES
Accounts payable: Bills payable
to vendors and Government
agencies __ ____ ____ 78, 720 102, 784 24,064
Accrued liabilities: Interest on
debentures______________ __ 447,932 630,888 182, 956
Trust and deposit liabilities:
Excess proceeds of sale-- _ _ 707, 716
6, 618, 537
797, 756
8, 289, 587
90,040
1,671,050
Deposits held for mortgagors,
lessees, and purchasers___
Total trust and deposit
liabilities______7,3_2_6_, 253 9,087, 343 1,761,090
Deferred and undistributed
credits:
Unearned insurance premiums__________________
_ 8,430,968
746, 754
7, 758, 455
1,002,898
-672,513
Other__________ -______ 256,144
Total deferred and undistributed
credits_ ____ 9,177, 722 8, 761, 353 -416,369
Bonds, debentures and notes
payable: Debentures payable. 31, 698, 750 40, 266,000 8, 567, 250
Other liabilities: Reserve for
foreclosure costs—Mortgage
notes acquired under terms of
insurance________________ _ 1,074,404 1,179,057 104, 653
Total liabilities__________ 49,803, 781 60,027, 425 10,223,644
RESERVE
Insurance reserve—available for
future losses and expenses_ 165,466, 525 181,100,180 15,633, 655
Total liabilities and reserve__________________
215, 270,306 241,127, 605 25,857,299
Certificates of claim relating to
properties on hand______ _ 3,358, 631 3,645,096 286, 465
Income and Expenses
During the fiscal year 1960 the fund earned
$23,912,580 and had expenses and losses of $4,-
821,352, leaving $19,091,228 net income before
adjustment of valuation allowances. After the
valuation allowances had been increased by $3,-
489,693, the net income for the year amounted to
$15,601,535, which was credited to the insurance
reserve fund.
Cumulative income of the War Housing Insurance
Fund from its establishment March 28, 1941
to June 30, 1960 amounted to $400,020,008, and
cumulative expenses were $135,293,706, leaving
$264,726,302 net income before adjustment of valuation
allowances. Valuation allowances of $65,-
316,122 were established, leaving cumulative net
income of $199,410,180.
Statement 33.—Income and expenses, War Housing Insurance
Fund through June 30,1959 and June 30,1960
ANALYSIS OF INSURANCE RESERVE
Mar. 28,1941
to June 30,
1959
July 1, 1959
to June 30,
1960
Mar. 28,1941
to June 30,
1960
Income:
Interest and dividends:
Interest on U.S. Government
securities________
Interest—Other____________
Dividends on rental housing
stock_______________
Insurance premiums and fees:
Premiums_________________
Fees________ ______________
$13,754,271
28,412,366
19, 546
$1,132,102
5, 539, 083
2,269
$14,886,373
33,951,449
21, 815
42,186,183 6, 673.454 48,859, 637
288,627,336
45,156,036
16, 949,636 305, 576,972
45,156, 036
Other income:
Profit (or loss —) on sale of
investments____ ______
333, 783,372 16, 949, 636 350,733, 008
-529,903
667,776
-529,903
Miscellaneous income______ 957, 266
Total income____________
289, 490
137, 873 289,490 427,363
376,107,428 23, 912, 580 400,020, 008
Expenses:
Interest expenses:
Interest on funds advanced
by U.S. Treasury________
Administrative expenses:
Operating costs (including
adjustments for prior
years)---------------------------
Other expenses:
Depreciation on furniture
and equipment________
Miscellaneous expenses____
Losses and charge-offs:
Loss on acquired security.—
Loss (or profit —) on equipment__________________
Total expenses___________
1,390,010 1,390,010
78,844, 551 1,468,273 80,280,848
409, 993
11, 300
9,242 419,077
11,300
421,293 9,242 430, 377
49, 870,019
-21,399
3, 343,898
-61
53,213,917
-21,446
49,848,620 3,343, 837 53,192,471
130, 504, 474 4,821,352 135,293, 706
Net income before adjustment
of valuation allowances____
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans receivable_________________
Allowance for loss on real
estate-------------------------------
Allowance for loss on mortgage
notes acquired under
terms of insurance_______
Net adjustment of valuation
allowances______
Net income______________
245, 692,954 19,091.228 264,726,302
-3,358, 301
-22, 657,433
-35,810,695
-351,027
+31,091
-3,169, 757
-3, 709,328
-22, 626,342
-38,980,452
-61, 826,429 -3,489,693 -65, 316,122
183,776, 525 15,601, 535 199,410,180
Distribution of net income:
Insurance reserve:
Balance at the beginning of
period 165, 466, 525
+32,120
15, 601, 535
Adjustments during the
period
Net income for the period-. 183,776, 525 199, 410,180
Capital contributions to other
FHA insurance funds____
183, 776, 525
-18, 310,000
181,100,180 199, 410,180
-18,310,000
Balance at end of period-. 165,466, 525 181,100,180 181,100,180
591772—61--------14 189
Investments
Section 605(a) of Title VI contains a provision
similar to that under Title II with respect to
investment of moneys not needed for current
operations by the purchase of U.S. Government
securities or the retirement of debentures.
During the fiscal year 1960, $178,400 of debentures
were exchanged for mortgage notes, $7,439,-
350 of debentures were redeemed in payment of
mortgage insurance premiums, and $17,238,550
were redeemed by debenture calls.
During the fiscal year 1960, net investments of
$4,895,000, face amount, increased the U.S. Government
securities held by the fund as of June 30,
1960 to $34,117,500, principal amount, as follows:
1 Average annual yield 2.54 percent.
Investments of the War Housing Insurance Fund,
June SO, 1960
Series
Interest
rate
(percent)1
Purchase
price Par value Book value
(amortized)
1959-62____________
1960_______________
2M $12,863
7,417, 159
5, 972, 000
9,992
4, 000, 000
16, 868, 736
$13, 500
7, 520,000
5, 972, 000
11, 000
4, 000, 000
16, 601, 000
$13, 253
7, 452,055
5,972,000
10, 205
4, 000,000
16, 702, 429
1963_______________
1964-69____________
1966-71____________
1967-72____________
2
2^
214
2^
34, 280, 750 34,117, 500 34,149,942
Properties Acquired Under the Terms
of Insurance
The Federal Housing Administration acquired
title in 1960 under the terms of insurance to 64
properties (90 units) insured under Section 603
and sold 114 (132 units). Through December 31,
1960, a total of 11,733 Section 603 properties (16,-
040 units) had been acquired at a cost of $79,444,-
636, and 11,399 properties (15,495 units) had been
sold at prices which left a net charge against the
fund of $11,725,477, or an average of $1,029 per
case. There remained.on hand for future disposition
334 properties having 545 living units.
During 1960, 83 additional rental housing properties
or assigned mortgage notes (6,044 units)
insured under Section 608 were acquired by the
FHA Commissioner under the terms of insurance
and 17 (2,366 units) were sold or liquidated.
Through December 31, 1960, a total of 483 projects
(31,350 units) and 235 mortgage notes (18,-
284 units) had been acquired by the Commissioner.
Three hundred and forty-three project
properties (21,201 units) had been sold, and 6
mortgage notes (162 units) had been liquidated,
leaving 140 project properties (10,149 units) and
229 mortgage notes (18,122 units) still held by
the FHA.
There was no additional activity under Sections
609 or 611. The 2 Section 609 manufacturers’
notes and 65 discounted purchasers’ notes previously
assigned were settled with a resultant loss
to the fund of $788,002. The 1 Section 611
home property acquired in 1959 was sold in 1959
at a price which left no charge against the fund.
The average time held by FHA was 3.93 months.
Statement 34.—Statement of profit and loss on sale of acquired properties and assigned notes liquidated, War Housing
Insurance Fund, through Dec. SI, 1960
Section 603,
11,399 properties,
15,495
units
Section 608,
349 projects
and notes,
21,363 units 2
Section 609, 67
notes, 370 units
Section 611,1
property, 1 unit
TotalWHI Fund
11,816 properties
and notes,
37,229 units
Proceeds of sales:
Sales price 1_________________________________________________
Less commissions and other selling expenses________________
$64, 483, 602
2, 593, 444
2 $98, 699, 612
374, 658
$324,988 $8, 250
495
$163, 516, 452
2,968, 597
Net proceeds of sales______________________________________ 61, 890,158 98, 324, 954 324, 988 7,755 160, 547, 855
Income:
Rental and other income (net)______________________________
Mortgage note income______________________________________
Recovery prior to acquisition of defaulted notes_____________
Miscellaneous_______________________________________________
6, 704, 709
10, 799, 982
1,367, 256
36, 929, 252
12, 655, 308
384, 924
1,432
28, 260 366
43, 633, 961
23, 483, 916
1, 752,180
1,432
Total income____ ,________________________________________ 18, 871, 947 49,970, 916 28, 260 366 68, 871, 489
Total proceeds of sold properties________________________________ 80, 762,105 148, 295, 870 353, 248 8,121 229, 419, 344
Expenses:
Debentures and cash adjustments__________________________
Asset value acquired after default of purchase money mortgages—
Other assets acquired_______________________________________
Purchase of land held under lease___________________________
Estimated net investment on partial sale of projects_______
Interest on debentures______________________________________
Taxes and insurance________________________________________
Additions and improvements_______________________________
Maintenance and operating_________________________________
Service charge______________________________________________
Miscellaneous_______________________________________________
67, 976, 751
-88, 739
79, 016
10, 924, 682
2, 489, 575
663,178
6,969, 733
192, 620
12, 006
139,135, 610
-1,892,606
—4, 339
258, 894
1,198, 300
25,236, 455
7,040, 241
1,306, 564
16,185, 677
198, 181
556,118
1,119,121
-311
22, 396
44
5, 908
281
145
747
36
208.237, 390
-1,981, 345
—4, 650
337, 910
1,198, 300
36,183, 814
9, 529,961
1, 969, 742
23,156, 157
390, 837
568,168
Total expenses____________________________________________ 89, 218, 822 189, 219, 095 1,141, 250 7, 117 279, 586, 284
See footnotes at end of table.
190
Statement 34.—Statement of profit and loss on sale of acquired properties and assigned notes liquidated, War Housing
Insurance Fund, through Dec. 31, 1960—Continued
1 Analysis of terms of sales.
Section 603,
11,399 properties,
15,495
units
Section 608,
349 projects
and notes,
21,363 units 1 2
Section 609, 67
notes, 370 units
Section 611, 1
property, 1 unit
Total WHI Fund
11,816 properties
and notes,
37,229 units
Net profit (or loss —) before distribution of liquidation profits..
Less distribution of liquidation profits:
Certifica tes of claim________________________________________
Increment on certificates of claim___________________________
Refunds to mortgagors______________________________________
-$8,456, 717
1,092,161
146, 268
2,030, 331
—$40, 923, 225
358, 585
85, 565
-$788, 002 $1, 004
461
18
525
—$50,166,940
1, 451, 207
231,851
2, 030,856
Loss (—) to War Housing Insurance Fund________________ -11,725, 477 -41,367,375 -788,002— -53,880, 854
2 Includes $1,198,300 for 191 units of 7 partially sold projects.
Terms of sales Number of
properties
Number of
notes
Cash Mortgage
notes
Sales price
Properties sold for all cash____________________
Properties sold for cash and notes (or contracts
for deed)__________________________
Total___________________________________
3, 074
8, 742 8,130
$25, 720, 254
12, 456,453 $125,339,745
$25, 720, 254
137, 796,198
11, 816 8,130 38,176, 707 125,339, 745 163, 516, 452
Statement 35.—Statement of properties and assigned mortgage notes on hand, War Housing Insurance Fund, as of
Dec. 31, 1960
Section 603,
334 properties 1
545 units
Section 608
Total 474 properties,
229 mortgage
140 projects,2 notes, 28,816 units
10,149 units 3
229 mortgage
notes, 18,122 units
Expenses:
Acquisition costs_________ _ _ ___ ________ . ________ _________ $2,750, 566
431,145
241, 564
68,259
564,491
$59,459, 560
5, 738,488
2,390,902
106,918
4, 992, 568
i $122,181,099
12, 560,152
$184,391,225
18, 729, 785
2, 632, 466
175,177
5, 557, 059
272,822
219,452
Interest on debentures________ . ______ .. .. _ . . ___
Taxes and insurance.___________ ____ ______ _________________ ____
Additions and improvements___ _________________ ______.........
Maintenance and operating__________ ______
Service charge____ *______ . ___ ... _. ______________________ 272,822
Miscellaneous__________ . ____ ______ . 871 172, 768 45, 813
Total expenses______________ _ ______ ._ _________ _________ 4, 056, 896 72, 861,204 135,059,886 211,977,986
Income and recoveries:
Rent and other (net)___________ ______ ... _ _____ ____________.. 821,340 7, 777,143 17, 642,353
7,672,000
26,240,836
Collections on mortgage notes.._____ _ ____________________ _____... 7,672,000
Total income______________________ .. _______________________ ... 821,340 7, 777,143 25,314,353 33,912,836
Proceeds from partial sales of projects: Estimated net investment (sales
price)____ . . .. .. _ _____ _______________ . -1,198,300 -1,198,300
Net acquired security on hand_____ ___________________________________ 3,235, 556 63,885,761 109,745, 533 176, 866, 850
1 Includes 13 properties (15 units) repossessed and carried at the asset value
at time of repossession.
2 Includes 8 large scale projects (394 units) repossessed and carried at the
asset value at the time of repossession.
3 Excludes 191 units in seven partially sold projects with estimated net
investment of $1,198,300.
Sec. 608
Outstanding balance of notes receivable at date of acquisition___________________________________________________
$122,181,099
Less:
Collection to principal________________________ 7, 672,000
Unpaid principal balance_________________________ 114, 509,099
191
The turnover of Section 603 and 608 acquired security, by calendar year, is given below:
Statement 36.—Turnover of properties acquired under Sec. 603 of Title VI contracts of insurance by years, and cumulative
through Dec. 31, 1960
Properties acquired Properties sold, by calendar years
Number 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960
Properties
on
hand
Dec. 31,
1960
1943_______
1944_______
1945_______
1946_______
1947_______
1948_______
1949_______
1950_______
1951_______
1952_______
1953_______
1954_______
1955_______
1956_______
1957_______
1958_______
1959_______
1960_______
Total.
498
2, 542
2,062
998
16
116
507
1,635
735
609
412
427
717
101
180
76
38
64
11,733
139
1,178
1,050
431
140
350
210
9
87
139
43
1
21
93
17
6
11
65
243
421
7
811
1
75
460
411
4
28
246
193
209
2
9
103
53
122
56
18
80
27
65
58
42
8
144
36
73
125
43
407
12
111
15
38
34
338
31
50
5
16
'16'
43
4
181
45
33
7
16
”2
6
If
3
66
14
4 2 3
20 10 8
69
82
256 982 2,798 1,010
16
3
21
20
12
53
5
13
19
70
”7
37
13
45
732 384 763 964 691 345 290 836 629 337 125 114
Note.—On the 11,399 properties sold the average time between acquisition and sale by the Federal Housing Administration was 25.23 months. The number
of properties sold has been reduced by 549 properties repossessed because of default on mortgage notes of which 536 had been resold by Dec. 31, 1960.
Statement 37.—Turnover of properties acquired and mortgage notes assigned under Section 608 of Title VI contracts
of insurance by years and cumulative through December 31,1960
Properties and notes
acquired Properties and notes sold, by calendar years
Properties
and
notes
on hand
Dec. 31,
1960
Year Number 1943-50 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960
1943-48____________
1949_______________
1950_______________
1951_______________
1952_______________
1953_______________
1954_______________
1955_______________
1956_______________
1957_______________
1958_______________
1959_______________
1960_______________
1
27
17
4
17
25
28
23
32
53
60
82
369
Note.—The number of properties and notes sold has been reduced by 15 properties repossessed because of default on mortgage notes, 7 of which had been
resold by Dec. 31, 1960. On the 349 properties sold, the average time between acquisition and sale was 33.27 months.
Certificates of Claim and Refunds
to Mortgagors
Section 604(f) of the Act provides that, if the
net amount realized from any property conveyed
to the Commissioner under Section 603, after deducting
all expenses incurred in handling, dealing
with, and disposing of such property, exceeds the
face value of the debentures issued and the cash
paid in exchange for such property plus all interest
paid on such debentures, such excess shall
be applied to the certificate of claim issued to the
mortgagee and any excess remaining after paying
the certificate of claim and increment thereon shall
be refunded to the mortgagor.
Certificates of claim in the total amount of
$2,503,686 had been issued through 1960 in con192
nection with the Section 603 properties which had
been acquired and subsequently sold. The proceeds
of sale were sufficient to provide for payment
in full or in part on these certificates in
the amount of $1,092,161, or approximately 44
percent. Certificates of claim canceled or to be
canceled amounted to $1,411,525 or approximately
56 percent. In addition, the proceeds of sale were
sufficient to pay refunds of $2,005,785 to 5,070
mortgagors, and $24,546 of refunds were held in
trust for 60 payees whose whereabouts were unknown.
The average refund per case amounted
to $396.
With respect to the excess proceeds, if any, from
the sale of an acquired project insured under Section
608, the Act provides that any amount remaining
after payment of the certificate of claim
Statement 38.—Comparative statement of financial condition,
Housing Investment Insurance Fund, as of June
30,1959 and June 30,1960
shall be credited to the War Housing Insurance
Fund.
Certificates of claim totaling $3,070,541 had
been issued in connection with the Section 608
acquisitions which had been disposed of by December
31, 1960. The proceeds of sale were sufficient
to provide $358,585 for payment in full or
in part on these certificates. Certificates of claim
canceled or to be canceled amounted to $2,711,956.
A certificate of claim in the amount of $461 had
been issued on the one Section 611 home property
sold. The proceeds of sale were sufficient to provide
for payment in full on this certificate and
to provide for payment of a refund of $525 to the
mortgagor. C5 O
TITLE VII: HOUSING INVESTMENT
INSURANCE FUND
The Housing Investment Insurance Fund was
created by Section 710 of the National Housing
Act as amended August 10, 1948 (Housing Act
of 1948, Public Law 901, 80th Congress), which
provides that this fund shall be used by the FHA
Commissioner as a revolving fund for carrying
out the rental housing yield insurance program
authorized by Title VII and for administrative
expenses in connection therewith. This is not a
mutual insurance fund in the sense that any portion
of the net income from operations will be
shared by mortgagors in the form of participation
payments.
Section 710 further provides that the Secretary
of the Treasury shall make available to the Commissioner
such funds as the Commissioner may
deem necessary, but not to exceed $10 million,
which amount is authorized to be appropriated
out of any money in the Treasury not otherwise
appropriated.
One million dollars had been allocated to the
fund by the Secretary of the Treasury pursuant
to the request of the Federal Housing Commissioner
and the remaining $9 million had been
rescinded and covered into the Treasury in accordance
with the Second Supplemental Appropriation
Act, 1956 (Public Law 533, 84th Cong.)
approved May 19,1956. Up to December 31, 1960,
no applications for insurance under Title VII had
been submitted.
Capital and Net Income
Assets of the Housing Investment Insurance
Fund at June 30, 1960 totaled $916,526. Transfers
from the War Housing Insurance Fund under
Section 219 amounted to $910,000, and the
cumulative operating income was $6,526. The $1
million which was transferred from the United
States Treasury to establish the fund in accordance
with Section 710 of the Act was established
as a liability of the fund as of June 30,1953 under
the provisions of Public Law 94, 83d Congress.
This amount, including interest thereon in the
amount of $107,914, was repaid on July 31, 1953.
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury----------
Investments: U.S. Government
securities (amortized)----------
Accounts and notes receivable:
Accounts receivable—Interfund____________________
Accrued assets: Interest on U.S.
Government securities_______
Total assets______________
RESERVE
Insurance reserve—available for
future losses and expenses---
$12,333
897,188
125
1,458
$7,340
907, 605
123
1,458
—$4, 993
10,417
-2
911,104 916, 526 5, 422
911,104 916, 526 5,422
The total income for fiscal year 1960 was $22,-
669, consisting entirely of income on U.S. Government
securities, and expenses amounted to
$16,549, resulting in a net income for the year
of $6,120. The cumulative income of the Housing
Investment Insurance Fund from August 10,
1948 to June 30,1960, amounted to $195,994, while
cumulative expenses amounted to $189,468, resulting
in a net income to the fund of $6,526.
Statement 39.—Income and expenses, Housing Investment
Insurance Fund through June 30, 1959 and June
30, 1960
Aug. 10,1948
to
June 30, 1959
July 1, 1959
to
June 30, 1960
Aug. 10, 1948
to
June 30,1960
Income:
Interest and dividends: Interest
on U.S. Government
securities________________
Other income: Profit on sale
of investments___________
Total income____________
Expenses:
Interest expenses: Interest on
funds advanced by U.S.
Treasury__________________
Administrative expenses: Operating
costs (including adjustments
for prior years)______
Other expenses: Depreciation
on furniture and equipment—
Losses and charge-offs: Loss (or
profit —) on equipment____
Total expenses___________
Net income (or loss —)___
$173, 053
272
$22, 669 $195, 722
272
173,325 22, 669 195, 994
107, 914
64, 030
280
-3
16, 466
84
-1
107, 914
81,191
367
— 4
172, 221 16, 549 189, 468
1,104 6,120 6,526
ANALYSIS OF INSURANCE RESERVE
Distribution of net income:
Insurance reserve:
Balance at beginning of
period _ ____ 911,104
-698
6,120
Adjustments during the
period __ ______
Net income (or loss —) for
the period ________1_,_104 6, 526
Capital contributions from
other FHA insurance
funds - ____________
1,104
910, 000
916, 526 6,526
910, 000
Balance at end of period— 911,104 916, 526 916, 526
193
Investments
Section 710 of the Act provides that moneys in
the Housing Investment Insurance Fund not
needed for current operations shall be deposited
with the Treasurer of the United States to the
credit of the fund, or invested in bonds or other
obligations of, or in bonds or other obligations
guaranteed by the United States; or the Commissioner
may, with the approval of the Secretary of
the Treasury, purchase debentures issued under
this fund, provided that such purchases are made
at a price which will produce an investment yield
not less than the yield obtainable from other
authorized investments. During the fiscal year
1960, net purchases of U.S. Government securities
made for the account of this fund amounted to
$10,000, principal amount. At June 30, 1960, the
fund helcl $907,000, principal amount, of U.S.
Government securities as follows:
1 Average annual yield 2.49 percent.
Investments of the Housing Investment Insurance Fund,
June 30, 1960
Series
Interest
rate
(percent)1
Purchase
price Par value
Book value
(amortized)
1960_______________ $36,148
70, 000
97, 375
704, 922
$37, 000
70, 000
100,000
700, 000
$36, 718
70, 000
98, 469
702, 418
1962_______________
1965-70____________
1967-72____________
Total_______
2
2H
2^
908,445 907, 000 907, 605
TITLE VIII: ARMED SERVICES HOUSING
MORTGAGE INSURANCE FUND
An amendment to the National Housing Act
approved August 8, 1949 (Public Law 211, 81st
Congress) created the Military Housing Insurance
Fund to be used by the FHA Commissioner
as a revolving fund for carrying out the provisions
of Title VIII of the Act. Public Law 345, 84th
Congress, approved August 11, 1955, changed the
title of the fund from Military Housing Insurance
Fund to Armed Services Housing Mortgage Insurance
Fund. For the purposes of this fund, the
Act authorized to be appropriated the sum of $10
million, of which $5 million was made available
by the Supplemental Appropriation Act, 1950
(Public Law 358, 81st Congress). Section 803
provides for the insurance of military housing
“project” mortgages for personnel in the armed
services. Section 809, added by Public Law 574,
84th Congress, provides for the insurance of
“home” mortgages for civilian employees at research
or development installations of the military
departments of the United States or contractors
thereof.
The law further provides that upon determination
by the FHA Commissioner that such insurance
is not an acceptable risk, the Commissioner
may require the Secretary of Defense to guarantee
the fund against losses resulting from insurance
under this section. Section 810, added by Public
Law 86-372, 86th Congress, approved September
23, 1959, provides for the insurance of mortgages
on multifamily rental housing projects or housing
projects consisting of individual single-family
dwellings for sale, which project properties are
constructed to aid in providing adequate housing
for military personnel and essential civilian personnel
serving or employed in connection with an
installation of one of the armed services of the
United States.
This is not a mutual fund in the sense that any
portion of the net income from operations will be
shared by mortgagors in the form of participation
payments.
Mortgage Insurance Authorization
Section 803(a) of the Act as amended by Public
Law 345, 84th Congress, created a separate mortgage
insurance authorization with regard to all
new insurance written under Title VIII pursuant
to commitments issued on or after August 11, 1955,
including both the new Armed Services Housing
program and the extended Military Housing program.
This insurance authorization provides that
the aggregate amount of principal obligations of
all mortgages insured uncler this program shall not
exceed $2,300 million and that the limitation in
Section 217 shall not apply to this program. The
status of the Title VIII Insurance Authorization
at December 31,1960 is as follows:
Status of Armed Services Housing Mortgage Insurance
Authorization, as of Dec. 31,1960
Sec. 803 Sec. 809
Insurance authorization__ __ 1 $2,300,000,000
1, 785, 538,393
Charges against insurance
authorization:
Mortgages insured_________
Commitments for insurance
Total charges against
authorization______
Unused insurance authorization_________
$1,599, 518,726
2 110, 530,349
$68,359, 750
7,129,568
1, 710,049,075 75,489,318
514,461,607
1 Increased from $1,363,500,000 in accordance with Sec. 503 of Public Law
1020, 84th Congress, approved Aug. 7, 1956.
2 Includes Sec. 803 statements of eligibility in the amount of $69,783,019.
Capital and Net Income
As of June 30, 1960, the assets of the Armed
Services Housing Mortgage Insurance Fund
totaled $40,948,953, against which there were
outstanding liabilities of $23,956,306, leaving
$16,992,647 insurance reserve. The insurance reserve
consists entirely of earnings.
In accordance with Public Law 94, 83d Congress,
approved June 30,1953, the amount of capital
contributed by the U.S. Government to establish
this fund in the amount of $5 million was
established as a liability of the fund as of June 30,
1953. This amount was repaid during fiscal year
1954 together with interest thereon in the amount
194
of $441,092, the final payment being made on November
30, 1953.
Statement 40.-—Comparative statement of financial condition,
Armed Services Housing Mortgage Insurance
Fund as of June 30, 1959 and June 30, 1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury______ $2,018, 788 $1, 718, 782 -$300,006
Investments:
U.S. Government securities
(amortized)______________
Other securities (stock in
rental housing corporations).
11,737,486
9, 500
13,424, 235
7,300
1, 686, 749
-2,200
Total investments----------- 11,746,986 13,431,535 1,684, 549
Loans receivable:
Mortgage notes and contracts
for deed__________________
Less allowance for losses_____
284, 657
14, 233
1,062,314
44,819
777, 657
30, 586
Net loans receivable_____ 270,424 1,017,495 747,071
.A.CCUuiitjs and notes iGceivable.
Accounts receivable—Insurance
premiums__________
Accounts receivable—Other _.
Accounts receivable—Interfund_____________________
281,657
15,263
171,842
1,011
16,242
-109,815
1,011
979
Total accounts and notes
receivable____________ 296, 920 189,095 -107,825
Accrued assets:
Insurance premiums--------------
Interest on U.S. Government
securities
78,344
19, 740
164, 782
117, 565
19, 740
237,040
39,221
Other________________________ 72,258
Total accrued assets_____ 262, 866 374,345 111,479
Acquired security:
Real estate (at cost plus expenses
to date)___________
Less allowance for losses_____
12,352,221
5,111,714
11,575,362
4,683,064
-776,859
-428, 650
Net real estate___________ 7,240, 507 6, 892, 298 -348, 209
Mortgage notes acquired under
terms of insurance_____
Less allowance for losses_____
12, 627,801
4,450,492
26, 321,252
9,310, 739
13, 693,451
4,860,247
Net mortgage notes acquired
under terms of
insurance____________ 8,177,309 17,010,513 8,833,204
Net acquired security____ 15,417,816 23,902, 811 8,484,995
Other assets—held for account
of mortgagors _ __________ 314,890 314, 890
Total assets______________ 30,013, 800 40, 948,953 10,935,153
LIABILITIES
Accounts payable:
Bills payable to vendors and
Government agencies______ 11,008 5,963 -5,045
Accrued liabilities:
Interest on debentures_______ 152,262 255,902 103, 640
Trust and deposit liabilities:
Fee deposits held for future
disposition______________ 21,150 23, 475 2,325
Deposits held for mortgagors,
lessees and purchasers------ 270, 334 873, 737 603,403
Total trust and deposit
liabilities____________ 291,484 897,212 605, 728
Deferred and undistributed
credits:
Unearned insurance premiums
Unearned insurance fees____
Other_______________________
2,354,246
73, 408
164, 782
2,903,118
8, 781
237,040
548, 872
-64, 627
72, 258
Total deferred and undistributed
credits_____ 2, 592,436 3,148, 939 556, 503
Bonds, debentures and notes
payable:
Debentures payable------------- 10,465, 650 19,379, 600 8,913,950
Statement 40.—Comparative statement of financial condition,
Armed Services Housing Mortgage Insurance
Fund as of June 30, 1959 and June 30, 1960—Continued
June 30, 1959 June 30, 1960 Increase or
decrease (—)
liabilities—continued
Other liabilities:
Reserve for foreclosure costs—
mortgage notes acquired
under terms of insurance_
Total liabilities__________
RESERVE
Insurance reserve—available for
future losses and expenses---
Total liabilities and reserve________________
Certificates of claim relating to
properties on hand_________
$129,097 $268, 690 $139,593
13,641,937 23,956,306 10,314,369
16,371,863 16,992, 647 620,784
30,013, 800 40,948,953 10,935,153
511,938 786,621 274,683
Total income of the Armed Services Housing
Mortgage Insurance Fund during the fiscal year
1960 amounted to $6,221,420, and expenses and
losses amounted to $1,172,456 leaving a net income
of $5,048,964 before adjustment of valuation allowances.
After valuation allowances were increased
by $4,462,183, a net income of $586,781
resulted for the year. The cumulative income of
the fund from August 8, 1949 to June 30, 1960
amounted to $43,294,743, and cumulative expenses
totaled $12,263,474, resulting in a cumulative net
income of $31,031,269 before adjustment of valuation
allowances. Valuation allowances of $14,038,-
622 were established, leaving cumulative net
income of $16,992,647.
Statement 41.—Income and expenses, Armed Services
Housing Mortgage Insurance Fund, through June 30,
1959 and June 30,1960
Aug. 8, 1949
to
June 30, 1959
July 1, 1959
to
June 30, 1960
Aug. 8, 1949
to
June 30, 1960
Income:
Interest and dividends:
Interest on U.S. Government
securities_________
Dividends on rental housing
stock_______________
Interest—Other____________
Insurance premiums and fees:
Premiums_________________
Fees______________________
Other income:
Profit on sale of investments
Miscellaneous income______
Total income____________
Expenses:
Interest expenses: Interest on
funds advanced by U.S.
Treasury__________________
Administrative expenses:
Operating costs (including
adjustments for prior years) _
Other expenses: Depreciation
on furniture and equipment.
$2,482,648
1, 753
674, 336
$365,260
105
432,126
$2,847,908
1,858
1,106,462
3,158, 737 797,491 3,956, 228
23,616,167
10, 294,643
4,916,701
507,172
28, 532,868
10,801,815
33,910,810 5,423,873 39,334,683
3, 776
56
3,776
56
3,776 56 3,832
37,073,323 6,221,420 43,294,743
441,092 441, 092
8,186, 774 761, 352 8,914,275
38,194 4,067 42,094
195
Statement 41.—Income and expenses, Armed Services
Housing Mortgage Insurance Fund, through June 30,
1959 and June 30,1960—Continued
ANALYSIS OF INSURANCE RESERVE
Aug. 8, 1949
to
June 30, 1960
July 1, 1959
to
June 30, 1960
Aug. 8, 1949
to
June 30, 1960
Losses and charge-offs:
Loss on acquired security...
Loss (or profit—) on equipment__________________
Total expenses___________
Net income before adjustment
of valuation allowances____
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans
receivable_______________
Allowance for loss on real
estate____________________
Allowance for loss on mortgage
notes acquired under
terms of insurance_______
Net adjustment of valuation
allowances______
Net income (or loss —)___
$2,460,617
-1,656
$407,064
-27
$2,867,681
-1,668
2,458,961 407, 037 2,866,013
11,125,021 1,172,456 12,263,474
25,948, 302 5,048,964 31,031,269
-14,233
-5, 111, 714
-4,450,492
-30, 586
4-428,650
-4,860, 247
-44,819
-4,683,064
-9, 310, 739
-9, 576,439 -4,462,183 -14,038,622
16, 371,863 586,781 16,992,647
Distribution of net income:
Insurance reserve:
Balance at beginning of
period _ ___ ___ 16,371,863
34,003
586,781
Adjustments during the
period- __ ___
Net income (or loss —) for
the period______________
Balance at end of period..
16, 371,863 16,992, 647
16, 371,863 16,992, 647 16,992,647
Investments
Section 804(a) of the Act provides that moneys
not needed for current operations shall be deposited
with the Treasurer of the United States to
the credit of the fund, or invested in bonds or
other obligations of, or in bonds or other obligations
guaranteed as to principal and interest by
the United States, or, with the approval of the
Secretary of the Treasury, used to purchase debentures
issued under this title. In the fiscal year
1960, $3,943,900 of debentures were redeemed in
payment of mortgage insurance premiums and
$906,000 by calls.
During the fiscal year 1960, net investments of
$1,705,000 increased the U.S. Government securities
held by the fund as of June 30, 1960 to
$13,454,000, principal amount. These transactions
resulted in an increase in the average annual
yield from 2.54 percent to 2.64 percent.
Investments of the Armed Services Housing Mortgage
Insurance Fund, June 30, 1960
1 Average annual yield 2.64 percent.
Series
Interest
rate
(percent)1
Purchase
price Par value
Book value
(amortized)
1960 _____________ $2, 543, 529 $2, 580,000 $2, 556, 558
1963_______________ 2V2 ' 324, 000 ' 324, 000 324,000
1964-69 __________ Wi 1, 511,820 1, 550,000 1, 528,216
1965-70 _______ .. 214 288, 391 300,000 ' 292', 891
1966-71 __________ 214 1,063,141 1,100,000 1,076'746
1967-72____________ 2^ 7,701,281 7,600,000 7i 645,824
— 13,432,162 13,454,000 13,424,235
196
Properties Acquired Under the Terms
of Insurance, Section 803
During the calendar year 1960, 12 additional
properties or assigned notes (1,362 units) insured
under Section 803 were acquired by the Commissioner
under the terms of insurance and 3 properties
(428 units) were sold. Through December 31,
1960, a total of 14 properties (1,960 units) and 27
mortgage notes (5,056 units) had been acquired
by the Commissioner, and 6 properties (833 units)
had been sold.
Certificates of claim issued in connection with
the six Section 803 properties sold as of December
31, 1960 amounted to $122,486, all of which has
been or is to be canceled.
Statement 42.—Statement of profit and loss on sale of
acquired properties, Armed Services Housing Mortgage
Insurance Fund, through Dec. 31, 1960
Proceeds of sales:
Sales price 1__________________
Less commissions and other
selling expenses__________
Net proceeds of sales_____
Income:
Rental and other income (net).
Mortgage note income_______
Total income____________
Total proceeds of sold
properties____________
Expenses:
Debentures and cash adjustments____________________
Purchase of land held under
lease_____________________
Estimated net investment on
partial sales of properties_
Interest on debentures_______
Taxes and insurance_________
Additions and improvements.
Maintenance and operating...
Service charge_______________
Miscellaneous_______________
Total expenses___________
Net profit (or loss —)__________
Less amount recoverable from
Military on guaranteed
cases_____________________
Loss (—) to Armed Services
Housing Mortgage Insurance
Fund_______________
See. 803, 6
properties,
(833 units)2
Sec. 809, 1
property, 1
unit
Total
ASHMI
fund, 7
properties
2 $3, 640, 760 $11,000 $3, 651, 760
17,948 550 18,498
3, 622,812 10,450 3, 633,262
606, 783 18 606,801
54, 300— 54, 300
661,083 18 661,101
4,283,895 10,468 4, 294, 363
4,328,826 11,016 4,339,842
5,600— 5,600
1,962,850
353
1,962,850
472, 651 473,004
72,284 53 72, 337
6,460— 6,460
305, 388 57 305, 445
2,154— 2,154
10,917— 10,917
7,167,130 11,479 7,178, 609
-2,883,235 -1,011 -2,884, 246
1,011 1,011
-2,883,235— -2,883, 235
1 Analysis of terms of sales.
2 Includes $1,962,850 for 277 units of 1 partially sold project.
Terms of sales
Number
of properties
Number
of
notes
Cash
Mortgage
notes Total
Properties sold
for all cash__
Properties sold
for cash and
notes_______
2
5 296
$512,109
213,051 $2,926,600
$512,109
3,139, 651
Total_____ 7 296 725,160 2,926,600 3, 651,760
The turnover of Section 803 acquired security
by calendar year, is shown in Statement 43.
Statement 43.—Turnover of properties acquired and
mortgage notes assigned under Sec. 803 of Title VIII
contracts of insurance by years and cumulative through
Dec. 31, 1960
Note.—-On the 6 properties sold, the average time between acquisition and
sale by the Federal Housing Administration was 37 months.
On December 31, 1960, there remained on hand,
under Section 803, 8 project properties (1,127
units) and 27 assigned mortgage notes (5,056
units) as shown in Statement 44.
Properties Acquired Under the Terms
of Insurance, Section 809
During calendar year 1960, 15 additional Section
809 home properties were acquired and 1
property was sold. Through December 31, 1960,
a total of 16 home properties had been acquired
and 1 had been sold. The sale resulted in a net
loss of $1,011; however, the loss is recoverable from
the Department of Defense, as shown in Statement
42, in accordance with Public Law 574, 84th
Congress, approved June 13, 1956. On December
31, 1960, there remained 15 Section 809 properties
on hand as shown in Statement 44. One certificate
of claim totalling $508 was issued on the 1 property
sold. This amount is to be canceled.
The turnover of Section 809 acquired security
by calendar year is shown in Statement 45.
TITLE IX: NATIONAL DEFENSE HOUSING
INSURANCE FUND
The National Defense Housing Insurance Fund
was created by Section 902 of the National Housing
Act, as amended September 1, 1951 (Defense
Housing and Community Facilities and Services
Act of 1951, Public Law 139, 82d Congress), which
provides that this fund shall be used by the Commissioner
as a revolving fund for carrying out the
provisions of Title IX of the Act. This title of the
Act provides for the insurance of mortgages in
areas which the President shall have determined
to be critical defense housing areas. To accomplish
this purpose, the Act authorized the Commissioner
to transfer from the War Housing
Insurance Fund the sum of $10 million. This is
not a mutual insurance fund in the sense that any
portion of the net income from operations will be
shared by mortgagors in the form of participation
payments.
Capital and Net Income
As of June 30, 1960, the assets of the National
Defense Housing Insurance Fund totaled
$65,804,708, against which there were outstanding
liabilities of $80,577,418, leaving a deficit of
$14,772,710. This represents an operating deficit
of $24,772,710 less $10 million transferred from
other insurance funds in accordance with Section
219 of the Act.
Statement 44.—Armed Services Housing Mortgage Insurance
Fund, statement of properties and assigned mortgage
notes on hand at Dec. 31, 1960
1 Excludes 277 units in one partially sold project with estimated net investment
of $1,962,850.
2 See the following table:
Sec.
8 projects,
1,127
units 1
803
27 mortgage
notes,
5,056 units
Sec. 809,
15
properties,
15 units
Total 50
properties
and notes,
6,198 units
Expenses:
Acquisition costs______
Interest on debentures.
Taxes and insurance__
Additions and improvements_______
Maintenance and operating______________
Service charge________
Miscellaneous_________
$10, 885, 225
1,450, 681
289,174
5,707
1,115,042
52,886
2$48,441,416
2, 283, 586
64, 639
8,418
$171, 705
2, 651
988
741
$59,498,346
3, 736, 918
290,162'
5, 707
1,115, 783
64, 639
61,304
Total expenses____ 13,798,715 50, 798,059 176,085 64, 772,859
Income and recoveries:
Rent and other income
(net)__________
Collections on mortgage
notes_________
Undisbursed mortgage
proceeds__________
1,379,046 2, 277, 845
339, 217
8,176, 788
75 3,656, 966
339, 217
8,176, 788
Total income______ 1,379,046 10, 793,850 75 12,172, 971
Proceeds from partial
sales of projects:
Estimated net investment
(sales price)___ -1,962,850 -1,962, 850'
Net acquired security on
hand________________ 10,456,819 40,004, 209 176,010 50,637,038
803
MHI ASHMI Total
Asset value at acquisition_____
Less:
Collection to principal___
Undisbursed mortgage
proceeds ________
$26,126, 296
339, 217
$22, 315,120
8,176, 788
$48,441,416-
339, 217
8,176, 788
Outstanding note balance_____ 25, 787,079 14,138, 332 39, 925,411
Statement 45.—Turnover of properties acquired under
Sec. 809 of Title VIII contracts of insurance by years,
and cumulative through Dec. 31, 1960
Properties acquired Properties sold by
calendar years
Year Number 1959 1960
Properties
on hand
Dec. 31,
1960
1959 ____________________
1960_____________________
Total_____________
Note.—On the 1 property sold, the time between acquisition and sale by
the Federal Housing Administration was 2.75 months.
197
Statement 46.—Comparative statement of financial condition,
National Defense Housing Insurance Fund, as of
June 30, 1959 and June 30, 1960
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury______
Investments:
U.S. Government securities
(amortized)______________
Other securities (stock in
rental housing corporations).
Total investments_______
Loans receivable:
Mortgage notes and contracts
for deed__________________
Less allowance for losses______
Net loans receivable_____
Accounts and notes receivable:
Accounts receivable—Insurance
premiums__________
Accounts receivable—Other...
Accounts receivable—Interfund
_____________ ___
$1, 945, 649 $2,186,947 $241, 298
2,351,900
9, 200
1, 486,129
9,200
-865, 771
2, 361,100 1, 495,329 -865, 771
24, 804, 558
504,226
27,194,974
607,696
2, 390, 416
103, 470
24, 300,332 26, 587, 278 2, 286,946
43, 659
403, 881
2,940
44, 405
624, 981
3, 982
746
221,100
1,042
Total accounts and notes
receivable___________
Accrued assets:
Interest on U.S. Government
securities__ _______ ____
450, 480 673, 368 222, 888
1,667
129, 266
1,667
Other________________________ 344,058
Total accrued assets_____
Acquired security:
Real estate (at cost plus
expenses to date)________
Less allowance for losses_____
Net real estate___________
Mortgage notes acquired
under terms of insurance_
Less allowance for losses_____
Net mortgage notes acquired
under terms of
insurance____________
Net acquired security____
Other assets—held for account
of mortgagors______________
Total assets______________
LIABILITIES
Accounts payable:
Bills payable to vendors and
Government agencies______
Accrued liabilities:
Interest on debentures_______
Trust and deposit liabilities:
Fee deposits held for future
disposition.. . ___ __
214, 792
130, 933 345, 725 214, 792
50, 387,155
18, 487, 344
59,179, 927
28, 220,913
8, 792,772
9, 733, 569
31, 899, 811 30,959, 014 -940, 797
8,483, 336
2, 952, 525
5, 486, 149
1, 945,128
-2,997, 187
-1,007, 397
5, 530, 811 3, 541, 021 -1,989,790
37, 430, 622 34, 500, 035 -2,930,587
9, 947 16,026 6,079
66, 629, 063 65, 804, 708 -824, 355
90,972 80, 889 -10, 083
1,080, 264 1,073, 363 -6,901
Excess proceeds of sale_______
Deposits held for mortgagors,
lessees and purchasers___
Total trust and deposit
liabilities_____________
Deferred and undistributed
credits:
Unearned insurance premiums___________________
Other________________________
Total deferred and undistributed
credits______
Bonds, debentures and notes
payable:
Debentures payable_________
Other liabilities:
Reserve for foreclosure costs—
Mortgage notes acquired
under terms of insurance_
Total liabilities__________
149, 925
397, 585
171, 894
521, 036
21,969
123,451
547, 510 692, 930 145, 420
1,066, 556
129,266
1, 003, 248
344,058
-63, 308
214, 792
1,195, 822 1, 347, 306 151, 484
70, 041, 900 77, 324, 500 7, 282, 600
86, 581 58,430 -28,151
73,043,049 80, 577, 418 7, 534, 369
Statement 46.—Comparative statement of financial condition,
National Defense Housing Insurance Fund, as of
June 30, 1959 and June 30, 1960—-"Continued
June 30, 1959 June 30, 1960 Increase or
decrease (—)
RESERVE
Insurance reserve (deficit—)___
Total liabilities and
reserve______________
Certificates of claim relating to
properties on hand_________
—$6,413, 986 —$14, 772, 710 —$8,358, 724
66, 629,063 65, 804, 708 -824,355
1,641, 439 2, 003, 070 361, 631
Income and Expenses
During fiscal year 1960 the income to the fund
amounted to $2,513,219, and expenses and losses
amounted to $2,003,873, leaving a net income of
$509,346 before provision for valuation allowances.
An increase of $8,829,642 in the valuation allowances
resulted in a net loss of $8,320,296 for the
year.
The cumulative income of the National Defense
Housing Insurance Fund from September 1, 1951
to June 30, 1960 amounted to $22,249,761 and
cumulative expenses amounted to $16,248,734,
leaving cumulative net income of $6,001,027 before
adjustment of valuation allowances. Valuation
allowances of $30,773,737 were established, leaving
a cumulative net deficit of $24,772,710.
Statement 47.—Income and expenses, National Defense
Housing Insurance Fund, through June 30, 1959 and
June 30, 1960
Sept. 1, 1951
to
June 30,1959
July 1, 1959
to
June 30,1960
Sept. 1, 1951
to
June 30,1960
Income:
Interest and dividends:
Interest on U.S. Government
securities__________
Interest—Other____________
Dividends on rental housing
stock_________________
Insurance premiums and fees:
Premiums_______________
Fees . _____________
$979,310
1,104, 506
295
$56, 790
209,339
73
$1,036,100
1,313,845
368
2,084,111 266,202 2,350,313
14, 595,164
2, 722, 921
2,005, 812 16, 600,976
2,722,921
Other income:
Profit on sale of investmerits
-___
17,318,085 2,005,812 19,323,897
63,859
270,487
63,859
Miscellaneous income--------- 511,692
Total income____________
Expenses:
Administrative expenses:
Operating costs (including
adjustments for prior
years)__________________
241,205
334,346 241,205 575, 551
19, 736, 542 2, 513, 219 22, 249, 761
7,023,821 722, 817 7, 784, 894
Other expenses:
Depreciation on furniture
and equipment________
Miscellaneous expenses____
Losses and charge-offs:
Loss on acquired security...
Loss (or profit —) on equipment__________________
Total expenses-----------------
32,987
29,447
4,124
33
37, 300
29,480
62, 434 4,157 66,780
7,120,853
-675
1,276,927
-28
8,397, 780
-720
7,120,178 1,276,899 8,397,060
14, 206,433 2,003, 873 16,248, 734
198
Investments of the National Defense Housing Insurance
Fund, June 30,1960
Statement 47.—Income and expenses, National Defense
Housing Insurance Fund, through June 30, 1959 and
June 30, 1960—Continued
Sept. 1,1951
to
June 30, 1959
July 1, 1950
to
June 30, 1960
Sept. 1,1951
to
June 30, 1960
Net income before adjustment
of valuation allowances____
Increase (—) or decrease (+) in
valuation allowances:
Allowance for loss on loans
receivable_______________
Allowance for loss on real estate_____________________
Allowance for loss on mortgage
notes acquired under
terms of insurance_______
Net adjustment of valuation
allowances________
Net income (or loss —)_____
$5, 530,109 $509,346 $6,001,027
-504,226
-18,487, 344
-2,952, 525
-103, 470
-9, 733, 569
+1,007,397
-607,696
-28,220,913
-1,945,128
-21,944,095 -8,829,642 -30, 773, 737
-16,413,986 -8,320,296 -24,772,710
ANALYSIS OF INSURANCE RESERVE
Investments
Distribution of net income:
Insurance reserve:
Balance at beginning of
period __ _ ___ ___ -6,413,986
-38,428
-8,320, 296
Adjustments during the
period ________ ____ -
Net income (or loss —) for
period_________________
Capital contributions from
other FHA insurance
funds________ _
-16,413,986 -24, 772, 710
-16,413,986
10,000,000
-14, 772, 710 -24,772,710
10,000,000
Balance at end of period-- -6,413,986 -14, 772, 710 -14,772, 710
Section 905(a) of Title IX contains a provision
similar to that under Title II with respect to
investment of moneys not needed for current operations
by the purchase of United States Government
securities or the retirement of debentures.
During fiscal year 1960, $891,050 of debentures
were exchanged for mortgage notes and $1,750,250
of debentures were redeemed in payment of mortgage
insurance premiums.
During the fiscal year 1960, net redemptions of
$875,000, principal amount, of United States
Government securities were made. These transactions
left the United States Government securities
held by the fund as of June 30, 1960 at
$1,495,000 yielding 2.20 percent.
1 Average annual yield 2.20 percent.
Series
Interest
rate
(percent)1
Purchase
price Par value
Book value
(amortized)
1964______________ 2
2^
2^
$1,095,000
193, 563
193,062
$1,095,000
200,000
200,000
$1,095,000
195, 855
195,274
1966-71____________
1967-72____________
Total_______ 1, 481, 625 1,495,000 1,486,129
Properties Acquired Under the Terms
of Insurance
During 1960, 2 additional properties or assigned
notes (73 units) insured under Section 908 were
acquired by the FHA Commissioner. Two properties
(256 units) were sold. Titles to 997 home
properties (1,176 units) insured under Section
903 were acquired under the terms of insurance
during 1960 and 563 (642 units) were sold.
Through December 31, 1960, a cumulative total
of 12 mortgage notes (840 units) and 20 properties
(1,450 units) insured under Section 908, and
10,351 home properties (12,048 units) insured under
Section 903 had been acquired under the terms
of insurance. Four thousand six hundred and
thirty-eight home properties (5,581 units) insured
under Section 903 and 9 Section 908 properties
(620 units) had been sold at December 31, 1960.
Certificates of claim issued in connection with the
4,638 Section 903 properties sold through December
31, 1960 totaled $1,536,189, of which $250,072
was paid or to be paid and $1,286,117 canceled.
Certificates of claim issued in connection with the
Section 908 properties sold totaled $151,905, of
which $94,424 was to be paid and $57,481 was to be
canceled. At December 31, 1960, there remained
on hand 5,713 properties (6,467 units) insured
under Section 903, and 12 mortgage notes (840
units) and 11 properties (830 units) insured under
Section 908.
Statements 48 and 49 show the turnover of acquired
security under Section 903 and 908 by
calendar year of acquisition.
199
Statement 48.—Statement of profit and loss on sale of
acquired properties, National Defense Housing Insurance
Fund, through Dec. 31, 1960
i Analysis of terms of sales.
Items
Sec. 903,
4,638 properties
(5,581
units)
Sec. 908,
9 properties
(620 units)
Total NDHI
Fund, 4,647
properties
(6,201 units)
Proceeds of sales:
Sales price 1__________________
Less commission and other
selling expenses____________
$35,871,944
1,427, 265
$3,812, 500
6,016
$39,684,444
1,433,281
Net proceeds of sales_____ 34, 444, 679 3, 806,484 38,251,163
Income:
Rental and other income
(net)_______________________
Mortgage note income_______
Recovery prior to acquisition
of defaulted notes________
3,303,364
2,738,027
80, 941
855, 506
192, 410
4,158,870
2,930,437
80,941
Total income____________ 6,122, 332 1,047,916 7,170, 248
Total proceeds of sold properties________________________
40, 567, 011 4,854, 400 45, 421, 411
Expenses:
Debentures and cash adjustments___________________
Asset value acquired after default
of purchase money
mortgages_______________
Purchase of land held under
lease_____________________
Interest on debentures_______
Taxes and insurance_________
Additions and improvements.
Maintenance and operating
expense__________________
Service charge_______________
Miscellaneous_______________
41,668, 111
-1,419, 579
62,751
3, 984, 924
1,379,125
31,388
2,964,595
158,158
2, 770
4,583, 722
675,201
104, 595
1,885
157,989
8,505
7,240
46,251,833
-1,419,579
62, 751
4,660,125
1,483, 720
33,273
3,122, 584
166,663
10,010
Total expenses___________ 48, 832. 243 5, 539,137 54,371,380
Net profit (or loss —) before
distribution of liquidation
profits_____________________
Less distribution of liquidation
profits:
Certificates of claim__________
Increment on certificates of
claim____________________
-8,265,232
250,072
12,496
-684, 737
94,424
6,191
-8, 949,969
344,496
18,687
Loss (—) to National Defense
Housing Insurance
Fund________________ -8, 527, 800 -785, 352 -9,313,152
Statement 49.—National Defense Housing Insurance
Fund, statement of properties and assigned mortgage
notes on hand as of Dec. 31, 1960
Sec. 903
5,713 properties,
1
6,467 units
See. 908 Total 5,724
properties,
12 mortgage
notes,
8,137 units
11 properties,
830 units
12 mortgage
notes,
840 units
Expenses:
Acquisition costs______
Interest on debentures.
Taxes and insurance.
Additions and improvements.._______
Maintenance and operating
___ ___
$48,191,656
4,285,958
2,976, 787
30, 553
2,984,829
$5,846,004
863, 640
170, 866
7,064
495,916
2 $5,346,189
622,438
$59, 383,849
5, 772,036
3,147, 653
37,617
3,480,745
14,703
39,362
Service charge . . 14, 703
Miscellaneous_________ 3,824
Total expenses____
Income and recoveries:
Rent and other (net)...
Collections on mortgage
notes________
10,703 24,835
58,480,486 7,408,325 5,987,154 71,875,965
5,455,489 786,275 699,933
316,873
6,941,697
316, 873
Total income_____
Net acquired security on
hand________________
5,455,489 786,275 1,016,806 7,258,570
53,024,997 6,622,050 4,970,348 64,617,395
i Includes 164 properties (176 units) repossessed and carried at the asset
value at time of repossession.
Sec. 908
2 Outstanding balance of notes receivable at date of acquisition.. $5,346,189
Less:
Collection to principal__________________________________ 316,873
Unpaid principal balance_____________________________ 5,029,316
Statements 50 and 51 show the turnover of acquired security under
Sections 903 and 908 by calendar year of acquisition.
Terms of sales
Number
of
properties
Number
of
notes Cash Mortgage
notes
Sales
price
Properties sold for
all cash_________
Properties sold for
cash and notes (or
contracts for deed).
Total________
568
4,079 3,797
$1,825,726
2,097, 763 $35, 760,955
$1, 825, 726
37,858,718
4, 647 3,797 3,923,489 35, 760,955 39, 684,444
Statement 50.—Turnover of properties acquired under Section 903 of Title IX contracts of insurance by years, and
cumulative through Dec. 31, 1960
Properties acquired
Year Number
1953___________________________ 3
1954_____ ___________________ 690
1955___________________________ 2,535
1956___________________________ 2,800
1957___________________________ 1,273
1958___________________________ 640
1959___________________________ 1,413
I960. . _____________________ 997
Total_________________1_0_,3_51
Properties sold, by calendar years Properties
on hand
Dec. 31,
1953 1954 1955 1956 1957 1958 1959 1960 1960
3
2 113 149 166 15 15 -8 238
358 657 249 138 16 21 1,096
167 539 628 276 163 1,027
69 196 142 80 786
32 68 98 442
77 152 1,184
57 940
----------------- 2 474 973 1.023 1,009 594 563 5, 713
Note.—On the 4,638 properties sold, the average time between acquisition and sale by the Federal Housi ng Administration was 20.98 months. The number
of properties sold has been reduced by 206 properties repossessed because of default on mortgage notes of which 42 had been resold by Dec. 31, 1960.
200
Statement 51.—Turnover of properties acquired and
mortgage notes assigned under Sec. 908 of Title IX
contracts of insurance by years, and cumulative through
Dec. 31, 1960
Salaries and Expenses Account
A separate account, entitled Salaries and Expenses,
Federal Housing Administration, is maintained
for the purpose of handling all transactions
with respect to the payment of salaries and other
expenses involved in operating the FHA. Moneys
for such expenses and for the purchase of furniture
and equipment required in the operations of
the FHA are allocated to this fund and all disbursements
for these purposes are made from it.
Until the income of the insurance funds was sufficient
to cover salaries and expenses, allocations
were made to this account from the United States
Treasury through the RFC in accordance with
provisions contained in the National Housing Act
and subsequent appropriation acts. Since July
1, 1937, a portion of the allocations, and since
July 1, 1940, all allocations to salaries and expenses
have been made from the various FHA
insurance funds.
Statement 52.—Comparative statement of financial condition,
Administrative Expense Account (salaries and
expenses), as of June 30, 1959 and June 30, 1960
1 Excludes unfilled orders in the amount of $32,515
2 Excludes unfilled orders in the amount of $138,020
June 30, 1959 June 30, 1960 Increase or
decrease (—)
ASSETS
Cash with U.S. Treasury______
Accounts and notes receivable:
Accounts receivable—Other...
Land, structures, and equipment:
Furniture and equipment___
Less allowance for depreciation______________________
Net furniture and equipment________________
Total assets---------------------
LIABILITIES
Accounts payable:
Bills payable to vendors and
Government agencies______
Inter-fund___________________
Total accounts payable. __
Trust and deposit liabilities:
Due general fund of the U.S.
Treasury__________________
Employees’ payroll deductions
for taxes, etc________
Total trust and deposit
liabilities_____________
Deferred and undistributed
credits: Other_____________
Total liabilities__________
$5, 336. 468 $5, 356, 349 $19, 881
150,035 181,072 31,037
3,457, 271
1,707,019
i 3, 714, 528
1, 903, 804
257, 257
196,785
1,750,252 1,810,724 60,472
7, 236,755 7,348,145 111,390
3,748, 622
1,750, 252
2 3, 783, 587
1, 810, 724
34,965
60,472
5,498,874 5,594,311 95,437
859
1, 732, 694
132
1, 740, 609
-727
7,915
1, 733,553 1, 740, 741 7,188
4, 328 13,093 8,765
7, 236,755 7,348,145 111,390
201

Public Housing
A dniinis t ration
part
iv
Public Housing Administration
The Public Housing Administration (PHA) was established
as a constituent agency of the Housing and Home
Finance Agency by the President’s Reorganization Plan
No. 3 of 1947, effective July 27, 1947.
PHA succeeded two agencies : The Federal Public Housing
Authority (FPHA), created in 1942, and the United
States Housing Authority (USHA) which had been established
by the United States Housing Act of 1937 to
administer the low-rent public housing program.
The statutory responsibility of the PHA is to administer
the federally aided low-rent public housing program
authorized by the United States Housing Act of 1937, as
amended. PHA discharges this responsibility by providing
financial aid, technical assistance, and development
and management services to participating local housing
authorities.
DEFINITION OF PUBLIC HOUSING TERMS
Annual Contributions Contract: A contract between PHA
and a local housing authority providing for federal financial
and technical assistance in the development and
operation of a low-rent housing project.
The contract provides for a PHA loan to finance the
development cost, for annual contributions to assist in
achieving and maintaining the low-rent character of the
project, and includes terms and conditions under which
the local housing authority will develop and operate the
project.
Application for Program Reservation and Preliminary Loan:
An application to the Public Housing Administration for
a specific number of low-rent dwelling units and a loan
of funds with which to undertake preliminary surveys
and planning necessary for the preparation of a development
program.
The application constitutes the first step by a local
housing authority in the development of low-rent housing
under the United States Housing Act of 1937, as
amended. It is filed by the local housing authority with
the appropriate PHA regional office.
Local Housing Authority: A governmental entity or public
body authorized to engage in the development or operation
of low-rent housing.
A local housing authority is usually an independent
corporate body initially authorized to function in a locality
by the governing body of the locality pursuant to
state or territorial law or, in the case of the District of
Columbia, by act of Congress. In a few States municipalities
are vested with this porver and in turn create
agencies with limited powers to act in their behalf.
Payments in Lieu of Taxes: Annual payments made by a
local housing authority to one or more local taxing bodies
for the area in which a low-rent housing project is
situated.
These payments may equal 10 percent of annual shelter
rent charged in the project and are made to compensate,
in some measure, for municipal services and facilities
furnished to the project. The payments are in lieu of
taxes from which a local housing authority is exempt.
Preliminary Loan: A loan by PHA to a local housing authority
pursuant to a preliminary loan contract.
The loan is to pay the costs of preliminary surveys
and planning, and the preparation of a development program
for a low-rent housing project to serve as the
basis for an annual contributions contract.
Tentative Site Approval: An approval the Public Housing
Administration is required to give of the site selected by
a local housing authority before the latter prepares its
development program.
Considerations involved in site selection and approval
include: (1) suitability of the site in relation to the surrounding
neighborhood and the city plan; (2) physical
characteristics of the site, which should be of a nature
to permit an orderly and appropriate arrangement of the
proposed number and type of units and should make
possible economical construction and management costs;
(3) cost of the site itself and of the required site improvements;
and (4) in the case of slum sites, the feasibility
of relocating the site occupants without undue
hardship.
204
ZUJ
PUERTO RICO and VIRGIN ISLANDS
206
PUBLIC HOUSING ADMINISTRATION—A TYPICAL REGIONAL OFFICE
as of December 31, 1960
1 The number of these Sections varies.
207
Section 1
Organization and Functions
of the Public Housing Administration
PHA is the successor to the Federal Public
Housing Authority and its predecessor, the United
States Housing Authority. It became a constituent
of the Housing and Home Finance Agency
(HFIFA) under Reorganization Plan No. 3 of
1947.
PFIA is headed by a Commissioner who is under
the general supervision of the FIHFA Administrator.
Like the HFIFA Administrator, the PHA
Commissioner is appointed for an indefinite term
by the President of the United States, subject to
Senate confirmation.
At the beginning of 1960, PHA had two principal
activities, the low-rent public housing program
and the windup of its disposition program. The
latter was administered by PHA under a delegation
of authority by the HHFA Administrator
and consisted of mortgage notes and other assests
held on war housing properties. Acting under
orders of the HFIFA Administrator, as authorized
by the Housing Act of 1959, PHA sold, in
1960, to the Federal National Mortgage Association
mortgages having a book value of approximately
$158 million. The remaining two war
housing properties and all accounting records pertaining
to the liquidating programs were transferred
to the Office of the Administrator, HHFA,
in accordance with a memorandum from the Administrator
to the Acting PHA Commissioner,
dated March 23, 1960. At the end of 1960, PHA’s
only remaining function was the administration
of the low-rent public housing program.
PHA conducts its low-rent housing program
activities at (1) the central office in Washington,
D.C., (2) seven regional offices located at Atlanta,
Chicago, Fort Worth, New York, San Francisco,
Washington, and Santurce (Puerto Rico) and, (3)
three directly operated projects. Responsibility
for the operating activities in the seven regions
has been delegated by the Commissioner to the
regional office directors. The central office is responsible
for establishing the agency’s administrative
policies and operating procedures and for
assisting in and reviewing the operating activities
of the regional offices.
Program Operations
Under the United States Housing Act of 1937,
as amended, PHA is responsible for administering
the low-rent public housing program. The Act
provides for a program of locally owned and operated
low-rent public housing under which local
governments, pursuant to State enabling legislation,
establish independent legal entities (local
housing authorities) to develop, own, and operate
the housing projects. PHA provides financial and
technical assistance to about 1,150 local housing
authorities (LFIA’s) in the development of housing
projects. It reviews the administration of the
projects after construction is completed to determine
that they are operated and maintained in a
manner to promote serviceability, efficiency, economy,
and stability and that the low-rent character
of the projects is maintained.
Financing
PHA receives direct appropriations from Congress
for administrative expenses. In connection
with the low-rent program, PHA provides financial
assistance to the LHA’s in the form of loans
for development and annual contributions (subsidies)
made pursuant to annual contributions contracts
with the authorities. Loan funds are obtained
from operating receipts and borrowings
from the Treasury. Funds for annual contributions
are appropriated by Congress.
While LHA’s may obtain temporary loans from
PHA to finance the costs of planning and constructing
low-rent housing projects prior to permanent
financing, they are encouraged to meet
their financing needs through the sale of notes
(short-term financing) to the public. These notes
are secured by an unconditional obligation of PHA
to advance funds to the LHA’s, if necessary, to
cover both principal and interest on the notes at
their maturity.
As projects near completion, bonds covering
substantially the entire development cost of the
projects are usually sold to the public by competitive
bids and the funds obtained from the sale of
the bonds are used to repay the outstanding temporary
loans. The long-term financing bonds are
serial bonds with maturities so arranged that debt
service (interest plus amortization of the principal)
is the same each year. Principal and interest
payments on these bonds are secured by a pledge
of annual contributions to be paid by PHA to the
LHA’s.
208
The annual contributions contracts with the
LHA’s provide for annual contributions by PHA
which, if made in the maximum amount, will be
sufficient to guarantee the orderly retirement of the
bonds and notes of the LHA’s. The annual contributions
contracts also provide for reducing the
maximum contributions by the net income from
rents (residual receipts) if any. Generally, LHA’s
and State and local governments make no cash
contributions toward the construction of federally
aided low-rent housing. However, the Housing
Act of 1937, as amended, provides for local contributions
toward operating costs of the housing
through exemptions from all real and personal
property taxes. The Act further requires that the
LHA’s shall make payments to local governingbodies
in lieu of taxes, generally equal to 10 percent
of the annual shelter rents charged.
209
Section 2
Summary
The low-rent public housing program today
shelters 2 million persons. Half of them are children
; more than 100,000 are elderly persons. All
are sheltered in safe, decent, sanitary low-rent
dwellings now totaling nearly half a million
under management.
The Decade of the 1950’s
During the 10 years between 1949 and 1961,
the giant strides forward in public housing, provided
for by the Housing Act of 1949, did not
occur. In the early years of the decade, our national
efforts were geared primarily to the defense
of freedom in Korea. But, in the peaceful years
that followed, the public housing program still
did not make the advances which were hoped for.
Unfortunately, this came at a time when the illhoused,
low income citizens of our country were
looking to the Federal Government for leadership
and assistance.
Comparing what is, with what might have been
under the 1949 legislation, attests to the fact that
much remains to be done if the public housingprogram
is to do its part in helping to meet our
country’s housing problems. This is particularly
true as we survey the unmet needs of our rapidly
increasing elderly population.
Program Activity in 1960
During 1960, 16,401 public housing dwellings
were placed under management, while construction
was started on 28,879 more. These were
modest advances considering the expanding local
interest in the program. In 1960, localities asked
for and were given program reservations for
24,238 new low-rent units, the largest number since
1952. Local housing authorities entered into preliminary
loan contracts providing funds for
preliminary surveys and planning for 18,635
dwelling units during the year, the largest figure
for any year since 1952. By the end of 1960, it
was evident that the authorization to contract for
37,000 units of public housing, contained in the
Housing Act of 1959, will be exhausted by the
middle of 1961, plus a considerable backlog of
requests that cannot be met.
Housing for the Elderly
PHA program activity in the field of housing
for the elderly at the end of 1960 totaled 18,912
homes in 228 developments. Of these, 1,246 were
under management, 3,985 were being built, and
13,681 were in various planning stages. Approximately
7,000 of the units programed were for de-
Chart IV-1
HOUSING ACT OF 1949
* . New program only—August 1949—December 1960
210
Construction was nearing completion when this photo of Elmwood Court in Paducah, Ky., was taken. These units, designed
specifically for use by the elderly, provide one-level living.
velopments designed wholly for elderly tenancy.
The remaining homes are in developments planned
for both elderly and younger families.
Since there has never been an age limit for
families seeking low-rent public housing, the program
has been sheltering elderly families from its
inception. In 1956, legislative recognition was
given to the fact that a large number of our elderly
citizens have lost their mates when Congress redefined
the term “family,” for public housing purposes,
to include single elderly persons. As of the
end of 1960, a carefully made estimate of those
62 years of age and older being housed under the
low-rent program, set the figure at 104,000.
A Look to the Future
PHA program activity in 1960 has laid a foundation
upon which to build the program envisioned
by the Housing Act of 1949. The 1950’s are behind
us; the decade of the 1960’s is before us. If
we are to meet the housing challenge of “a decent
home and a suitable living environment for every
American family” set for us by the blousing Act
of 1949, we must be about it.
Low-Rent Public Housing Program, as of Dec. 31, 1960
Program Projects Units
Total__________________________________ 3,351 593, 286
Under construction_____ __ _ ___ __ 225 36,360
Not under construction . ___ 456 78 773
Under management ... ___ 2, 670 478,153
Public Law 171 1___ __ _______ _ 1, 993 270 791
Public Law 412 2__ _ _______ _ 361 114 170
Public Law 6713__ _________ _____ 186 46, 843
PWA 4__________________________ 46 21 063
Public Law 475 5______ _________ _ 82 24 703
Farm Labor camps 6_________________________ 2 583
1 Housing Act of 1949.
2 United States Housing Act of 1937.
3 Built for World War II defense workers, but later converted to low-rent
use; became law in 1940.
4 Built by Public Works Administration in mid-1930’s and brought into
low-rent program by Executive order.
3 Lanham Act permanent housing conveyed to local housing authorities
for low-rent use; became law in 1950.
6 Built by Department of Agriculture for migrant farm workers; conveyed
to PHA for low-rent use under terms of the Housing Act of 1950.
The amounts of payments becoming due and
made on all low-rent developments during fiscal
year 1960 are as follows:
Maximum annual contributions payable__ $147, 523,103
Annual contributions actually paid:
Amount ________________________ $131,188,377
Percentage of maximum____________ 88. 9
211
Section 3
Development Progress
Program Authorizations
Under the Housing Act of 1959, the PHA was
authorized to enter into annual contributions contracts
with local housing authorities for 37,000 additional
dwellings. Unlike previous authorizations,
the new legislation did not specify a deadline
date by which the authorized units must be
placed under contract. The required establishment
of policies and procedures responsive to the
new legislation was well under way by the close
of the first quarter, 1960.
Program Activity
Total production for 1960 reflects an increase
in development activity. It is evident that the
authorization of 37,000 units for contracting will
be exhausted by the middle of 1961.
Increased activity was evident in all phases of
development during the year. Interest on the
part of localities to participate in the program,
the low-rent barometer, began early in the year
and continued strong throughout 1960. The number
of local housing authorities participating increased
from 1,060 to 1,146 during the calendar
year. Regional office staffs speeded operations to
keep up with this increased activity. Despite little
or no increase in staff, the regional offices maintained
production schedules with the result that
program expansion kept pace throughout the
year.
The influx of programing requests from localities
increased steadily over the year. Localities
applied for and were given program reservations
covering 24,238 units, the largest number in any
year since 1952. Of these, local housing authorities
entered into preliminary loan contracts providing
funds for preliminary surveys and planning
for 18,635 dwelling units during the year.
Again, this was a greater figure than for any
year since 1952.
Construction starts for 1960 exceeded all previous
production efforts since 1953. The local authorities
placed under construction 28,879 units
during the year. A total of 16,401 homes were
completed for occupancy.
As was brought out in the hearings on the Housing
Act of 1959 before the Housing Subcommittee
of the Senate Banking and Currency Committee,
a substantial portion of the backlog of unbuilt
units, shown in PHA records, was either dormant
or in an inactive status. Steps were taken to weed
out those programs which were not proceeding.
This began with contacts with the local housing
authorities to investigate the possibility of resuming
activities. Where local housing authorities
indicated this was impossible, the PHA terminated
its contract with the authority. During the
year, annual contributions contracts with 12 authorities
for 1,366 units, preliminary loan contracts
for 12,019 units, and program reservations for
6,574 units were cancelled by mutual agreement.
Housing for the Elderly
Local housing authorities indicated an increased
awareness of the need for housing for the elderly
by expanding their low-rent housing programs in
1960 to provide additional units for them. Some
local authorities presented their first programs to
build housing specifically for our elderly citizens.
Progress in this field during the year is as follows:
Program Activity During 1960—Units for the Elderly
Placed under program reservation___________ ,_ 8, 089
Annual contributions contracts executed________ 5,126
Construction started________________________ 3, 331
Completed for occupancy-------------------------------- 761
These programed units represent a substantial
increase in the plans of authorities to undertake
housing for the elderly. In addition to the units
noted above, which were programed specifically
for the elderly, approximately 14 percent of all
available dwellings are occupied by elderly families.
Status of housing specifically designed for the elderly, as
of Dec. 31, 1960
Status Number of
projects
Dwelling
units
Preconstruction- __________ _ _ _ 1 143
62
23
1 13,681
3,985
1,246
Construction..___ ____ ______
Management.. ____________
Total______ ___________ _______... 228 18,912
i Includes 9 projects (564 units) with annual contributions contracts approved
but not yet executed.
Outstanding projects for the elderly, now in
operation, have been planned as part of the overall
community and not as a special venture isolated
from the physical and social planning for all age
groups.
Although there has been a rapid expansion of
interest in the field of special housing for the
elderly, progress to date has been hampered by the
lack of basic economic and sociological facts about
housing requirements of older persons. Pilot
management surveys to correct this have been
made in the cities of Minneapolis, St. Paul, and
Toledo. It is hoped that more can be done in the
212
HOUSING FOR THE ELDERLY
Units by Status
December 31, 1959 and December 31, 1960
immediate future in cooperation with other federal
and local agencies.
The recent revision of PHA’s basic standards
for planning and design of public housing has
broadened the requirements for dwellings designed
specifically for elderly. These changes provide
for increased room temperatures; increased room
count and dwelling unit area; the inclusion of
divided living and sleeping space for single person
occupancy; and increased community space requirements.
This revision followed extensive
studies of many projects in operation. Preliminary
information indicates that 51 percent of
tenants 65 and over who moved into PHA projects
during 1960 were single persons.
A replica of an apartment from San Antonio's
well known Victoria Plaza Apartments, a significant
project for 185 elderly families, completed in
1960, is to be displayed in Washington, D.C., for
the delegates to the White House Conference on
the Aging in January, 1961. This project is suitable
for families of any age but it was conceived
and intended to meet the problems and limitations
of those past 65. It contains 36 design features
aimed at better living for the elderly. Those safety
and livability features are unobtrusive but helpful.
They include the following:
1. Non-skid gallery.
2. Railings with space panels and continuous hand rail
mounted inside the main railing to create a feeling
of safety and security.
3. Tile panels on “hand touching areas” of the concrete
columns.
4. Sitting area created by projections dividing each
apartment, thus a place to sit, to visit, and a neighborly
feeling.
5. Galleries oriented to breeze and to provide a view.
6. Alarm bell in gallery roof at each apartment to alert
neighbors when help is needed.
7. Louvered screen door, permitting ventilation, privacy,
and a feeling of security.
8. The threshold—a smooth low-rise from gallery to
interior, no projections to stumble over.
9. Lever handle for enfeebled hands instead of knobs.
10. Large card holder on door containing at the back the
names of persons to call in case of emergency.
11. Wide door for easy access of wheel chairs, etc.
12. Light, pleasant and spacious appearance. Use of
colors and textures and dividers to achieve this atmosphere
instead of walls, these also to assist in making
areas more furnishable.
13. Bracket lights and suspended ceiling lights to permit
changing lamps without climbing.
14. Switches, base plugs, TV outlets set at convenient
heights.
15. Convector cabinets at windows providing safe heat
and a shelf for plants and knick-knacks.
16. Dining table by the window to overcome loneliness
and provide a view with a plug in the convector for
toaster or coffee pot.
17. Acoustical ceiling to reduce the sound level within
the apartment.
18. All electric kitchens emphasizing safety.
19. Raised refrigerator giving maximum access to all
sections with a minimum of stooping.
20. Generous amount of storage with as much as possible
at middle height.
21. Finishes and surfaces easy to clean and maintain.
22. Lever handles on all plumbing
23. Bed so located that a wheel chair may have direct
access to bath.
24. Night light between bedroom and bathroom.
25. Air-conditioning outlet.
26. Double hung windows for better ventilation and ease
and safety in cleaning.
27. Window sills low enough to permit view when
bedridden.
28. Three portable closets which can be shifted to create
differences in room space and arrangement, entries,
or which with the addition of a screen can provide
complete privacy. Or closets can be moved to create
one large room so that the bedridden can observe
other activities when desired.
29. Non-slip tile floors.
30. Heat lamp in ceiling—no possibility of burns if falls
occur.
31. Shower without curb for easy access.
32. Tempered glass doors that permit water speed and
heat to be regulated before entering shower. Also,
these displace curtains that may be pulled down when
clutched to prevent fall.
33. Wood seat in shower.
34. Continuous grab bars in entire bath and shower.
35. Emergency bell by commode.
36. Tile walls for ease of cleaning.
Policy and Procedure
During 1960, development policy and procedures
were revised. New regulations were issued
and the revised PHA policy was then stated as
follows:
“It is therefore expected that local authorities
will:
“1. Consider the availability and suitability of
existing housing which may be utilized for housing
591772—61——15 213
Victoria Plaza Apartments, in San Antonio, Texas, contains 185 dwelling units of which 16 are two-bedroom apartments, 16
efficiencies, one is a three-bedroom custodian apartment, and the remaining are one-bedroom dwellings. All are designed
for safe and comfortable living for elderly persons.
low-income families at total development costs below
those that would be incurred in the provision
of new housing.
“2. Select sites which, in addition to satisfying
the requirements of the PHA, conform with local
planning considerations and the views of the local
governing body, to obviate delays or interruptions
in land acquisition or construction, and
“3. Formulate projects that are (a) not elaborate
or of extravagant design or materials and (b)
consistent with the type of private housing produced
for families of average income and similar
sites in the locality.
sfs * * %
The provision of decent housing for families of
low-income is the responsibility of Local Authorities.
This Administration will render every assistance
to Local Authorities in carrying out this
objective consistent with its obligations under the
U.S. Housing Act as amended.”
Manual Procedures
During 1960, the low-rent housing manual of
development procedures was in process of revision.
This part of the manual in new form should be
published in 1961. In it, PHA standards for planning
and design will be consolidated with related
material in several sections of the previous manual
being brought together. Methods of determining
allowable community facilities, outside recreation
areas, and central office space are all being changed.
Delegation of Authority
New delegation of authority for development
actions was issued in 1960 to (1) reduce the number
of minor determinations required of the Commissioner,
(2) authorize decision on many types
of development matters by the Assistant Commissioner
for Development and, (3) permit approval
by regional directors of certain variations from
standard contracts for personal services and from
PHA standards for design. As a result, the num-
214
ONE BEDROOM LIVING UNIT
Above is the floor plan for the one-bedroom apartments in San Antonio’s Victoria Plaza Apartments, specially designed low-rent
public housing for use by the elderly.
ber of requests to the central office for waivers of
PHA requirements has been substantially reduced
as well as the preparation of many supplementing
recommendations.
Bulletins and Guides Specifications
During the year substantial progress was made
in revising, simplifying, and shortening technical
bulletins on various subjects.
Six of PHA’s standard guide specifications
were revised and reissued during 1960. Work
was in progress on seven additional guides which
should be published early in 1961.
Reuse of Existing Housing
During the latter half of 1960, emphasis was
placed on the possibility of rehabilitating existing
structures for public housing needs, particularly
for large families. Such programs were considered
in New York, Philadelphia, and Chicago. Of
the experimental program for 200 rehabilitation
units authorized in 1958 for Philadelphia, because
of litigation, only 28 were reported available for
occupancy on December 31, 1960. These were
single family dwellings in typical row house
blocks.
Costs
It was evident that construction costs had advanced
in a few sections of the country to the point
where projects of small units such as those entirely
for elderly families approached the existing
statutory room cost limitations.
Scattered Site Projects
There were approximately 16 projects with
scattered site locations under construction during
1960. These offer certain advantages with respect
to use of existing facilities such as schools, streets,
public utilities and transportation, and in adaptation
to community patterns for acceptable spacing
and appearance. The increase in cost of household
utilities services to the tenant, however, may
average $3.00 per unit per month more than corresponding
costs for a project of 100 units on one
site. The effect of scattered sites upon utility costs
varies widely with location and local rate schedules.
There are situations where this plan has been
estimated to have cost $6.00 more per unit per
month for utilities than would have been required
in a single-metered project with the most
favorable distribution system and available rate
structure.
Slum and Nonslum Sites
During 1960, final title action was obtained for
190 PHA-aided projects on nonslum sites and 37
projects on slum sites. Land acquisition data
relating to these are summarized as follows:
Number
of
projects
Number
of
D.U.’s
Acres
Total
purchase
price
Price
per
sq. ft.
Price
per
D.U.
Nonslum____
Slum________
190
37
12,921
12,054
1, 678.01
285.82
$7,631,130
27, 543,708
$0.10
2.21
$589
2,285
227 24,975 1,963.83 35,174,838 —
215
Although only 16 percent of the projects were
on slum properties, this group contained approximately
half of all dwelling units and accounted
for 78.2 percent of total land cost. The slum sites
cost $1,696 more per unit of new construction than
nonslum. The land acquisition record of all proj -
ects reported from January 1950 through June 30,
1959, indicates similar percentages for the number
of slum sites and their cost:
1 15.8% slum projects.
2 36.5% of programed units on slum sites.
3 20.6% of total acreage on slum sites.
4 76.4% of total cost went for slum sites.
3 $1,595 more per unit of new construction for slum sites.
Number
of
projects 1
Number
of
D.U.’s2
Acres 3
Total
purchase
price 4
Price
per
sq. ft.
Price
per
D.U.«
Nonslum____
Slum. ... .
1,564
293
162, 545
93, 492
14, 382
3, 741
$57, 000, 283
181, 845,139
$0. 091
1.116
$350
1,945
1,857 256, 037 18, 123 238, 845, 422
Although most of public housing sites are vacant
or nonslum, the Public Housing Administration
program has resulted in a substantial amount
of slum clearance described under the heading
“Equivalent Elimination” in the following “Management
Progress” section. More than half of any
total area defined as a slum site was occupied by
substandard dwelling units.
Of the 227 projects for which land acquisition
was completed in 1960, only 7 sites were obtained
in whole or part through urban renewal agency
developments. Such projects are included in the
above summary as nonslum acquisitions because
they were cleared when transferred to the local
authorities.
The summary data for such projects are as follows—
a relatively small part of the PHA
program:
Number of projects Number of
D.U.’s
Acres
acquired
Purchase
price
7____________________________________ 724 39.17 $656, 423
216
Section 4
Management Progress
Income Limits, Rents, and Occupancy
Requirements
The Housing Act of 1959 gave much greater
responsibility to local housing authorities for the
administration of their low-rent projects. As
amended, the law provides that income limits for
occupancy and rents shall be fixed by each local
authority (and approved by PHA) after taking
into consideration factors which might affect the
rent paying ability of the family, and economic
factors which affect the financial stability and solvency
of the. project. The law also includes the
requirements that (1) income limits restrict occupancy
to families of low income; (2) rents
be within the financial reach of the families
housed and (3) income limits and rents be so
established that a gap of at least 20 percent (or 5
percent in the case of any family displaced or
about to be displaced by any public project or
action) be left between the upper rental limits
for admission and the lowest rents at which private
enterprise unaided by public subsidy is providing
(through new construction and available
existing structures) a substantial supply of decent,
safe and sanitary housing. In addition, the
income limits and rents fixed by each local authority
must meet the requirements of local applicable
law.
During 1960, a number of local housing authorities
adopted rent and eligibility policies or
amended existing policies to reflect the provisions
of the 1959 Act. Since each local authority selects
the tenants for its projects, an applicant must provide
the information necessary for the authority
to determine the family’s eligibility, preference
rights, if any, and the rent to be paid. To be
eligible, an applicant must meet the following
federal requirements which were in effect during
1960:
1. The applicant or applicant group must be a
family of two or more persons or a single
elderly person. (An elderly person or an
elderly family means a person or family, head
or spouse, of retirement age as defined in
Section 216(a) of the Social Security Act—
now 62 for women and 65 for men—or who
has attained the age of 50 and is under a
disability as defined in Section 223 of that
Act.)
2. The family income must not exceed the income
limits for admission fixed by the local
authority and approved by PHA.
3. The family must be living under substandard
housing conditions, or be about to be displaced
by a public project or action, or be
without housing for other reasons and
through no fault of its own. (This requirement
may be waived for veterans, servicemen,
and elderly families and persons, as defined.)
Some local authorities have established other permissible
admission requirements for their projects,
such as length of residence in the community.
By law, eligible families displaced from their
homes by any public project or action are entitled
to preference in the occupancy of low-rent projects.
Among such displacees, for dwellings of
given sizes and at specified rents, preference must
be given to: Families of disabled veterans, of deceased
veterans and servicemen, and of other veterans
and servicemen. (Veterans and servicemen
must have served in World Wars I or II or in the
Korean conflict.) This preference order also applies
to nondisplaced eligible families. At its
option, a local authority may, with respect to
dwellings suitable for their use, give prior preference
(i.e., preference over and above that stated
above) to elderly persons and families. No family
may be discriminated against because its income is
derived in whole or in part from public assistance.
Each local authority must make at least annual
reexaminations of the incomes of tenant families
to determine whether they are eligible to continue
in occupancy. Families found to be ineligible for
occupancy are required to move from the projects.
Families eligible for occupancy, if necessary, have
adjustments made in their rent appropriate to their
redetermined incomes. Whether the incomes of
tenants are redetermined between the annual reexaminations,
with consequent adjustments made in
their rent, is a matter for determination by each
local authority.
Special Census Tabulations
During the latter part of 1959, PHA advised
all local housing authorities that advance arrangements
had been made with the Bureau of the
Census for special tabulations from the 1960 Census
of Housing. Such information would be particularly
useful to local housing authorities in
establishing income limits and rents, and for planning
purposes. In keeping with the spirit of local
autonomy under the Housing Act of 1959, PHA
emphasized that the decision to contract for the
special tabulations rested solely with each local
authority.
In February 1960, the Bureau found it possible
to increase the scope of the special tabulations and
reduce the cost for cities of over 200,000 popula-
217
LOW-RENT DWELLING UNITS
. . . Under Jurisdiction of PHA by program at end of each year 1937-1960
tion. At the same time, the deadline for submitting
requests by local housing authorities for
the special tabulations was extended from January
25 to March 25,1960. A total of 136 local authorities
and 3 additional local agencies contracted
with the Census Bureau for the special tabulations
during 1960. Delivery of the special tabulations
to the contracting authorities is expected around
mid-1961.
PHA-NAHRO Cooperation—Income Limits
The Housing Act of 1959 vested responsibility
for fixing eligibility requirements and rents in
local housing authorities, subject to PHA approval.
In August 1960, a committee made up of
representatives of local housing authorities, staff
members of the PHA, and other persons knowledgeable
in the field, was organized to consider
the effect of the Housing Act of 1959 on the fixing
of income limits and rents for public housing and
to assist local housing authorities in establishing
maximum income limits in terms of the needs and
desires of the community. The committee prepared
an educational bulletin entitled “Income
Limits.” The bulletin, which will be issued during
the early part of 1961 under the joint sponsorship
of PHA and the National Association of
Housing and Redevelopment Officials, provides
general background information and an analysis
of the economic considerations involved in establishing
income limits.
Equivalent Elimination
As of June 30, 1960, the communities concerned
had accomplished 88.5 percent of the equivalent
elimination requirement under the Housing Act
of 1949, all within the 5-year period the law
specifies after completion of the new public housing.
This equivalent elimination requirement
involves the elimination by demolition, condemnation,
closing, or compulsory repair, of unsafe or
insanitary dwellings in the locality in a number
equal substantially to the number of low-rent
homes built by a local housing authority. This
requirement, however, does not apply to low-rent
housing built in rural nonfarm areas, or to housing
developed on a slum site. The law also permits
deferment of equivalent elimination in areas
where a short supply of housing exists for lowincome
families.
By the end of fiscal year 1960, 170,181 substandard
units had been eliminated as a result of the
requirements of the Housing Act of 1949.
Rent Collection
During 1960 the PHA management division
conducted a study of the amounts written off to
collection loss by local authorities for the 2-year
period which ended June 30, 1959. The results
were issued to the PHA regional offices with tables
showing the collection loss trends of the program
both on a nationwide and regional basis.
218
The national totals revealed that there was a
collection loss of $1,219,499 out of the total rental
income of $174,424,885 which was charged to tenants
during the fiscal year which ended on
June 30, 1959. This amounted to 0.69 percent or
27 cents per dwelling unit per month as compared
to 0.76 percent and 28 cents per unit per
month for the fiscal year which ended on June 30,
1958.
One purpose of this study was to stimulate
action to reduce collection losses and thus counter
the trend toward increased operating costs and
reduced net income. Responses from the regional
offices have evidenced their continuing interest.
Reports on the status of rent collections are received
and reviewed quarterly in the regional
offices. Special attention is given to authorities
with rent collection problems.
Cost of Operating Elderly Housing
Emphasis on housing for the elderly and the
development of projects specifically designed and
allocated for the elderly has made necessary a
consideration of the operating costs. This is to
determine the feasibility of operating such projects
on a financially solvent basis. PHA recognizes
that a lesser average room count will bring
about a reduction in certain operating costs, such as
utilities and some maintenance items. There is
also evidence that there may be other differences
in operating costs due to the occupancy of such a
project by elderly families, whose living habits
are generally more conservative.
Since none of the projects for the elderly has
been in operation long enough to provide such
data, during the latter part of 1960 a questionnaire
was developed and distributed to selected local
housing authorities. The questionnaire asked for
comparative cost data and estimates on elderly
and non-elderly families to be developed from existing
records. It is hoped the results obtained by
this survey will indicate the extent to which
normal operating costs should be adjusted to reflect
estimated costs for operation of a proposed
project when it is to be occupied exclusively by the
elderly.
Waiver of Operating Budget Approval
Early in 1959, PHA agreed with congressional
leaders to a 2-year trial period in which local
authorities would be given the opportunity to approve
their own operating budgets. After the
Housing Act of 1959 was passed, the PHA announced
to all local authorities that, subject to a
few conditions and their expressed desire, the contract
requirement of prior PHA approval of their
proposed operating budgets was waived. During
1960, the waiver was requested by 120 local housing
authorities which represent 14 percent of the
local authorities with programs in management.
These local authorities as of December 31, 1960,
operated approximately 38 percent of the total
units in management. Copies of proposed operating
budgets are still forwarded to the PHA in
order to enable it to make proper subsidy estimates
and to furnish the local authority with comments
and suggestions that may prove helpful. Plans
were formulated during 1960 for the accumulation
of data for use in evaluating operations under the
budget approval waivers.
Audits of Local Authorities by Independent
CPA’s
In accordance with the legislative history of the
Housing Act of 1959, PHA, on January 21, 1960,
authorized local housing authorities to engage independent
certified public accountants to make an
annual audit of their operations in lieu of regular
audit by PHA. During 1960 one local authority
requested PHA’s agreement to the engagement of
a certified public accountant.
Progress of Consolidated Supply Program
In 1952 the Public Housing Administration,
since local housing authorities did not have pricing
guides to assist them in purchasing needed
items, established, openend supply contracts under
public bid taking for LHA purchases. The contracts
have since been made anually by PHA and
cover common items of recurring need, such as
refrigerators, ranges, water heaters, paints, and
so on.
The first dollar participation report was prepared
for the period April 1,1954, through March
31, 1955. Based on copies of the purchase orders,
the report listed $514,074.40 worth of purchases
for that period.
During calendar year 1960, the local housing
authorities’ purchased items, under the consolidated
supply program, totalled $4,497,566.49
which was a 26 percent increase over 1959 purchases.
This is almost nine times the first year’s
participation in the program. The 1960 purchases
resulted in savings to the various local housing
authorities of approximately 20 percent or some
$900,000. The phenomenal growth of the program
reflects its usefulness and general acceptance by
the local housing authorities operating federally
subsidized low-rent housing projects.
Since its inception, the program has afforded
local housing authorities a pricing and quality
yardstick for their needs, which they often use
in purchasing locally at prices below those
established by the program.
Community Relations
During 1960, the PHA continued to encourage
local housing authorities to work with local welfare,
health, educational and recreational agencies
to provide the same services to the families in
low-rent housing as are available to other residents
of the community. With housing needs of
the elderly becoming increasingly complex,
coupled with concentration of large families al219
ready in housing, PHA continued to work with
LHA’s and community agencies to meet these
needs.
Mortgage Servicing Activities
With the sale to the Federal National Mortgage
Association of the mortgages held on other than
low-rent properties, the mortgage activity of PHA
was reduced to servicing those secured by low-rent
properties representing corporate assets.
As of December 31, 1959, the PHA low-rent
mortgage portfolio consisted of 258 mortgages
having an outstanding balance of about $1,800,000.
By June 30,1960, the date on which the sale of the
other mortgages to FNMA was completed, PHA
held 248 low-rent mortgages having about
a $1,065,000 balance. By December 31, 1960, the
portfolio had been reduced to 238 mortgages
having a balance of about $1,020,000.
Operating Guides
During 1960, the PHA issued a new management
manual for use by local housing authorities
in the administration of their projects. This
manual was designed to implement the policy, set
forth in the Housing Act of 1959, of vesting maximum
responsibility in the local authorities. Instructions
to the PHA staff were also revised to
conform with the statutory policy statement and
the new management manual.
During the latter part of 1959, work was begun
on preparation of a management handbook which
will furnish to local authorities advisory and
guidance material developed by PHA through
many years of experience in the field of project
management. The various sections of the handbook
will cover the most important aspects of a
local authority’s management program and should
prove helpful in meeting the problems encountered
in the day-to-day project operations.
Project Operating Expenses
PHA’s interest in the expenses of a local housing
authority is based on the fact that net income
(residual receipts) is used to reduce the federal
annual contribution.
Experience has shown that project operating
expenses have increased over the years at a relatively
rapid rate. A study was undertaken during
early 1960 to determine whether the increase in
such expenses could be related to the general increase
in costs. Comparisons were made of available
data for 1952 and 1958 showing salaries of
comparable job classifications in private industries
and in State and local governmental activities.
Similar comparisons were made of costs of supplies,
materials, and equipment commonly used m
low-rent projects. The study indicated fairly conclusively
that the increased cost of operating the
projects was caused by the aging of the projects
and rising costs of materials and Labor, and not by
inefficient or uneconomical operating practices.
Within local housing authority expense categories,
the major account classifications showed
varying degrees of change as follows:
Families in Public Housing
Account
Average per unit per month
1952 1958 Change
(percent)
Management expense___________ _______ $4.16 $4. 95 +19.0
Operating services _ ___ 2.13 2 95 +38 5
Utilities______ ________ _ _______ 8. 29 10 22 +23.3
Repairs, maintenance and replacements (ineluding
replacement of equipment)______ 8. 78 12. 57 +43.2
During the first half of 1960, 256,000 tenant
families were reexamined to determine their eligibility
for continuing in occupancy in low-rent
projects. While the percentage of families without
children increased over comparable figures for
the first half of 1959, the families with children
continued to predominate in low-rent public housing.
The following table shows the distribution
of families according to the number of minors
among families reexamined during the first half
of 1960:
Number of minors Percent of
families
None--------------------------------------------------- 24.5
1 or 2_________________________________ 33. 7
3 or 4_________________________________ 26. 4
5 or more______________________________ 15. 4
Two percent of the families reexamined during
the first 6 months of 1960 were found to be ineligible
for continued occupancy. As of the end of
1960, 3,400 tenants or less than 1 percent of all
tenants were reported to be ineligible for continued
occupancy. In accordance with federal
law these ineligible tenants were required to move.
The median eligibility income for all families
reexamined was $1,996 while it was $1,965 for
those families found to be eligible for continued
occupancy.
The median net annual income of families reexamined
and found eligible to remain in public
housing during the first half of 1960 was $2,294—
$66 higher than for the comparable period of 1959.
The 1960 figure was 32 percent above that for
1950. In terms of purchasing power, however,
average tenant income was only 6 percent above
that for 1950.
As of December 31, 1960, the median income
limit for admission, after exemptions permitted by
local housing authorities, was $3,100 for an average-
size family. About 5 percent of the localities
with low-rent public housing programs had limits
of $2,500 or less, and about 28 percent had limits as
high as $3,500. The median monthly gross rent
of all families admitted during the first half of
1960 was $39. The median monthly gross rent of
families reexamined during the same period was
$42. The figures represent a $1 increase over the
220
MEDIAN NET ANNUAL INCOME
... of families reexamined during first 6 months,
and determined eligible
$ 2500 -|
•50 ' 51 '52 * 53 ' 54 ' 55 ' 56 ' 57 ' 58 '59 '60
First half
MEDIAN NET ANNUAL INCOME
... of families moving into low-rent housing 1949-1960
corresponding rents for 1959. This is probably
due (1) to the continuing, concerted effort by local
housing authorities to obtain more revenue and (2)
to some increase in family income.
The net annual income of families moving into
low-rent public housing showed a marked increase
during the 10-year period from June 30, 1950, to
June 30, 1960. During this period the median net
income increased by 38 percent-—from $1,615 to
$2,222. The median net income of families moving
in during the second quarter of 1960 was 1 percent
above that for the corresponding quarter of the
previous year. The 1959 figure was $2,193.
The economic level of the families moving into
public housing has not shown as much improvement
as the reported dollar income would indicate.
When adjustments are made for the increase in
the cost of living, with 1947-49 dollars used as the
base, average income of new tenants increased only
10 percent between 1950 and 1960 and declined by
one-half of 1 percent from 1959.
The Elderly in Public Housing
Eleven percent of the families reexamined who
were living in low-rent public housing at the time
of the enactment of the Housing Act of 1956,
which provided for the admission of single elderly
persons for the first time, were classified as
elderly. Of those families reexamined during the
first half of 1960, 17 percent represented elderly
families and single elderly persons as defined in the
Housing Act of 1956 as revised by the Housing
Act of 1959.
The median net income of single elderly persons
admitted during the first half of 1960 was $1,075,
an increase of 6 percent over the $1,013 median
net income figure for single elderly persons for
1959.
Intergroup Relations
As of December 31, Negroes occupied 46.9 percent
of the total low-rent units over the country in
1,534 of 2,549 projects. Of these 1,534 projects,
492 were reported as completely integrated; 961
were segregated; one Negro family was in each of
22 projects otherwise all-white; one white family
was in each of 11 projects otherwise all-Negro.
It was impossible to figure individual patterns for
48 projects which were combined in reporting
and included both integrated and unintegrated
projects.
Displacement of Negroes from areas designated
for urban renewal, expressway, and other public
improvements continued to be a major problem
and indicates that the need for low-rent housing,
particularly for relocation purposes, has not
abated.
591772—61--------16 221
Section 5
Financing Public Housing in 1960
The outstanding capital investment of local
housing authorities in low-rent projects aided by
the Public Housing Administration reached a total
of more than $3.7 billion at the end of 1960.
As has been the case since 1953, the principal
objectives of the PHA in this financing have been
to keep federal loans to a minimum and rely primarily
upon borrowings by local authorities from
private investors. As a result, 97.4 percent of the
amounts outstanding on December 31, 1960, has
been secured by local authorities through the sale
of their notes and bonds to private investors in
the conventional money markets. Outstanding
loans from PHA were only $98.3 million, or 2.6
percent of the total.
Major Public Housing Financing Methods
Three principal types of obligations are used in
financing lowT-rent housing projects. In early
planning stages, both under preliminary loan and
annual contributions contracts, the PHA makes
direct loans to local authorities. As far as possible,
the PHA uses its own capital funds in
making these loans. The balance is borrowed
from the Treasury.
As project development proceeds and capital
requirements increase to sizeable amounts, local
authorities sell their own short-term obligations,
known as temporary notes, to private investors
and repay their initial borrowings from the PHA.
As construction advances, additional notes are
sold. Temporary notes are also being used for
financing several groups of completed projects,
most of which will be refinanced through the sale
of bonds.
When a project nears completion and annual
contributions are about to begin, it is permanently
financed and the outstanding temporary notes are
paid off through the sale of long-term serial bonds,
which generally extend to 40 years. The amount
sold is normally sufficient to cover the entire capital
cost of a project, but if further costs are subsequently
incurred, additional funds are lent by
the PHA.
The amounts of the various types of obligations
outstanding at the end of 1960, in comparison with
the amounts at the end of the previous year, are
shown in the following table:
Outstanding obligations of local authorities under United
States Housing Act of 1931
Dec. 31, 1959 Dec. 31, 1960
Held by private investors:
Bonds __ __ - - ____ $2, 595,875,000
9,857, 500
836, 360,000
$2,828,073,000
10,914,000
790, 330,000
Long-term notes______________________
Temporary notes--------------------------------
Held by PHA:
Bonds _____ - -- -- - - --
3,442,092, 500 3, 629, 317,000
60,949,000
7,716, 677
18,783,974
60, 559,000
9, 781, 502
27,954, 743
Long-term notes______________________
Short-term notes---------------------------------
Total _ ___ ______ ____
87,449, 651 98, 295,245
3, 529, 542,151 3, 727, 612,245
During calendar year 1960, new borrowings of
local authorities for investment in their housing
programs were over $261.5 million, with a net retirement
of obligations of $63.4 million. The
serial amortization of bonds accounted for nearly
$53 million of this amount. This amortization will
gradually increase, since debt service is set up as
a uniform and level amount for each year, and
principal payments will increase as interest payments
decrease. Details of the net change in outstanding
obligations during 1960 are as follows:
Change in outstanding obligations in 1960:
Obligations outstanding Dec. 31,
1959_______________________ $3,529,542,151
Borrowings in 1960 for new investment
______________________ 261,536, 942
3, 791, 079, 093
Repayment of obligations in 1960:
Bonds held by private
investors---------- $52, 942, 000
Long-term notes held
by private investors___________
2,136, 000
Other obligations (primarily
temporary
notes)_________ 8, 388, 848 -63, 466, 848
Obligations outstanding Dec. 31, 1960--- 3, 727, 612, 245
Temporary Note Financing
Temporary notes are used to raise substantially
all short-term funds used in financing the public
housing program. Temporary notes were originally
used for the financing of projects during
their development stage. In recent years, however,
they have also been used in connection with
several groups of completed projects which are
receiving annual contributions.
222
Temporary notes are secured by an unconditional
obligation of the PHA to advance funds, if
necessary, to cover both the principal and interest
of the notes at their maturity. The obligation of
PHA to advance such funds is set forth in a
“Requisition Agreement” which is pledged by the
local authority as security for its temporary notes.
The power of PHA to honor Requisition Agreements
stems from its statutory authorization to
borrow funds from the Federal Treasury.
The purposes for which temporary notes were
outstanding as of December 31, 1960, are shown
in the following table:
Completed projects receiving annual contributions
:
In lieu of long maturities in connection
1953 bond sales_________________ $130, 563, 647
In replacement of old series A and B
bonds on original program_______ 121, 556,165
Projects not yet permanently financed- 36, 063, 723
Public Law 671 projects___________ 14, 018, 253
New projects too small for sale of
bonds_________________________ 154, 007, 099
Additional capital cost on permanently
financed projects------------------------- 50, 031, 945
Administrative loans_______________ 236, 000
Subtotal_______________________ 506, 476, 832
New projects not receiving annual contributions
:
Construction loans________________ 283, 853,168
Grand total____________________ 790, 330, 000
The first notes listed above are outstanding in
connection with projects for which bonds were
sold in 1953 when interest rates on very long-term
money were unusually high. In the four bond
sales held that year, the maturities offered to private
investors were limited to 30 years. The balance
of the capital, about 32 percent, which would
normally have been covered by 31-40-year bonds
was raised through the sale of temporary notes to
private investors. The total so financed by temporary
notes in 1953 was $231.6 million. Since
that time, bonds have been sold to replace nearly
half of these temporary notes, reducing the
amount outstanding to $130,563,647.
The second item listed above represents the
amount of outstanding notes resulting from the refunding
of Series A and B Bonds which were
issued to cover the costs of projects built under
the original 1937 low-rent housing program.
These projects were originally financed by limited
amounts of Series A Bonds sold to private investors,
and much larger amounts of Series B Bonds
held by PHA. To reduce PHA borrowings from
the Treasury, old bonds of these types totaling
$219.5 million have been retired. A number of
these projects have now been refinanced through
the sale of bonds and $121,556,165 of temporary
notes are still outstanding.
The notes outstanding on the projects not yet
permanently financed will eventually be financed
through the sale of bonds. Most of the remaining
temporary notes outstanding in Public Law
671 projects and on other new completed projects
are on such small construction that the sale of
bonds is not considered feasible. It is planned
to continue the successive reissue of temporary
notes on the projects until their capital costs have
been liquidated.
Temporary notes totaling $283,853,168 are outstanding
on new projects still under development.
As soon as the projects approach completion, they
will be permanently financed by the sale of New
Housing Authority Bonds or Series A Notes.
Temporary notes are the obligations of local
authorities and are tax exempt as to interest. Because
of this, and their exceptional security, they
command an extremely ready market and have
met with very favorable investor acceptance. In
1960, these notes have accounted for approximately
one-fourth of all short-term, tax-exempt
securities brought to market by all borrowers.
Sale of Temporary Notes in 1960
Temporary notes are issued with maturities
ranging from 2 or 3 months up to 12 depending
upon the purpose to be served. On completed
projects too small to be financed with bonds, temporary
notes generally have maturities of 12
months. Projects under construction are generally
financed with 6-month notes, so that additional
funds may be provided when the notes are
reissued. On projects where the sale of bonds is
contemplated in the near future, note maturities
are arranged to coincide with the expected delivery
date of the bonds. The average maturities of temporary
notes are currently about 7 months, so that
in any given year the total sales of notes are almost
twice the amount outstanding at any time. In
1960, for example, a total of $1,283,467,000 of
temporary notes was offered for sale, although the
amount outstanding during the year averaged
only $765 million.
The PHA has arranged with the various local
authorities that they will market their temporary
notes in groups which are offered for sale once
a month. The amount and number of issues
offered ar any one sale vary widely, depending
upon the volume of maturing notes to be financed
and the amount of new funds needed.
Temporary notes are sold by open competitive
bidding. Bids are in terms of interest rates generally
carried out to hundredths of a percent.
Awards are made to the bidder specifying the
lowest interest rates. Notes are delivered and paid
for three weeks after bid opening date, except that
during the holiday season four weeks are
stipulated.
During 1960,12 regular monthly sales were held.
The results of these sales are shown in the table
on the following page.
The interest rates paid by local authorities on
their short-term borrowings in 1960 were lower
than the preceding year by an average of nearly
223
one-half percent. Interest rates on temporary
notes declined sharply during 1960 from a high of
3.015 percent in January to a low of 1.432 percent
in August 1960, and ending with a slightly higher
average of 1.669 percent at the last sale in
December.
The decline in interest rates during the year
paralleled the general decrease in all short-term
money rates during the year. The most generally
accepted indicator of short-term money rates is
the interest cost to the Treasury on its 182-day
bills which are sold each Monday. The following
table shows the average interest rate on bills sold
immediately prior to each temporary note sale
and the percent by which the note rate was below
the bill rate.
Temporary note sales, 1960
Date of sale Number of
issues
Total sold
Bids received
in relation to
sales (times
sales)
Average maturity
(months)
Average interest
(percent)
Treasury bill
interest
(percent)
Temporary
notes percent
below Treasury
(percent)
Jan 12 ___ _________ -______ 74 $40, 824, 000 4. 1 10.6 3.015 4. 590 34. 31
Feb. 16 _____ __ _ __ 79 118, 479,000 3.5 7.1 2. 464 4.045 39.09
Mar. 22 __ _ 75 131,272,000 3.3 4.5 2. 188 3. 033 27.86
Apr 12 -___________ -______ 74 41,717,000 3.5 9.3 2. 238 3. 622 38.21
May 10 __ __ _ _ 90 174,277,000 3.3 7.0 2.108 3. 274 35. 61
June 7 _ --- _____ 76 44,860,000 4.8 9.2 2. 066 2.716 23. 93
July 6 ________________________ 66 46.084,000 3.9 8.3 1.883 2. 805 32. 87
Aug 9 ____ _____ - __ 98 176, 780.000 3.8 6.1 1. 432 2. 458 41. 74
Sept 13 -- - ___ __ 84 68,618,000 4.0 10.8 1.739 2. 916 40. 36
Oct 11 - 95 53, 071.000 4.5 9.9 1.756 3.079 42. 97
Nov. 15 ___ _ _ _ _ ___ 124 287,129,000 4.0 5.4 1.542 2.825 45. 42
Dec. 13---------------------------------------------------- 99 100,356.000 4.4 9.2 1.669 2. 621 36. 32
1.884
During 1960 the temporary note rates, as shown
in the above-mentioned table, ran about 37 percent
below Treasury bills, with a range from 23.93 percent
to 45.42 percent below. The differential depends
upon such factors as availability of
investment moneys; temporary notes reflecting a
somewhat lesser liquidity, bearing a variety of
maturities, generally longer than those of Treasury
bills, and being issued in varied amounts by a
larger number of obligors; closing settlements
occurring generally 3 weeks after sale; and purchasers
being required to pay for legal opinions
and paying agents.
A substantial number of banks and bond dealers
now bid for and deal in temporary notes. Bidding
was highly competitive at all sales in 1960 and
total bids received averaged 3.8 times the amount
of notes offered for sale. Bids were received from
an average of 20 prospective purchasers at each
sale, and the number of successful bidders
averaged 12.
Bond Financing
As projects near completion, bonds are sold by
the local authorities covering substantially the entire
cost. The outstanding temporary notes and
other borrowings are repaid from the proceeds of
the sale of the bonds.
In the original 1937 program, a relatively small
portion of the capital cost was covered by Series A
Bonds sold to private investors, while the larger
share was covered by Series B Bonds purchased by
PHA. Subsequent to the passage of the Housing
Act of 1949, which perfected the provisions governing
permanent financing, the New Housing
Authority Bonds sold to private investors have
covered substantially the entire costs of projects.
The only exception to this was in 1953 when
interest rates on very long-term money were extremely
high, and temporary notes were used to
cover the amounts for which bonds maturing in 31
to 40 years would normally have been sold.
Security for Bonds
New Housing Authority Bonds sold pursuant
to the Housing Act of 1949 are serial bonds with
maturities so arranged that the debt service
(interest plus amortization) is a uniform and level
amount each year. The security for these bonds
includes a pledge of the annual contributions
which PHA has contracted to pay. Since the fixed
amount of contributions contracted for is always
enough to cover the level debt service, and since
the faith of the United States has been solemnly
pledged to the payment of such contributions, the
security underlying these bonds is comparable to
that of the direct obligations of the Federal
Government.
Tax Exemption—New Housing Authority
Bonds
Interest on New Housing Authority Bonds (and
also on old Series A Bonds) is exempt from
Federal income tax and also from State income tax
in most of the States of the respective issuing
authorities. Because of this feature and their
security, New Housing Authority Bonds are much
sought after by investors. In the last few years, an
active secondary market has been developed for
them, increasing their marketability further.
Sales of Bonds
The sales of New Housing Authority Bonds
since their first offering in July 1951 total
224
SALES OF TEMPORARY NOTES
BY LOCAL HOUSING AUTHORITIES
SECURED BY PUBLIC HOUSING ADMINISTRATION
$3,017,749,000. Retirements have amounted to
$270,802,000, leaving $2,746,947,000 outstanding at
December 31, 1960. The amounts sold each year
are shown in the following table :
Housing bonds held by private investors, 19^9-60
Series A Bonds
New Housing
Authority
Bonds
Total
Outstanding Dec. 31,1948.
Sales:
1951 . _____________
$139,834, 500
$328,019.000
304, 505,000
496,165,000
374,145,000
473, 810,000
198,535,000
64, 750,000
182,280,000
310, 400,000
285,140,000
1952
1953
1954 . ____________
1955
1956
1957
1958 .
1959
1960
Total______________
Retirements, 1949-60.
Outstanding Dec. 31, I960..
139,834,500
58, 708, 500
3,017,749,000
270,802,000
3,157, 583,500
329, 510,500
81,126,000 2, 746, 947,000 2,828,073,000
The above table also shows the okl Series A Bonds
outstanding on December 31, 1948. Retirements
have totaled $58,708,500, leaving $81,126,000 of
these old bonds outstanding at the end of 1960.
At the end of 1960, a total of $2,828,073,000 in
bonds was held by private investors.
Five sales of New Housing Authority Bonds
were held in 1960 for a total of $382,755,000, of
which $285,140,000 were delivered and outstanding
on December 31, 1960. These bonds were sold
for new projects nearing completion with serial
maturities from 29 to 40 years. A table of these
sales is shown below:
New Housing Authority Bond sales—1960
Date of sale Number
of issues
Total Maturities
Average
maturity
(years)
Average
interest
cost
(percent)
Feb. 9_. .. . 18 $102. 830,000 38-40 Serial 25. 37 3 8221
Mav 4... .. _ 29 132, 235,000 36-40 Serial 25.01 3 8340
July 26 1______ 1 2 175^000 40 Serial 24.86 3 4663
Sept. 14______ 12 48, 900,000 36-40 Serial . 24.63 3.4436
Dec. 14_______ 2 25 97, 615,000 29-40 Serial.. 23. 58 3.4940
1 Rescheduling from original offering in May 4 sale.
2 These bonds delivered after Dec. 31, 1960, and are not included in outstanding
bonds as of Dec. 31, 1960.
In 1960, the PHA continued its policy of asking
local authorities to use the premiums received at
their bond sales for the repurchase of their own
bonds with longest maturities. At the five sales,
225
premiums aggregating $2,028,706 were received,
which were used to purchase bonds with a face
value somewhat in excess of this figure. As a result
of the immediate retirement of these longest
maturities, there will be substantial savings in the
interest which would otherwise have been payable.
The amount thus available each year from
normal annual contributions will be applied to the
repurchase of further long-term bonds. As a result
of the original and subsequent repurchases,
there will be accumulated savings sufficient to
eliminate most of the last annual contributions
payable for these projects.
Series A Notes
On projects too small for the sale of bonds,
Series A Notes are issued to provide funds necessary
to pay development costs in excess of the
amount which the PHA may lend. These notes
cover approximately 12 percent of the development
cost of such projects. They are issued to mature
serially in eight annual installments with interest
payable semiannually. These notes have the
same maximum security and tax exemption as the
new Housing Authority Bonds.
In 1960, two sales of Series A Notes were held
for a total of $3,193,000. On May 24, 45 issues of
notes aggregating $1,976,000 were sold at an
average interest cost of 3.3851 percent. On October
26, 26 issues of notes aggregating $1,217,000
were sold at an average interest cost of 2.8509 percent.
At the end of 1960, private investors held
$10,914,000 of these notes.
PHA Loans to Local Authorities
At the end of 1960, PHA loans to local authorities
totaled $98,295,245. The detailed nature of
these loans is shown in the following table, together
with similar data for the end of 1959.
Outstanding loans of PHA. to local authorities
Dec. 31, 1959 Dec. 31, 1960
Long-term obligations:
Series B Bonds___________________________ $60,949,000 $60, 559,000
Permanent notes_________________________ 7,303,340 9,356, 646
Administrative notes_____________________ 413,337 424,856
Subtotal_______________________________ 68,665,677 70,340,502
Short-term obligations:
Preliminary notes________________________ 838,372 1,088,833
Advance notes___________________________ 17,945, 602 26,865,910
Subtotal_______________________________ 18, 783,974 27, 954,743
Grand total____________________________ 87,449, 651 98,295,245
PHA Borrowings From Treasury
The amounts lent by PHA to local authorities
are financed in part from its own corporate funds
and in part from borrowings from the Treasury.
At the end of 1960, outstanding loans from the
Treasury amounted to $35 million compared with
$24 million a year earlier.
226
Section 6
Administration
Organization Changes
The organization of the PHA remained
relatively stable during 1960. A new position of
Assistant Commissioner for Housing for the
Elderly was established, reflecting the increased
emphasis being given to this aspect of the program.
Another new position of Assistant Commissioner
for Financing was assigned responsibility for directing
the low-rent program financing activities
which were formerly a responsibility of the
Deputy Commissioner.
The Development Division was reorganized to
give greater emphasis to project development
progress, particularly in the processing of new
applications and the expediting of projects under
annual contributions contract to the award of
construction contract. To accomplish this objective,
the former Director of Production and Document
Control was appointed Deputy Assistant
Commissioner for Development; a third development
coordination area was established; the
production and document control functions were
transferred to a Production Control Branch
located in the Development Division; and a Cost
Branch was established.
The position of Deputy Assistant Commissioner
for Administration was abolished and the administrative
planning functions of that office were
assigned to the Budget Branch, thereby placing
the budget and planning functions of the PHA
within one branch. Other changes included the
abolishment of the Intergroup Relations Branch
and the Labor Relations Branch in the Management
Division. The former directors of these
branches were appointed Special Assistants to the
Commissioner and the staff and functions of the
former branches were reassigned accordingly.
The Mortgage Branch was abolished on June
30, 1960, when the transfer of substantially all of
the residual liquidating emergency housing functions
of the PHA to other constituents of the
HHFA was completed. Since then, the PHA
has continued to render only limited services in
connection with the properties involved.
Internal Auditing
Internal audits of all PHA regional offices were
made during 1960 by the Internal Audit Branch
of the Audits Division. Because of staff limitations,
the audits were restricted to coverage of
certain selected functions in each regional office.
Reports were issued separately for each office.
In order to achieve broader coverage and
greater depth in auditing the regional offices, and
to ensure currency and close coordination with
project audits, procedures are being developed
for auditing regional offices on a decentralized
basis. Audits will continue to be made on a functional
basis, but the function selected will be audited
in all regions simultaneously. A consolidated
report will be prepared by the Internal
Audit Branch at the conclusion of each audit.
Budget and Employment
Administrative expenses of the low-rent program
for the fiscal year ending June 30, 1960,
totaled $12,298,184, financed by direct appropriation.
The Independent Offices Appropriation Act
of 1961 appropriated $13,050,000 for such expenses
during 1961. Because of the pay increase
granted Federal employees in July 1960, a supplemental
appropriation of $818,000 is being requested
for fiscal year 1961, bringing the total to
$13,868,000.
Two nonadministrative activities of the PHA
are included in a limitation on expenditures of
program receipts of the low-rent program. These
are (1) the operation of three federally owned
directly operated projects and (2) PHA representation
at the site of low-rent projects under
construction by local housing authorities. For
fiscal year 1960, the expenses incurred under this
limitation were $993,831. The Independent Offices
Appropriation Act of 1961 established a
limitation of $1,200,000 for these two activities.
Employment in the PHA totaled 1,470 full-time
employees as of December 31, 1960, compared to
the 1,406 full-time employees assigned to the lowrent
program as of December 31, 1959 (72 additional
employees were assigned to the liquidating
program on December 31, 1959). This represented
an increase of 63 in low-rent administrative
employment and an increase of 1 in nonadministrative
employment.
In the administrative employment area, regional
employment was increased by 72 employees,
from 835 to 907. Of this number, employment in
regional auditing activities was increased by 31
employees. Central office employment was reduced
by nine employees. In the nonadministrative
area, there were 43 employees at the beginning
and at the end of the year engaged in
operating the three federally owned projects managed
by the PHA. Employment of PHA construction
representatives increased by 1, from
35 on December 31, 1959 to 36 at the end of the
year.
227
PHA FULL TIME EMPLOYMENT
. . . December 1943- I960
Project management workload increased by
12,912 dwelling units during 1960, from 465,231
units on December 31, 1959, to 478,143 at the encl
of 1960. In the development area, local housingauthorities
during 1960 started construction of 243
projects containing 28,879 dwelling units. As of
the end of 1960 there were 225 projects containing
36,370 dwelling units under construction.
Recruitment and Training Activities
PHA continued its college recruitment program
during 1960. Fifty-nine trainees were recruited,
most of them coming directly from college. They
were all given 6 months of intensive on-the-job
and seminar-type training in preparation for assuming
full-time positions. In addition to this
program, the agency also continued its training
of younger employees to assume more responsible
positions being vacated by older employees who
face mandatory retirement.
Because of a greatly understaffed Audits Division
in relation to an ever increasing workload,
during the period February-May 1960, an intensive
recruiting program for auditor-trainees was
carried out. Campus interviews for accountingmajors
graduating from college in 1960 were
scheduled in approximately 50 colleges with over
200 graduating accounting majors. As a result,
45 recent college graduates were hired. They received
intensive training designed to make them
fully productive professional auditors in the shortest
time possible. The addition of the 45 auditors
together with the addition of some upper-level
auditors recruited during the year established the
Audits Division at near authorized strength for
the fisca| year 1960. These staff additions will
help materially to place PHA audits on a more
current basis.
During 1960, 1,026 employees were given training.
This consisted of training in Government
facilities, as well as training in nongovernmental
facilities. The training given was all-inclusive
from clerical-type through technical, administrative,
and managerial. Also given were selected
university courses in areas which would, benefit the
recipients in their present assignments.
Incentive Awards Activities
Employees of PHA received $6,265 through the
incentive awards program of the agency. Of this
amount, 19 employees received awards because of
beneficial suggestions, while 35 employees received
awards based on superior service or special acts.
Two employees were nominated for the First Annual
Federal Women’s Award, while two were
nominated for the Seventh Annual Career Service
Award, one of these, in turn, becoming the HHFA
nominee. For the first time, all recipients of an
outstanding performance rating were brought to
Washington, where the awards were presented at
a mass meeting of all PHA employees. One PHA
employee received the HHFA Distinguished Service
Award for a long and outstanding career.
Defense Planning Activities
Following an assignment by the HHFA Adminstrator
in December 1959, the PHA completed
plans in 1960 for emergency housing units to
228
Groundbreaking for Juniper Gardens, Kansas' first public housing development, took place on December 14, 1960. Recognizable
in the photo of the Kansas City ceremony are, Fred Sellers, Executive Director of the LHA (behind the sign) to his left, Mayor
Paul Mitchum, Governor John Anderson, City Commissioner Earl Swarner, and PH A’s Bruce Savage.
facilitate post attack survival. The plans included
working drawings, technical specifications, material
lists and site layout criteria.
The assignment included utility buildings to
serve emergency barracks buildings completed in
1959; family units utilizing the basic emergency
barracks building, mobile type units (PHA trailer
and standard trailer) ; related mechanical facilities;
and site layouts together with utility distribution
systems.
The plans for mobile type dwelling units were
circulated to appropriate construction industry
groups for review and advice. The plans, as
finally prepared, are intended to serve as the basis
for bulletins and instructions explaining how, by
whom, and under what circumstances, such emergency
housing would be produced and erected.
A preliminary plan layout of a dining facility
building was prepared and submitted to the appropriate
government agencies for the purpose of
formulating basic requirements for the feeding of
persons to be housed in emergency barracks.
The PHA participates in the development and
testing of Government-wide mobilization plans.
It participates in Government-wide resource
studies for the purpose of identifying essential
survival items, determining requirements, and
planning emergency action.
229
Section 7
Statistical and Fiscal Tables
Table IV-1.—Local authorities with PHA low-rent programs, by State and activity status as of Dec. 31, 1960
i An unduplicated count, not the sum of the details.
State Total1
With reservations With active units
Total Only Total1 In preconstruction
Under construction
Under management
Total authorities------------------------------- ----------------- 1,146 232 92 1,054 281 171 891
Alabama _ _ _ __ ______________ _ _ _ _ - 118 16 5 113 27 12 94
Alaska, 1 1 1
Arizona _____ ___ __ ___ -- ___ 8 1 8 2 1 8
Arkansas. ___ ___ _______ ____ ..__ __ _ 20 6 5 15 5 5 9
California _ _ ___ __ __ _ -____- ______ 44 3 44 12 7 44
Colorado . __ ________ - ___ - 3 1 1 2 1 2
Connecticut_________ ____ _ __ __ _ ________ 21 10 1 20 7 3 15
Del aware 1 1 1 1
District of Columbia. _ __ ____ _ __ 1 1 1 1 1
Florida . ___ ____________________ -___ _____ - - 42 8 6 36 11 7 29
Georgia_ _ ____ ________________ _ _ _ 175 30 13 162 27 15 141
Hawaii __ ___ _ _ ________ . ___ - . - 1 1 1 1 1 1
Idaho 2 2 2
Illinois_____ _______________________________ ____ - 47 21 5 42 11 9 39
Indiana________ ______ _________- __ - 14 3 1 13 3 2 11
Kansas 1 1 1 1 1
Kentucky____ _ __ ____ ___ - ________ 39 11 10 29 13 4 19
Louisiana_______ _______ __ _ _ __ _ _ _ _ __ 49 9 2 47 11 6 35
Maine 3 1 3 1 3
Maryland _ _________ ______ 7 1 7 4 6
Massachusetts_____ ____________ _ - ____ _________ 30 9 2 28 10 5 24
Michigan____ _ - _____ ________________ ________ 23 8 4 19 3 3 17
Minnesota 8 3 8 5 1 8
Mississippi ____ ___ __ _ . _____ __ ____ 38 4 3 35 11 5 25
Missouri __ _ ____ ______ __ _ __ 14 3 3 11 7 5 5
Montana 5 5 1 5
Nebraska _ _ ___ ______ __ _ _ 3 1 1 2 1 2
Nevada 2 1 2 1 2
New Hampshire 4 2 4 3 4
New Jersey_____ ____________________________________ 47 8 3 44 19 15 38
New Mexico 2 2 2
New York_____ ___________ _________ __ _______ 28 7 1 27 8 9 24
North Carolina _ __ _ ___________________ _______ 21 3 1 20 5 1 19
North Dakota 2 1 1 1 1
Ohio.- _______ - - -__ - - ______ - _____ 14 5 1 13 6 5 13
Oregon _ _ _ _ _____ 6 1 6 1 1 5
Pennsylvania _ _ _____ __ 33 4 33 18 10 27
Rhode Island __ _____ ____ 4 2 4 2 1 4
South Carolina 13 2 1 12 3 10
Tennessee__________ _ __ _ ________ - -- - 56 18 9 47 16 7 39
Texas___________ - ________________________ __________ 152 20 11 141 17 17 117
Virginia. ________ _ __ _ _ _ _ __ ___ _ 14 2 1 13 5 2 12
Washington __ _ _ __ ___ ________ _ 14 1 14 1 1 14
West Virginia 8 8 4 6
Wisconsin______ ____________________ ___________ 6 3 1 5 1 1 5
Puerto Rico 1 1 1 1 1
Virgin Islands 1 1 1 1
230
Table IV-2.—Low-rent dwelling units administered by the
Public Housing Administration, by status and public
law, as of Dec. SI, 1960
1 All under sales contract.
Program
Total
Federally
owned
Locally
owned
Number
Net
change
since
Dec. 31,
1959
Total______ _____ ______ 593,286
478,153
36,360
78, 773
385,924
114,170
46, 843
21,063
24, 703
i 583
+8,074
+13, 238
+12,158
-17,322
+11,530
-2,809
-567
1,991
1,991
591,295
476,162
36,360
78, 773
385, 924
114,170
46, 617
19, 881
24, 703
By status:
Under management___________
Under construction __ ____
Not under construction______
By public law:
Public Law 171_____________
Public Law 412_______________
Public Law 671 - _____________ 226
PWA_________________________ 1,182
Public Law 475_______________ -80
Earm Labor camps __ ________ 583
Table IV-3.—Low-rent projects and dwelling units in programs administered by the Public Housing Administration,
by State and other area, as of Dec. 31, 1960
i Excludes 3 States without enabling legislation (Iowa, Utah, and Wyoming); Oklahoma has no enabling legislation but has some directly operated units.
Two States have no program (South Dakota and Vermont).
State 1 Projects Units State 1 Projects Units
Total________ ____ ____ ________________ _ _ 3,351 593,286 Nebraska 7 1 828
Nevada 5 490
Alabama____ __ 255 25 316 New Hampshire 8 1 050
Alaska- _. _________ ____ _ __________ ___ 4 325 New Jersey____ 146 31 362
Arizona ______ - ___ _ __ ___ 25 2, 627 New Mexico 2 148
Arkansas___ ____ - _ 36 3 126
California_______ _______ ________ ___ _ _ ___ 183 27,746 New York 114 73 544
North Carolina____________________________________ _ - 82 12^ 213
Colorado.- --_ _________ - __ ... _______ _ ___ 16 3, 620 North Dakota 1 60
Connecticut. ___ _ ___ _ 42 10, 521 Ohio 75 98 387
Delaware____ _ _ - - .. 5 1,160 Oklahoma _ ’434
Florida______ - __ __ 133 15 804
Georgia_____ _______ __ __ ________ ___ ______ __ 450 30, 644 Oregon 16 1 383
Pennsylvania 191 44’ 206
Hawaii______ - ... - 12 2 709 Rhode Island 18 4 032
Idaho____________________________________ ____________ 3 ’ 159 South Carolina 95 6 429
Illinois_____ . . _ _ - 155 40,213 Tennessee 161 2o’ 132
Indiana___ -------- 28 5 118
Kansas______ . _____ _ _____ 2 460 Texas 287 31 558
Virginia. ___ 57 13’ 834
Kentucky___ ______ ________________ _______________ 82 10,966 Washington 33 6’ 899
Louisiana_____________ - - - _ ___ 105 17, 228 West Virginia 17 2’ 205
Maine______________ ____ ___________________ ... _ 3 286 Wisconsin 12 2 929
Maryland.. ___ -------- 39 11,811
Massachusetts__________ __ _________ - _ _____ ______ 74 20,263 District of Columbia 35 9 308
Puerto Rico________ __ - 117 29^ 681
Michigan_______ __ __ . ______________________ ____ 39 14, 536 Virgin Islands 6 1 094
Minnesota________ - ____ ______ 24 4 618
Mississippi.-. - ________ ____________ 110 6 001
*Missouri __ ___________ - ______ ________ __ _ . 30 13,026
Montana______________________________________________ 9 897
231
Table IV-4.—Housing Act of 19J/9:1 Number of presently active dwelling units processed through stages, by State
[As of Dec. 31, I960]
State 2 Reserved 3
Preliminary
loan
executed 3
Tentative
site
approved 3
Annual
contributions
contract
executed
Placed
under
construction
4
Completed
Total__________________________________________________________ 402,325 379,819 366, 473 381, 631 304, 512 268, 282
Alabama______________________________ . ____ __ ___ __ 19, 695 17, 317 17, 315 17, 075 14,670 13, 693
Alaska____________________________________ __________________________ 325 325 '325 ' 325 '325 '325
Arizona__________________________________ 1, 777 1, 777 1,757 1,757 1,411 1,371
Arkansas_______________ ________ ___________________________________ 2, 598 2,504 2,236 2,508 2, 215 1,884
California___________________________________ _______________________ 15, 617 14, 597 15' 230 16] 741 14,289 13. 229
Colorado__________________ __ ...______ _________________________ 2, 924 2,874 2,874 2, 874 2, 724 2, 724
Connecticut__________________ ________ 5, 539 5,079 4,939 4,488 4,013 3, 717
Delaware_________________ ______ 830 '830 ' 780 ' 780 ' 780 ' 780
Florida.. ____________________________________ _____________________ 9,785 8,420 8,447 8,045 6,908 6,162
Georgia_____ _____________ __ _ . _ 21] 606 21, 244 20] 063 19] 940 17] 380 16] 773
Hawaii ___________________ ____ ___ _ _ ___ ____ 2,044 1,904 1,894 2, 348 1, 524 1, 474
Idaho_________________________ __________________________________ __ 75 75 75
Illinois... ________________________ . _ . __ _ __ .. ________ _ 29, 762 28, 578 27,153 27, 090 22, 238 15,157
Indiana_______________________ _______ 2, 740 2, 290 2, 290 2,049 1] 736 1] 531
Kansas_______________________________ __ _ __ ... . _ ___ __. ' 525 '425 '460 ' 460 390
Kentucky______________________________________________ _ _________ 7, 117 6, 762 6, 571 6, 627 5, 887 5, 643
Louisiana____________________________________________________________ 11] 086 10,005 10,818 11] 324 8, 863 8,541
Maine____________________________________ _________________________ 126 126 126 86 86 86
Maryland___ ______________________________________________________ 6,178 6,013 5,304 5, 513 4,488 4, 488
Massachusetts_________________________________________ ____________ 12,844 11, 694 10, 761 11,170 9, 507 9.146
Michigan_________________ __ __ 7, 705 7, 485 3, 550 9,157 5, 241 4, 934
Minnesota________________________ _ _ _ 4,943 4,863 4,439 4,154 2,897 2, 873
Mississippi- _____________ ______________ _ _____________________ 4,940 4, 871 4,470 4, 460 3' 361 3,106
Missouri___________________________ _ _ 10, 768 10, 260 9,043 11] 733 8,396 7,002
Montana_____________ __ _____________ _ _ _ _____________________ '364 ' 164 '364 364 364 164
Nebraska___________________ i_________________ _____________________ 820 820 800 750 750 722
Nevada______________________________________ ______________________ 565 465 490 490 490 365
New Hampshire_______ _ ___ _____________ _________________ _ 1,300 950 1, 050 1,050 750 750
NewJersey.. __ ____________________________________________________ 22, 730 22, 573 22, 273 21, 418 19, 812 16,369
New Mexico____________________________ _ ___ ... ___________ 70 70 70 148 ' 148 148
New York _ ________ ___ ____________ __________________ 55, 597 54, 992 52, 368 52, 968 38, 268 30, 671
North Carolina__________________ __________________________________ 9] 278 9] 278 8,592 9,028 8,077 7,987
North Dakota __________________________ __ ____________________ 84 84 84 60 60 60
Ohio..___ _________________________________ _____________ _____ 14,314 13,014 11,836 12, 748 4,838 3, 858
Oregon ______________________________ _ _____________________ 866 366 657 '657 366 ' 318
Pennsylvania__________________________________ _____________ ______ 25, 730 24, 866 22,125 25,328 17, 555 15, 086
Rhode Island______________ _ _____________ ______________ _______ 2, 474 2, 199 2,068 2,466 2,316 2,116
South Carolina. ____________________ ____ . _ ____________ _______ 3,805 3, 679 3, 699 3,823 3; 823 3] 543
South Dakota_________________________________ ___________________
Tennessee. ________________________ ___ 14,376 13,895 12, 903 12, 259 11,128 10.389
Texas____________________________ . ....____ __ 20, 656 19, 780 19, 735 20, 393 19,495 18, 963
Vermont______ . _______________________ _ ___________________
Virginia___________________________ _____________________________ ._ 10,306 9,432 9, 976 10, 344 9, 010 8,809
Washington ___________________________ _ ...______ _______________ 822 822 '822 ' 822 ' 822 792
West Virginia________________________________________________________ 630 530 590 650 400 400
Wisconsin ___________________ 3,004 2,894 2, 426 2, 026 1, 644 1, 524
District of Columbia_________________________________________________ 5,500 4, 000 5,140 5,500 4,088 3, 914
Puerto Rico ______________________ __ _ ____________________ 26, 576 23, 719 26, 576 26, 576 19, 918 16] 200
Virgin Islands_______________________________________________________ 984 '984 '984 984 '984 420
1 Excludes 2,222 units reactivated under Public Law 301, 110 in a former
PWA project and 228 in a former Public Law 671 project both rehabilitated
under Public Law 171.
2 Excludes 4 States without enabling legislation (Iowa, Oklahoma, Utah
and Wyoming).
3 Reactivated units not included in these stages.
4 Excludes 130 units rehabilitated from existing structures.
232
Table IV-5.—Housing Act of 1949:1 Places with reservations issued, places with preliminary loans executed, and
projects processed through selected stages, by State
[As of Dec. 31, 1960]
State1 2
Places Projects
Reservations
2
Preliminary
loan
executed 3
Tentative
site
approved 3
Annual contributions
contract
executed
Placed
under
construction
4
Completed
Total______________ _______________________ 1,437 1,335 2,661 2,652 2,213 1,989
Alabama_________ _____ 128 121 230 229 195 183
Alaska______ ________ 4 4 4 4 4 4
Arizona..______ _ . 13 13 19 19 17 16
Arkansas____ 23 20 27 29 25 19
California________________— 84 71 127 137 115 105
Colorado________ ________ 3 2 11 11 10 10
Connecticut_____________ 20 18 29 25 19 16
Delaware________ _____ . 1 1 3 3 3 3
Florida.. ___ _ _ 59 55 105 98 75 67
Georgia__________________— 202 195 421 407 373 357
Hawaii__________________
Idaho ___
— 2 1 8 10
1
81
71
Illinois________ _ 80 72 127 120 109 91
Indiana__________________
Kansas_____
— 91
81
16
2
14
2
12
1
10
Kentucky______ _ _ _ 39 38 65 65 50 42
Louisiana____________ .. 52 39 86 90 81 69
Maine._______________ 2 2 3 2 2 2
Maryland_____ _ _ 7 7 21 23 19 19
Massachusetts___________— 29 28 56 54 40 35
Michigan_________ __ 21 20 32 29 24 22
Minnesota.. 8 8 26 23 15 14
Mississippi______________ 61 58 95 95 62 57
Missouri______ _ 14 12 23 28 18 13
Montana________________— 5 4 5 5 5 4
Nebraska________________ 3 3 5 4 4 3
Nevada______ ___ _ 2 2 5 5 5 4
New Hampshire_________ 4 4 8 8 5 5
New Jersey... 45 45 115 107 90 72
New Mexico_____________— 1 1 1 2 2 2
New York_____ . . 24 24 90 88 63 46
North Carolina_______ .. 25 25 64 66 59 58
North Dakota___ ________ 2 2 2 1 1 1
Ohio.. . 13 13 37 37 27 18
Oregon___________________— 11 10 12 12 11 10
Pennsylvania____________ 65 58 118 130 91 79
Rhode Island. ... 4 4 10 12 10 9
South Carolina__________
South Dakota____________
— 43 41 78 80 80 76
Tennessee________ _______ _ _ __ _ _ __ _____ 67 64 139 134 112 103
Texas____________________
Vermont_____
— 148 133 236 239 221 207
Virginia__________________ 14 13 39 40 33 30
Washington______________ 16 16 19 19 19 18
West Virginia____________— 4 3 4 6 2 2
Wisconsin___ 6 5 10 9 8 7
District of Columbia_____ 1 1 19 21 15 14
Puerto Rico______________ 69 67 104 104 67 56
Virgin Islands____________ _ _ — - ------ _ — __ _ _ — 3 3 5 5 5 3
1 Excludes 3 projects reactivated under Public Law 301, 1 PWA project
and 1 Public Law 671 project, both rehabilitated under Public Law 171.
2 Excludes 4 States with no enabling legislation (Iowa, Oklahoma, Utah,
and Wyoming).
s Reactivated projects not included in these stages.
4 Excludes 1 project purchased as completed structures.
233
Table IV-6.—Statement of financial condition, as of June 30, 1960 and 1959, low-rent public housing program fund
1960 1959 1960 1959
ASSETS
Cash and other assets:
Cash on hand and in transit. . - $5, 316
44,449,293
945, 361
1,051,872
107,935
$28, 568
42, 531,106
779, 699
419, 536
111,246
LIABILITIES AND INVESTMENT OF U.S.
GOVERNMENT—CONTINUED
Accounts payable and accrued liabilities
Deferred credits
$1,234,024
674,882
479,499
$1,316,912
690,154
Fund balances with U.S. Treasury (note Trust and deposit liabilities (note 1)_ 467, 565
Liability under annual contributions contracts
for repayment of the principal
amounts of local housing authorities’
bonds and notes (note 4) . _ .
Accrued interest receivable, less allowance
for losses of $226,303 for 1960 and $220,725
for 1959__________ -
48, 641, 336 44,916,990
3, 486, 862,280
3,486,862,280
3, 310,476, 303
3, 310,476, 303
Miscellaneous receivables, less allowance
for losses of $195,794 for 1960 and $75,462
for 1959____________
Prepaid expenses______________ - _ _ - _ Less unfunded authority for liabilities incurred
under annual contributions contracts___
_ _ __ _ _____ __ - _
Bonds and notes, less allowance for losses of
$1,066,748 for 1960 and $1,659,205 for 1959-
Land, structures and equipment:
Land, structures and project equipment,
less accumulated depreciation of $2,403,-
134 for 1960 and $2,336,778 for 1959____
Office furniture and equipment, less accumulated
depreciation of $1,337,049 for
1960 and $1,321,547 for 1959 (note 2)___
46, 559,777 43, 870,155
Investment of U.S. Government:
Notes payable to U.S. Treasury (note 5)_.
Capital stock held by Secretary of the
Treasury. .. — — —
92,066, 757 89, 319, 711
29,000,000
1,000,000
741,999,147
99,447, 604
246, 532, 791
27,000,000
1,000,000
613,810,770
87,193, 758
246, 522,761
4, 743,007 4,912, 769 Appropriations for annual contributions
to local housing authorities, less returns
to U.S. Treasury_______ ______ ____
App-opriations for administrative expenses,
less returns to U.S. Treasury_
Assets transferred to and from other government
agencies and programs (net)—_
Investment before reserves and program
costs.- _ ____ ... _. ... _
Conditional conveyance contracts (farm
labor camps), less accumulated allowance
for amortization of $241,610 for 1960
and $302,364 for 1959 (note 3)_______
4, 743,007 4,912, 769
724, 716
724, 716
997,404
997,404
1,117,979,542 975, 527,289
Reserves and program costs:
Reserve for reimbursable technical
services (note 6)_ _____
Less: Allowance for contracts on properties
relinquished to local housing authorities__________
_____ 399,707
20,229
-1,023, 671,273
2,738,441
14,661
Total assets___ _______— __ ___ __ -885,094, 746
Reserve for operation of federally owned
projects
Accumulated program costs __ ... .
143, 369, 541 138,102, 635
Investment of U.S. Government_____
Total liabilities and investment of
U.S. Government. __ _ .
LIABILITIES AND INVESTMENT OF U.S.
GOVERNMENT
Liabilities:
Annual contributions to local housing
authorities (payable within 6 months) —
Accrued annual leave__________ ___
-1,023, 251,337 -882, 341, 644
44, 755,957
1,496,974
40,941,002
1, 501, 357
94,728,205 93,185,645
143, 369, 541 138,102, 635
NOTES
1. Fund balances with U.S. Treasury as of June 30,1960, includes payroll deductions
of $444,355 for taxes and bonds, and $35,144 in other deposits, the liability
for which is reported under “liabilities” as “trust and deposit
liabilities.”
2. A 100-percent allowance for depreciation on office furniture and equipment
is recorded at the time of acquisition. This practice results in charging
the cost of office furniture and equipment to expense at time of purchase.
3. The amount of $724,716 at June 30, 1960, shown under the caption “conditional
conveyance contracts (farm labor camps)” represents the amortized
book value of two farm labor camps which were conditionally conveyed to
local housing authorities pursuant to Section 12(f) of the U.S. Housing Act
of 1937 as amended. This section also directs the PHA to relinquish transfer
and convey without monetary consideration all of its rights, title, and interest
in any farm labor camps, including contractual right to revenues,
reserves, and other proceeds thereform, to a public housing agency filing a
request therefor by February 7, 1958. Title to these farm labor camps is
held by the PHA pending final settlement of relinquishment requests received
from local housing authorities. During fiscal year 1960, one farm
labor camp with an amortized book value of $272,688 was relinquished to a
local housing authority. It is expected that the tw’o remaining farm labor
camps will be relinquished to a local housing authority during fiscal year
1961.
4. The liability under annual contributions contracts of about $3.5 billion
at June 30, 1960, for the repayment of the principal amounts of local housing
authorities bonds and notes issued to private investors and guaranteed by the
PHA consists principally of bonds of $2.8 billion maturing serially through
the year 2000 and renewable temporary notes of $0.7 billion maturing generally
in 1 year. Interest to maturity on these obligations, estimated to be about
$1.7 billion is also guaranteed by the PHA. The amounts payable by the
PHA under annual contributions contracts will be reduced by the residual
receipts, if any, derived from the operations of the related housing projects.
At June 30,1960, unfinanced loan commitments to local housing authorities
for the development of projects totaled $203,659,361; loan commitments had
not been made for approved development costs of about $1.2 billion.
5. Section 20 of the U.S. Housing Act of 1937, as amended, provides that
PHA “may issue and have outstanding at any one time notes and other
obligations for purchase by the Secretary of the Treasury in an amount not to
exceed $1,500 million.” At June 30,1960, notes payable to the U.S. Treasury
amounted to $29 million.
6. The Independent Offices Appropriation Act, 1960 (74 Stat. 425) and prior
year appropriation acts provide that the necessary expense of providing PHA
representatives at construction sites of low-rent housing projects shall be
compensated for by the payment of fixed fees to the PHA. The fixed fees
received by the PHA may be used only for the payment of the costs of providing
construction representatives except as explained below.
The technical service fees charged by the PHA for construction inspections
exceeded the related costs by $717,209 and $1,212,034 during the 1960 and 1959
fiscal years, respectively. The fees charged and the expense of furnishing
technical services are shown in the statement of program costs. The cumulative
charges for construction inspections in excess of costs totaled $3,399,707
and $2,738,441 at June 30, 1960 and 1959 respectively. Public Law’ 86-651,
approved July 14, 1960, provided for the use of $3 million of the $3,399,707 for
the payment of annual contributions (this amount is included in annual contribution
expenses of $131,188,377 in the statement of program costs). The
remaining balance of $399,707 is shown as a reserve for reimbursable technical
services in the statement of financial condition. The reserve is available to
defray any excess costs of construction inspections made in future periods.
7. PHA follows the practice of establishing a full allowance for losses on
notes receivable from local housing authorities having programs for which the
planning for one reason or another is temporarily suspended. If the planning
of these programs is later reactivated, the allowance for losses previously
established is reversed. Generally, the reduction in the allowance for losses
(negative provision for losses shown in the statement of program costs) during
fiscal year 1960 was occasioned by the reactivation of previouslv suspended
programs.
8. As of June 30, 1960, PHA had conveyed to local housing authorities certain
former Lanham Act, PWA, and other housing projects with a net book
value of about $174 million. Conditional conveyance contracts applicable to
these housing projects provide that any net income derived from the operation
of the projects as low-rent public housing is to be remitted annually to PHA
for a period of 40 years. PHA received income from these properties of
$564,602 in 1960 and $529,954 in 1959, as shown in the statement of program
costs.
Section 606(d) of the Lanham Act provides that income received from Lanham
Act projects shall be covered into the general fund of the U.S. Treasury
at the end of each fiscal year. In 1960 deposits of cash into miscellaneous receipts
of the U.S. Treasury amounted to $590,563; cumulative deposits through
June 30, 1960, aggregated $3,830,741.
9. Suits and claims pending against PHA in the low-rent program totaled
$200,273 at June 30,1960. Construction contractors’ suits totaling about $8.5
million were pending against local authorities. Any payment by the local
housing authorities arising from these suits will result in additional project
development costs and an increase in PHA’s annual contributions.
10. Section 403 of the Housing Act of 1954 (68 Stat. 632) provides that, after
payment in full of all obligations of local housing authorities in connection
with projects for which any annual contributions are pledged, and until the
total amount of the annual contributions has been repaid, the net revenues
or, in the case of a sale, the proceeds of the sale, will be paid to PHA and to
the local public bodies in proportion to the total contribution each had made
to the housing projects, but not exceeding their respective contributions.
234
Table IV-7.—Statement of program costs, for the fiscal
years ended June 30, 1960 and 1959, low-rent public
housing program fund
Table IV-8.—Statement of source and application of
funds, low-rent public housing program fund, fiscal year
ended June SO, 1960
1960 1959
Expenses:
Annual contributions to local housing
authorities _________ $131,188,377 $115, 366,664
Administration_ _ _ _ _ __ 12, 356,384 12, 373,902
Interest on borrowings from U.S. Treasury—
financing operations_________________ -- 1,308, 722 965,427
Technical services _______ 466, 840 1,096,456
Net loss from federally owned housing project
operations ___ __ ______ 74,701 334,124
Property dispositions (net)__ _ ___ 12, 319 4, 608, 796
Provision for losses on notes and judgments..
Provision for losses on accrued interest and
other accounts receivable _ ______
-439, 764
9,430
267,128
170,002
Total expenses _ __ __ - ______ 144,977,009 135,182,499
Income:
Interest earned __ ____ ___ 2, 763, 309
10,085
2,767,411
Recovery of collection losses on notes and
interest receivable. _______ _______ 119,977
Technical services fees ___ _ _ _ 1,184,049
564,602
2, 345, 725
Receipts from projects operated by local
housing authorities under administration
contracts _____ 529,954
Commodities and services furnished other
Government agencies __ _____ __ __ 64,867 79, 300
Miscellaneous__ _____ ____________ - - _ 70,967 116,174
Total income ________ 4, 657,879 5,958, 541
Net program costs for the fiscal year------ 140,319,130 129, 223, 958
Funds provided by:
Principal collections on bonds
and notes___________________ _________ ___________
Principal collections on judgments
receivable____________ _________ ___________
U.S. Government:
Appropriations for annual contributions
to local housing
authorities, less returns to
U.S. Treasury______________ _________ ___________
Appropriation for Administrative
expenses, less returns to
U.S. Treasury____________ _________ ___________
Increase in borrowings from
U.S. Treasury______________ _________ ----_______
Decrease in working capital------- -------------- -----------------
Total funds provided----------- ------- ------- ------------------
Funds applied to:
Acquisition of bonds and notes:
Local housing authority financing
notes purchased_______ _________ $131,816,795
Notes acquired for interest receivable
on financing notes-- _______ 49,092
Judgments acquired for interest
receivable on financing
notes_______________________ _________ 20,475
Acquisition of land, structures ------------------
and equipment_______________ _________ ___________
Deposits to general-account receipts
of U.S. Treasury-------- --------------- ------------------
Net program costs for the fiscal
year________________________ _________ 140,319,130
Add items not requiring funds:
Depreciation on federally
owned project property_____ —$135, 591
Property dispositions_________ —44,805
Provision for losses on notes
and judgments______________ 439, 764
Recovery of collection losses on
notes_____________________ 9,361
Miscellaneous________________ 54,243 322,972
Total funds applied-------------- -------------- ------------------
$129,593,405
81, 708
128,188,377
12, 253, 847
2, 000, 000
1,015,798
273,133,135
131, 886,362
14,108
590, 563
140,642,102
273,133,135
235
Table IV-9.—Statement of maximum development costs and PHA loan and annual contribution commitment, as of June
30, 1960, low-rent public housing program fund
Maximum preliminary planning and development costs:
Nonpermanently financed projects:
Preliminary planning stage__________________________________________________________________________________________
Pre-construction stage_______________________________________________________________________________________________
Construction stage___________________________________________________________________________________________________
Receiving annual contributions______________________________________________________________________________________
Undeveloped (canceled contracts)____________________________________________________________________________________
Permanently financed projects___________________________________________________________________________________________
$7,893, 774
1,281. 394,119
312,204,397
58, 950, 529
363. 359
$1, 660,806,178
3, 799, 838,838
Total maximum preliminary planning and development cost__________________________________________________________________________ 5, 460, 645,016
Approved loan commitment:
Nonpermanently financed projects:
Preliminary planning stage__________________________________________________________________________________________ 7,893, 774
Pre-construction stage_______________________________________________________________________________________________ 264, 695,082
Construction stage___________________________________________________________________________________________________ i 136,957,339
Receiving annual contributions______________________________________________________________________________________ 57,264,374
Undeveloped (canceled contracts)____________________________________________________________________________________ 363, 359
Total______________________________________________________________________________________________________________ 467,173,928
I ess:
Note liquidations applied as a reduction of loan commitment____________________________________________________ 10,662,885
Loan commitment—nonpermanently financed projects
Permanently financed projects:
Maximum development cost (budgeted or actual)_________
less:
Bonds and notes sold to private investors:
New housing authority bonds_____________________
Series “A” bonds_________________________________
Series “A” notes__________________________________
Mortgage and installment notes___________________
3, 799, 838,838
456,511,043
Note liquidations applied as a reduction of loan commitment
Development cost financed from advance amortization fund
Capital donations (projects developed under Public Law 412)
$2,967,674,000
161, 741.867
17,955,000
776,100
$3,148,146, 967
113, 332, 888
59,629
2,112, 381
3,263, 651,865
Add:
Bonds issued in excess of actual or budgeted development cost___________________________________
Notes issued in excess of actual or budgeted development cost____________________________________
2,080, 687
3, 391,047
536,186,973
5, 471, 734
Loan commitment—permanently financed projects. 541, 658, 707
Total PHA loan commitment______________________________________________________________
PHA loan commitment financed:
Loans by PHA:
Preliminary notes______________________________________________________ ._____________________________
Advance notes_______________________________________________________________________________________
Interim loan notes___________________________________________________________________________________
Permanent notes_____________________________________________________________________________________
Series “B” bonds____________________________________________________________________________________
Deferred development notes__________________________________________________________________________
Loans by private investors guaranteed by PHA:
Temporary notes (nonpermanently financed projects)________________________________________________
Temporary notes (permanently financed projects)____________________________________________________
998,169, 750
781,571
24,805, 318
30,925
4,980,886
60, 780,000
363, 359
261,283, 244
441, 485,086
91, 742,059
702,768,330
Total loans outstanding____________________________________________________________________________________________________________ 794,510,389
Unfinanced balance of commitment. 203,659, 361
PHA annual contribution commitment:
Nonpermanently financed projects:
Pre-construction stage________________________________________________________________________________________________ 70, 823,061
Construction stage___________________________________________________________________________________________________ 17,635, 761
Receiving annual contributions______________________________________________________________________________________ 2,450,300
Total—nonpermanently financed projects__________________________________________________________________________________________ 90,909,122
Permanently financed projects:
Fixed annual contribution 1 2__________________________________________________________________________________________ 157,574, 823
Additional annual contribution commitment available_______________________________________________________________ 1, 792,033
Total—permanently financed projects________________________________________________________________________________________________ 159,366, 856
Total PHA annual contribution commitment________________________________________________________________________________________ 250,275,978
1 Includes an additional commitment of $12,911 representing the amount
by which certain projects have been financed in excess of the loan commitment
approved on Form PHA-216.
2 When a project is permanently financed by an issue of bonds or series
“A” notes for an amount less than the minimum development cost first
established for such project, the PHA is immediately obligated to pay a
fixed annual contribution in an amount equal to the level debt service on such
bonds or series “A” notes plus an amount equal to the PHA loan interest
rate times the amount by which the first established minimum development
cost exceeds the amount of bonds or series “A” notes issued, whether or
not such first established minimum development cost is fully financed.
As of June 30, 1960, the aggregate unfinanced balance of the first established
minimum development cost, for which the PHA is obligated to pay annual
contributions at the applicable PHA loan interest rate, amounted to approximately
$1,194,895.
236
Table IV-10.—Statement of maximum development costs of locally owned low-rent projects, PRA. loan commitment,
and outstanding local housing authority development loans, by State, as of June 30, 1960, low-rent public housing
program
Outstanding local housing authority development loans
Maximum
development
costs
PHA loan
commitment
Loans from
PHA
Temporary
loans from
private
investors
Permanent
loans from
private
investors
Total
outstanding
Total locally owned projects_______________________ $5,460, 645,016 $998,169, 750 $91, 742,059 $702, 768,330 $2, 810,841,000 $3,605,351,389
State:
Alabama____ ______________ ______________________ 202,603,453 49,779, 715 3,133, 756 38,082,939 100,085.000 141,301,695
Alaska___ _____________________________ 5’ 358’ 535 i;710;519 1,686,000 2,955,000 4, 641,000
Arizona_______ ____ _ ___ _ _______________ 21, 575, 970 4, 600,417 91.232 3; 104,000 10, 964.000 14,159,232
Arkansas____ ______________ _______________________ 25, 724' 342 3,386, 949 277, 788 2. 519. 947 14,100,000 16, 897, 735
California___________________________ __ __ _______ 222, 852^ 251 28, 541, 821 630,047 24, 745, 532 134, 783,000 160,158, 579
Colorado______ _______ _________ _ _________________ 32,608,101 8,196,029 101,116 6,610,000 18, 430,000 25,141,116
Connecticut____ __ ______ _________ ___ _ __ 82,969, 973 12, 844, 503 5,501,863 6,039, 750 48,117,000 59,658, 613
Delaware____ _________ _____________ _ 12, 413, 592 L 671,377 i; 336; 000 9. 658,000 10. 994.000
Florida___________________ _ ___ ___________________ 109, 522,095 29,252; 349 1, 405, 244 24; 769; 145 49,699,000 75. 873,389
Georgia__________ _______ ___________ _ _ _ _ 239,415; 955 83; 727; 795 10,194,337 67; 132, 354 99, 677,000 177,003, 691
Hawaii____ __________________________________________ 31. 757, 822 4. 763,286 42, 479 1,834,257 14, 924, 000 16, 800, 736
Idaho____ ______ __ ___ _ ___________ _______________ 1,096; 673 294,093 8,093 286,000 625,000 919,093
Illinois________ ___________ __________ _ 449,002, 767 58, 991,048 1, 020, 461 49,313,020 204, 751, 000 255,084,481
Indiana. ______ __ _______ __ _ _________________ 31. 755,605 13. 875, 640 707, 691 12.861, 950 8, 772,000 22,341, 641
Kansas. . _________________ 7, 320, 512 1 866,399 172, 466 1,135, 658 1,308,124
Kentucky_____ _ _____ _ ______ 97, 729, 973 15, 766, 906 3,015,024 11.203,596 61,269,000 75, 487, 620
Lousiana_____ __________________ ________________ __ 165,355.392 67, 215, 967 758, 517 55, 765, 641 46,806; 000 103,330,158
Maine.. _______ __________ _ . ... 1,228,301 1.024,597 ' 989,000 16,000 1.005, 000
Maryland ... _ _____________ ______ 110,189, 987 13,320,336 4 605,906 3, 902, 268 76,168,000 84. 676,174
Massachusetts____________ ._ . _______ _ _ ___ __ 182, 260,983 24, 662, 530 6,354, 701 13,264, 630 112, 770,000 132,389,331
Michigan_________ _ . _ _ 142,243 047 12,119, 899 2, 845,267 7,930.805 64. 047,000 74, 823,072
Minnesota______ _______________ __________________ 41,135. 704 2, 949,342 538,161 1, 747,000 33, 659,000 35, 944,161
Mississippi____________ _ _ . 54, 434,844 14, 890; 769 1,436,930 11, 233, 890 21,331,000 34.001, 820
Missouri_______ _____ __ __ _ .. 171, 976, 535 33, 771 628 3,351, 765 19, 349.232 80,885,000 103, 585, 997
Montana________________ _______ 6, 299, 682 3,145,165 68, 749 2; 747,000 53,000 2, 868,749
Nebraska_____ _ . _____ 12,369 816 1 583 816 812. 816 771.000 7, 799,000 9,382, 816
Nevada.. ._ _______ ________________ 6,216, 661 359,606 153, 658 4,019,000 4,172, 658
New Hampshire _____________ . ...____ ...______ 14, 014.038 1, 438. 134 144, 949 533,000 7, 992,000 8, 669, 949
New Jersey_____ ___ _ _ ______ 337, 513,325 48. 891, 793 2,911,857 36, 370,179 204,871,000 244,153,036
New Mexico ... .. ._ _ _____ __ 1,363, 24^ 528, 000 528,000 654,000 1,182,000
New York. ... _ . ______ __ __ . 895,450,061 151,274, 289 9. 505. 849 90,036,233 444, 724,000 544, 266,082
North Carolina_____ __ _________ _ 102, 634, 590 14,016, 748 3,107, 598 8, 568,000 67, 378,000 79,053, 598
North Dakota___ _______ _ ________ _ 843,863 748, 155 695; 000 74,000 769,000
Ohio_____ ._ . ... ... 200,989 874 21,314 988 420,003 10, 892,354 93. 859,000 105,171,357
Oregon__________ _ ... ... . _________ ._ 6, 782, 787 2, 805,028 60, 734 2. 680,042 1,331,000 4,071, 776
Pennsylvania_________ . ._ ______ _ . 419 952 240 75,629, 745 9.330,347 49. 818, 139 187, 756,000 246,904, 486
Rhode Island_____ _____ 39 077 436 4,402 205 781,025 2,811,000 25, 416,000 29.008.025
South Carolina_____________________._ 42 966 359 9, 716,279 159, 613 9,189, 414 24, 980,000 34,329,027
Tennessee________ . ___________ _____ __ 161. 413 406 29, 958, 974 4, 412, 694 21,187,050 97, 745,000 123,344, 744
Texas_______ _ _________ _ _ _ ... 234 810 658 65,428 851 8,327, 435 52,821, 723 128, 862,000 190,011,158
Virginia_______________________________ . 136,193 352 15,318, 872 1,428, 932 9,067,031 91, 627,000 102,122, 963
Washington_________________ __ _ 20,907, 993 8, 206, 252 70,350 7, 998.000 9.181.000 17,249,350
West Virginia________________ ___________ 15,844 694 3,078, 081 316, 500 2, 425, 754 8, 559,000 11,301,254
Wisconsin___ _____________ ___ 30,498 165 3,505 812 242;912 1, 505, 651 18. 556,000 20,304, 563
District of Columbia______ _ ________ 96,984 151 11,323,406 3,293,194 1, 090, 335 63, 609,000 67,992, 529
Puerto Rico__________ _______ __ 220, 521. 945 32, 581, 222 20, 900,872 102,915,000 123, 815, 872
Virgin Islands________ _ ..... 14, 464,264 3, 690; 415 3, 289,939 4,390,000 7,679, 939
237
Table IV-11.—Statement of annual contributions by
States for fiscal year and cumulative to June 30, 1960,
and maximum annual contributions payable under contracts
as of June 30, 1960, low-rent public housing program
fund
Annual contributions Maximum
annual contributions
payable in
any 1 year
under contracts
as of
June 30,1960»
Fiscal year
ended June
30,1960
Cumulative
to June 30,
1960
Total locally owned projects____________________
$131,188,377 $744, 999,147 $250, 275,978
States:
Alabama ________ - __ 4, 676, 355 27,001,053 9 581,299
Alaska __ _ ___ ____ 217, 540 1,320,270 218, 643
Arizona _____ _ 317,180 2, 622,015 984, 796
Arkansas __________ ____ 718,478 5, 211,079 1 139,799
California ___ ___ - - 5, 652, 668 29, 336, 549 9 681 508
Colorado ____________ _ 1,138,176 5,273, 535 1,421, 285
Connecticut _____ _______ 2' 590’ 294 18' 202’ 325 3,414, 819
Delaware__ _________ 276, 596 1,534, 784 579 806
Florida____________________ 2, 664, 395 16, 862, 768 4, 965,556
Georgia _ __ __ _ ____ 6,932, 558 38,361,282 10 682 255
Hawaii____ _______________ 641,698 3,193, 866 1, 526,146
Idaho ____ -________ 38, 395 370, 777 38,395
Illinois __ - - _ ____ 9,026’ 059 40, 752’ 654 22,057, 416
Indiana 951,634 5,996, 405 1 463 107
Kansas___________________ 420, 929
Kentucky _______________ 2, 901, 231 20, 890,127 4,135, 689
Louisiana - __ _______ 4, 214, 704 29,924,359 7, 437, 718
Maine _________ ______ 49,063 307, 718 50,365
Maryland ___ 3,291’ 155 19,063,416 4, 579, 596
Massachusetts ___________ 5, 571,824 35, 863,266 7 816 318
Michigan ______ - ______ 3,044, 740 15, 763, 781 6,259, 500
Minnesota___ ___________ 1438' 597 5,275, 904 1,831, 951
Mississippi________ _______ 1,260, 531 6' 311' 746 2, 652,026
Missouri __ _ __ 3,469,303 14, 865,123 8,147,295
Montana____ _____________ 100, 613 937, 753 304,462
Nebraska______ -____ - 346,607 3, 776,035 489,151
Nevada . _ __ ____ 149^ 218 347,148 321,028
New Hamsphire__________ 336’ 487 2,396' 361 654,284
New Jersey _____ _________ 8, 967,629 52, 286, 825 15, 537,688
New Mexico _ _____ 40, 688 281, 693 54, 592
New York _ _ ___ __ 19, 940,462 100,813,095 42 364, 719
North Carolina __________ 3,093, 818 20,451,549 4, 576, 981
North Dakota___ __ ______ 28,013 55, 910 37,052
Ohio ____ - __ ______ 3, 530, 655 13, 832, 461 9, 622,018
Oregon __ __ _________ 103, 929 654,144 293,480
Pennsylvania______________ 7, 741,514 45,867, 535 19, 509, 660
Rhode Island ___ 1, 326, 623 8,126, 764 1, 629,023
South Carolina____________ 1,397,207 11,127,276 1,875,801
Tennessee_________________ 4, 521,943 30, 711,703 7,120, 513
Texas ___ _ -__ __ 7,185, 845 47,165,358 9, 715, 865
Virginia _____________ _ _ 3, 657,429 19, 218,435 5, 951, 882
Washington_______________ 769,245 4,515,481 880,106
West Virginia_________ 516,066 4,031,656 659, 569
Wisconsin _ ___ __ 750, 649 4,581,365 1, 398, 254
District of Columbia _ - 1,746,487 8,189,843 4, 564,950
Puerto Rico_______________ 3, 588,390 19,998, 753 10, 930,387
Virgin Islands_____________ 265, 686 1,327,202 698, 296
Table IV-12.—Statement of income and expenses per
unit month of availability for fully active federally
owned projects for the fiscal year ended June 30, 1960,
low-rent public housing program fund
Total projects PWA Public
Law 671
Number of projects___ ______ . 4
1,427
17,124
3
1,182
14,184
1
245
2,940
Number of dwelling units __ __
Number of dwelling unit months
operation___________________
Income:
Rentals:
Dwelling ... ________ ______
Amount Per unit
month
Per unit
month
Per unit
month
$655, 697
3, 825
10,023
669, 545
3,884
12, 568
$38. 29
.22
.59
39.10
.23
.73
$40. 81
.27
.71
41.79
.27
.25
$26.13
Excess utilities______ ___
Nondwelling..._____ ... .
Total__ _ _ . 26.13
3.07
Sales and services to tenants__
Other _______ __ _ ____
Total project income______ 685, 997 40.06 42.31 29.20
Expenses:
Operating expenses:
Management _ ___ 88, 592
50, 219
197, 564
185,983
39, 591
3,610
3,215
3, 588
6,148
-1,748
-396
5.17
2.93
11.54
10.86
2.31
.21
. 19
.21
.36
-.10
-.02
4.68
3.54
12.91
10.82
2.35
.10
.19
.25
.38
-. 12
-.03
7.58
Operating services _______
Utilities... .. .. 4.91
11.07
2.12
.77
.18
Repairs, maintenance, and
replacements ___
Payments in lieu of taxes___
Insurance. _ _ ___ ____
Terminal leave payments___
Cost of sales and services to
tenants_ . __ ____
Collection losses _ _ __ ____ .24
Prior year adjustments_____
Other. .. ________ _____
Total project operating expenses______
_ _ __ _ 576,366 33. 66 35.07 26.87
Net operating income before interest
and depreciation______ 109, 631 6. 40 7. 24 2.33
Interest and depreciation:
Interest—portion allocated to
federally owned projects----
Depreciation of structures and
equipment______________
35,191
135, 706
2.06
7.92
11.97
7. 94 7. 82
Total interest and depreciation.
_________ 170, 897 9. 98 7. 94 19.79
Net operating loss.____ _______ 61, 266
9,046
1,092
1,558
2, 234
-13,930
61, 266
3. 58
.53
.06
.09
.13
-.81
3. 58
.70
.54
.08
. 11
. 16
-.89
.70
17. 46
.44
Expenditures for property acquisitions:
Replacement of ranges and refrigerators_________________
Replacement of other equipment
__________ __
Property betterments_________
Property additions____________
Less property acquisitions capitalized___________________
Net loss for the fiscal year_______
-.44
17.46
1 The amounts included for projects in the preconstruction stage are based
upon maximum development costs set forth in the annual contributions contracts
for these projects. For other projects the amounts are those shown in
the latest approved development cost budgets.
238
Table IV-13.—Statement of annual contribution requirements
for locally-owned projects eligible for contributions
in fiscal year ended June 30, 1960, low-rent public
housing program fund
Classification Total
projects
Number of units _ _ - - 425,850
Fixed annual contributions_________________________________ $147, 523,103
Deduct amounts available to reduce fixed annual contributions:
Accrued interest _ _____ ___ __ __ _ ___ 1, 460, 676
Capitalized interest_____________________________________ 1,144, 652
Residual receipts, end of initial operating period------------- 698, 537
Residual receipts, current period------------------------------------- 13,030. 861
Total amount available to reduce annual contributions- 16,334, 726
Annual contribution requirements__________________________ 131,188,377
Table IV-14.-—Statement of receipts, expenditures, and
residual receipts for locally owned projects eligible for
annual contributions in fiscal year ended June 30, 1960,
low-rent public housing program fund
Classification
Total projects
Amount Per unit
month
Operating receipts:
Rental income--- _____________________________ $184,842,151 $38.25
Other income__________________________________ 5,201,546 1.08
Total operating receipts____________________ 190,043,697 39. 33
Operating expenditures:
Routine:
Administration_______________________________ 30, 603, 750 6. 33
Utilities_____________________________________ 42,500,108 8. 79
Ordinary maintenance and operation------------ 60, 565, 766 12. 53
Payments in lieu of taxes_____________________ 13,458, 655 2. 79
Collection Losses____________________________ 1,139,907 .24
Other general expenditures___________________ 3,915, 792 .81
Total routine expenditures_________________ 152,183, 978 31.49
Non-routine:
Extraordinary maintenance__________________ 4,085, 958 .85
Replacement of equipment___________________ 2,135, 405 .44
Betterments and additions___________________ 4, 323, 731 .89
Other nonroutine expenditures_______________ 36,301 .01
Miscellaneous adjustments___________________ 403,139 .08
Total nonroutine expenditures_____________ 10,984, 534 2. 27
Provision for operating reserve_________________ 13,844,324 2.87
Total expenditures_________________________ 177,012,836 36.63
Residual receipts_________________________________ 13,030,861 2. 70
Number of projects at yearend___________________ 2,411
Number of units at yearend_____________________ 425, 850
Number of unit-months__________________________ 4, 832, 607
Table IV-15.—Statement of accrued administrative expenses
by object of expenditure for the fiscal year
ended June 30, 1960, low-rent public housing program
fund
Personal services and benefits:
Personnel compensation:
Regular salaries_____________________________________________ $9,385, 871
Terminal leave_____________________________________________ 54,286
Night differential___________________________________________ 68
W AE employees____________________________________________ 1,059
Overtime and holiday______________________________________ 30,931
Total personnel compensation-------------------------------------------- 9, 472, 215
Personnel benefits:
Cash awards to employees__________________________________ 1,830
Retirement contributions___________________________________ 599,096
Life insurance contributions________________________________ 31,319
FICA taxes_________________________________________________ 3, 369
Cost of living allowances____________________________________ 43,398
Uniform allowances_________________________________________ 170
Total personnel benefits__________________________________ 679,182
Total personnel services and benefits--------------------------------- 10,151,397
Contractual services and supplies:
Travel and transportation of persons---------------------------------------- 802, 966
Transportation of things_________________________________________ 16,845
Rent, communications, and utilities__________________________ 963,662
Printing and reproduction------------------------------------------------------ 35, 861
Other services________________________________________________ 179,869
Supplies and materials________________________________________ 95,973
Total contractual services and supplies___________________ 2,095,176
Acquisition of assets:
Capitalized equipment________________________________________ 91,365
Noncapitalized equipment____________________________________ 10,381
Total acquistion of assets_________________________________ 101, 746
Total expenses by object of expenditure__________________ 12,348,319
Plus adjustment of liability for employees’ accrued annual
. leave_______________________________________________________ 8,065
Total administrative expenses (accrual basis)_____________ 12,356,384
239

Federal National
Mortgage Association
Federal National Mortgage Association
ORIGIN AND PURPOSE
The Federal National Mortgage Association (FNMA)
administers the Government’s secondary market facility
for home mortgages through the purchase and sale of certain
types of FHA-insured and VA-guaranteed mortgages
covering residential housing. The Association was originally
chartered by the Federal Housing Administrator on
February 10, 1938, as a subsidiary of the Reconstruction
Finance Corporation (RFC) and was given a statutory
charter on July 1, 1948. On September 7, 1950, the Association
was transferred to the Housing and Home Finance
Agency (HHFA) pursuant to Reorganization Plan
No. 22 of 1950 for the purpose of coordinating the functions
performed by FNMA with other Federal housing
programs. FNMA was rechartered under the provisions
of the Federal National Mortgage Association Charter Act
(Title III of the National Housing Act, as amended by
Public Law 560, 83d Congress, approved August 2, 1954)
and was designated a constituent agency of HHFA.
GENERAL OBJECTIVES OF OPERATIONS
The Association’s operations were initially directed
toward providing a nationwide general secondary market
for FHA-insured mortgages and toward assisting in establishing
the acceptability to investors of certain new
types of such mortgages. These activities were expanded
in July 1948 to include certain types of VA-guaranteed
mortgages.
A material innovation in the character of FNMA’s operations
occurred in 1954 as the result of the enactment
of the FNMA Charter Act. This legislation, which provided
for the establishment of a secondary market facility
for residential housing mortgages to be initially
financed by the Federal Government, but to be transformed
gradually into an organization that would be privately
financed and operated, grew out of various plans
or proposals that were made by different segments of the
housing industry.
FNMA is specifically authorized by its Charter Act to
conduct:
SECONDARY MARKET OPERATIONS
These operations provide supplementary assistance to
the secondary market for FHA-insured and VA-guaranteed
home mortgages by providing a degree of liquidity
for mortgage investments, thereby improving the distribution
of investment capital available for home mortgage
financing. This objective is accomplished through the
purchase of acceptable mortgages in areas where, and
at times when, investment funds are in short supply and
by the subsequent resale of the mortgages in areas where
and when investment capital is available;
SPECIAL ASSISTANCE FUNCTIONS
Upon specific authorization by the President of the
United States, or by the Congress, these functions provide
special assistance for financing selected types of home
mortgages that are originated under special housing programs.
Provision is also made for special assistance
through the purchase of home mortgages generally as a
means of retarding or stopping a decline in mortgage
lending and home building activities which threatens
materially the stability of a high level national economy;
and
MANAGEMENT AND LIQUIDATING FUNCTIONS
These functions require FNMA to manage and liquidate
its portfolio of mortgages acquired under contracts entered
into between February 10, 1938, and November 1,
1954, and those other mortgages that have been, or will
be, acquired subsequently from authorized sources, in an
orderly manner, with a minimum of adverse effect upon
the home mortgage market and minimum loss to the
Federal Government.
The Association began its activities under the three
operations or functions authorized by the FNMA Charter
Act on November 1, 1954.
242
ORGANIZATION CHART OF FEDERAL NATIONAL MORTGAGE ASSOCIATION
243
Section 1
Summary of FNMA 1960 Activity
The market for residential housing mortgages
during 1960 reflected a gradual easing of the generally
tight market conditions that prevailed
throughout the greater part of 1959. As the year
progressed, home mortgage funds became more
readily available, discounts on fixed interest rate
mortgages continued to decrease, investor purchasing
requirements became less stringent, and
conventional interest rates trended downward
from their higher 1959 levels. Market conditions
in 1960, represented in part by a first quarter continuation
of 1959’s financing difficulties and also
by the more favorable mortgage climate of the
remainder of the year, were reflected in the
Association’s activities during the year.
The Purchasing Program During 1960
The mortgage purchasing activities of the Association
during the calendar year 1960 totaled
$1,391 million, the second year in succession and
the third in the fast 4 years in which the volume
of acquisitions was above the $1 billion level. The
1960 volume was about 28 percent less than the
all-time $1,922 million high of 1959, but 27 percent
more than the previous high of $1,096 million
in 1957. Seventy-one percent ($980 million) of
the mortgage acquisitions occurred under the
Secondary Market Operations as contrasted with
19 percent ($267 million) purchased under the
Special Assistance Functions, and 10 percent
($144 million mortgages acquired from the Public
Housing Administration (PHA) under authority
of Public Law 86-372, approved September 23,
1959) under the Management and Liquidating
Functions. The year’s overall purchases consisted
of 70,524 FHA-insured mortgages ($959 million),
22,055 VA-guaranteed mortgages ($288 million),
and 10,956 non-insured or -guaranteed mortgages
($144 million) acquired from the portfolio of the
Public Housing Administration.
FNMA’s 1960 purchases of FHA and VA home
mortgages represented approximately 17 percent
of the national total dollar amount of one- to
four-family nonfarm housing mortgages that were
insured by FHA, and 15 percent of the same type
of mortgages that were guaranteed by VA during
the year.
In terms of housing units, FNMA’s 1960 purchases
of FHA and VA mortgages provided financing
for 101,878 family dwellings or residential
housing units located in 45 States, Guam,
Puerto Rico, and the District of Columbia; the
1960 volume was almost two-thirds of the unit
volume that was financed by FNMA in 1959
(157,139), approximately two times the 1958 volume
(51,226), and about one-tenth more than the
92,313 units financed in 1957.
FNMA 1960 activities by type of operation or function
[Dollars in millions]
Function or operation
Purchases
Sales
Repayments
Other
credits
Yearend
portfolio
Contracts
outstanding
Total____________ $1,391.3 $357.3 $219.1 $55.4 $6,341.6 $576.1
Secondary market operations___________
980.5 42.1 64.1 21.1 2,903. 0 164.9
Special assistance functions_____________
2_6_7.3 3.9 32.6 20.1 1.779.1 411.2
Management and liquidating
functions___ ‘ 143. 5 2 311.3 122.4 14.2 1, 659. 5
1 Mortgages acquired from the Public Housing Administration under
authority of Public Law 86-372, approved Sept. 23, 1959.
2 Represents in part FNMA 4 percent VA-guaranteed mortgages exchanged
for U.S. 2% percent Treasury Bonds, Investment Series B, 1975-80.
Seventy-one percent ($983 million) of the 1960
purchases were made on an over-the-counter or
immediate purchase basis under the Secondary
Market Operations and Special Assistance Functions,
1 percent ($16 million) under Secondary
Market Operations standby commitments, 10 percent
($144 million) represented former PHA
loans and contracts, and the remaining 18 percent
($248 million) were acquired under commitment
contracts issued in the Special Assistance
F unctions.
Outstanding undisbursed commitment and purchase
contracts at the end of 1960 aggregated $576
million as compared with $568 million and $1,541
million at the end of 1959 and 1958, respectively.
Comparative undisbursed commitments
[Dollars in millions]
Type of activity Dec. 31. 1960 Dec. 31, 1959 Dec. 31, 1958
Total___________________ $576.1 $568. 4 $1,540.9
Special assistance functions—
Total___________ 411.2 381.2 1,461.0
Disaster housing _ _____ ___ . 1 (1)
Guam housing . 1 . 1 1
Urban renewal housing __ _ 272.7 235 8 174 4
Alaska housing ____ ______ 6.3 7 5 5 5
Military housing______________ 5.5 44.6 288.0
Elderly persons housing_______ 61.4 38.6 20.4
Cooperative housing -------------- 65.2 49.1 73.3
Low cost housing (mortgages of
$10,000 or less) _ 1 2
Low cost housing (mortgages of
$13,500 or less)_______________ 5.4 898.1
Secondary market operations—
Total___________ 164.9 187.2 79.9
Immediate purchase contracts. _ 40.6 105.8 46.8
Standby commitment contracts. 124.3 81.4 33.1
> Less than $0.05 million.
244
Mortgage Sales and Other Portfolio Changes
In contrast with the 1959 sales volume of less
than $5 million, sales during 1960 totaled $357
million, reflecting the easier market conditions of
the last three quarters of the year and transactions
involving the exchange of $311 million of FNMA
4 percent VA-guaranteed mortgages from the
portfolio of the Management and Liquidating
Functions for U.S. 2% percent Treasury Bonds,
Investment Series B, 1975-80.
Foreclosure proceedings or their equivalent
were completed during 1960 on 4,914 mortgages
with unpaid principal balances of $55 million.
Repayments, including the final repayment on
11,379 mortgages, amounted to $219 million.
The FNMA overall portfolio and purchasingobligations
at December 31, 1960, reached an alltime
high of $6,918 million, a net increase of $767
million or about 12 percent over the $6,151 million
1959 year end total.
Comparative FNMA portfolio and outstanding purchasing obligations at end of 1960 and 1959
[Dollars in. millions]
Function or operation
1960 1959 Net change in 1960 from 1959
Portfolio
Contracts
outstanding
Total portfolio
and
contracts
Portfolio
Contracts
outstanding
Total portfolio
and
contracts
Portfolio
Contracts
outstanding
Total portfolio
and
contracts
Total________________________________
Secondary market operations______________
Special assistance functions________________
Management and liquidating functions-------
$6,341. 6 $576.1 $6, 917. 7 $5,582.1 $568. 4 $6,150. 5 +$759. 5 +$7.7 +$767.2
2, 903. 0
1, 779.1
1,659. 5
164.9
411.2
3,067. 9
2,190. 3
1,659. 5
2,049. 8
1,568. 4
1, 963. 9
187.2
381. 2
2.237. 0
1,949. 6
1, 963. 9
+853. 2
+210.7
-304. 4
-22.3
+30.0
+830. 9
+240. 7
-304. 4
1960 year end portfolio and outstanding purchasing obligations
[Dollars in millions]
Function or operation Total FHA VA Other 1 Contracts
outstanding
Total _________________________________________________ $6, 917. 7 $3, 907.2 $2,828. 2 $182. 3 $576.1
Percent __ _ _ _ _ 100.0
3,067. 9
2,190.3
1,659.5
56.5
1,693. 2
1,569. 4
644.6
40.9
1, 374. 7
620.9
832.6
2.6
.Secondary market opera,lions _ _ __ 164.9
Special assistance functions _ __ _ __ ___ _ ___ 411.2
Management and liquidating functions __ -___ 182.3
i Loans of the Defense Homes Corp, and direct loans of The RFC Mortgage Company transferred to FNMA by Reorganization Plan No. 2 of 1954, and
mortgages acquired from the Public Housing Administration under Public Law 86-372, approved Sept. 23, 1959.
591772—61----- -17 245
Section 2
FNMA’s Operations and Functions
The Association is required by law to maintain
separate accountability for each of the three
operations or functions that it conducts under
the authority prescribed by the FNMA Charter
Act. Each has its own assets, liabilities, and borrowing
authority and hence each is conducted in
much the same way and manner as though it constituted
a separate corporation.
1. SECONDARY MARKET OPERATIONS
The FNMA Secondary Market Operations are
intended to provide supplementary assistance to
the general secondary market for home mortgages
by providing a degree of liquidity for home mortgage
investments. This objective is accomplished
by the purchase of acceptable FHA-insured and
VA-guaranteed mortgages in areas where, and at
times when, investment funds are in short supply
and by selling the mortgages in areas where and
when investment capital is available.
Mortgage Purchasing Activity
Acceptable Mortgages
Under the Secondary Market Operations the
Association, as required by its charter, confines
its purchases to mortgages which are of such
quality, type, and class as meet, generally, the
purchase standards imposed by private institutional
mortgage investors. The language of the
Charter Act establishes a criterion of marketability
and contemplates the eventual sale of the
mortgages by FNMA to private investors.
Although the Charter Act provides that mortgages
purchased by the Association under its
Secondary Market Operations must have been
insured by FHA, or guaranteed or insured by
VA on or after August 2, 1954, the Association
administratively requires that mortgages to be acceptable
for immediate purchase under these
operations must have been insured by FHA or
guaranteed by VA and must be offered for purchase
within 4 months following the date of the
FHA final insurance endorsement or the VA Certificate
of Guaranty.
Purchases are currently confined to mortgages
that are insured by FHA under Sections 203(b),
203(i), 207, 213 (individual and project-management
types), and 222 of the National Housing
Act, as amended, or guaranteed by VA under
Section 501 of the Servicemen’s Readjustment Act
of 1944, as amended. By administrative action,
purchases under the Secondary Market Operations
do not include mortgages covering housing
located in Guam or Alaska.
Amendments to the corporate charter by Public
Law 86-372, approved September 23, 1959,
with respect to the Secondary Market Operations,
provided a basis for the issuance of standby commitment
contracts for the purchase of mortgages
covering existing housing, and authorized an increase
to $20,000 from $15,000 in the maximum
principal amount of a mortgage for each family
residence or dwelling unit that may be purchased.
The increased maximum was administratively
established by the Association on January 5,1960.
Mortgages covering housing located in Alaska,
Guam and Hawaii, and relating to FHA Sections
220 and 803 housing are exempt from the statutory
mortgage amount limitation.
Fees and Charges
The volume of purchases and sales, and the
establishment of purchase prices, sales prices, and
charges or fees under the Secondary Market
Operations are required by law to be determined
by the Association from time to time with the
objective that purchases and sales will be effected
at such prices and on such terms as will reasonably
prevent excessive use of the secondary market
facility and will make the operations fully selfsupporting.
To defray the costs incident to the administration
of the Secondary Market Operations, the Association
imposes certain fees or charges upon
users of the facility. The fees and charges in
effect at the end of 1960 were: (1) a purchase and
marketing fee equal to one-half of 1 percent of the
unpaid principal amount of mortgages involved in
immediate sales to the Association; (2) a standby
commitment fee equal to 1 percent of the principal
amount of the mortgages covered by the contracts;
and (3) a purchase option fee equal to one-half
of 1 percent of the unpaid principal amount of
mortgages purchased from sellers that concurrently
obtained an option to repurchase the
mortgages from the Association within the option
period.
FNMA Purchasing Methods
Mortgages are purchased by the Association
under its Secondary Market Operations on an
immediate purchase basis (including transactions
in which sellers obtain an option to repurchase the
mortgages from the Association) or under standby
commitment contracts.
246
a. Purchase Option Procedure
FNMA is not authorized to make collateral loans
with mortgages as security. Some sellers find it
necessary, however, to borrow cash on the security
of mortgages, but also wish to retain potential
control over the mortgages for a period of time.
For sellers in this category, FNMA provides a
procedure under which they can raise immediate
cash on their mortgages in larger amounts than
are available under customary borrowing and discounting
arrangements and also gives them an
additional period of time in which they can seek to
sell the mortgages elsewhere. Under this procedure
FNMA purchases mortgages from a seller
on an immediate purchase basis at its current
prices and concurrently permits the seller to
obtain a 9-month option under which it may repurchase
the mortgages at the prices paid for them
by the Association. The purchase price is the
same whether the seller does or does not obtain a
purchase option as a part of the transaction. A
seller wishing to obtain such an option is charged
a fee equal to one-half of 1 percent of the unpaid
principal amount of the mortgages involved and,
in addition, must pay the then applicable purchase
and marketing fee and comply with the usual
common stock subscription requirement. Purchases
totaling $5.1 million were effected during
1960 under the purchase option procedure and
cumulatively such purchases have been $12.7
million.
A Standby Commitment Procedure
Some organizations are able to conduct their
mortgage operations without the need for prior
commitments; others find commitments necessary
before they can obtain interim financing and start
construction. For the latter organizations FNMA
offers commitments of a type known in the trade
as “standby” commitments. Under its standby
procedure FNMA issues prior to commencement of
construction 12-month commitment contracts to
purchase one- to four-family housing mortgages
and 2-year contracts to purchase multifamily
housing mortgages at prices which are somewhat
less than those being paid in connection with immediate
purchases at the time the commitments
are issued.
As previously stated, Public Law 86-372 expanded
the Association’s standby commitment authority
to include commitments at prices which
are sufficient to facilitate home financing, thus
permitting the issuance of standby commitments
on existing as well as on new construction. The
Association’s standby procedure was modified on
October 18, 1960, to include the issuance of 6-
month commitments for the purchase of one- to
four-family housing mortgages on existing construction
(construction in process or completed).
Prior approval of credit in respect to standby
commitments may be obtained if desired.
The objective of the standby procedure is to
enable sellers, through the use of FNMA’s commitments,
to obtain construction funds with the
expectation that the mortgages will be sold to private
investors in the general secondary market
when construction of the housing is completed and
the mortgages are ready for delivery. The seller
may elect to sell the mortgages to purchasers other
than FNMA, but during the commitment period
Hie Association is prepared to purchase the mortgages
at the contract price; that is, the Association
maintains a “standby” position under which
it will purchase the mortgages if the seller elects
not to dispose of them elsewhere.
Under the standby procedure in effect on December
31,1960, a seller wishing to obtain a standby
commitment is required to pay a nonrefundable
commitment fee of 1 percent of the principal
amount of the mortgages involved and to
subscribe to one-half of 1 percent of FNMA’s common
stock. If the mortgages are delivered to
FNMA under the commitments, the seller is required
to purchase an additional iy2 percent of
common stock; there are no other fees or charges.
Contract holders may elect to sell the mortgages to
the Association on an immediate purchase basis
subject to the payment of the required purchase
and marketing fee and the usual common stock
subscription in lieu of delivering them for purchase
under the commitments.
Standby commitments totaling $112 million and
providing for the purchase of 4,539 mortgages
were executed by the Association during 1960. In
the period between August 9,1956, when the standby
procedure was established, and the end of 1960
applications for these commitments involving
33,543 mortgages had been received and contracts
totaling $438 million and covering 29,268 mortgages
had been approved. Purchases made under
the standby procedure during 1960 and cumulatively
totaled $16 million and $91 million,
respectively.
Purchase Prices
All FNMA mortgage purchases under immediate
purchase contracts in the Secondary Market
Operations are required by law to be effected at
prices which are within the range of market prices
for the particular class of mortgages involved,
as determined by the Association from time to
time. Under pricing procedure in effect at the
end of 1960, prices being paid for mortgages purchased
under standby commitments are required
to be sufficient to facilitate home financing but
sufficiently below the prices then being paid under
immediate purchase contracts to prevent excessive
sales to the Association under the commitments.
During 1960 the Association purchased acceptable
FHA-insured 5% percent and 5)4 percent
mortages and VA-guaranteed 5)4 percent and 4%
percent mortgages at prices which, in accordance
with usual mortgage practices, varied by geo247
graphical areas, interest rates, and by the amount
of borrower’s equity. The prices paid by the Association
for 514 percent and 4% percent mortgages
under immediate purchase contracts will
produce yields approximating those that will be
returned by similar types of mortgages bearing
an interest rate of 5% percent and purchased at
FNMA’s prices. Multifamily purchase prices are
determined on an individual case basis. The applicable
standby purchase prices for one- to fourfamily
housing mortgages in effect at year-end on
a uniform national basis were 93 for 5% percent
mortgages and 90 for percent mortgages, and
were 93 for afj percent Sections 207 and 213 multifamily
mortgages.
The ranges of FNMA’s purchase prices were adjusted
during July and August 1960. Purchase
prices established by the Association during the
year reflected variations in prices for specific types
of loans due to interest rate, loan-to-value, and
geographic differences.
Interest rates under Secondary Market Operations and
price ranges in effect during 1960
1 No change.
1963
Immediate purchase transactions
Standby commitment transactions
1-4-family housing mortgages
1-4-family housing
mortgages
Multifamily
secs. 207
and 213
only
percent
5J4 percent
5% percent
5K percent
5% percent
5J4 percent
•Tan. 1___ _ 89-91 93-95 97-99 90 93 93
July 6_____ 89J4-91 V2 931^-95^ 97]^-99^ (■) (■) (')
Aug. 19____ 90-92 94-96 98-100 (0 (>) (')
Mortgage Offering and Purchasing Activity
The Association under its Secondary Market
Operations has continuously been in the market
for FHA and VA mortgages. Offerings and purchases,
as might be expected, have been heaviest
when mortgage market conditions were tight and
lightest when the situation eased. Activities
under these operations have proved to be a fairly
accurate barometer of prevailing market conditions.
Thus, purchases increased from $735
million in 1959 to $980 million in 1960.
Offerings of 86,656 mortgages during 1960
exceeded the 1959 volume (82,758) by a small margin.
Offerings of VA mortgages (22,554) accounted
for 26 percent of the total 1960 offering
volume and purchases of such mortgages (21,-
653) comprised 29 percent ($284 million) of the
total purchasing volume. FHA mortgage purchases
during 1960 (56,780) represented 71 percent
($696 million) of the year’s acquisitions. Total
purchasing activity during 1960 involved 78,433
mortgages with unpaid principal balances of $980
million. Purchases in 1960 involved properties
located in 43 States, the District of Columbia, and
Puerto Rico.
Distribution of mortgages purchased under Secondary
Market Operations during 1960 and cumulatively, by
States
[Dollars in thousands]
State
1960 Nov. 1, 1954 through
Dec. 31, 1960
Number Amount Number Amount
Total_____________________ 78, 433 $980,496 311,766 $3, 656,255
Alabama________________________ 1,317 17, 245 5,127 61,356
Arizona _____ - _ 4,044 47, 840 9 251 101 241
Arkansas_______________________ 830 9, 545 3, 808 40’ 887
California_______________________ 14,269 188, 472 59, 725 742, 983
Colorado________________________ 667 8, 663 6,051 70, 894
Connecticut . _ _ 21 246
Delaware_______________________ 139 1,710 686 7, 528
District of Columbia___ _ - 10 139 56 721
Florida__ ____ __ _ 9,847 124, 638 25, 563 308 738
Georgia--------------------------------------- 1,238 15, 427 7,430 84, 391
Hawaii_________________________ 394 6,112 1,256 18,182
Idaho ___ _ _ _ 418 5, 243 798 9 681
Illinois 1,346 18, 251 8 025 102 704
Indiana___ 1.782 22,924 7, 009 85, 044
Iowa.______ _ __ __ 231 3, 029 842 9 355
Kansas_________________________ 1,118 13,568 6,602 73,429
Kentucky_______________________ 530 6, 694 2,061 23,995
Louisiana_____ -. __ 2, 591 32, 765 9 701 112 724
Maryland. _ ___________________ 225 3,115 781 9,058
Massachusetts ___ ___ . 3 39
Michigan_______________________ 3, 297 44,006 26, 648 336, 552
Minnesota______________________ 810 10, 880 2,003 25, 055
Mississippi_____________________ 316 3, 950 1, 559 17,891
Missouri________________________ 1,157 14, 639 4, 901 58, 690
Montana________________________ 146 1,834 250 3,103
Nebraska ___ _ 379 4, 901 1,104 12 749
Nevada ______ _ ____ 1,619 23,329 4, 775 63 981
New Jersey . - ___ ___ 146 1 570 1 405 15 864
New Mexico 2,311 29,083 8’ 789 101’ 096
New York______________________ 27 367 422 5,081
North Carolina - - __ 337 4, 027 1, 832 20 5^8
North Dakota.__________________ 4 55 34 412
Ohio - _ 3,187 43, 895 11, 913 154,118
Oklahoma______________________ 2,067 23, 494 9; 122 94,119
Oregon___ _ _____ 790 9, 631 1, 990 22,327
Pennsylvania. __ __ ____ 108 1, 379 1,510 16 875
Puerto Rico ___ 2, 035 20, 787 4,316 41, 795
South Carolina_________________ 695 8, 322 2,414 26, 288
South Dakota __ 386 4, 725 1 411 15 925
Tennessee __ ____ . __ _ 1,010 12,066 4, 264 46, 671
Texas.____ _ - . _ 11 356 126, 666 47, 472 503 441
Utah __________________________ 1,056 14,068 4, 599 51, 944
Virginia __ _ ___ ___ 1.568 19,083 5 635 64 154
Washington .. _______ 2,153 25, 700 6, 581 70, 891
West Virginia _ . _________ • _ 35 483 190 2 078
Wisconsin _ . 137 1, 973 456 5. 527
Wyoming_______________________ 305 4, 203 1,375 15, 904
During the 74 months of operations since November
1, 1954, prospective sellers offered 374,844
mortgages to the Association for purchase, and
of that number 317,902 have been approved for
purchase. At December 31, 1960, a total of 311,-
766 mortgages amounting to $3,656 million, consisting
of 158,159 FHA-insured mortgages ($1,815
million or 50 percent) and 153,607 VA-guaranteed
mortgages ($1,841 million or 50 percent), had
been purchased.
248
Comparative purchasing activity under Secondary Market
Operations during 1960 and previous years
[Dollars in thousands]
Period Offers Approvals
Purchases Contracts
outstanding
end of
Number Amount period
Total_________ 374, 844 317, 902 311,766 $3,656,255—
1954: Nov.-Dec____ 37 19 2 24 $147
1955. - 16. 501 12,310 9. 482 86, 049 26, 590
1956________________ 8L 327 68, 697 53, 234 574, 538 283, 364
1957________________ 81, 893 75, 239 86, 597 1,021,044 189,102
1958________________ 25, 672 21, 612 22, 291 259, 535 79, 913
1959 82, 758 66,804 61, 727 734, 569 187, 215
1960________________ 86'. 656 73,321 78. 433 980. 496—
1st quarter- _ _ 30,590 27, 590 27, 273 337,829 207,066
2d quarter________ 22, 324 18. 346 20, 246 254, 904 293, 249
3d quarter .. _ _ 19,633 16, 640 18. 717 232, 337 174, 471
4th quarter_______ 14,109 10, 745 12,197 155, 426 164,891
Mortgage Sellers
Since November 1, 1954, more than 2,350 banks,
mortgage companies, and similar organizations
have qualified to sell mortgages to the Association
under the Secondary Market Operations by executing
selling agreements. FNMA’s purchases
through 1960 involved 1,291 such sellers.
Purchases under Secondary Market Operations, by type
of seller
[Dollars in thousands]
Type of seller
Sellers Mortgages purchased
Amount
as percent
Numof
total
ber
Percent
Number
Amount
Nov. 1,1954-Dec. 31,1960
Total_______ 1.291 100.0 311.766 $3, 656, 255 100.0
Mortgage companies___ 826 64.0 265, 516 3,110,210 85.1
Savings and loan associations:
State supervised______ 81 6.3 6, 536 73, 247 2.0
Federally supervised-. 74 5. 7 7,290 86, 718 2.4
Banks and trust companies:
State supervised______ 160 12.4 12,072 148,071 4.0
Federally supervised.. 129 10.0 18.411 216,040 5.9
Insurance companies___ 21 1.6 1,941 21,969 .6
Type of seller
1959 1960
Number Amount
Amount as
percent of
total
Number Amount
Amount as
percent of
total
Total_________________
During 1959 and 1960
61, 727 $734.569 100.0 78, 433 $980,496 100.0
Mortgage companies________ 52,692 624,332 85.0 67, 727 850,123 86.7
Savings and loan associations:
State supervised__ _ 1,264 14,409 2.0 1,393 14, 505 1.5
Federally supervised____ 821 9, 849 1.3 1,262 17,147 1.8
Banks and trust companies:
State supervised _ _____ 2, 407 29,850 4.1 2,372 34,629 3.5
Federally supervised____ 4,142 51, 754 7.0 5,235 58,212 5. 9
Insurance companies________—401 4,375 .6 444 5,880 .6
Characteristics of Mortgages Purchased
During 1960
The more significant characteristics of the
78,433 mortgages purchased under the Secondary
Market Operations during 1960 are shown in the
following tables:
Significant characteristics of mortgages purchased under
Secondary Market Operations in 1960
A. Age of underlying security ^mwtgages P4 12 years__________ 99. 625 Feb. 10,1972 To repay borrowings from U.S. Treasury.
150 4>4 2J4 years_________ 99. 75 Sept. 10,1962 To redeem June 10, 1959, issue of $150 million.
100 4~A 1 year____________ 99. 9375 Mar. 10,1961 To repay borrowings from U.S. Treasury.
150 10 years__________ 100 Apr. 10,1970 ITo redeem Oct. 13, 1959, issue of $100 million and to repay borrow-
100 4% 1 year_________ 100 Apr. 10,1961 J ings from U.S. Treasury.
200 4H 1 year____________ 99.9375 May 10.1961 To redeem Nov. 10, 1959, issue of $200 million.
200 43/4 1 year____________ 100. 0625 June 12,1961 To redeem Feb. 10,1959, issue of $100 million and to repay borrowings
from U.S. Treasury.
75 4J4 11 years__________ 100. 25 Aug. 10,1971 To repay borrowings from U.S. Treasury.
125 4% 10 years__________ 99 Sept. 10,1970 To redeem $125 million of Dec. 10, 1959, issue of $200 million.
100 4J4 6 years___________ 99. 25 Dec. 12,1966 To repay borrowings from U.S. Treasury.
Cash redemption of debentures
Date Amount Issues redeemed
July 1_________________________________________________
Sept. 12_______________________________________________
$4 million of Dec. 10, 1959, issue of $200 million.
$71 million of Dec. 10, 1959, issue of $200 million.
254
On April 18, 1960, the Association inaugurated
a new method of meeting a portion of its
Secondary Market Operations financing requirements
through the issuance of short-term discount
notes similar to commercial paper. These notes
are tailored to the individual needs of corporate,
institutional, and other investors at published
rates within a maturity range of 30-270 days.
FNMA is the only Federal Agency utilizing this
type of financing. This feature of financing serves
as a supplement to FNMA’s debenture borrowing
program and provides the corporation with a
greater degree of operational flexibility.
Specifically:
(a) the cost of borrowing funds needed to
finance the Secondary Market Operations
is decreased;
(b) if a sales program were to develop, FNMA
would then be able to pay off maturing notes
instead of being required to hold sales proceeds
or to invest them temporarily awaiting
the due dates of future debenture
maturities; and
(c) a “reserve” of short-term borrowings will
permit the Association to go into the intermediate
and long-term markets when rates
are favorable and hold off when conditions
are unfavorable for such financing.
Under these financing arrangements, short-term
discount notes aggregating $716 million had been
issued by the Association through December 31,
1960, and of that amount $383 million had then
been redeemed.
Financial Position
The FNMA Charter Act requires FNMA under
its Secondary Market Operations to pay annually
to the Secretary of the Treasury an amount equivalent
to the amount of corporate Federal income
taxes to which it would be subject if the operations
were being conducted by a privately owned and
operated organization. Such payments paid or
accrued as a result of operations during 1960
totaled $11.8 million and amounted to $43.8 million
since November 1, 1954.
The Association’s net earnings under its
Secondary Market Operations during 1960
amounted to $10.9 million after expenses and after
the establishment of reserves for losses of $490
thousand and provision for the payment to the
United States Treasury of $11.8 million as the
equivalent of Federal income taxes. From these
earnings provision was made for the payment of
$3.1 million to the Secretary of the Treasury as
the full amount of cumulative dividends on the
preferred stock and of $1.9 million for the payment
of dividends on the common stock, leaving
$5.9 million for transfer to surplus.
Since November 1, 1954, net earnings of the
Association under its Secondary Market Operations
amounted to $40.5 million after expenses and
after provision for reserves of $1.8 million and
tax equivalent of $43.8 million. After providing
for the payment of preferred stock dividends of
$10.7 million and common stock dividends of
$4.4 million, a total of $15.1 million, there remained
a general surplus of $25.4 million.
2. SPECIAL ASSISTANCE FUNCTIONS
Under its Special Assistance Functions FNMA
provides assistance for financing selected types of
home mortgages for which established financial
facilities are inadequate. They may also be
utilized, when needed, to retard or stop a decline
in mortgage lending and home building activities
which threatens materially the stability of a high
level national economy. Mortgages are purchased
by the Association under its Special Assistance
Functions on an immediate purchase basis or under
advance commitment contracts.
Mortgage Purchasing Activity
Acceptable Mortgages
Mortgages eligible for purchases under the
Special Assistance Functions currently include
those insured by FHA under National Housing
Act Sections 203(b), 203(h), 203(i), 207, 213, 220,
221, 222, 231, 803, and 809, and those guaranteed
by VA under Section 501 of the Servicemen’s
Readjustment Act. Mortgages covering property
located in Alaska, Guam and Hawaii, and FHAinsured
Sections 220 and 803 mortgages are
exempt from the statutory provision that no
mortgages may be purchased by the Association
under the Special Assistance Functions if the
original principal obligation exceeds or exceeded
$17,500 for each family residence or dwelling unit
covered thereby.
Purchases under the Special Assistance Functions
are required by law to be confined, so far
as practicable, to mortgages which are deemed by
the Association to be of such quality as to meet,
generally and substantially, the purchase standards
imposed by private institutional investors
but which, at the time of submission of the mortgages
to the Association for purchase, are not
necessarily readily acceptable to such purchasers.
Offers of home mortgages for immediate sale to
FNMA are required by administrative action to be
made within 4 months of the date of the final
FHA insurance endorsement or the VA Certificate
of Guaranty.
Purchase Prices
The prices paid by the Association for mortgages
purchased under its Special Assistance
Functions are established by FNMA at the time
of the announcement of each individual program,
but may be adjusted thereafter from time to time.
Purchase prices have also at times been fixed by
statute. Prices in effect for home mortgages on
a uniform national basis at December 31, 1960,
were 99 for 5% percent mortgages and 97 for 5*4
percent mortgages; as to multifamily housing
255
mortgages, the price was 99 for 5*4 percent mortgages
and 98 for 4y2 percent FHA Section 803
Capehart mortgages.
Fees and Charges
FNMA is required to impose fees and charges
in connection witli purchases under its Special Assistance
Functions with the objective that the
operations will be fully self-supporting. Currently,
FNMA charges a purchase and marketingfee
equal to one-half of 1 percent of the unpaid
principal amount of the mortgage delivered for
purchase; it also charges a nonrefundable commitment
fee of 1 percent of the principal amount
of the mortgage payable if and when a commitment
is issued.
Following are the more significant events which
occurred under the FNMA Special Assistance
Functions during 1960:
March 9—Program for Elderly Persons Housing increased
from $70 million to $90 million.
March 21—Mortgages insured by FHA under its “Escrow
Commitment Procedure” (trade-in financing) became
eligible for purchase.
April 22—Program for Alaska Housing increased from
$38 million to $48 million.
August 1—Program for Elderly Persons Housing increased
from $90 million to $120 million.
Program Limitations
On December 31,1960, FNMA special assistance
legislation provided a total authorization of $950
million outstanding at any one time for purchases
and commitments to purchase mortgages under
programs of housing approved by the President
of the United States and of $1,725 million outstanding
at any one time for programs specifically
established by the Congress to provide special
assistance for cooperative, low and moderate
priced, and armed services housing.
Program activity 'under Special Assistance Functions in 1960 and cumulatively
[Dollars in thousands]
Program
Program
authorization
Net
contracts
executed
Purchases against contracts
Contracts
outstanding
Dwelling
units
Mortgages Amount
During calendar year 1960
All special assistance activities—total__________________________ $60.000 $297,325 23,321 14,146 $267,287 $411,186
Programs authorized by the President_______________________________ 60, 000 238, 333 17,149 11,491 179, 976 340,460
Disaster - _ _ _ __ 21 8 8 86
Guam 5 5 83 51
Urban renewal-- . _ _ __ ____ _______ ________ 171,424 13,417 9,330 134,442 272,734
Alaska______ ____ -------- _ - ------ - _ 10.000 14.474 661 661 15, 735 6,268
Elderly persons------------------------------------------------------------------------------ 50, 000 52, 414 3,058 1,487 29, 630 61,407
The Congress________________________________________________________ 58, 992 6,172 2. 655 87,311 70, 726
Cooperative .__ _ _ 47,182 2. 384 1,222 31.046 65,234
Consumer _ __ _ ______ 29, 717 601 31 6,971 44,623
Other - _ . - - __ _ _ 17,465 1,783 1,191 24,075 20,611
Armed services _ __ ___ _ ___ 15,469 3, 651 1,296 54, 544 5, 492
Sec 803 458 2,368 13 37,403
Sec. 809 _ ______ 15, 011 1,283 1,283 17,141 5, 492
Low and moderate priced (terminated) -3, 659 137 137 1,721
Cumulatively (Nov. 1, 1954-Dec. 31, I960) •
All special assistance activities—total___________________________ 2, 523,316 2.287,226 153, 738 111,884 1,876,040 411,186
Programs authorized by the President_______________________________ 798,316 752, 049 40,256 27, 827 411,589 340, 460
Disaster ___ _ ___ __ _ ______ 10,000 864 81 81 864
Guam __ 7, 500 250 13 13 199 51
Urban renewal. _ ____ ____ __ ____ 600,000 580,664 31, 555 22, 449 307,930 272,734
Alaska _ _ _ - - -__ 48.000 44, 954 1,693 1,693 38, 686 6,268
Military-defense (terminated) __ _________________ _ _________ 11,072 11,072 1,320 203 11,072
Elderly persons 120,000 112, 501 5, 400 3,194 51,094 61, 407
Low cost (terminated)___________________________________________ 1,744 L744 194 194 1.744
The Congress------------------- - ------------------------------------------------------------------ 1, 725,000 1,535,177 113,482 84,057 1, 464, 451 70, 726
Cooperative ___ ______ 225,000 228,444 12,642 9, 636 163,210 65,234
Consumer ___ 62,500 57,907 1,146 152 13,284 44, 623
Other _ 162, 500 170, 537 11.496 9, 484 149,926 20, 611
Armed services _ _ _ 500,000 463,694 30,359 3, 940 458,202 5,492
Sec. 803 . ________ ____________________________________ 441,250 410,971 26, 577 158 410i971
Sec. 809 - - -_ ________________ 58, 750 52, 723 3,782 3, 782 47,231 5,492
Low and moderate priced (terminated)__________ ________________ 1,000,000 843,039 70, 481 70. 481 843.039
256
Program Activity
As of the encl of 1960, the President of the
United States had authorized the Association to
employ $798 million of its special assistance funds
for purchases and commitments to purchase mortgages
in connection with the seven specific housing
programs listed on page 256. In addition to
these programs, the Association is authorized by
Public Law 345, 84th Congress, as amended, and
Public Law 85-364, to undertake three additional
special programs, and in connection therewith
may:
(1) Make commitments to purchase and purchase
mortgages insured by FHA under
Title VIII of the National Housing Act,
as amended on and after August 11, 1955,
provided the total amount of the purchases
and commitments thereunder do not exceed
$500 million outstanding at any one time,
and of which not less than $58.75 million
shall be made available for purchases and
commitments to purchase Section 809
mortgages;
(2) Enter into advance commitment contracts
and purchase transactions not in excess of
$225 million outstanding at any one time,
if such commitments or transactions relate
to mortgages with respect to which the Federal
Housing Commissioner shall have issued
pursuant to Section 213 of the National
Housing Act, as amended, either a
commitment to insure or a statement of
eligibility; $62.5 million of the' authorization
shall be available solely for commitments
or purchases of mortgages certified
by FHA to be consumer cooperative mortgages;
in respect to $200 million of the
overall authorization, the total commitments
in any one State shall not exceed $20
million outstanding at any one time, but
the remaining $25 million of the authorization
is not subject to a State limitation; and
(3) Make commitments co purchase and purchase
mortgages insured by FHA under
Title 11 of the National Housing Act or
guaranteed under the Servicemen's Readjustment
Act of 1944, if (a) the original
principal balance of any such mortgage
does not exceed $13,500, (b) construction
of the related housing has not commenced
at the time application is made for
FNMA’s commitment, and (c) the total
amount of purchases and commitments under
this authority does not exceed $1 billion
outstanding at any one time.
Distribution of purchases under Special Assistance Functions
during 1960 and cumulatively, by States
[Dollars in thousands]
State
I960 Nov. 1, 1954, through
Dec. 31, 1960
Number Amount Number Amount
Total . - 14,146 $267, 288 111,884 $1,876,040
Alabama -- - 1.671 16,505 5, 559
1,697
67, 886
Alaska ___ 661 15, 735 38, 763
Arizona __ _ - 644 18, 330 6,169 93, 209
Arkansas __ _ 143 1,429 797 32, 518
California _ 601 15, 291 8,106 151,012
Colorado _ _____ 20 3, 626 3,173 42,478
Connecticut 2 407 30 1,730
Delaware . - 6 46 66 8,069
District of Columbia- . 37 340 136 1,940
Florida - ___ 3.930 41, 853 11.493 171.416
Georgia __ - _ 1,321 12, 744 4,042 61,838
Guam ____ _ __ 5 83 13 200
Hawaii - ___ 31 456 752 37. 553
Idaho 251 3. 331
Illinois _ - . 15 3, 569 2, 212 31, 450
Indiana __ ___ 47 497 2,310 28, 670
Iowa._____ . - 3 29 1,120 13,872
Kansas .. ____ 28 322 1,370 37,136
Kentucky _______ 171 1.968 2,094 46, 201
Louisiana _ ___ _ - 787 7, 398 3, 727 46, 713
Maryland . - __ - 10 120 287 3, 390
Massachusetts 1 1,960
Michigan __ . 270 3,306 9,319 115, 282
Minnesota - . - 48 601 1,091 13, 725
Mississippi ____________ 111 872 594 10,342
Missouri _ __ 23 29, 376 1,213 48, 716
Montana _ . 89 890 151 1,718
Nebraska __ 5 59 443 6, 541
Nevada __ 191 3, 543 1. 538 28, 969
Np.w H ampshire 5 16. 654
New Jersey 48 4,330 253 10,453
New Mexico. .. . . 11 117 3, 822 48, 599
New York. - 14, 630 135 60, 626
North Carolina.. ___ 362 3,819 1.946 45, 608
North Dakota 117 1,518
Ohio .... 1.257 16,408 5,162 77. 929
Oklahoma _ ____ 21 392 2, 301 47, 744
Oregon . __ 5 44 993 16, 453
Pennsylvania _ __ 58 21.977 337 27,084
Puerto Rico . __ __ 194 1,333 618 8, 822
Rhode Island 1 1,206
South Carolina 21 4,118 562 46,112
South Dakota _ _ _ 1 341 25 620
Tennessee _____ ____ 838 8.346 5,089 52,163
Texas - -- __ 189 5,390 12, 251 160, 718
Utah _____________ 1 11 2,522 29, 579
Virginia __ __ 96 1,781
2,134
3, 590 42, 336
Washington. _ 38 1,343 20, 753
West Virginia _ _ __ 40 1.792 158 3.235
W isconsin 89 900 374 4. 481
Wyoming 526 6, 719
Liquidation and Yearend Portfolio
Sales of three mortgages totaling $3.9 million
were effected from the Special Assistance portfolio
during 1960. Liquidation by repayments or
by other means during the year aggregated $53
million, including 204 mortgages paid in full and
1,243 foreclosed. The December 31, 1960 portfolio
consisted of 57,174 FHA-insured mortgages
($1,158 million) and 52,467 VA-guaranteed mortgages
($621 million) ; outstanding contracts at
December 31 aggregated $411 million, and provided
for the purchase of 8,633 mortgages.
257
Special Assistance Functions yearend portfolios and outstanding contracts, 1960 and 1959
[Dollars in millions]
Mortgages
1960 1959 Net change in 1960 from 1959
Portfolio
Contracts
outstanding
Total portfolio
and
contracts
Portfolio
Contracts
outstanding
Total portfolio
and
contracts
Portfolio
Contracts
outstanding
Total portfolio
and
contracts
Total _____________ $1,779.1 $411.2 $2,190. 3 $1, 568. 4 $381.2 $1,949. 6 +$210. 7 +$30.0 +$240. 7
FHA______________ 1,158. 5
620.6
410.9
.3
1, 569. 4
620.9
934.9
633.5
375.4
5.8
1,310.3
639.3
+223.6
-12.9
+35.5
-5.5
+259.1
VA______ . . -18.4
Activities under Special Assistance Functions, by period
[Dollars in millions]
1 Less than $0.05 million.
Purchases Sales Repayments Other credits Portfolio end
of period
Contracts
outstanding
By months
Total ___________ - _ ___ ____ ... $267.3
23.9
21.0
27.3
23.1
37.1
12.8
19.7
20.7
20.5
20.1
17.5
23.6
1,876.1
$3.9 $32.6
2.0
2.8
2.5
2.5
3.0
2.4
2.5
3.2
2.9
2. 7
2.2
3.9
57.2
$20.1
.6
.6
2.1
1.7
.9
2.5
1.3
1.9
3.3
1.5
1.9
1.8
22.2
January______________________________________________________________ $1,589.7
1,607. 3
1,630.0
1,648. 9
1,682.1
1,690.0
1,705. 9
1,721. 5
1,735. 8
1, 751. 7
1,765.1
1, 779.1
$374.7
371.5
372.6
380.7
372.2
389.0
383.5
404.0
409.3
405.1
403.9
411.2
February______________ ____________ ____________ __________ ___ __ G)
March _ __ - ________ _ ___
April______________________________________________________ _________
May.. _ __ _ _________ ___ ... . ______ ______ . _______
June__________________________ •__________________ ________________
July____________ _____________________________________________________
August. ____ _ __ .. ______ _________
September______________________________________ . _ _ ________
October___ ________________ .. _________________________ _ __ _____
November _ _ . ________ ___________ _____
December_________________________________________ ______ _ 3.9
17.6
By calendar years
Total. ________________________________________________ ________
1955 .. . _ . _______________________________ 7.1
68.8
583.6
1,461.0
381.2
411.2
1956 ____________________ 5.6
67.1
363.3
1,172. 8
267.3
. 1
.4
3.4
20.7
32.6
5.5
72.2
418.6
1, 568. 4
1, 779.1
1957... ._ .. ____ __________________________________ (')
.1
2.0
20.1
1958 _ _________________________ 13.4
.3
3.9
1959. . _ ______ ______________ _____________________________
1960__________________________________________________________________
Activities under Special Assistance Functions by Sections of Act1
[Dollars in millions]
Section of Act
During calendar year 1960
All mortgages—Total___________________________________________
FHA mortgages______________________________________________________
Sec. 203__________________________________________________________
Sec. 207___________________________________________________________
Sec. 213__________________________________________________________
Sec. 220 _________________________________________________________
Sec. 221__________________________________________________________
Sec. 222__________________________________________________________
Sec. 231__________________________________________________________
Sec. 803------------------------------------------------------------------------------------------
Sec. 809___________________________________________________________
Sec. 903__________________________________________________________
VA mortgages—Sec. 501______________________________________________
Cumulatively (Nov. 1, 1954 through Dec. 31, 1960~)
All mortgages—Total___________________________________________
Percent_______________________________________________________________
FHA mortgages______________________________________________________
Sec. 203 _________________________________________________________
Sec. 207 _________________________________________________________
Sec. 213__________________________________________________________
Sec. 220___________________________________________________________
Sec. 221__________________________________________________________
Sec. 222__________________________________________________________
Sec. 231___________________________________________________________
Sec. 803__________________________________________________________
Sec. 809__________________________________________________________
Sec. 903__________________________________________________________
VA mortgages—Sec. 501______________________________________________
$267. 3 $3.9 $32.6 $20.1 $1,779.1 $411. 2
263.0 3.9 21.7 13.8 1,158. 5 410.9
31.1 5.2 2.5 250.6 10.1
11.9 .4 1.8 13.9 13.8
31.1 _____________ 1.7 3.3 150.8 72.0
46.2 1.1 .1 100.1 174.0
85.3 _____________ 1.8 6.0 188. 5 91.6
.3
2.6
— .3
(1 2)
(2) 14.8
2.6
395. 0
.2
43.7
37.4 3.9 10.4
17.1 .6
.2
.1 40.7
1. 5
5.5
4.3— 10.9 6.3 620.6 .3
1,876.1 17.6 57.2 22.2 1, 779.1 411.2
100.0 .9 3.1 1.2 94.8
1,229. 9 17.6 38.4 15.4 1,158. 5 410.9
262.9 .3 9.3 2.7 250.6 10.1
16.4 .7 1.8 13.9 13.8
163.2 4.4 3.9 4.1 150.8 72.0
102.0 1.8 .1 100.1 174.0
198.1 _____________ 3.0 6.6 188.5 91.6
15.4
2.6
. 1 .5
(2)
(2) 14.8
2.6
395.0
.2
43.7
420.3 7.9 17.4
47.2
1.8
4.9 1.5
.3
. 1 40.7
1.5
5.5
646.2 (2) 18.8 6.8 620.6 .3
1 National Housing Act for FHA mortgages and Servicemen’s Readjustment Act for VA mortgages.
2 Less than $005 million.
258
Distribution of mortgages in Special Assistance Functions portfolio at Dec. 31,1960, by Sections of Act1 and by States
[Dollars in thousands]
1 National Housing Act for FHA mortgages and Servicemen’s Readjustment Act for VA mortgages.
State Total
FHA VA
Total 203 207 213 220 221 222 231 803 809 903 501
Total_______________ $1, 779,126 $1,158, 506 $250, 618 $13, 928 $150, 780 $100,140 $188, 460 $14, 761 $2, 617 $394,977 $40, 731 $1, 494 $620, 620
Alabama 61, 730 41,567 2,602 585 1, 038 18,122 134 7,415 11,671 20,163
Alaska 36j 519 36, 504 35, 838 75 591 15
Arizona 8f>' 233 6i; 152 22, 652 14, 086 790 307 22,735. 25, 081
Arkansas 31' 072 27, 643 2,100 85 1,053 1, 686 57 22, 662’ l»___ 3, 429
California 142' 384 84,199 22, 027 1,482 23, 235 3,194 2, 954 1, 003 28, 085 2, 219 58,185
Colorado 40, 620 13, 887 5, 930 3, 208 4,571 178 26, 733
Connecticut 1, 655 1,322 407 915 333
Delaware 7' 646 7; 365 80 227 7,058 281
District of Columbia 1,807 1, 807 1, 807
Florida 162', 751 119,156 22, 037 366 12,248 20', 185 726 38, 732 24, 862 43, 595
Georgia 60,158 50, 854 3,112 664 26, 827 143 20,108 9,304
Guam 195 ' 195 183 12
Hawaii 36, 059 34, 365 915 5,223 290 2,627 183 25,127 1, 694
Idaho 3, 241 828 494 277 57 2,413
Illinois _ ___ ______ 29, 528 5,188 1, 562 3,402 177 47 24, 340
Indiana __ 27, 600 10, 676 7, 373 2,735 484 84 16, 924
Iowa 13, 535 6,917 2, 645 640 3,582 17 33 6, 618
Kansas _ _______ _____ 30, 673 22, 604 4, 455 915 95 17,139 8, 069
Kentucky _ __ 44, 486 37, 248 2, 638 405 10, 646 10 23, 549 7, 238
Louisiana 44, 411 32, 765 8, 982 274 7, 633 8, 691 2, 638 4' 547 11, 646
Maryland . _________ . 3, 294 1,238 338 706 11 183 2,056
Massachusetts 1, 858 1, 858 1, 858
Michigan. . . _ 109, 353 50, 809 22, 738 538 17,155 95 10, 260 23 58, 544
Minnesota ____________ 12, 412 6.038 847 5,179 12 6,374
Mississippi 9, 850 6, 317 1,461 795 491 3, 570 3, 533
Missouri _ ....__ 47, 777 34, 926 1,117 131 11,880 304 141 21,353 12, 851
Montana 1, 687 898 13 885 789
Nebraska________________ 6, 347 5, 266 852 1, 127 2,793 32 462 1,081
Nevada _ __ _ 28, 039 23, 322 3, 467 12, 859 150 6,846 4, 717
New Hampshire 16, 089 16, 089 16, 089
New Jersey _ __________ 10,151 8,168 540 3,899 213 21 3, 495 1,983
New Mexico 46, 930 21, 301 8, 421 10, 824 85 401 1,570 25, 629
New York .. _ _ ___ 55', 189 54', 174 971 12, 789 40, 259 155 1,015
North Carolina ___ 43, 659 30, 573 1,328 508 6,011 122 22, 604 13, 086
North Dakota R466 ' 721 721 745
Ohio _ _______ 73, 601 48, 545 8, 184 1,414 4, 672 7,407 26, 642 226 25, 056
Oklahoma 45' 949 33, 767 8, 373 2, 054 198 21, 648 1,494 12, 182
Oregon __ _ _______ 15i 838 7', 740 2, 745 966 443 97 12 3,477 8, 098
Pennsylvania 26, 686 23,946 34 283 16, 281 2, 691 2,419 2,238 2,740
Puerto Rico 8, 482 8, 482 2, 741 394 1,894 95 3, 358
Rhode Island 1,146 1,146 1,146
South Carolina _______ 44, 552 39,923 813 138 387 38', 585 4, 629
South Dakota ' 602 434 96 338 168
Tennessee_______________ 50,551 33,100 4, 521 713 907 122 23, 724 378 1,338 1,397 17, 451
Texas . . 154, 033 55,904 24, 288 992 950 4, 524 2, 301 22, 849 98,129
Utah 28, 411 15, 961 2, 700 2,904 10,346 11 12, 450
Virginia 41, 090 17, 225 3, 665 10. 321 960 2, 279 23, 865
Washington . 17, 927 7, 927 3, 880 391 242 778 217 2,419 10, 000
West Virginia . 3,155 2,828 866 1, 517 445 327
Wisconsin 4', 203 2, 775 588 295 1,892 1, 428
Wyoming 6,496 863 377 486 5,633
Financing
Funds required for financing the Association’s
Special Assistance Functions are obtained principally
by borrowings from the Secretary of the
Treasury; other sources of funds are the net proceeds
from operations and portfolio liquidation.
All the benefits and burdens incident to the
administration of the Special Assistance Functions
inure solely to the Secretary of the Treasury.
Financial Position
Operations of the Special Assistance Functions
during 1960 resulted in a net income of $13.3
million and since the beginning of the operations
on November 1, 1954, net earnings have totaled
$47.2 million. The Charter Act provides that
after the payment of expenses and the establishment
of such reserves as the Association shall deem
appropriate, the net earnings of, or the amounts
that may become available from, these operations
shall be paid annually to the Secretary of the
Treasury for covering into miscellaneous receipts.
Under this arrangement, the net income that was
earned through June 30, 1957 ($2.6 million) has
been paid to the United States Treasury, and the
net income earned subsequent to that date through
June 30, 1960 ($37.9 million) is being retained
as a reserve for losses and contingencies. The
$6.7 million earned during the second half of 1960
is recorded as undistributed earned surplus.
259
3. MANAGEMENT AND LIQUIDATING
FUNCTIONS
Under its Management and Liquidating Functions
the Association manages and liquidates its
portfolio of mortgages acquired under contracts
entered into between February 10, 1938, and
November 1, 1954, and those mortgages that have
been, or will be, acquired subsequently from authorized
sources. The law prescribes that these
activities shall be conducted in an orderly manner,
with a minimum of adverse effect upon the home
mortgage market and minimum loss to the Federal
Government.
Mortgage Purchasing Activity
The initial purchasing phase of the Management
and Liquidating Functions was concluded
in August 1957. Under authority of Public Law
86-372, approved September 23, 1959, the Association
is currently acquiring the mortgage portfolio
of the Public Housing Administration. It is expected
the volume of mortgages that will be acquired
by the Association under this arrangement
will be approximately $160 million, of which $15
million was acquired during 1959 and $144 million
during 1960.
Acquisitions in the Management and Liquidating
Functions through the end of 1960 have
totaled $5,122 million.
Liquidation
Exchange of FNMA Mortgages for United States
Treasury Bonds
On October 21, 1959 FNMA announced that it
was initially making available, on a competitive
basis, $150 million, or thereabouts, of its 4 percent
VA-guaranteed Management and Liquidating
Functions mortgages in exchange for United
States 2% percent Treasury Bonds, Investment
Series B, 1975-80. The exchange had, as a basic
purpose, the accomplishment of one of FNMA’s
statutory objectives—the liquidation of a portion
of the Management and Liquidating portfolio “in
an orderly manner, with a minimum of adverse
effect upon the home mortgage market and minimum
loss to the Federal Government.” An additional
and significant benefit accrued to the
Government. This benefit was a reduction of
government debt through retirement of the bonds
acquired by FNMA and surrendered to the Treasury
for cancellation. Such bond retirements are
reflected in the Budget as receipt items (credited
against FNMA expenditures) just as the purchases
of the mortgages were originally reflected
in the Budget as expenditure items.
Offers to exchange, which were opened December
1, 1959, aggregated $282.9 million, and of that
amount $188.3 million was approved at an average
exchange price of $102.03 face amount of bonds
for each $100.00 unpaid principal amount of mortgages.
Under the initial exchange transaction,
which was completed in March 1960, $186.6 million
of FNMA mortgages was exchanged for
$190.3 million face amount of bonds.
On February 9, 1960, FNMA provided for a
second exchange transaction under which $200
million, or thereabouts, of 4 percent VA-guaranteed
Management and Liquidating Functions
mortgages were made available, on a competitive
basis, in exchange for United States 2% percent
Treasury Bonds, Investment Series B, 1975-80.
Offers to exchange, which were opened March
8, aggregated $129.7 million. All of the offers
were approved at an average exchange price of
$101.28. Under the second exchange transaction,
which was completed in June, $124.7 million of
mortgages was exchanged for $126.1 million face
amount of bonds.
As a consequence of the two exchange transactions,
$311.3 million unpaid principal amount
of FNMA mortgages was exchanged for $316.4
million face amount of bonds; all but $0.1 million
of the exchange transactions was effected in 1960.
Other Liquidation
In addition to the portfolio liquidation that was
effected by means of the exchange transactions,
mortgages totaling $0.1 million were liquidated by
regular sales from the portfolio during 1960.
Cumulatively, sales and exchanges under the
Management and Liquidating Functions have
totaled 296,957 mortgages with unpaid balances
of $1,945 million or 38 percent of the cumulative
dollar volume of mortgages acquired under these
activities.
Foreclosure proceedings or their equivalent
were completed during 1960 on 1,746 mortgages
with unpaid balances of $14 million. Repayments,
including the final repayment on 9,892
mortgages, totaled $122 million. Cumulatively,
repayments and principal credits from foreclosure
proceedings have accounted for the liquidation
of 108,832 mortgages with unpaid principal balances
of $1,517 million or 30 percent of the total
purchases.
The Management and Liquidating portfolio
and purchasing obligations declined from $3,013
million at October 31, 1954 to $1,659 million at
December 31, 1960—a reduction of $1,354 million
or 45 percent during the 74-month period. Net
liquidation during 1960 represented about 16 percent
of the 1959 yearend portfolio.
260
Management and Liquidating Functions gear-end portfolios, 1960 and 1959
[Dollars in millions]
Type of mortgages
1960 1959
et change in 1960 from 1959
Number
Amount
Number Amount Number Amount Actual Percent
Total____________________________________________
FHA__________________________________________________
VA___________________________________________________
Other 1________________________________________________
242,110 $1,659. 5 300, 367 $1,963. 9 -58,257 $-304.4 -15.5
77,883
150,860
13,367
644.7
832.5
182.3
81,107
216,346
2,914
685.7
1,227. 6
50.6
-3,224
-65,486
+10,453
-41.0
-395.1
+131.7
-6.0
-32.2
+260. 3
1 Mortgages of the Defense Homes Corporation, direct loans of The RFC Mortgage Company transferred to FNMA by Reorganization Plan No. 2 of 1954,
and mortgages acquired from the Public Housing Administration under Public Law 86-372.
Financing
Funds required for financing the Association’s
Management and Liquidating Functions are ordinarily
obtained through borrowings from the
Secretary of the Treasury and the sale of FNMA's
corporate obligations to private investors; additional
sources of funds are the proceeds from
operations and portfolio liquidation.
On January 20, 1958, the Association marketed
a $797.3 million issue of 3% percent 2%2-year
Management and Liquidating notes at 100, using
a part of the proceeds to refund the $570.4 million
issue of 2i/2 percent notes maturing on that date
and the remainder to effect a further reduction
of the Association’s indebtedness to the Secretary
of the Treasury. These notes were redeemed in
cash at maturity on August 23, 1960. The Man-
Activities under Management and Liquidating Functions
by calendar years
[Dollars in millions]
Year Purchases Sales
Repayments
Other
credits
Year end
portfolio
Contracts
outstanding
Total. $5.122. 2 $1,945.3 $1, 281. 7 $235. 7
1938_______ 82. 2 1.9 $80. 3 $17. 5
1939_______ 74.1 .4 6.7 .5 146.8 7.8
1940 ___ 48. 0 (i) 12. 6 1.1 181 1 8 4
1941_______ 42.3 (i) 15. 7 .9 206. 8 6 3
1942_______ 23.2 18.8 . 3 210.9 4
1943_______ 1. 5 126. 6 21. 2 . 1 64. 5 (1)
1944_______ .2 (') 12.3 (1) 52.4
1945_______ . 1 38.6 6.5 7.4 (*)
1946_______ (*) (*) 1.8 5.6 (>)
1947_______ . 1 1. 3 (!) 4. 4
1948 . ___ 197.9 3.0 199 3 226 7
1949_______ 672.2 19.8 21. 1 2. 2 828. 4 824 1
1950_______ 1. 044. 3 469.4 44.3 12.3 1. 346. 7 485.1
1951 ___ 677. 3 111. 1 55. 5 7.9 1,849 5 239 1
1952 ____ 537.9 55.9 78.9 10.9 2 24 1 7 322 9
1953 ______ 542. 5 221.1 93. 7 7. 7 2 461 7
1954 658. 1 525. 2 100. 3 18 1 2 476 2 475 7
1955.. ____ 325.3 61.6 126. 4 43 6 2 569 9 42 8
1956 28.6 . 2 118. 2 48 0 2 432 1 8.1
1957_______ 7.9 115. 5 20. 2 2 304 3
1958_______ 3.3 141.3 21. 0 2,138. 7
1959_______ 2 15. 0 .8 162. 3 26. 7 1.963.9
1960_______ 2 143. 5 311.3 122.4 14.2 1, 659. 5—
1 Less than $0.05 million.
2 Represents mortgages acquired from the Public Housing Administration
under authority of Public Law 86-372.
agement and Liquidating Functions portfolio at
December 31, 1960, was financed entirely with
Treasury capital.
Activities under Management and Liquidating Functions,
by Sections of Act1
Section of Act Purchases
Sales Repayments
Other
credits
Portfolio
at
Dec. 31,
1960
During calendar year 1930
All mortgages—Total.. $143. 5 $311.3 $122. 4 $14.2 $1, 659. 5
FHA mortgages—Total____ _ ---------- 32.3 8.7 644.7
See. 8__ __ - 2. 1 .3 34.7
Sec. 293 10.4 103.6
Sec. 207 .3 13.1
Sec. 213 _ 1.3 . 1 36.0
4. 7 34.4
Sec. 698 . 4 17.6
Sec. 893 2.0 93.8
Sec. 903 10.7 7.2 296.8
Sec. 908 .4 . 4 14.7
VA mortgages—Tot il______— 311.2 79.3 4.6 832.5
Sec. 591 311.2 78.9 4.5 829. 7
Sec. 592 . 1 . 7
Sec. 5 35 . 4 2. 1
Othei______________________ 2 143. 5 3.1 3 10.8 3.9 3 182. 3
Cumulatively {Feb. 10, 1938,
through Dec. 31, I960')
All mortgages—Total.. 5,122. 2 1, 945. 3 1, 281. 7 235.7 1, 659. 5
Percent 100. 0 38.0 25.0 4.6 32.4
FHA mortgages—Total____ 1, 909. 5 695.7 383.4 185.7 644.7
Sec. 8 __ 54.0 3.1 14.4 1.8 34.7
Sec. 293________________ 622. 5 316.4 181.8 20.7 103.6
Sec. 297________________ 36.4 3.4 7.5 12.4 13.1
. 3 . 3
Sec. 213 ___________ 46.9 1.1 7.4 2.4 36.0
Sec. 693________________ 339.5 216.3 72.0 16.8 34.4
Sec. 608________________ 72.5 3.3 13.9 17.6
Sec. 803. ____________ 208.5 11.4 25. 9 93.8
Sec. 903________________ 488.3 29.6 82.8 79.1 296.8
Sec. 908 40.6 10.7 2. 5 12.7 14.7
VA mortgages—Total______ 3, 010. 5 1. 249. 5 879.4 49.1 832.5
Sec. 591________________ 2. 986. 3 1,234. 4 873.5 48.7 829. 7
Sec. 592 ______________ 1.9 (4) 1.1 . 1 .7
Sec. 595 _______________ 22.3 15.1 4.8 .3 2.1
Other 1 2 3_____________________ 202. 2 . 1 18.9 .9 182.3
i National Housing Act for FHA mortgages and Servicemen’s Readjustment
Act for VA mortgages.
2 Represents mortgages acquired from the Public Housing Administration
under authority of Public Law 86-372.
2 Loans of the Defense Homes Corporation and direct loans of The RFC
Mortgage Company, transferred to FNMA by Reorganization Plan No. 2
of 1954, and mortgages acquired from the Public Housing Administration
under Public Law 86-372.
4 Less than $0.05 million.
261
Distribution of I'lIA and VA portion of Management and Liquidating Functions portfolio at Dec. 31, 1960, by Sections
of Act1 and by States
(Dollars in thousands)
1 National Housing Act for FHA mortgages and Servicemen’s Readjustment Act for VA mortgages.
FHA VA
Total
Total 8 203 207 213 603 608 803 903 908 Total 501 502 505
Total. _________ $1,477, 207 $644, 658 $34, 751 $103, 544 $13,074 $35,975 $34, 462 $17, 588 $93, 796 $296, 767 $14, 701 $832, 549 $829, 770 $673 $2,106
Alabama 35,980
27,191
33, 747
16, 381
291,628
12, 385
6,414
2, 324
5,920
60, 019
49,562
625
6, 015
27,191
24, 708
7, 376
109, 436
2,423
6, 359
1,515
4,858
17, 230
21, 289
625
155 561 960 4, 339 29,965 29,900 4 61
Alaska___ 13, 357
5, 394
1,663
1,932
477
6, 321 7,513
Arizona _____ 820 11,568
2, 753
4, 382
2,570
1.325
5,844
7
534 3,822
1,470
64,902
336
9,039 9,036 3
Arkansas. - 165 9,005
182,192
9,962
55
8,935
181, 762
9,929
55
8 62
California .__ _ ____ 200 3,964 25,829
686
2, 383 430
Colorado __ __ 917 2 31
Connecticut 118 12 4,867
1,506
1,362
Delaware _ ___ 9 809 807 2
District of Columbia _ 222 300 4, 336 1,062
42, 789
28, 273
1,062
42, 582
28, 051
Florida 2,161
1,111
4,216
2,688
625
545 3,347
1,032
6,961
14, 760
3 204
Georgia _ _____ 944 754 112 110
Guam
Hawaii___ __ _ 8,485
8, 757
33, 778
31,108
6,824
56, 230
7, 093
26,055
16, 272
15,809
141, 503
9, 346
6,980
16, 390
4,652
4, 547
19,652
4,232
28,916
1,865
10, 545
843
7, 554
6,969
28, 606
24, 439
6,089
31,137
5,023
10, 496
16, 272
8,295
21, 564
277
5, 778
856
1,776
1,764
20, 679
18,043
5.157
19,535
3, 405
3,498
1,359
4, 596
931 931
Idaho _ 3,999
803
350 1,788 1.788
5, 153
6, 622
726
Illinois ____ - 488 419 273 161 5,693 90 5,172 19
Indiana____ ________ 1,728
518
1,922
37
715 2,031 6, 669
735
47
Iowa 377 8 1
Kansas __ ________ 7,954
320
3,125
600
523 25, 093
.. 2,070
24,999
2.049
21 73
Kentucky 597 101 21
Louisiana.____ _ _ __ 986 4,093 1,154 765 15, 559 15, 457 5 97
Maine 14,913
Maryland ____ 88 1, 122 1,845
8,865
11
150 494 7, 514
119,939
7, 511 3
Michigan 5, 211
10
2,403 1,763
12
3, 322
244
119,716
9,068
1, 373
10,948
180
6 217
Minnesota _ 9,069
1,430
11,195
180
1
Mississippi 5, 550
5,195
4, 472
3, 339
14, 363
3,719
8, 518
491
94 719 102 46 4,589 6 51
Missouri.__ ____ __ 125 452 86 4, 532
1,190
693
238 9
Montana___ _ ___ 4 2,831 447
Nebraska___ .. . 924 528 1.038 156 1,208
5,289
513
1,194
5,289
510
14
Nevada ___ 6, 398
31
3,050 4,915
New Jersey . .______ 65 13 3, 057 553 3
New Mexico 90 3, 230
54
326 4,872
433
20, 398
1,374
2,261
20, 334
1,374
2,260
64
New York .. _____ 4
North Carolina 8,284
843
63 437 1,474 6,310
837
1
North Dakota __ .. 6
Ohio________ _ 25, 391
77,426
6,541
13. 208
15.120
5,494
19.897
19, 351
16,169
3,092
7.466
15, 096
5,494
7,208
5,926
10, 367
42,096
3,889
34, 537
17, 344
677 1,070
3, 518
1,126
667
600 80 205 14,821 1,898 6, 040
61, 257
3,449
5, 742
24
6,033 ‘
60,872
7
Oklahoma __ 1, 375
9
3, 314
101
1,183
350
6, 210
1,506
3,063
21
569 143 242
Oregon 3, 447
5,741
19
2
Pennsylvania 140 1,133 3 2,460 1
Puerto Rico_________ _ 7, 532 5, 735 1,808 5
Rhode Island 4, 380
507
1,114
South Carolina ____ _ 142 605 329 1,348 4, 277 12,689
384
12, 677
384
12
South Dakota 6,310
27, 381
166, 899
7,703
46,199
47, 772
2, 352
5,902
1,554
139 18 3,937 1,832
Tennessee. .... 644 1,181
12, 414
470
113 656 1,382
2, 194
57
6,391 17,014
124, 803
3,814
11, 662
30, 428
2,043
417
16,843 11 160
Texas 6, 728
91
134 628 3, 442
3, 115
12,091
9,060
16, 556
156
124,614
3,809
11,653
30, 386
84 105
Utah. 5
Virginia __ 212 1,966
2,642
166
2,542 130 250 15, 282
5, 450
2,064 9
Washington . .. 57 135 18 24
West Virginia _ 309 143 2,035
411
8
Wisconsin 5,485 74 31 4 5, 376 4 2
Wyoming 309 5 304 1,245 1,245
All the benefits and burdens incident to the
administration of the Management and Liquidating
Functions inure solely to the Secretary of the
Treasury.
Financial Position
Operation of the Management and Liquidating
Functions resulted in net earnings of $22.9 million
during 1960. Cumulatively, since February
1938, $326.3 million in net income has been realized
from these functions. Of this amount $164.4
million has been paid as dividends to the Reconstruction
Finance Corporation and the U.S.
Treasury, and $152.7 million has been incorporated
into reserves. The year end undistributed
surplus under these functions amounted to $9.2
million.
262
Section 3
Administration
Management
The statutory charter of FNMA provides for a
five-member board of directors which determines
the policy of the Association. The Administrator
of the Housing and Home Finance Agency
is chairman of the board and the other four members
are appointed by him from among the officers
of the Association, or the immediate office of the
Administrator or (with the consent of such department
or agency) of any other department or
agency of the Federal Government. The business
affairs of the Association are administered by
its president as chief executive officer.
The FNMA Charter Act provides that as soon
as practicable after all of the preferred stock held
by the Secretary of the Treasury has been retired,
the Housing and Home Finance Administrator
shall transmit to the President of the United
States for submission to the Congress recommendations
for such legislation as may be necessary
or desirable to effect the transfer to the owners of
the then outstanding common stock the assets
and liabilities in connection with, and the management
and control of, FNMA’s Secondary Market
Operations.
On October 9, 1959, the Association established
a FNMA General Advisory Committee consisting
of eight representatives of the housing and home
financing industries. The broad purpose of the
Committee is to provide advice and counsel to
the Association’s management with respect to
the effectiveness of the corporate operations.
Three meetings of the Committee were held
during 1960.
Operations
The Association’s activities are administered
through five field offices located throughout the
country so as to best serve the needs of the
organizations that do business with the Association.
In addition to these field offices, FNMA
maintains a fiscal agency office and a mortgage
sales office in New York City and an administrative
office in Washington, D.C. In 1960 the Association’s
personnel in active duty status increased
from 823 to 892, a net increase of 69, occasioned
by the very substantial increase in the volume of
activities conducted by the Association during the
12-month period.
The Association is, within the meaning of the
Government Corporation Control Act, a wholly
owned agency of the Government; it is fully
self-supporting and receives no direct appropriation
for the payment of its administrative or
other expense, although it is limited by provisions
contained in the Annual Independent Offices
Appropriations Act as to the amount of its funds
that may be expended for administrative expenses.
263


Community Facilities Administration
The Community Facilities Administration is responsible
for administration of the following programs: loans to
educational institutions of higher learning (or nonprofit
corporations established by such institutions), to finance
student and faculty housing and related services and
facilities, and loans to public or nonprofit hospitals for
housing for nurses in training and interns ; public facility
loans to State and local governments to finance construction
of essential public works; supervision and disposition
of securities held by the HHFA in connection with
the foregoing programs; under agreement with the Commissioner
of Education, supervision of construction of
school facilities for which Federal aid is provided by the
U.S. Office of Education; advances to State and local
governments for a reservoir of planned public works; and
management and liquidation of certain programs whose
legislative authority terminated, including prefabricated
housing loans, two previous advance planning programs,
war public works under the Lanham Act, defense community
facilities provided under Public Law 139, 82d
Congress, Alaska housing, and public agency loans, and
drainage and irrigation loans made originally by the
Reconstruction Finance Corporation.
COMMUNITY FACILITIES ADMINISTRATION ORGANIZATION CHART
266
Section 1
Review of Community Facilities Programs
The Community Facilities Administration, a
constituent unit of the Housing and Home Finance
Agency, is so named because it administers
the Agency programs of financial assistance to
communities for the planning and construction
of essential public facilities and installations. Its
functions, however, are more varied than its name
suggests; its responsibilities include additional
programs which complement and support the
Agency’s other housing and community assistance
responsibilities. These responsibilities include the
program of loans to educational institutions for
student and faculty housing and related facilities
and a number of important emergency programs
of the war and postwar years which are now under
liquidation. In addition, its staff resources
which work directly with local communities
through the HHFA Regional Offices are utilized
for other community-related Government operations,
such as the school construction program of
the Office of Education and emergency activities
in the community facilities field resulting from
defense or disaster needs. These programs are administered
in the field through the seven Regional
Administrators of the Housing and Home Finance
Agency. A Regional Director of Community
Facilities Activities has principal responsibility
for all CFA programs and activities within
each Region and is responsible to the Regional
Administrator and the Community Facilities
Commissioner for the successful accomplishment
of these programs and activities.
The College Housing Program provides for
direct Federal loans at low interest rates to assist
institutions of higher learning in the development
of housing and related service facilities for students
and faculty where such assistance is not
otherwise available on equally favorable terms.
The Program also includes assistance to hospitals
in providing housing for student nurses and
interns.
The borrowing authorization was increased
from $1,175 million to $1,675 million on the last
day of the second session of the 86th Congress,
and was approved by the President on September
14, 1960.
Since the inauguration of the program through
December 31, 1960, over 2,248 applications
amounting to $2,271 million had been filed. During
this period 1,193 applications for loans were
approved in the adjusted net amount of $1,155
million.
Construction of 871 projects for colleges and
hospitals had been fully or substantially completed
for occupancy by December 31, 1960, and
another 211 projects were under construction.
The Public Facility Loans Program provides
loans to States, municipalities, and other political
subdivisions and public agencies to finance construction
of needed public works. Interest rates
are subject to revision upward or downward as
changes warranting such action occur in the general
level of rates for municipal bonds. Originally,
in 1955, the interest rates were 3.75 percent
for general obligation bonds and 4.25 percent for
revenue producing bonds. The rates established
in November 1960, at 4.375 percent for general
obligation bonds and 4.625 percent for revenue
producing bonds, which continued through the
balance of 1960, were somewhat lower than at the
beginning of the year.
From the start of the program through December
31, 1960, a total of 588 applications
amounting to $195 million had been filed by communities.
During this period 343 applications
for loans were approved, the amounts of which
totaled $104 million. As of December 31, 1960,
construction had been started on 231 projects of
which 190 had been completed by year end.
The Program of Advances for Public Works
Planning is designed to encourage municipalities
and local public agencies to prepare and maintain
a current and adequate reserve of planned public
works which can readily be placed under construction
and to promote economy and efficiency
in planning and building public works. These
advances are repayable without interest when construction
is undertaken. The current program
was initiated by Section 702 of the Housing Act
of 1954, and expanded a year later in the Housing
Amendments of 1955. Section 702, as amended,
provides for financing the program by a revolving
fund. Appropriations are authorized to be made
available from year to year as may be estimated
to be necessary to maintain a total of $48 million
in undisbursed balances in the fund and in advances
outstanding. A total of $36 million has
been appropriated for program use through
June 30, 1961. By the end of December 1960,
2,761 applications had been filed and 1,984 approved
for $49.8 million, representing estimated
construction costs of $2.7 billion. However, planning
advances amounting to $12.3 million involving
358 plans were canceled after approval.
Construction had been started on 424 projects
and $8.5 million had been repaid into the revolving
fund by December 31, 1960.
267
Responsibility for the administration of the
School Construction Program rests with the Office
of Education, Department of Health, Education,
and Welfare. Under the provisions of a working
agreement between the Office of Education and the
Housing and Home Finance Agency, the Community
Facilities Administration performs the
necessary engineering, legal and financial services
for the Office of Education. There are two types
of projects under this program—the Federal project
and the non-Federal project. In the Federal
projects, the Community Facilities Administration
has full responsibility for all planning and
construction operations. In the non-Federal projects,
the local school districts are the builders and
the Community Facilities Administration provides
engineering supervision and inspection at the construction
site. Since inauguration of the program
in September 1950, through December 31, 1960,
construction had been started on 3,877 non-Federal
projects of which construction had been completed
on 3,569. During this same period construction
had been started on 285 Federal projects of which
229 had been completed.
A more detailed report of operations under
CFA programs for the calendar year 1960 follows.
268
Section 2
Active Operating Programs
College Housing Loans
The College Housing Program, now in the 10th
year of its existence, was enacted into law as Title
IV of the Housing Act of 1950, approved April
20, 1950. It is essentially a direct Federal loan
program which provides funds at low interest
rates to assist colleges, universities and teachinghospitals
in the financing of housing facilities and
related facilities for students and faculty where
such assistance is not otherwise available on
equally favorable terms. Loans are made for
the construction of residence halls, married student
and faculty housing, and for service facilities
such as dining halls, cafeterias, college unions and
centers, and in- and out-patient health facilities,
as well as for rehabilitation, alteration, conversion
or improvement of existing structures to make
them available for such purposes. The program
was broadened in 1957 to include loans to approved
hospitals for the housing of student nurses and
interns.
During 1960 college enrollments continued to
mount. Tabulations of the Office of Education
indicate that college fall enrollments increased
from 3,402,000 in 1959 to 3,610,000 in 1960. This
figure will continue to increase, according to conservative
estimates, to more than 6 million in 1970.
Not all of these students will require housing, but
a substantial number must be accommodated if
maximum use is to be made of the Nation’s colleges
and universities.
The original authorization of $300 million established
in the Housing Act of 1950 has been increased
several times; the last increase of $500
million was approved on September 14, 1960, and
brought the total authorization to $1,675 million.
The $500 million increase was intended by Congress
to cover 2 fiscal years, 1960 and 1961, and to-
A College Housing Program Project—Philadelphia, Pa. Exterior view of the University of Pennsylvania’s new women’s residence
showing the ramp-walk leading to the building’s main entrance.
269
A night view of the glass-enclosed, landscaped center court of
the University of Pennsylvania’s new Women’s residence.
make up for the “lost year” of 1959 when no
housing bill was enacted and no funds had been
available for college housing. At the end of September
1960, after the authorization was increased,
more than $334 million in applications were
pending which had not been funded. On December
31, 1960, a total of 2,248 applications amounting
to $2,271 million had been received since the
inception of the program. Of these, 1,193 applications
for $1,155 million had been fully approved,
304 in the amount of $363 million had reservations
of funds and 114 in the amount of $150
million were pending.
Table VI-1.—Applications received ~by type of institution
[Dollar amounts in thousands]
COLLEGES
Calendar year
Private institutions
Public institutions
Total institutions
Number
Amount Number
Amount Number
Amount
HOSPITALS
1951_____________ 34 $23, 027 23 $19,859 57 $42,886
1952______________ 69 53, 476 32 38, 065 101 91, 541
1953_____________ 81 43,905 48 47, 371 129 91, 276
1954______________ 88 51, 396 17 13.890 105 65, 286
1955 ___________ 175 133, 217 134 190, 712 309 323,929
1956_____________ 165 139, 345 113 154,972 278 294' 317
1957_____________ 142 108,164 134 234, 513 276 342, 677
1958_____________ 131 96,768 83 88,616 214 185, 384
1959_____________ 190 174,104 140 187,895 330 361.999
1960______________ 220 194,825 114 213,906 334 408,731
Subtotal___ 1,295 1, 018, 227 838 1,189, 799 2,133 2, 208,026
1957______________
1958. ___________
53
21
13
23
$26,703
12, 707
9,447
12,956
2 $700 55
21
14
25
$27,403
12, 707
9,622
13,402
1959_____________
1960______________
Subtotal___
Total______
1
2
175
446
110 61,813 5 1,321 115 63,134
1, 405 1,080,040 843 1, 191,120 2,248 2, 271,160
During 1960 the College Housing Program received
a total of 359 applications with an aggregate
total of $422 million. Table VI-1 shows the
composition of applications received during 1951-
60 according to type of institution. The marked
increase in applications from tax-supported institutions
in the period 1955-60 reflects the fact that
these institutions, as compared with private institutions,
are enrolling a larger portion of the increased
enrollments.
The following table shows the composition of
loans approved during 1951-60 according to type
of institution.
Table VI-2.—Loans approved l>y type of institution
[Dollar amounts in thousands]
COLLEGES
Calendar year
Private institutions
Public institutions
Total institutions
Number
Amount Number
Amount Number
Amount 1
HOSPITALS
1951_____________ 10 $9, 806 7 $7, 089 17 $16,895
1952_____________ 16 13, 193 11 11,220 27 24, 413
1953_____________ 43 34,064 20 17, 481 63 51, 545
1954_____________ 53 30, 406 15 17, 951 68 48, 357
1955_____________ 53 30, 528 14 16, 625 67 47,153
1956_____________ 116 90, 019 75 101,212 191 191,231
1957_____________ 122 98, 715 80 114,696 202 213, 411
1958_____________ 120 95, 037 88 139i 485 208 234, 522
1959_____________ 102 72, 600 54 63, 393 156 135,993
1960_____________ 104 93, 004 81 100,037 185 193,041
Total approvals...
739 567, 372 445 589,189 1,184 1,156, 561
Rescissions 2_____ -23 -15, 475 -23 -28,109 -46 -43, 584
Net approvals___ 716 551, 897 422 561,080 1,138 1,112, 977
1958_____________ 25
16
16
$10, 452
6, 325
7, 755
21
$350
208
27
17
16
$10, 802
6,533
7, 755
1959_____________
1960_____________
Total approvals.
..
Rescissions 2.___
57
-5
24, 532
-1,666
3 558 60
-5
25,090
-1,666
Net approvals___ 52 22, 866 3 558 55 23, 424
1 Original amount of approved loans. Subsequent adjustments of project
costs increased the total approvals to $1,131 million for colleges and $23.9
million for hospitals.
2 Withdrawals after loan approval, primarily because of financing from
non-Government sources.
The interest rate on College Housing loans has
varied over the life of the program from a low of
2% percent to a high of 3% percent. Since 1955
the rate has been controlled by a statutory formula
which produced a rate of 3% percent for the
first 6 months of calendar 1960 and a rate of 3^
percent for the last half of the calendar year.
Following approval of a College Housing loan
the Agency enters into a loan agreement with the
borrowing institution under which the Government
agrees to purchase the bonds to be issued
for the project at a specified rate of interest, providing
that no other equal or more favorable bids
are received when the bonds are offered for public
sale. Also, portions of the bond issue may be bid
against, affording an opportunity for private in270
vestors to purchase the earlier maturities. However,
with the current rate on College Housing
loans substantially below the market rate on comparable
securities, there was little of this type of
participation during 1960.
As of December 31, 1960, construction of 871
projects with housing accommodations for 209,-
283 students and faculty had been substantially
completed and another 211 projects with housing
accommodations for 43,286 students and faculty
were under construction. There were also 111
projects in the approved category where construction
had not been initiated as of December 31,
1960. These latter projects will house 29,228
students and faculty. The variety of housing and
related facilities being financed under the program
is indicated by the following table which shows
the approved loans as of December 31,1960, classified
according to type of facility:
Table VI-3.—Distribution of loans by types of facility
as of Dec. 31, 1960
Colleges:
Dormitory only_________________________ 520
Dormitory with dining facilities____________ 257
Dormitory with student union______________ 9
Dormitory with married student or faculty
housing------------------------------------------- 50
Married student housing_________________ 62
Faculty housing_________________________ 9
Married student and faculty housing_______ 13
Dining facilities________________________ 8
Student union__________________________ 27
Dining facilities and student union________ 85
Dormitory-dining facilities-student union___ 45
Dormitory - married student - faculty - dining
facilities___________________________ 51
Health facilities________________________ 2
Total------------------------------------------------ 1,138
Hospitals: _
Dormitory_____________________________ 49
Married students (interns)_______________ 6
Total _______________________________ 55
Note.—Where, projects consist of three or more types of facilities,
the project has been included in most appropriate of
above categories.
Public Facility Loans Program
The Public Facility Loans Program, enacted
by the 84th Congress under the Housing Amendments
of 1955 (Title II, Public Law 345), authorized
the Housing Administrator, acting
through the Community Facilities Administration,
to purchase the securities and obligations of,
or make loans to, States, municipalities, and other
political subdivisions of States, public agencies,
instrumentalities of one or more States, and public
corporations, boards, and commissions established
under the laws of any State, to finance specific
public works projects. This program superseded
a loans program provided for in the Reconstruction
Finance Corporation Liquidation Act
(Public Law 163, 83d Congress), as amended by
the Housing Act of 1954. This earlier program
was a continuation of the activities of the RFC
which had administered a public agency loan
program since 1932.
The present program was financed by a statutory
borrowing authority of $100 million until August
1960 when it was increased to $150 million. Payments
and income provide a revolving fund from
which additional loan assistance may be extended
and expenses paid.
Financial assistance may be extended only when
credit is not otherwise available on reasonable
terms. No grants or subsidies are involved.
Direct loans may be made for all or part of the
cost of a project, or participation in the financing
may be arranged in cooperation with banks or
other lenders. Loans made and securities and
obligations purchased must be of such sound value
or so secured as reasonably to assure retirement or
repayment. No loans may be made which have
a maturity in excess of 40 years.
Basic interest rates are established by the
Housing Administrator and are subject to revision
upward or downward as changes warranting such
action occur in the general level of rates for
municipal bonds. The basic rates apply to issues
having a maturity period of 30 to 40 years; oneeighth
of 1 percent is deducted for each full 5-year
reduction from the 30-year period.
Rates throughout the year 1960 ranged from
4% percent to 4% percent for general obligation
bonds and from 5 percent to 4% percent for
revenue bonds and other types of securities. The
interest rates of 4% percent and 4% percent for
general obligation bonds and revenue bonds, respectively,
established on November 21, 1960, were
in effect at year-end.
The object of the Public Facility Loans Program
is to assist small communities finance construction
of needed public works with due regard
to the needs and resources of the community.
The present law also provides that priority be
given in the processing of applications of smaller
municipalities for assistance in the construction of
basic public works, including works for the storage,
treatment, purification, or distribution of
water, sewage, sewage treatment, and sewer facilities,
and gas distribution systems, for which there
is an urgent and vital public need. The Act defines
a “smaller municipality” as a town or other
political subdivision of a State which has a population
of less than 10,000 inhabitants at the time
of the last Federal census.
With the emphasis in this program placed on
small communities, applicants typically have limited
resources, no technical staff and little, if any,
experience in planning, building and operating
public facilities. Consequently, under this program,
special assistance and guidance is extended
to applicant communities. The need for the proposed
facility, adequacy to meet demonstrated
need, the design of the project to assure the most
economical methods of operation and maintenance
over its lifetime, the ability of the community
to carry the financial burden imposed by borrowings
for the project, and the legal rights, duties,
271
A Public Facility Loans Program Project—Mount Washington, Ky., Filtration Plant and Settling Tank of the new water system for
Mount Washington, Ky. This plant, with a capacity of 1 75 gallons per minute, will provide an ample supply of treated water
for Mount Washington’s estimated 1,300 population, as well as adequate fire protection.
and obligations of the community with respect to
the planning, construction, financing, and operation
of the proposed project, are fully analyzed.
In these aspects, the technical advice and assistance
given applicants is fundamentally directed
toward projects and loans which are soundly conceived
and will attract private investment either
when the bond issue is advertised for sale by the
locality or by sale, after a reasonable period of
seasoning, of an issue originally purchased by the
Federal Government.
During 1960, 88 applications were received aggregating
$20 million in loans requested compared
to 98 applications received in 1959 for a total of
$30 million. A total of 71 loans were approved
in 1960 for $21.4 million, and 46 applications totaling
$12.4 million were disposed of through formal
disapproval of the loan request, or by applicants
voluntarily withdrawing their applications. At
year-end, 43 applications requesting loans totaling
$7.6 million were under active review. Table
VI-4 shows program accomplishments in 1960
compared with 1959.
Applications from communities of less than
5,000 population comprised 95 percent of the total
number received, and nearly all were for assistance
in the construction of water and sewer facilities.
Table VI-5 shows applicants by size of community
and type of project.
Table VI-4.—Public Facility Loans Program, calendar
year 1960 compared with 1959
Number Amount
Applications received:
1960________________________________________
1959________________________________________
Loans approved (gross):
1960________________________________________
1959________________________________________
Bond issues purchased:
1960________________________________________
1959________________________________________
Construction starts:
1960________________________________________
1959________________________________________
88
98
$20, 027,038
29,889,107
71 21, 375,900
71 25, 672, 500
51 9, 336,400
68 23, 794, 500
60 12, 291, 000
72 31, 236, 500
Table VI-5.—Applications for public facility loans by
population and type of project
Number of
applications
Type of project
Number of
applications
Population
Total- _______ - 88 Total__________________ 88
Under 500__ 27 Water___ ___________ 50
500-999 42 Sewer__________________ 23
1,000-1,999 ___________ 10 Water and sewer-- 13
2J)00-4,999 ___ - ___ 5 Gas____________________ 2
5,000-10,000 ________ 3
Over 10,000____________ 1
272
The program lias been used most advantageously
in underdeveloped areas, or localities far
removed from the money markets. Many public
facility loans are very small, too small, in fact, to
attract private underwriters except at rates and
discounts which make financing economically
unfeasible.
Of the total of 343 loans approved since the
start of the program, 121 or one-third of the total,
were for less than $100,000 each. Water and
sewer projects comprise more than 90 percent of
these approved projects. Table VI-6 shows the
extent of participation by public bodies in States
located in different geographical areas of the
country. Of the total amount approved, $10.3
million of financing was subsequently arranged
elsewhere for 39 projects and portions of 8 other
projects. Such arrangements are welcomed in
this program as the funds are then available to
lend to other communities with pressing needs.
Table VI-6.—Loans approved under the Public Facility
Loans Program from inception, Aug. 11, 1955, through
Dec. 31, I960—Continued
[Dollar amounts in thousands]
Region i and State
Region VI:
Alaska___________
Arizona__________
California ______
Idaho . _________
Montana_________
Nevada__________
Oregon_________
Utah_____________
Washington______
Wyoming________
Grand total___
Gross loans
approved
Amount
Approvals cancelled
Financing arranged
elsewhere
Other reasons
Amount Amount
2
4
14
681
3
46
343
$5, 900
1,412
6,508
1,095
2, 378
550
537
1,545
115
285
20,325
103, 862
3 $1,193
1 235
1 93
515
20
285
9 2,671 _______
39 10,281 7
1 HHFA regions; no loans approved in Region I.
[Dollar amounts in thousands]
Table VI-6.—Loans approved, under the Public Facility
Loans Program from inception, Aug. 11, 1955, through
Dec. 31, 1960
Region i and State
Gross loans
approved
Approvals cancelled
Financing arranged
elsewhere
Other reasons
No. Amount No. Amount No. Amount
Region II:
Delaware________ 1 $444
Maryland________ 1 375 — $20— $60
New Jersey______ 1 1,300
540
986
Pennsylvania-
West Virginia____
69
5. 733
2, 301 2
__
18 10,153 4 1,546— 60
Region III:
Alabama_________ 19 5,104
755
6
Florida___________ 12 3,192 3 1 375
Georgia___________ 6 670 1 200 —
Kentucky________ 23 6,088 3
Mississippi_______ 6 715
North Carolina ___
South Carolina___
6
8
2, 241
752 1 72 1 58
Tennessee________ 39 16,453 4 1,112— 25
119 _ _35. 215 9 2.139 2 467
Region IV:
Illinois___________ 21 3,415
163
1 86
Indiana___________ 3 409 1
Iowa ____________ 3 157 2 92
Michigan_________ 2 2^2
Minnesota________ 1 1, 260
Nebraska________
North Dakota____
1
1
71
130
1
1
71
130
_ _ _ _
Ohio - -__________ 4 1, 33/ 1 800
South Dakota____ 5 267 1 108 1 28
41 7,268 6 564 3 914
Region V:
-- -----------—— _________
Arkansas_________ 52 12, 903— 80 1,000
Colorado_________ 2 410
Kansas___________
Louisiana- ______
1
12
61
4. 002 2 938 1 764
Missouri_________ 13 1,140 2 12S
New Mexico______ 2 480 2 480
Oklahoma________ 4 418
Texas_____________ 33 11, 487 5 1,735 1 148
—119—30,901 ______11_—3,361 2 1.912
See footnote at end of table.
Program of Advances for Public Works
Planning
The current Program of Advances for Public
Works Planning was initiated by Section 702 of
the Housing Act of 1954. This Act, as amended,
provides for financing the program by a revolving
fund to which appropriations are authorized to
maintain a revolving fund up to a maximum of
$48 million in undisbursed balances in the fund
and in advances outstanding. A total of $36 million
has been appropriated to date for program
use. Repaid advances are deposited in the revolving
fund and are available for additional advances
for public works planning.
The program has two main objectives: (1) To
encourage States, counties, municipalities, and
other local public agencies to maintain at all times
a current and adequate reserve of planned public
works which can readily be placed under construction,
and (2) to promote economy and efficiency
in planning and building public works.
Communities are concerned today with expanding
their public facilities to provide the basic utilities
and public works essential to housing, industry
and related developmental programs.
Normally, a community may not contract to expend
funds for the planning of specific projects
until the money necessary for construction has
been authorized by the local government. Consequently,
communities are prone to provide only
the barest of currently existing requirements.
The program is designed to provide planning assistance
for specific public works. It can assist
a community in progressing in an orderly manner
toward the solution of its problems.
The significance of this program as a continuing
revolving fund and as an incentive for additional
public works planning is important. While the
total authorization with respect to the overwhelm273
ing public works needs may be small, it can,
through the careful selection of projects, be used
over and over to assist communities with their
developmental needs. This can inject a continuous
and vital stimulant into the local public works
planning process. Thus, in addition to helping
with specific projects, this program will encourage
increased local public works planning on a continuous
and overall basis.
The law limits advances outstanding to public
agencies in any one State to 10 percent of the aggregate
authorized to be appropriated to the revolving
fund. No elaborate, long-range, planning
project is considered and each application is confined
to a single specific public works project
where a definite need exists. Advances become
due and repayable without interest when the public
works contemplated by the approved plans are
placed under construction. However, if the public
agency undertakes to construct only a portion
of a planned public work it is required to repay
such proportionate amounts as is determined to
be equitable.
As of December 31, 1960, 2,761 applications for
advances had been filed, of which 627 had been
withdrawn or canceled, 150 were in process, and
1,984 had been approved for $49.8 million representing
estimated construction costs of $2.7 billion.
Approximately 18 percent of the total number of
advances approved since the start of the program
have been canceled mainly as a result of the applicant
obtaining other methods of financing.
This resulted in a total of 1,626 net approved advances
for approximately $36.5 million. The net
numbers and amounts of advances approved since
the start of the program are shown in table A-72
of the Statistical Supplement (Appendix A).
Through December 1960, construction had been
started on 424 projects and advances amounting
to $8.6 million had been repaid into the revolving
fund.
Table VI-7 shows a breakdown of the gross
number and amounts of advances approved during
the calendar year 1960.
Table VI-7.—Advances for public works planning in 1960
Type of project
Sanitation and water facilities_______
Health facilities______________________
School and other educational facilities.
Public buildings_____________________
Roads and streets____________________
Miscellaneous________________________
Total__________________________
Number
Amount of
advance 1
($000)
Estimated
total cost
($000)
285 $7, 492 $376,013
15 434 33,064
102 1,872 99, 671
28 609 31,376
12 231 7. 723
40 1,026 66,129
482 11,664 613,976
i Original amount of approved advance, subject to subsequent adjustment
due to partial cancellations from amount approved.
School Construction
On September 23, 1950, the School Construction
Program came into being under Public Law
815, 81st Congress. The purpose of this law was
to provide schools in areas where Federal activities
had caused an increase in school population.
Under the law it is possible to (a) make Federal
grants to assist local school districts in the expansion
of their school facilities to meet the increased
needs arising out of Federal activities in the area;
(b) to construct a limited amount of temporary
or permanent school facilities primarily in those
areas where local school districts are unable to
provide facilities for children living on Federal
property because State laws preclude the extension
of the State’s educational activities to such
children; and (c) assist those local school districts
which can undertake to provide for the education
of children living on Federal property,
most of whom are Indian children living on taxexempt
land.
The original law creating the program, Public
Law 815, 81st Congress, was amended by Public
Law 246, 83d Congress, which extended the original
law and created Titles III and IV. Public
Law 357, 83d Congress, provided funds for districts
which qualified for assistance under the
original law but failed to receive such assistance
because of lack of funds. Public Laws 731, 83d
Congress; 382, 84th Congress; 949, 84th Congress;
and Public Law 85-267 extended Titles III and
IV. Public Law 85-620 made the program permanent
insofar as it related to children of persons
who reside and work on Federal property and
extended the portion relating to other eligible
children until June 30,1961.
One amendment, Public Law 85-161, approved
August 21, 1957, made its provisions applicable
to Wake Island.
Responsibility for administration of the School
Construction Program rests with the Office of
Education, Department of Health, Education, and
Welfare. However, pursuant to a working agreement
between the Office of Education and the
Housing and Home Finance Agency, the Community
Facilities Administration performs the necessary
engineering, legal and financial services for
the Office of Education. These services are financed
through the transfer of funds from those
appropriated to the Department of Health, Education,
and Welfare for the administration of
this program.
There are two types of projects under this program,
the Federal project and the non-Federal
project. In the Federal projects, the Community
Facilities Administration through the Regional
Offices of the Housing and Home Finance Agency
has full responsibility for all planning and construction
operations since the project is constructed
on Federal property. It prepares cost estimates
and preliminary design data and upon approval
of the project by the Office of Education, it secures
architectural services, approves plans and specifications,
awards construction and equipment contracts,
inspects construction and equipment, makes
payments to architects, contractors, and suppliers,
274
A School Construction Program Project—Camp Lejeune, N.C. The Stone Street Elementary School contains 21 classrooms, multipurpose
room with stage, kitchen, library, administrative and service rooms. It has a gross floor area of 37,500 square feet and
accommodates 630 pupils. The cost of the school including equipment was $602,000 which was provided entriely by the
Federal Government under Public Law 81 5, 81st Congress as amended.
and transfers completed schools to the Office of
Education. The completed facility is the property
of the Federal Government.
In the non-Federal projects, the local school
districts are the builders on non-Federal property
and the Community Facilities Administration
gives advice, approves plans and specifications,
concurs in contract awards, supervises construction,
recommends payment of Federal funds, and
otherwise acts in a helping and supervisory capacity.
The completed facility becomes the property
of the local school district.
From the beginning of the program through
1960, fund reservations had been made for a total
of 4,761 projects under the various sections of
the program as may be seen in Table VI-8. Of
this number, construction had been completed on
3,798, there were 364 under construction, 157 were
in the preconstruction planning stage, and about
50 more approved projects were expected to go
under construction in the next few months. Included
in the total fund reservations were 345
reimbursement projects in which the local school
district constructed the project itself and later
received Federal assistance by reimbursement
from appropriated Federal funds. The Office of
Education (OE) has approved a total of 4,664
projects for construction and for equipment as
shown in Table VI-8. Table A-74 of the Statistical
Supplement (Appendix A) reflects program
activity during previous years.
During 1960 work was started on 324 non-
Federal projects and 23 Federal projects. Xonfederally
constructed projects completed during
the year totaled 357 while 28 Federal projects
were completed during the same period.
Congress has appropriated $1,025.9 million of
Federal funds for the program at the end of 1960.
The Office of Education has approved $914.3 million
for construction projects and $31.4 million for
reimbursements. Applicants are contributing an
additional $441.9 million on the construction projects.
The total actual cost of the 3,798 completed
projects is $1,092.3 million.
Table VI-8.—Projects approved in the School Construction
Program, 1960
Type of project and construction
status
All types of projects:
Fund reservations_______
Recommended by HHFA
Approved by OE________
Construction starts______
Project completions_____
Non-Federal construction:
Fund reservations_______
Recommended by HHFA
Approved by OE________
Construction starts______
Project completions______
Federal construction:
Fund reservations_______
Recommended by HHFA
Approved by OE________
Construction starts______
Project completions______
Approved during 1960
Title Title
III1 IV 2
Total
Cumulative
total3
as of
Dec. 31,
1960
276
263
267
324
363
254
239
239
301
335
15
12
14
23
22
15
12
14
23
22
22 _______
24 _______
28 _______
23 _______
28 _______
291
275
281
347
385
269
251
253
324
357
22
24
28
23
28
< 4, 761
< 4, 678
< 4, 664
4, 162
3,798
4.108
4,025
4, 011
3,877
3, 569
308
308
308
285
229
1 Provides for construction of schools for students whose parents are employed
by the Federal Government or its contractors and either live on or
off Federal property.
2 Provides for construction of schools for students (American Indians)
whose parents live on Federal property but do not work for the Federal
Government.
3 Net after combinations, cancellations and disapprovals.
■“Includes 345reimbursement projects.
275
Section 3
Programs in Liquidation
REVOLVING FUND (LIQUIDATING
PROGRAMS)
The Revolving Fund for Liquidating Programs
of the Housing and Home Finance Agency was
established by the Independent Offices Appropriation
Act of 1955.
The Public Housing Administration, under a
delegation of authority from the Administrator,
is responsible for conducting liquidating activities
for war and emergency housing programs. The
Community Facilities Administration, pursuant
to the terms of the Administrator’s Organizational
Order No. 1, is responsible for liquidation
activities for the following programs:
(1) Alaska Housing Program.
(2) Prefabricated Housing Loans Program.
(3) War Public Works Program.
(4) Defense Community Facilities Program.
(5) First and Second Advance Planning
Programs.
(6) Public Agency Loans (RFC).
The following table shows the status of the
CFA portion of the revolving fund as of December
31,1959, and December 31,1960 :
Table VI-9.—Community Facilities Administration liquidating
programs—financial status as of Dec. 31, 1959
and I960
Dec. 31,
1959
(thousands)
Dec. 31,
1960
(thousands)
Book value of assets:
Cash __ _ _ $2,186 $2, 338
Current receivables----------------------------------------- 2.198 2, 402
Loans and mortgages_________________________ 21, 212 20, 621
Real property ___ ..__ 5, 408 5,093
Contingent planning advances, installment
. sales contracts, etc__________________________ 30. 860 30,103
61.864 60, 557
Less: Allowance for losses-------------------------------------- 28, 490 27, 997
Total ____ ___ 33, 374 32, 560
Liabilities 163 169
Remaining Government costs to be liquidated------ 33.212 32,391
Total .- -- 33. 375 32. 560
The original cost to the Government was_________ 188,160 188, 461
Less:
Assets transferred to other agencies for
continuing use. ------------------------------------ 13, 081 13.115
Grants and donations to local governments__
____ 23. 015 23,015
Repayments to the U.S. Treasury________ 56,189 58,189
Realized losses___________________________ 62, 663 61, 751
Summary statements on activities during calendar
year 1960 on the individual programs included in
the Revolving Fund are presented in the following
pages.
Alaska Housing Program
The Alaska Housing Act, enacted in 1949 and
as amended by the Housing Act of 1952, authorized
a revolving fund of $20 million for loans by
the Housing and Home Finance Administrator to
the Alaska Housing Authority. The Act was
designed to alleviate the acute shortage of
moderate-priced housing in Alaska by providing
needed capital which could not be raised through
private sources. Appropriations for the revolving
fund totaled $19 million but this amount
was reduced to $14 million on July 31, 1953, by
Public Law 176, 83d Congress. Public Law 428,
83d Congress, approved June 24, 1954, prohibited
the making of new’ loans under the basic authority.
From the proceeds of loans from the Administrator
and other funds at its disposal, the Alaska
Housing Authority was authorized to—
(1) Make loans for housing projects to public
agencies, private nonprofit or limiteddividend
corporations, or private corporations,
which were regulated so as to provide
both reasonable rents and a reasonable return
on investment. Such loans were to be
made only if adequate financing on reasonable
terms and conditions was not otherwise
available.
(2) Use $1 million for character loans of not
more than $500 each to individuals living
in remote areas for dwelling improvement
or construction.
Under this program, for which the Community
Facilities Commissioner has liquidating responsibility,
the Administrator purchased bonds of the
Alaska Housing Authority in an amount exceeding
$17.7 million of which $17 million was used
to finance construction of 1,297 units secured by
first mortgages, $394,900 for second mortgage
financing to assure completion of 268 units, and
$295,950 to assist in the improvement or construction
of about 700 dwellings in remote areas.
Loans to individuals were limited to $500 each.
The outstanding balance of the Government’s
investment in this program was reduced from
$8.0 million as of December 31, 1959, to $7.6 million
as of December 31,1960.
The total investment of $7.8 million as of May
1, 1960, represented by nine separate bonds, was
refunded by the Government’s acceptance of a
single General Obligation of the Alaska State
Housing Authority. Of this amount, $7 million
is payable over a 25-year period with the balance
of $800,000 due at maturity. The Authority’s
obligation is secured by mortgages or deeds of
276
trust on two apartment buildings, 418 single
family dwellings, and unimproved lots, all of
which are located in or near Anchorage, Alaska.
Prefabricated Housing Loans Program
Authority for this program was provided for in
the Veterans Emergency Housing Act of 1946
and Section 102 of the Housing Act of 1948. The
1946 Act authorized the Reconstruction Finance
Corporation to make loans under Sections 4(a) 1
and 5(d) 2 of the RFC Act to business enterprises
for production and distribution of prefabricated
houses and housing components and for largescale
modernized site construction where credit
was not available from private sources on reasonable
terms. The President’s Reorganization Plan
No. 23 of 1950 transferred this function to the
Housing and Home Finance Administrator. In
September 1951, Section 102(a) was added to the
Housing Act of 1948 in order to permit loans to
maintain production of fabricated houses and
components so that they would be available for
national defense. In June 1954, authority to borrow
from the Treasury to make loans under these
statutes was withdrawn.
The Community Facilities Commissioner is responsible
for the liquidation of the outstanding
loans and assets acquired under this program.
Loans in excess of $62 million were authorized of
which almost $53 million have been disbursed.
The outstanding balance of the assets to be liquidated
was reduced from $5.1 million as of December
31, 1959, to $4.9 million as of December 31,
1960. Of this amount, $4.2 million represents the
principal balance of a loan made to finance construction
of a 344-unit prefabricated housing
project in Kodiak, Alaska. The loan is in default
and foreclosure proceedings have been initiated.
Pending completion of foreclosure, the project
is being operated by a court-appointed receiver.
War Public Works Program
Under the Lanham Act, approved in October
1940, the Federal Government aided in providing
urgently needed public works in war-congested
areas where local governments were unable to
meet such needs. Federal aid consisted of direct
Federal construction (principally of water and
sewer facilities, schools, hospitals, health centers,
and recreation facilities for military personnel)
and of grants and loans to local communities. The
program was transferred from the General Services
Administration to HHFA in 1950 under
Reorganization Plan No. 17, and it is now
administered by the Community Facilities
Administration.
HHFA is now concerned with servicing outstanding
loans and with the disposition of the few
remaining Federal projects. Public Law 815, 81st
Congress, directed that schools constructed under
the Lanham Act be transferred to local educational
agencies. Public Law 176, 83d Congress,
authorized the transfer of projects to other Federal
agencies.
During 1960, HHFA disposed of two properties
and one sales contract. Of the properties remaining
in the inventory, only one is available for disposition,
and efforts are continuing to effect its
transfer to the local public agency under equitable
arrangements. All property leases, sales contracts,
and loans are current.
Table IV-10.—Status of War Public Works Program
Dec. 31, 1959 Dec. 31, 1960
Number
of
projects
Balance
(thousands)
Number
of
projects
Balance
(thousands)
Properties on hand at cost______
Sales contracts and loans, principal
unpaid__________________
14
10
$5, 370
2,860
12
9
$5,093
2, 770
Defense Community Facilities Program
Under Public Law 139, 82d Congress, the
Defense Community Facilities Program was set
up for Federal assistance in the form of loans
or grants or both in the provision or expansion
of vital community facilities in critical defense
housing areas. These facilities included waterworks,
sewerage systems, street improvements,
and fire and police protection facilities.
This program was operated jointly with the
U.S. Public Health Service of the Department
of Health, Education, and Welfare, to which
agency was delegated the authority for the provision
of water and sewage treatment facilities.
Originally this program authorized up to $60
million for community facilities in critical defense
housing areas and on July 14, 1952, the amount
was increased to $100 million. As of June 2,1952,
a total of $20.6 million had been made available
for use by this agency. A total amount of $8
million was appropriated to be used by HEW.
The Act was extended to June 30, 1954, by Public
Law 94, 83d Congress, without additional appropriation.
The program was covered into the
Revolving Fund (Liquidating Programs) on
June 30,1954, for liquidation.
Section 129 of the Housing Act of 1954 provided
for an extension of the basic authority for the
making of loans and grants to June 30, 1955.
This amendment provided that the President
could designate certain new projects for approval
within the limitation of the small amount of unallocated
funds remaining. By Executive Order
10593, dated January 27,1955, the President designated
and empowered the Director of the Office of
Defense Mobilization to perform the President’s
functions under the Act as amended.
In 1955, eight new projects were approved by
the Office of Defense Mobilization under this delegation
of authority. The estimated total project
591772—61——19 277
cost was $1.8 million, which included $1 million
in grants, $49,000 in loans, and $794,000 applicant’s
participation.
As of December 31, 1960, the total cost of the
105 projects approved by the Housing and Home
Finance Agency was $35.1 million, which included
$16.2 million in grants and $3.7 million in loans,
supplemented by $15.2 million applicant’s participation.
Of these projects, 83 were the sole
responsibility of this agency, while the responsibility
for 22 projects was shared jointly with
the U.S. Public Health Service of the Department
of Health, Education, and Welfare, which approved
separate loans and grants for water and
sewage treatment facilities.
Types of facilities consisted of:
Water_____________________________________ 38
Sewer_____________________________________ 44
Water and sewer___________________________ 12
Other types (fire and police protection and street
improvements)____________________________ 11
Total________________________________ 105
The construction of all of the above listed projects
was completed as of the close of 1959.
As of December 31,1960, the loans in the original
amount of $3.7 million had been reduced to
$3.3 million through collection of current maturities.
During 1960 the U.S. Public Health Service
transferred to this Agency, bonds in the amount
of $287,000 in order that these bonds, together
with those of the same issue held by HHFA could
be refunded. The loans in the outstanding principal
balance of $3.6 million as of December 31,
1960 are represented by bonds and notes of 19
public agencies, all of which are current as to payment
of both principal and interest.
First and Second Advance Planning
Programs
The First Advance Planning Program was authorized
by Title V of the War Mobilization and
Reconversion Act of 1944 ( Public Law 458, 78th
Cong.), approved October 3, 1944. The act authorized
interest-free advances to State and local
jurisdictions to assist them in preparing a shelf
of planned public works which could be placed
under construction immediately whenever the national
or local economy required, or when the
need for a particular planned facility became particularly
acute. A total of $65 million was appropriated
under this program, the authority for
which expired on June 30, 1947.
The Second Advance Planning Program was
authorized by Public Law 352, 81st Congress, approved
October 13,1949. The authorizations were
essentially the same as for the first program, but
repayment liability was stated in more detail.
The law required that if construction of a planned
public work was not undertaken or started within
3 years after making the advance, the Administrator
should determine after notice and hearing
that the public agency had or had not acted in
good faith in either obtaining the advance or in
failing to undertake construction of the public
work planned with the advance. In October 1950,
as a part of the defense effort, this program was
redirected to projects serving national defense
and urgent civilian requirements intended for
early construction. A total of $28 million of the
statutory authorization of the $100 million was
appropriated during this program, the authority
for which expired October 31, 1951.
Major activities at present on these programs
include the collection of repayments for those
projects placed under construction and the issuance
of annual inquiries to applicants whose projects
are still carried in the active “reserve” of
planned public works.
Through December 31,1960, a total of approximately
$62 million of planning advances had been
approved under these programs for 7,689 projects,
with an estimated construction cost of $3.5
billion. About half of all approved projects are
for sewers, water and sanitary facilities; slightly
less than one-third are for schools, other educational
facilities, hospitals, and health facilities;
and the remainder includes other public buildings,
highways, roads, bridges, etc. As of December 31,
1960, construction had started on 4,389 projects
with an estimated cost of slightly over $2 billion,
and repayments amounted to $34.6 million, or
55.8 percent of the total of $62 million of advances
actually disbursed.
As a result of these advance planning programs,
State and local authorities had available on December
31, 1960, a reserve of non-Federal public
works consisting of 1,467 projects, with an estimated
cost of approximately $768 million. Planning
had been completed on all projects in the
reserve, the advances for which are collectible
whenever construction is started. Construction of
planned projects may be financed through non-
Govemment sources; grants made under the
water supply and water pollution control program
of the Department of Health, Education,
and Welfare; or through loans made under this
agency’s Public Facility Loans Program.
Table VI-11 summarizes the status of the two
advance planning programs as of December 31,
1960.
Public Agency Loans (RFC)
Section 4(a) (3) of the Reconstruction Finance
Corporation Act, as amended, provided authority
to make loans to States, counties, municipalities,
and other public agencies. Under this program
278
RFC purchased more than 6,200 municipal and
related issues, having a value in excess of $1.3
billion.
Effective June 30, 1957, Reorganization Plan
No. 1 of 1957 transferred to the Housing and
Home Finance Administrator, the remaining
functions of RFC with respect to its small residue
of public agency loans, then consisting of 67 issues
of securities in the principal amount of $6.6
million, and having an appraised value of $3.2
million.
In view of the lack of a market for these issues
at reasonable prices it was determined administratively
to concentrate primarily on portfolio
management to promote a maximum collection of
principal and interest and to confine current liquidation
activities to three of the cases which are in
litigation.
As of December 31, 1960, the outstanding principal
balance of the securities had been reduced
to $6.1 million.
Table VI-11.—Status of first and second advance planning
programs
Status of activity Number of
projects
Estimated
construction
cost
(millions)
Amount of
advances
(millions)
First advance planning program
Total approved________________ 6,517 $2,586.1 $46.0
Uncollected GAO claims_____________ 64
2,586.1
.3
Plans completed_____________________ 6,453 45.7
Construction started_____________ 3,534 1,497. 0 23.5
Active (awaiting construction)___ 1,248 586.8 10.8
Inactive (Plans not usable)______ 1,612 488.4 10.7
Uncollected GAO claims_________ 59 13.9 .7
Second advance planning program
Total approved________________ 1,171 $949. 8 $16.0
Uncollected GAO claims_____________ 6
949.8
(>)
Plans completed_____________________ 1,165 16.0
Construction started_____________ 855 728.2 11.1
Active (awaiting construction)___ 219 181.6 3.6
Inactive (Plans not usable)______ 87 35.2 1.0
Uncollected GAO claims_________ 4 4.8 .3
i Less than $50,000.
279

Urban Renewal
A dm in is t ration.
Urban Renewal Administration
The Urban Renewal Administration is responsible for
the program of slum clearance and urban renewal authorized
in the Housing Act of 1949, as amended, under which
planning advances, loans, and grants are made to localities
for projects to clear and redevelop slums and to
rehabilitate and improve blighted areas. Under authority
of Section 314 of the Housing Act of 1954, the Urban
Renewal Administration makes grants to aid localities in
developing, testing, and reporting on improved techniques
for preventing and eliminating slums and urban blight;
under Section 701 of the Housing Act of 1954, it makes
grants for urban planning assistance for municipalities,
counties and metropolitan and regional areas, the funds
going to State, metropolitan and regional planning agencies;
under Section 101 of the Housing Act of 1949, as
amended, it provides an Urban Renewal Service for assistance
to localities in the preparation and development of
their urban renewal plans and programs; under Section
103 of the Housing Act of 1949, as amended, it makes
grants for community renewal programs.
URBAN RENEWAL ADMINISTRATION ORGANIZATION CHART
282
Section 1
Review of the Urban Renewal Program
During 1960 the Federal urban renewal program
continued its attack on problems of blight in
our cities. Primary emphasis was placed on implementing
the concept of the overall community
approach, a concept adopted by the United States
and by foreign governments in previous years but
not yet effectuated in a significant number of
American communities.
While there was no new housing legislation in
1960 which revised existing programs or authorized
new ones, additional funds were made available
by Congress for the broad-scale Urban Planning
Assistance Program, and for the first time
grant funds were provided for community renewal
programs under Title I of the Housing Act of 1949,
as amended. (These two programs are discussed
in detail, along with other activities administered
by URA, in subsequent pages.) With this authority,
it was possible to approve 201 urban
planning grants and seven community renewal
program grants during the year.
Program policy and requirements were for the
first time pulled into one basic, indexed, simplified
reference—the Urban Renewal Manual. The
publications program described below was
launched concurrently with this new policy directive
for urban renewal to fulfill the need for advice
and recommendations.
The Manual reduced drastically the paperwork
required from local public agencies and HHFA
Regional Offices; provided procedures which
should expedite local decision making in planning
and carrying out urban renewal projects; and,
most importantly, placed maximum emphasis on
local responsibility and minimized Federal
supervision.
One of the great needs of the Urban Renewal
Administration has been to find ways to implement
the prevention of blight. In 1960, program
emphasis was given to conservation and rehabilitation.
Conserving peoples’ homes and neighborhoods
rather than razing them requires an
understanding and willingness on the owner’s part
to repair and renovate his house and to accept
neighborhood changes.
URA policy and requirements concerning conservation
and rehabilitation were defined in detail
in 1960. Criteria for eligibility of areas for conservation
under urban renewal were relaxed.
Localities were encouraged to provide property
owners with home improvement financing and
design advice, and the URA staff specializing in
conservation and rehabilitation wyas strengthened.
Policy and procedural changes were made to
stimulate activity in nonassisted renewal projects,
which are projects requiring no Federal loans and
grants from the Urban Renewal Administration
but utilizing special FHA urban renewal mortgage
insurance programs. A joint URA-FHA
top level committee was created in Washington
for national coordination of conservation activities
by both agencies and directed toward developing
means of implementing conservation.
In sum, momentum in local action to conserve
good existing housing and to rehabilitate deteriorating
units worth saving was urged by the
Urban Renewal Administration in multiple ways.
Technicians began examination in depth of the
problems of industrial redevelopment as well as
nonresidential conservation and rehabilitation.
An entirely new program of publications was
launched as part of the Urban Renewal Service
authorized by the Flousing Act of 1949 as amended.
These publications offer professional and technical
advice on various phases of urban renewal as well
as significant case histories. They are intended
to supplement and expand on the procedures and
requirements contained in the Urban Renewal
Manual. They fall into three broad categories:
Technical Guides.—Advice and recommended
procedures for carrying out local urban renewal
programs. Intended primarily for professional,
technical, and administrative staffs at all levels of
government; consultants; and others actively
engaged in the urban renewal process. Available
from the Government Printing Office, Superintendent
of Documents, Washington 25, D.C.
Urban Renewal Bulletins.—Primarily helpful
informational and experience reports, directed to
various urban renewal audiences or combinations
of audiences, depending on the subject material.
Most are designed for the nonprofessional concerned
with or involved in the urban renewal
process. Available from the Superintendent of
Documents, Washington 25, D.C.
Urban Renewal Notes.—A bimonthly digest
pointing to good techniques and unusual local approaches
and success, and including summaries
of pertinent URA program developments and
publications. Articles are brief paragraphs, often
noting source of further information. Serves as
a fact and idea exchange for technicians and
novices alike. Available free from the Urban Renewal
Administration, Washington 25, D.C.
Approvals of project plans, permitting projects
actually to be carried out, reached 95 during the
year.
Federal concern about the quality of design in
urban renewal project areas began to be reflected
locally through such devices as architectural competitions
and local publicity in various media.
283
Should this neighborhood be wasted?
Federal Aids for Urban Renewal
Federal assistance for urban renewal projects
may be given only to local public agencies authorized
by State and local law to receive such aid
and to carry out the various activities involved.
Generally, a Local Public Agency may be, according
to individual local circumstances, a specially
created redevelopment or urban renewal agency,
a local housing authority, or a city or county itself.
In some localities two local agencies, such as the
city and the redevelopment agency, may have to
participate jointly in certain types of projects.
A Local Public Agency may also be established
by a State to operate on a statewide basis in behalf
of smaller communities which are undertaking or
propose to undertake urban renewal programs.
An urban renewal project may include diversified
efforts by the locality to prevent and eliminate
slums and blight. These efforts may involve complete
clearance of a slum or blighted area, whether
residential or nonresidential, and its subsequent
rebuilding; conservation or rehabilitation of residential,
commercial, or industrial structures, accompanied
by improvement of community facilities
by the local government; or any combination
of these complementary approaches which will
contribute to better living and working conditions.
Nonresidential clearance areas generally must be
converted to predominantly residential use. Federal
financial assistance (up to 20 percent of statutory
grant authority) may be extended, however,
to an area which is not predominantly residential
in character and which is not to be redeveloped
for predominantly residential uses if the local
governing body determines that nonresidential redevelopment
is necessary for the proper development
of the community. Federal assistance in
urban renewal areas involving colleges and universities
may also be provided without regard to
the predominantly residential requirement in
cases where an institution of higher learnino- is
situated m or near a project and the local governing
body determines that the project will assist
the institution and promote the public welfare
and proper development of the community.
Federal aids for urban renewal include the
following types of assistance:
Urban planning assistance grants;
Grants for community renewal programs;
Planning advances;
Temporary and definitive loans for urban renewal
projects ;
Grants for urban renewal projects;
Relocation assistance to persons and businesses
in urban renewal areas;
The Urban Renewal Service;
Demonstration grants;
284
Golden Gateway Project, San Francisco.
"If those who govern . . . decide that the [city] should be beautiful as well as sanitary, there is nothing in the Fifth Amendment
that stands in the way.”
—The Supreme Court of the United States.
Special mortgage insurance by the Federal
Housing Administration under Section 220 of
the National Housing Act to promote new
construction or rehabilitation of dwellings in
urban renewal project areas;
Special mortgage insurance by FHA under Section
221 of the National Housing Act to promote
new or rehabilitated low-cost housing
for families displaced by urban renewal or
other governmental action.
A description of the various types of Federal
assistance available from the Urban Renewal Administration
follows:
Urban Planning Assistance Grants.—These
grants are designed to assist State and local governments
in solving planning problems resulting
from increasing concentration of population in
metropolitan and other urban areas, including
smaller communities; to facilitate comprehensive
planning for urban development on a continuing
basis; and to encourage the establishment of State
and local planning staffs. Under this program,
State planning or other officially designated agencies
may obtain cash grants with which to provide
planning assistance to municipalities, counties, or
groups of adjacent communities which have a
total population of less than 50,000. These grants
may amount to 50 percent of the cost of the work
required. Similar grants are also available to
official State, metropolitan, and regional planning
agencies for work covering State, interstate, and
metropolitan areas and urban regions, and to local
governments in disaster areas and areas facing
rapid urbanization as a result of the construction
or expansion of Federal installations.
Grants for Community Renewal Programs.—
Grants of up to two-thirds of the cost of the
work are authorized for the preparation of community
renewal programs. A community renewal
program may include identification of slum or
blighted areas; measurement of blight; determination
of resources needed and available to renew
such areas, particularly with respect to financing,
relocation, and the marketing of land; identification
of potential project areas and types of action
contemplated; and scheduling of urban renewal
activities.
Planning Advances.—These are intended to finance
all necessary surveys and plans for an urban
renewal project before execution of a loan and
591772—61--------20 285
grant contract. They are repaid from any funds
which are, or become, available to the Local Public
Agency for financing the project.
Funds may be advanced to local public agencies
for the preparation of general neighborhood
renewal plans for large areas in which urban renewal
activities may have to be carried out in
stages—over a period of not more than 10 years—
rather than as a single project. A general neighborhood
renewal plan, which outlines the urban
renewal activities proposed for the area and which
conforms to the community’s Program for Community
Improvement (Workable Program), provides
a framework for preparation of urban
renewal plans and indicates generally the land
uses, population density, building coverage, prospective
requirements for rehabilitation and improvement
of property, and any portion of the
area designed for clearance and redevelopment.
An advance for a general neighborhood renewal
plan, like other planning advances, will be repaid
with interest out of any money which becomes
available to the Local Public Agency for undertaking
the first project in the area. When a subsequent
project, or projects, can be undertaken in
the area, an appropriate allocation of the amount
of the advance may be made so that each project
will bear its proper share of the cost of the
general neighborhood renewal plan.
Funds may also be advanced to local public
agencies for area surveys to determine whether
urban renewal projects there would be feasible.
Loans.—Expenditures by local public agencies
in undertaking urban renewal projects may be
financed by repayable loans, which bear interest
at not less than the going Federal rate. These
loans are of two categories—temporary and definitive.
A contract for a temporary loan generally
will coyer such a period of time as may reasonably
be required to complete the project. A definitive,
or long-term, loan will be made only to finance the
capital value of that portion of a project area
which is leased for redevelopment rather than
sold, and the loan’s duration may not exceed 40
years. Most of the funds contracted to be lent
are not actually disbursed. Instead, the contract
is used by the Local Public Agency as security to
borrow private funds at more favorable rates of
interest than the Federal rate.
Grants for Urban Renewal Projects.—Grants are
given to help defray the net cost of urban renewal
projects. The net project cost, or deficit,
is usually the difference between the total cost of
carrying out the project and the return received
from the disposition of the project land. Under
this arrangement, the Federal share is not more
than two-thirds of the net project cost, with the
community paying one-third. The amount of the
grant, however, may be determined at the option
of the Local Public Agency by an alternate formula,
under which the Federal share is threefourths
of the net project cost. In such a case the
community pays one-fourth of net cost, but all
local administrative, legal, survey, and planning
expenses must be paid by the locality rather than
included as a shared expense for the project. The
alternate formula was authorized with a view to
reducing the time required for Federal processing.
Under either formula, the community may
pay its share in cash or by contributions of land,
public facilities, demolition, or other site work.
Relocation Assistance.—Families whose displacement
from an urban renewal project area is caused
by project activities must be offered relocation
assistance in finding decent, safe, and sanitary rehousing
(1) at rents or prices they can afford, (2)
in areas “not less desirable” than the project with
respect to utilities and facilities, and (3) in locations
accessible to the relocatees’ places of employment.
In addition, relocation payments are made
to families, individuals, and business concerns.
The maximum amounts of these payments are $200
when made to families and individuals and $3,000
when made to business concerns. These payments,
entirely from Federal funds, are disbursed by the
Local Public Agency. They cover reasonable and
necessary moving expenses and any actual losses
of property but not losses of goodwill or profit.
Urban Renewal Service.—Through this service,
a community may obtain technical and professional
advice and assistance from specialists of
the Housing and Home Finance Agency in the
preparation of a local Program for Community
Improvement (Workable Program) for the prevention
and elimination of slums and blight and
in the various stages of urban renewal projects.
The service includes publication and dissemination
of technical and advisory materials for the
information and guidance of local public agencies
and others concerned with urban renewal.
Demonstration Grants.—These grants are available
to public bodies for developing, testing, and
reporting techniques for the prevention and elimination
of slums and blight. Public bodies which
undertake projects that will be of value to other
communities in solving urban renewal problems
may obtain grants amounting to two-thirds of
the cost of the demonstration. The law thus seeks
to encourage studies, experiments, and investigations
covering a wide range of subjects pertinent
to urban renewal.
Aid to Disaster Areas.—Special exceptions to the
laws and regulations governing urban renewal
and urban planning assistance projects are authorized
to make Federal assistance more quickly
available to disaster areas. Where a local governing
body certifies and the Housing and Home
Finance Administrator finds that an area is in
need of redevelopment or rehabilitation as a result
of flood, fire, hurricane, earthquake, storm, or
other catastrophe which the President has declared
to be a major disaster, the Administrator is
authorized to extend urban renewal assistance
without regard to certain requirements of the law.
286
Section 2
Activity
PROJECT PROGRESS
Urban renewal projects completed during 1960
State
Alabama_________________
Illinois___________________
Kentucky________________
Missouri_________________
New Jersey_______________
New York________________
Pennsylvania_____________
City Project name
Eufaula_________________ Flake Hill
Chicago-------------------------- Thirteenth and Blue Island
Hazard__________________ Main Street
Kansas City-------------------- Northside
Long Branch_____________ Russell Court
Newark-------------------------- Branch Brook Park
Newark-------------------------- Broad Street
New Brunswick___________ Bishop Street
Passaic__________________ Pulaski Park
Plainfield________________ South Second Street
Schenectady_____________ Project No. 1
Chambersburg------------------ Harrison Avenue
Philadelphia-------------------- Northwest Temple, Temple University No. 3
Philadelphia_____________ Norris
Scranton________________ Petersburg U R Area
Completion of 15 projects was a mark of the
progress of the Federal urban renewal program
during 1960. This made a total of 41 projects
completed since the beginning of the program.
One project was completed in 1956, 3 in 1957, 6 in
1958, and 16 in 1959.
More new projects were initiated in 1960 than
in any preceding year. The volume of project
activities rose in other respects: disposition of
land, relocation of displaced families, clearance
and improvement of sites, and conservation and
rehabilitation of salvable structures.
The comparative volume of project activities
between 1959 and 1960 is shown by the following
statistics:
A total of 9,552 acres of urban renewal project
land had been acquired by local public agencies at
the end of the year, as compared with 6,363 at the
end of 1959, an increase of 50 percent.
A total of 2,763 acres of project land had been
disposed of for redevelopment at the end of the
year, as compared with 1,972 at the end of 1959,
an increase of 40 percent.
Approximately 114,000 families had been relocated
from project areas at the end of the year,
as compared with 91,175 at the end of 1959, an
increase of 25 percent.
Approximately 140,900 dwelling units in project
areas had been demolished at the end of the year,
as compared with 98,143 at the end of 1959, an
increase of 44 percent.
Completed capital grant contracts aggregated
$21.9 million at the end of the year, as compared
with $11.5 million at the end of 1959.
Aggregate project temporary loan contracts
authorized at the end of the year amounted to
$1,565 million as compared with $1,181 million
at the end of 1959. Most of the projects under
Federal loan contracts are being financed with
non-Federal funds borrowed in the private market
at less than the going Federal rate of interest,
with the Federal contracts as security.
The 475 communities in which 870 urban renewal
projects had been approved for Federal
assistance through December 31, 1960, are situated
in 43 States, the District of Columbia, Puerto
Rico, and the Virgin Islands. These communities
range in population from 749 to 7,781,984.
Well Advanced Projects
At the end of 1960, there were 536 well advanced
projects, as compared with 437 at the end of 1959.
“Well advanced” projects are defined as those
which have been approved for advanced planning
or execution.
Although complete information concerning all
these projects was not available, reports from 522
of them showed that they involved a total area of
approximately 26,900 acres. They included 439
blighted residential project areas, 49 other
blighted areas, 12 predominantly open areas, 16
disaster areas, 4 university or college areas, and
2 open land areas.
Excluding 7,300 acres for public rights-of-way,
the net area of these projects amounted to 19,600
acres, which the local public agencies had designated
for redevelopment approximately as
follows:
Residential, including related public and semipublic
purposes—10,100.
Commercial—3,000.
Industrial—4,600.
Public and semipublic (nonresidential)—1,900.
287
URBAN RENEWAL PROJECTS
. . . Year-end Status, 1950 through I960
500 -
The 521 project areas for which acreage details
were available varied in size from 115 of less than
10 acres each to 29 of 150 or more acres; 138 were
from 10 through 24 acres; 112 from 25 through
49 acres; 95 from 50 through 99 acres; 32 from
100 through 149 acres. The largest project in
area was Eastwick, in Philadelphia, covering
more than 2,500 acres, while the smallest was the
Grates House project in York, Pa., covering fourtenths
of an acre.
Reports from 521 projects showed that there
were 270,496 dwelling units in those areas, 213,702
of which were reported to be substandard. The
number of families reported was about 216,000, of
which 120,000 were estimated to be eligible for
low-rent public housing.
In 52 well advanced projects the new use of
the land was exclusively residential, in 206 projects
predominant, and in 104 projects secondary.
Commercial use was exclusive in 35 projects, predominant
in 66, and secondary in 262. Industrial
use was exclusive in 30 projects, predominant in
66, and secondary in 92. Public nonresidential
use was exclusive in 23 projects, predominant in
43, and secondary in 175.
Estimated net project costs of 508 projects approved
under the two-thirds capital grant formula
amounted to $1,670 million on December 31, 1960.
The Federal share of these costs was $1,083 million
exclusive of $44.5 million in relocation grants to
occupants of 431 project areas. The local share
of $588 million included $237 million in cash and
$350 million in the form of land donations, demolition
and clearance, site improvements, supporting
facilities, credit for low-rent public housing
and certain expenditures by colleges or universities.
In many cases, communities coordinated
their public works programs with their urban
renewal projects to obtain credit for the local
share.
Eighteen well advanced projects received
Federal financial assistance under the threefourths
capital grant formula. The net project
cost of these projects was $142 million, of which
the Federal share was $102 million, exclusive of
$4.3 million for relocation payments, while the
local share was $39.8 million, including $11.8
million in cash.
Data on Projects in Execution
Federal capital grants for 485 projects approved
for execution through December 31, 1960,
amounted to $1,129 million. These figures compare
with $865 million for 391 projects at the end
of 1959.
The estimated cost of new construction for 354
of these projects for which data are available was
288
$4,148.3 million, distributed approximately as
follows:
Private housing, $1,344.1 million.
Public housing, $98.5 million.
Commercial, $939.9 million.
Industrial, $443.4 million.
Public and semipublic, including supporting
facilities and site improvements, $1,322.4 million.
A summary of the physical progress of projects
in execution at the end of 1960 follows:
Land Acquisition.—Acquisition of land had been
completed in 185 projects and was in progress in
240 others. At the end of 1959, this activity had
been completed in 142 projects and was in progress
in 174. Estimated costs of land acquisition and
disposition amounted to $1,598 million.
Relocation.—Relocation of displaced families
had been completed in 189 projects and was in
progress in 224 others. At the end of 1959, relocation
had been completed in 136 projects and
was in progress in 172. Approximately 114,000
families had been relocated, as compared with
about 91,000 at the end of 1959. Relocation costs,
exclusive of relocation grants, were estimated at
$12 million.
Site Clearance.—Demolition and clearance had
been completed in 152 projects and was in progress
in 223 others. At the end of 1959 this work had
been completed in 105 projects and was in progress
in 180. The cost of this work was estimated at $74
million.
Site Improvements.—Site improvements had
been completed in 84 projects and were in progress
in 124 others. At the end of 1959, such improvements
had been completed in 57 projects and were
in progress in 89. The cost of this work was estimated
at $256 million.
Supporting Facilities.—Construction of supporting
facilities had been completed in 73 projects
and was in progress in 102 others. At the end
of 1959 this construction had been completed in
58 projects and was in progress in 63. The estimated
cost of these facilities was $212 million.
Land Disposition.—Disposition of land had been
completed in 73 projects and was in progress in
108 others. At the end of 1959, this work had
been completed in 51 projects and was in progress
in 86. The proceeds from the disposition of land
were expected to amount to $725 million.
Rehabilitation.—Ninety federally assisted projects
in execution on December 31, 1960 involved
rehabilitation of existing dwelling units. In 85 of
these project areas, an estimated 65,000 units will
be rehabilitated. Rehabilitation of 9,649 units had
been completed, and this work was in process in
7,757 units. In 9 nonassisted projects in which
an estimated 9,100 units required rehabilitation,
3,037 units had been rehabilitated and 115 others
were being rehabilitated.
At the end of 1959, 57 assisted projects in execution
contained approximately 45,000 dwelling
units requiring rehabilitation. In 9 nonassisted
projects containing 8,905 dwelling units requiring
rehabilitation, 2,492 units had been rehabilitated,
and 165 others were being rehabilitated.
Urban Planning Assistance Grants
The year 1960 was the most active year in the
6-year history of operations under the Urban
Planning Assistance Program—201 grants were
approved for a total of $4.7 million. This represented
more than a tenfold increase over the first
full year of operation in 1955 when 14 grants were
approved for a total of $458,946.
By the end of 1955, 75 small municipalities were
receiving planning assistance from 7 State planning
agencies. At the close of 1960 the total that
had received or were receiving such assistance had
risen to 1,464 in 39 States. Of the participating
communities, 372 had completed their planning
work by the end of 1960.
In addition to the small communities (under
50,000 population) for which grants were made to
State planning agencies, planning assistance
grants had been made to 112 metropolitan and
other special areas by the end of the year. Of
these, 90 were still active, the remaining 22 having
been completed. Also in 1960, 10 States received
grants under the amendment adopted in 1959 permitting
grants to State planning agencies for statewide
comprehensive planning. These grants
totaled $264,760.
Altogether, since the beginning of the program
in the fall of 1954, grants totaling $13.4 million
have been approved. When it is considered that
the Federal grants are more than matched by State
and local funds, the total allocated to urban planning
work during that period is well over $27
million.
During the year there was increasing interest
in the coordination of plans for new highways
with plans for general community development,
particularly in metropolitan areas, and efforts were
made to find a formula for the joint use of urban
planning grant funds and highway planning
funds.
Near the end of the year a joint statement was
issued by the Administrator and the Secretary
of Commerce establishing a joint steering committee
representing the two agencies and outlining
procedures for bringing about a common
approach to the problem. At the end of 1960,
organization of the work was underway.
Community Renewal Programs
Since the “project” approach generally followed
by localities constitutes too narrow a front for
a broad-scale local and national attack on urban
slums and blight, the Urban Renewal Administration
increased its emphasis on comprehensive
community renewal planning and encouraged
289
localities to use this tool. The publication, expected
in mid-summer 1961, of the 1960 Census
block statistics should produce an increasing
volume of community renewal program grant applications
as more localities recognize the advantage
of using such statistics in the development
of community renewal programs.
Although community renewal program grants
were authorized by the Housing Act of 1959,
grant funds were not appropriated until April
13, 1960. Therefore, applications for allocation
of community renewal program grants were
delayed.
The first application, from Denver, Colo., was
approved in mid-summer 1960, and $52,526 was
set aside as a grant allocation. By the end of
the year six more applications had been approved
for Houston, Tex.; Trenton, N.J.; Chester, Pa.;
New York City; Tulsa, Okla.; and Chicago, Ill.
The seven allocations totaled $2.7 million. Other
localities were also developing their applications
at the end of 1960.
Demonstration Grants
Reports on two demonstration projects were
published in 1960, one dealing with housing codes,
the other with conservation and rehabilitation.
The first, by the New York State Division of
Housing, emphasizes the vital role housing codes
play in the urban renewal process, and presents
a prototype for a modern housing code. This
publication updates an earlier demonstration report.
The second concerns the financing of conservation
and rehabilitation, and was prepared
by the Temporary State Housing Rent Commission,
State of New York.
Reports of demonstration projects are made
available by the responsible public agency to other
communities and to interested persons throughout
the country. In this way, the experiences
gained in solving urban renewal problems in one
community are of benefit to other localities facing
the same or similar problems.
During 1960, six new grants were approved for
public bodies in three States. Two of these grants
deal with conservation and rehabilitation, and
the complementary problems of neighborhood
stabilization, code enforcement, and citizen action.
The other four concern the following problem
areas:
—Prevention of blight near airports.
—Financing lower-middle-income housing.
—Reuse of areas created by spot clearance.
—Coordination and integration of urban university
development programs with community
urban renewal efforts.
The year’s grants, amounting to $571,601, raised to
$2.8 million the total amount of demonstration
grants allocated since the program was authorized
in 1954.
The administration of the demonstration program
was simplified by publication of a new procedural
guide to be used by public bodies undertaking
projects.
STATE LEGISLATION AND
COURT DECISIONS
By the end of 1960, urban redevelopment legislation
adequate to permit Federal financial assistance
under Title I of the Housing Act of 1949,
as amended prior to the Housing Act of 1954,
was possessed by 45 States,1 the District of Columbia,
Puerto Rico, and the Virgin Islands.
Authorization to undertake the broader urban renewal
program, including rehabilitation and conservation,
as contemplated by the Housing Act
of 1954, had been granted by 43 of these
jurisdictions.1 2
The Supreme Court of North Carolina unanimously
sustained the constitutionality of the
North Carolina Urban Redevelopment Law, thus
increasing to 31 the number of jurisdictions3
where the courts of last resort have rendered
favorable decisions on enabling legislation. Additions
to the list of significant and approving
decisions concerning redevelopment and urban
renewal were made during the year by courts in
California, Connecticut, Georgia, Minnesota, and
New Jersey.
At the end of the year, 49 jurisdictions4 possessed
legislation which appeared to permit participation
in the Urban Planning Assistance program
under Section 701 of the Housing Act of
1954, as amended. Of these jurisdictions 44 have
authorized a State planning agency to provide
planning assistance to municipalities of less than
25,000 population as originally provided by Section
701, and most of them appear to be able to
comply with the extended coverage for aid to small
communities made available by the amendments to
that Section as provided in the Housing Act of
1959. In Arizona, the Governor designated the
University of Arizona as the agency or instrumentality
of State government to provide planning
1 Alabama, Alaska, Arizona, Arkansas, California, Colorado,
Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois,, Indiana,
Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts,
Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey, New Mexico, New
York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas,
Vermont, Virginia, Washington, West Virginia, Wisconsin.
2 Arizona, Delaware, Nebraska, South Dakota, and Virginia do
not have this authorization.
3 Alabama, Arkansas, California, Connecticut, Delaware, District
of Columbia, Florida, Georgia, Illinois, Indiana, Kansas,
Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Missouri, New Hampshire, New Jersey, New York, North
Carolina, Ohio (home rule), Oregon, Pennsylvania, Puerto Rico,
Rhode Island, Tennessee, Texas, Virginia, Wisconsin.
4 Alabama, Alaska, Arkansas, California, Colorado, Connecticut,
Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts,
Michigan, Minnesota, Mississipppi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey, New Mexico, New York,
North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto
Rico. Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont,
Virginia, Virgin Islands, Washington,,. West Virginia, Wisconsin,
Wyoming.
290
assistance to small communities, in the absence of
an existing State planning agency, under the
amended provisions of Section 701.
Of the jurisdictions possessing legislation
deemed adequate to permit participation in the
urban planning assistance program, 16 States5 and
the Territory of Guam have planning agencies to
® Arkansas, California, Connecticut, Hawaii, Kentucky, Louisiana,
Maine, Maryland, Massachusetts, New Mexico, New York,
Oregon, Pennsylvania, Rhode Island, Tennessee, Washington.
perform planning work in metropolitan or regional
areas; and the laws of at least 27 jurisdictions
6 authorize metropolitan or regional planning
agencies to carry out metropolitan or regional
planning work which is eligible for Fecleral financial
assistance under Section 701.
a Arkansas, California, Colorado, Connecticut, Florida, Georgia,
Hawaii, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland,
Michigan, Minnesota, Montana, Nebraska, New Jersey,
New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania,
Tennessee, Virginia.
291
I
Section 3
Urban Renewal Statistical Data
Table VII-1.—Projects and reservations approv ed under Title I, Housing Act of 1949, as amended
End of year data Net change data
Year Reservations
and
earmarkings
outstanding
Project approvals outstanding Project
reservations
and
earmarkings
Project approvals
Total Planning
Execution
Completion
Total Planning
Execution
Completion
A. Urban renewal projects:
1950 i______________________________
1951_______________________________
1952_______________________________
1953_______________________________
1954_______________________________
1955_______________________________
1956_______________________________
1957_______________________________
1958_______________________________
1959_______________________________
1960_______________________________
B. General neighborhood renewal planning:
1957 2______________________________
1958_______________________________
1959_______________________________
1960_______________________________
C. Community renewal program:
1960 3______________________________
D. Demonstration projects:
1955 4______________________________
1956_______________________________
1957_______________________________
1958_______________________________
1959_______________________________
1960_______________________________
E. Feasibility surveys:
1956 s______________________________
1957_______________________________
1958_______________________________
1959_______________________________
1960_______________________________
$198, 774,275
282, 724. 527
329,228,601
348, 540,408
377,170, 988
553,665,661
826,684,732
1,015,198,857
1,284,194,144
1,357, 432,494
1, 769,405,223
4,095,857
39,978, 910
31,215,271
96, 754, 836
2,663, 794
127,775
1,052,890
1. 761,141
2,065,705
2,218,634
2, 790,235
124 116 8
201 192 9
259 232 27
260 199 61
278 191 87
340 230 110
432 299 132
491 298 189
623 332 281
657 266 365
796 311 444
3
25
42
74
7
6
18
24
27
28
34
19
10
12
12
_________ $198,774,275
_________ 83, 950,252
_________ 46.504, 074
_________ 19, 311,807
_________ 28,630,580
1
176, 494,673
273,019,071
4 188,514,125
10 268,995,287
26 73,238,350
41 411,972, 729
7 _________
6 _________
18 _________
19 5
19 8
18 10
24 10
4,095, 857
35,883,053
-8, 763, 639
65,538,565
2,663, 794
127, 775
925,115
708,251
304,564
152,929
571,601
124
77
58
1
18
62
92
59
132
34
139
116
76
40
-33
-8
39
69
-1
34
-66
45
81
18
34
26
23
22
57
92
84
79
1 First projectfapproved under this program took place in March 1950.
2 First project’approved under this program took place in October 1957.
3 First projectjapproved under this program took place in August 1960.
4 First project approved under this program took place inlMarch 1955.
3 First project approved under this program took place in[Septemter 1956
Table VII-2.—Financial assistance under Title I, Housing Act of 1949, as amended
[Thousands of Dollars]
Period
Advances
Temporary loans
Capital grants
Contracts
authorized
Activity under contracts
Contracts
authorized
Activity under contracts Federal loans Non-Federal guaranteed loans
Disbursed
Repaid
Outstanding
Disbursed
Repaid
Refunded
Outstanding
Borrowed
Repaid
Refunded
Outstanding
Contracts
authorized
Disbursed
Cumulative data from
July 15,1949, through
1960, December____ $75,122 $48,637 $31, 220 $17,417 $1, 567, 665 $383,203 $93,171 $225, 359 $64, 673 $816, 564 $109,815 $121, 424 $585, 324 $1,142,108 $364,818
Annual data:
1950 1_______________ 3,066
2,758
3, 584
2,076
2,951
6,272
10,441
7,050
11,992
7,100
17,832
889
2, 581
3,041
1,954
1,562
2,406
3,920
5,171
7,935
8, 220
10,959
889
2, 581
2,437
465
315
1,242
1,641
2,429
2,174
2,040
1,202
1951________________ 282
33,608
70,178
28,007
52,982
52,156
219,411
2 350,576
2 376,271
2 384,195
402
53,696
51,108
41, 392
38, 438
35, 739
168, 365
226,717
255,655
270, 596
1952________________ 604
1,488
1,247
1,163
2,279
2,741
5,760
6,180
9, 757
9, 714
21,043
24,832
18, 203
21, 294
31,397
51, 540
96, 287
108,892
140
2,205
1,900
12,945
7,846
5,959
10,437
20, 747
30,992
9,574
12, 327
15,934
-10, 475
6, 211
9,661
24, 345
7,218
-10,122
1953________________ 6, 512
6,999
15, 733
7,236
15, 776
16, 758
68, 322
88,023
10,933
11,817
34,041
43, 074
74,132
2111,836
2235,175
2295, 556
10,933
4,897
20,222
31, 376
59, 592
2 86, 246
2165,033
2 207,026
8, 673
12, 597
37, 559
16,089
30, 220
49,692
78, 464
131, 524
1954________________ 6,920
5,995
4,286
2, 654
6,937
55, 594
39,039
1955________________ 7,824
7,412
11,886
18,653
14, 549
49,491
1956________________
1957________________
1958________________
1959________________
1960 _______________
1 First approval under this program took place in March 1950.
2 Includes definitive loan of $2,774,000 for Lower Hill Project in Pittsburgh, Pa.
Note.—Small differences between details and totals are due to rounding to the nearest thousands.
292
Table VII-3.—Projects and grants approved under the Urban Planning Assistance Program (Sec. 701 of Housing Act
of 195^, as amended) Dec. 31, 1960
Type of planning assisted
State
Total program Small areas Metropolitan, regional, and
other areas
States
Projects Federal
grants
Projects Small
areas
Federal
grants
Projects Areas Federal
grants
Projects Federal
grants
Total______________________493____$_13, 400, 440 312 1,464 $8,192, 745 169 112 $4, 942, 935 12 $264,760
Alabama________________________________ 551
19
30
9
19
16
12
1
41
26
12
58
18
15
10
22
9
14
3
7
3
49
21
8
25
8
16
17
17
32
6
15
13
10
4
14
6
3
193, 702
103, 700
2,325
317,917
934,110
295, 111
415,296
388,405
312,104
15,000
197, 500
12, 000
463,832
15, 970
28,380
196,090
217, 750
395, 788
268,551
364,260
648,652
263, 365
258,270
29,175
66, 517
41,330
7,700
86,058
1, 056, 221
166, 655
915,970
218,852
499, 551
430,730
393,966
1, 243,485
130,687
831,687
383,075
87,417
134,930
193, 704
90, 842
83,810
5
41
12
18
5
14
10
4
109
81
48
87
15
57
44
22
193,702
83,700
2,325
165, 559
648,088
104,361
283, 712
217,905
104,823
Alaska__________________________________ 1 20,000
Arizona___________ _____ _______________
Arkansas______ ________________________ 7
12
44581
21
71
28
2
5451
2131
152,358
286, 022
190, 750
111, 584
158,000
207, 281
15, 000
152, 500
12,000
251, 872
15,970
California______________________________
Colorado________________________________
Connecticut_____________________________ 1
1
20, 000
Florida__________________________________ 12, 500
Georgia_________________________________
Guam___________________________________
Hawaii___________________________ ____ 1 5 15,000 1 30,000
Idaho___________________________________
Illinois__ ____________________________ . 18 43 191, 960 1 20,000
Indiana_________________________________
Iowa__________________________________ _ 2 7 28,380
Kansas____________________ ____________ 5
17
3
4
4
8
3
4
1
54
2
3
31
196,090
15, 780
172,386
23,167
270,000
73, 600
258,865
135, 000
Kentucky_______________________________ 7
11
12
6
18
1
11
34
149
14
3
17
63
14
10
11
47
12
10
64
40
47
6
91
1
35
77
24
14
150
6
98
39
8
25
39
144
16
75
37
14
201, 970
223,402
245,384
94,260
575,052
4,500
123,270
29,175
32, 715
13, 820
7,700
86,058
901,368
98,030
646, 590
158,072
56,160
228,800
257, 089
752, 315
94,828
560, 314
369,025
87,417
Louisiana_______________________________
Maine___________________________________
Maryland_______________________________
Massachusetts ______________ __________
Michigan_______________________ ... ...
Minnesota_______________________ _____
Mississippi______________________________
Montana____________________ ...______ 3
2
2
2
33, 802
Nebraska________________________________ 27, 510
Nevada_________________________________
New Hampshire ___________________ __
New Jersey_____________________________ 62 8
2
13
37
20
171
4
2
6
2
8
2
3
13
141
104,853
32, 580
269, 380
60, 780
443, 391
201,930
136,877
471,170
15,859
235,158
14,050
13
50,000
New Mexico_________________________ 36,045
New York_______________________________
North Carolina__________________________
Ohio____________________________________
Oklahoma___ ___________________________
Oregon______ _______________________ __
Pennsylvania___________________________ 1
1
1
20,000
20, 000
36, 215
Rhode Island. _________________________
Tennessee______ ______________________
Texas___________________________________
Vermont________________________________
Virginia________ ________ ______________ 4
3
3
2
134,930
Washington______________ ____________ 11 62,440
6
3
29
10
10
131, 264
90,842
83,810
West Virginia______ ... __________ _ _
Wisconsin_____________________________ _
Table VII-4.—Localities with approved urban renewal projects 1 by population group as of Dec. 31, 1960
1 Includes urban renewal projects and General Neighborhood Renewal Planning operations.
Population group (1960 census)
Number of
localities
Projects by status
Reservations,
earmarkings
Total General or contracts
neighborhood
Planning Contracts
approved
Completed
Total__________________________________________ 475 870 74 311 444 41 $1,866,160,059
1 million and over______ _____________ _____________ 5 86 2 22 56 6 439 570 679
500,000-999,999_______________________________________ 14 72 19 18 33 2 388’ 338’ 581
250,000-499,999___________ _________ _____________ 23 83 2 36 40 5 261’ 668’ 765
100,000-249,999_______________________________________ 56 128 17 34 71 6 304 113’ 257
50,000-99,999_____________________________________ .. 83 133 9 50 67 7 192 5io’829
25,000-49,999________________ __________ 91 125 9 53 56 7 ]35 285 865
10,000-24,999_________________________________________ 107 139 11 56 68 4 105 166 758
Under 16,000_________________________________________ 96 104 5 42 53 4 39’ 505', 325
293
Table VII-5.—Urban Renewal Project Directory
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
State City Project name
Approval
outstanding
Dec.
31, 1960
Alabama________ Auburn__________
Bessemer_________
Birmingham_____
Cullman_________
Decatur__________
Demoplis________
Dothan__________
Elba_____________
Eufaula__________
Fairfield_________
Florence_________
Gadsden_________
Huntsville_______
Linden___________
Mobile___________
Hare Project___________
South Bessemer UR
Project.
Avondale Site “C”_____
Central Business District
Area No. 1.
Ensley No. 1, UR Area-
Medical Center________
Clark Street____________
Logan Road____________
Church Street-8th Avenue.
Well Street_____________
Arch Street____________
Strawberry Street______
South Bell Street_______
Claxton Street_________
Flake Hill______________
Commerce Street_______
E.C.M. Hospital Area. _
Handy Heights________
Birmingham Street____
North Fifth Street_____
Heart of Huntsville
Area No. 1.
Madison Pike-9th Avenue.
West Clinton Street____
Winston Street_________
King Street Area_______
Broad Street-Beauregard.
East Church Street____
Houston Hill___________
North Montgomery____
Municipal Center______
West Haven Project___
Pine Hill U.R. Area___
Capital Park, UR Area.
University, UR Area___
South Hill_____________
Government Hill Project
No. 1.
Northern Lights_______
Westchester____________
Barnette Area__________
Central Downtown
Area.
Swan Creek____________
South Flagstaff Extension,
Open Land.
East Jefferson Street___
Southwest Area________
Old Pueblo District____
Project No. 1 UR Area..
Dunbar________________
Central UR Area______
Granite Mountain_____
High Street____________
Livestock Show Area...
Philander Smith_______
Westrock Area_________
West End Urban Renewal
Area.
Military Heights_______
Hobo Jungle Area______
Imperial Avenue_______
Project No. 1___________
Central Business District
No. 1.
South Angus Street____
Bunker Hill____________
Temple Area___________
Marin City Project____
Fifteenth Street________
Custom House_________
The Acorn_____________
Clinton Park___________
Oak Center____________
Marina View___________
Eastshore Park________
Galvin Industrial Park..
Hensley Industrial Area.
Potrero________________
Morgan Community
Tract.
Capitol Mall___________
Capitol Mall and River
Front.
Meadowbrook Park____
C
P
E
P
P
C
E
E
E
E
E
E
E
E
C
E
E
C
E
E
P
E
E
E
E
E
Alaska___________
Arizona__________
Arkansas________
California-............
Montgomery_____
Phenix City........—
Sheffield_________
Sylacauga________
Tuscaloosa_______
Tuscumbia_______
Anchorage_______
Fairbanks________
Sitka_____________
Flagstaff_________
Phoenix__________
Tucson___________
Junction City____
Little Rock______
Morrilton________
North Little Rock.
Texarkana_______
Calexico__________
Fresno___________
Los Angeles______
Marin County___
Merced__________
Monterey________
Oakland_________
Pittsburg________
Richmond_______
Rio Vista________
Sacramento______
San Bernardino__
P
E
E
E
E
P
P
P
E
E
P
E
P
E
P
P
P
P
P
P
E
P
E
P
E
C
E
P
P
E
P
E
P
E
E
P
E
P
P
P
E
P
P
E
E
E
E
E
E
E
E
State City Project name
Approval
outstanding
Dec.
31, 1960
California___ San Francisco____ Diamond Heights______ E
San Jose
Embarcadero-Lower
Market.
Western Addition Project.
Park Center. ___ _____
E
E
P
Santa Clara University . __ _______ P
Santa Cruz _ San Lorenzo Park______ E
Santa Monica____ Ocean Park No. 1A____
Ocean Park No. lb_____
EP
Santa Rosa ... Santa Rosa Center_____ P
Seaside.__________ Del Monte Heights____ P
Noche Buena____ ______ E
SouthPasadena...
Stockton. _ ___
Monterey Hills, Open
Land Project.
East Stockton__________
E
E
Sunnyvale______
West End Project No. 1.
Encina Urban Renewal
P
P
Vacaville________
Area.
Mason-Davis Project—
Marina Vista.. _______
P
Vallejo. ______ _ E
Woodland________ Woodland Project No.
1A.
Avondale Neighborhood.
Blake Street ____ ___
P
Colorado________ Denver__________ E
E
Jerome Park. _________ P
Pueblo_______ . _
Whittier School Area___
Union Avenue_________
EP
Connecticut____ Ansonia - . Broad Street___ ______ E
Bridgeport____ .
Downtown Renewal
Area.
State Street UR Area ...
P
P
Bristol_____ ___
West Side No. 1 URAxea.
Bristol Center.—._____
E
P
Danbury____ _ ._ Central Flood Urban E
East Granby
Renewal Area.
Grandbrook Park______ E
East Hartford____ South Meadows________ P
Farmington ______ Farmington Avenue___
River Glen___________
E
E
Hartford ________ Front Street Section A . E
Front Street Section B._
Windsor Street_________
E
E
Killingly___ Lower Village of Rogers.
Central Area.._______
P
Meriden. . P
Middle town___ Center Street____ __ E
Naugatuck_____ Church-Water Street P
Area.
North Main Street__ P
South Main Street. . P
New Britain.. . East Main Street______ P
New Haven. __ Church Street „ _ E
Dixwell___________ E
Oak Street _________ E
State Street Renewal
Area.
Wooster Square. _____
P
E
New London Winthrop UR Area. P
Norwalk. South-Norwalk No. 1 P
Norwich.. . _ .
Wall-Main Renewal
Area.
Commerce -Water
E
E
Streets.
West Main Street___ __ P
Putnam ____ Quinebaug__ E
Rockville.. _____ Downtown Business P
Seymour_____
Area.
Derby Avenue_________ E
Second Street.. E
Stamford . _ East Meadow _ .__ E
Torrington__ __
Southeast Quadrant____
South Central Area__ .
P
E
Washington..__ Shepaug River Project-
Flood Renewal Area___
E
Waterbury______ E
Project B-2_____ ______ E
Delaware______ Dover _ .... Dover Green West... P
Wilmington_____ Project A (Poplar
Street).
Adams-Morgan________
E
District of Washington______ P
Columbia. Columbia Plaza___ ____ P
Northeast Area Project
No. 1.
Southwest B__ ______
E
E
Southwest C_________ E
Southwest C-l_______ _ E
Florida__________ Tampa___________ Maryland Street, UR
Area.
Riverfront Project______
P
P
294
Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
State City
Georgia__________ Americus________
Hawaii________
Atlanta.._____
Augusta_________
Bainbridge______
Camilla_______ _
Carrollton_____
Cartersville__ ___
College Park..
Columbus____ .
Cordele..___
Douglas_________
Dublin... ______
East Point_____
Fitzgerald___ ___
Lawrenceville____
Lithonia_________
Macon. _____
Manchester..
Marietta_______
Moultrie____
Nashville______
Savannah___ ____
Valdosta__ ______
Waynesboro_____
Hilo .. _____
Illinois___________
Honolulu___ __
Alton
Bloomington_____
Cairo___________
Chicago__ ____
Chicago Heights..
Decatur.._______
East St. Louis___
Galesburg________
Joliet_____________
Maywood. ______
North Chicago___
Project name
Approval
outstanding
Dec.
31, 1960
Forsyth Street Area P
Project No. 1.
Butler Street ____ ____ E
Rawson-W ashington___ E
Rockdale Area_________ E
Thomasville Area______ E
University Center______ E
Walton Way-Calhoun E
Street.
West Plaza Area_______ E
North Harney Street___ P
Northeast UR Area____ P
Summer Hill_____ .. E
Harvard Avenue Proj- P
ect No. 1.
Theo. J. McGee Park... E
Project No. 2 UR Area.. P
Southeastern-Project E
No. 1.
Southeastern-Project E
No. 2.
Glenwood Avenue_____ E
Washington Avenue___ P
Fourth Ward Urban P
Renewal Area.
Crosstown Area___ _____ E
Seaboard Railroad Area. P
Bruce Street___________ E
Tyhee Area.. _ .. __ E
Greentown Urban Re- P
new al Area.
Southwest Area.. ___ E
Northwest Second Street. E
Third Avenue Area____ E
McPherson Avenue____ P
Broad Street-Canal No. E
Broad Street-Canal No. E
Zi.
Project A______________ p
Project B_____________ P
West Crane Avenue E
Area.
Sixth Street Redevel- E
opment Area.
Kaiko’o.. ___________ p
John H. Wilson.. ___ c
Kukui Project_________ E
Queen Emma__ _____ E
East End Place______ _ p
Olive-East Streets____ _ E
Area No. 1_____________ E
Area 6A . .. __ E
Clvbourn Division.___ P
Englewood.. __ ___ P
13th and Blue Island___ C
Harrison-Halsted.. . .. E
Hyde Park Project A__ E
Hyde Park Project B... C
Hyde Park Kenwood E
Area.
Illinois Institute of E
Technology.
Lake Meadows. _____ E
Lake Street-California E
Avenue.
Lake Maplewood______ E
Michael Reese Hospital. E
Near West Side Area... P
North Elston _________ P
North-LaSalle _ _______ E
Roosevelt-Clinton______ E
Segment 6-D______ ... E
State-Pershing____ ____ E
State-51st Street________ E
6B-South Central__ . . E
6C_____________________ P
37th-Cottage Grove____ E
69th and Stewart..____ E
Washington Hermitage. E
West Central Industrial E
Project.
East Side______________ E
Greenwood. __________ P
Central City___________ E
Area A_________________ E
Area B..______________ E
Bluff Plaza_____________ P
Project No. 1_. _______ E
North Argonne_________ E
State City
Illinois__________ Robbins_________
Rock Island______
Springfield_______
Indiana__________ Anderson____
Iowa_____________
East Chicago____
Evansville_______
Gary.. _ ______
Kingsfort Heights.
La Porte_________
Marion___ ___
Michigan City___
Mishawaka..__
South Bend_____
Terre Haute___
Des Moines____
Kansas________
Waterloo_____
Atchison____
Kentucky______
Kansas City.. ._
Topeka____
Wichita________
Frankfort______
Maine___________
Hazard___ ____
Hopkinsville___
Louisville______
Martin_________
Newport_______
Paducah_____
Paris___________
Bangor__________
Maryland________
Bath_______ _
Portland_______
Baltimore______
Massachusetts.... Andover_____ ...
Boston_______ ..
Brockton_______ _
Brookline_____ _
Cambridge_______
Chelsea__________
Project name
Approval
outstanding
Dec.
31, 1960
Project No. 1___________ E
Garnsey Square________ P
Renewal Area No. 1____ E
Project A_______ P
Indiana Harbor Area___ E
West Calumet Area No. P
2.
High Street____________ E
Pulaski. __ ________ ... E
Conservation Project.... P
Maple Terrace Conser- E
vation Project.
South Marion. _________ P
Park School Area______ P
Conservation Project E
No. 1.
Dodge Park Area______ P
Sample Street__________ E
Southwest Area Conser- P
vation Project.
Project No. 1___________ E
Logan Avenue______ __ P
Downtown Area_______ E
Argentine Heights______ E
Armourdale Industrial E
Park.
Gateway___ E
Key way________________ E
Administration Center P
Area.
Glenn Village__________ P
Skyline________ P
North Frankfort Area.. E
Main Street Area____ __ C
Dr. Frank Bassett- P
Urban Renewal Area.
East Downtown Re- P
newal Area.
Southwick Project_____ E
West Downtown Re- P
newal Area.
Town Center Urban Re- E
newal Project.
Project No. 1__________ E
Redevelopment Project E
No. 2.
Tyler Park Area____ P
New Acres Area________ E
Stillwater Park Area___ P
Downtown Bath... ... P
Bayside Park_______ E
Mtinjoy South .. ___ P
Vine-Deer-Chatham__ _ E
Area No. 3C_____ _____ E
Area No. 7___ _________ E
Broadway_______ ____ C
Charles Center.._____ E
Harlem Park Project E
No. 1.
Harlem Park Project E
No. II.
Mount Royal Freemont P
Project No. 1.
Mount Royal Freemont P
Project No. 1 Ext.
Redevelopment Area E
No. 4.
Redevelopment Area E
No. 12.
University of Mary- E
land Project No. 1.
University of Mary- P
land Project No. 2.
University of Mary- P
land Project No. 3.
Waverly_______________ C
Central Andover_______ P
Government Center____ P
New York Streets______ E
Washington Park______ P
West End______________ E
Crescent-Court_________ P
The Farm_____________ E
Cambridgeport_________ P
Donnelly Field________ P
Houghton______________ P
Riverview_________ ... E
Rogers Block___________ E
Area No. 1_____________ E
Area No. 4_____________ P
295
Table VII-5.—Urban Renewal Project Directory—Con. Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
State City Project name
Approval
outstanding
Dec.
31, 1960
Massachusetts___
Michigan________
Fall River______ Pearl Street___ ________ E
P
P
P
E
E
P
P
P
E
P
E
P
E
E
P
P
P
E
E
E
E
P
E
E
E
E
E
E
P
P
E
P
P
P
E
E
P
E
E
E
P
E
P
E
P
E
E
E
E
C
P
E
E
P
P
E
E
E
P
P
P
P
E
P
P
P
E
E
0
E
E
P
P
Fitchburg.-.____ Central Valley—West-
Waterfront UR Area___
Pen tucket Area ..
Gloucester_______
Haverhill________
Lawrence-. _____ Common Valley and
Concord Streets Area.
Lowell. - _ _ Church Street__________
Malden.._______
Northern Canal________
Charles Street__________
Medford
Suffolk-Square-Faulkner.
Union Swan _________
Melrose - _____ Melrose Center________
North Adams Center Street .______
Plymouth________ Summer-High Streets...
Revere -_____ Ocean Avenue_________
Somerville _ _ - - Linwood Joy___________
Springfield__ North End.'. _______
Wilmington _ - Wilmington Center____
Worcester Area D________________
Battle Creek._
New Salem Street—___
Jewell Street___ —
Minnesota_______
Detroit___ -_ Central Business District
No. 1.
Central Business District
No. 3.
Elmwood Park_________
Garden City
Gratiot —____ ________
Lafayette.- .. __ _____
Mack - Concord - Conservation
Project No. 1.
Medical Center Project
No. 1.
Westside Industrial
Project.
Wyoming-Eight-Mile...
Cherry Hill-.___ ___
Grand Rapids Central Core Area. ___
Hamtramck______
Grand River. ______
South End Renewal
Area.
Robert Avenue_________
Neighborhood 6________
Hazel Park_______
Highland Park...-
Inkster__ ________ Southwest Redevelopment
Project.
Belden URArea________
East Michigan_________
Jackson__________
Kalamazoo Lincoln Area.. ___
Mount Clemens- .
Muskegon _____
Mount Clemens URArea.
Marquette Neighborhood.
Mill Street Renewal
Area.
Central Business District
Fringe No. 1.
Central Business District
Fringe No. 2.
Fort Street____________
Plymouth________
Pontiac____ ______
Port Huron _
River Rouge_____ Renewal Project No. 1..
West Eight Mile Road-
Eddy. _ ______ __ ___
Royal Oak_______
Saginaw___ ______
St.~Clair Shores...
Wayne___________
Nine Mile Harper Conservation_____
______
Southwest Annexed Area.
St. Croix Redevelopment—.
_______ ___
Dufuth
Mississippi______
Minneapolis _
West Michigan Street-
Glenwood— -_ ________
St. Paul ..
Gateway Center__ _____
Grant Renewal Area___
Harrison_______________
Eastern________________
Cleveland—_____
W estern________________
Upper Levee Renewal..
Davis Avenue_____....
Missouri_________
Meridian_________ Meridian Project No. 1..
Tupelo Midtown___ __________
West Point . . McClellen Street_______
Columbia________
Jefferson City____
Joplin..__ ____
Douglass School area
No. 1- . ___________
Campus View Area____
Prehm Addition . ._ __
Kansas City__ __
Project Progress Area...
Attacks___ ________ —
Kinlock. .._____
East Side Project_______
North Side Project.___
South Humboldt.._____
Maline Creek Area_____
Kirkwood.._ ____ Fillmore Avenue____ _
Monroe Place Area_____
State City Project name
Approval
outstanding
Dec.
31, 1960
Missouri_________ Mexico.. _____ _ Garfield School Area___ P
St. Charles______ Olive-Pine Street_______ E
St. Louis_________ Kosciusko Area. _ _____ E
Memorial Plaza.______ E
Mill Creek Valley______ E
Nevada__________
St. Louis County.
Webster Groves...
Las Vegas________
Elmwood Park Area___
Meacham Park Area___
North Webster Groves..
West Kirkham Avenue.
Madison School Area__
E
P
E
P
E
Reno Northeast______________ E
New Hampshire.. Manchester______ Concoid-Lowell Streets. C
Pearl Street . E
Spruce Street__________ E
Nashau.. _____. High Street____ _______ E
Portsmouth______ High-Hanover Streets.. .
Marcy-Washington
Streets.
Springwood Avenue____
E
New Jersey. ___ Asbury Park __
E
E
Atlantic City__ Northside___________ .. E
Bayonne Midtown____ _____ P
Camden . _____ Kaighns Point Area____ E
East Orange Doddtown___ _________ E
Fourth Ward__________ P
Edison Township. North Edison.. _______ P
Potter Area___ _________ E
Elizabeth. New Point Road_______ P
Pearl Street _ __ ____ P
Englewood _.
Washington Avenue___
Forest Avenue_________
EP
Glassboro Elsmere Area__ ________ P
Hackensack______ Moore-River Streets.__ E
Hoboken Lead Pencil—. ________ E
Jersey City__ Gregory... __________ E
Henderson Street_______ E
Holland Tunnel _____ E
Jackson Avenue Area...
St. Johns ... __________
EE
Long Branch Russell Court___ ______ C
Shrewsbury-Riverfront.
Union-Broadway_______
EE
Metuchen New Street____~____. . P
Morristown______ Hollow Area___________ E
Mount Holly
Township.
Neptune.-______
Water Street_____ ____ P
Atkins Avenue Area___ P
Newark __ Branch Brook Park___ C
Broad Street___________ c
Central Ward_ _______ P
Educational Center____
Essex Heights. ________
P
P
Hill Street____ _______ P
Newark______ ____
Lower Clinton Hill_____
Newark College Expansion
Project.
Newark Plaza__________
P
P
P
Old Third Ward______ E
New Brunswick__
South Broad URArea...
Albany Street Project—.
Bishop Street__________
P
P
C
Burnett Street________ E
George Street Area_____ P
Orange__ _______ Washington-Dodd_____ E
Passaic — North Dundee________ P
Pulaski Park___________ 0
Paterson Bunker Hill____________ E
Project Site No. 1______ E
Perth Amboy _ . Forbesdale______ ___ .. C
State Street Area_______ E
Willocks ______________ C
Phillipsburg Fayette Street _______ E
Plainfield. _ _ - Madison Park Area____ P
Princeton___ ____
South Second Street____
John Street Project_____
C
P
Rahway_____ Lower Main Street_____ P
1 renton__________ Sec. 1 Area B (Coalport).
John Fitch Way Project
No. 1.
Washington Park______
E
Union City______
E
E
New Mexico_
Wayne Township.
Las Cruces_______
Pequannock River Project.
Villa Mora_____________
P
P
New York Albany_________ North Project__________ E
Binghamton Stowe-Chenango______ E
Buffalo__________ Ellicott District____ __ E
Waterfront Project_____ P
Catskill __________ Willard’s Alley_________ E
Geneva_____ ____ South Exchange Street-
Cecil Avenue__________
P
Glen Cove_______ E
296
Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
Table VII-5.— Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
State City Project name
Approval
outstanding
Dec.
31, 1960
New York_______ Greenburgh______ Greenburgh URArea___
Ridge Street___________
p
Hastings on P
Hudson.
Hempstead______ Inwood Area____ ... .. P
Hempstead Hempstead Center_____ P
Village.
Huntington_____ Huntington Village E
Long Beach. _ __ North Park. ... “ . p
Mechanicville____
Middletown__ .
Mechanicville URArea..
Urban Renewal Area
P
E
Mont Kisco___ _.
No. 1.
Kisco Avenue_____ . P
Mount Vernon... Midtown Project_______ P
N ewburgh______ Water Street' ... P
New Rochelle. — Cedar Street Area..___ E
New York_______ Battery Park____ . _. P
Brooklyn Bridge S.W...
Cadman Plaza. _______
PP
Columbus Circle______ E
Corlears Hook__________ E
Harlem _ E
Morningside___________ E
North Harlem__________ E
Fort Green.. _. E
Hammels-Rockaway....
Lincoln Square________
E
E
Lindsay Park.. . _____ P
New York University-
Belle vue.
Park Row___ ______
E
E
Park Row Extension___
Penn. Station South___
Pratt Institute.. _____
P
EE
Riverside-Armsterdam..
Seaside-Rockaway__ __
P
E
Seward Park.. . ... E
Seward Park Extension.
Soundview.. ___
PP
Washington Square____
Washington Street____
E
P
West Park_____ _____ E
Westside___ P
Niagara Falls____ Project Area E____ _____ P
North Tarrytown. Valley Street... _______ E
Nyack.. ________ Central Renewal Area-
East Central Project___
Academy Street ________
p
Oswego__________ p
Peekskill..______ p
Port Chester. __ Project No. 1 . E
Poughkeepsie____
Rochester________
Mill-Catherine Area....
Baden-Ormond
EE
Rockville Center. West End______ _. ... P
Rome.. _ . Erie Boulevard South E
Schenectady____ Project No. 1______ c
Union Area___________ E
Sloatsburg______ Sloatsburg Urban Renewal
Area.
Central Renewal Project.
Near Eastside Project...
Triangle Block______ __
p
Suffern___________ p
Syracuse_____ _. Ec Tarrytown_______ Depot Plaza__ ... c Troy-------------------- Project A___________ . p
Tuckahoe________ Tuckahoe URArea p
Utica___________ Redevelopment Project
No. 1.
Court Street ______
E
Watertown_______ P
White Plains_____
Yonkers .. ___ _
Central Renewal Area..
Jefferson-Riverdale
P
E
North Carolina... Ashville_______ __ Civic Redevelopment
Area.
Brooklyn URArea
P
Charlotte____ __ P
Durham_______ Hayti-Elizabeth Street
UR Area.
Cumberland Project___
Shore Drive ..___
P
Greensboro_______ E
Greenville_______ P
Laurinburg______ Downtown Urban Re- P
Mooresville. ____
newal Area.
Church Street UR Area P
Raleigh__________ Smoky Hollow _ P
Wilmington______ Waterfront Urban Re- P
North’Dakota___
Winston-Salem___
Fargo____________
newal Area.
East Winston Project
No. 1.
Fourth Street Project...
Schmierer’s Subdivision
Industrial Site Area____
University Site Area___
URA Project No. 1____
Avondale-1, Corryville..
Kenyon-Barr I________
P
E
Ohio____________
Southwest Fargo..
Akron.__
p
p
Campbell________
p
p
Cincinnati____ __ p
E
State City
Ohio_________ . Cincinnati._____
Oklahoma_______
Cleveland________
Columbus________
Dayton__________
Hamilton________
Middletown_____
Toledo___________
Youngstown_____
Tulsa______ __
Oregon________ Coos Bay___ ____
Pennsylvania...
Florence__ ______
Portland. ...___
Springfield______
Allentown_______
Altoona. ____
Beaver Falls_____
Bethlehem_______
Braddock________
Brownsville______
Carbondale______
Chambersburg___
Chester__ ___
Clairton_________
Danville_____ ...
Darby Township.
Duquesne________
Easton___ _______
East Pittsburgh-
Erie___ ________
Farrell__________
Harrisburg______
Johnstown_______
Lancaster___ ____
Lower Merion
Township.
McKeesport____
McKees Rocks....
Meadville________
Monessen______
Nanticoke____ _ .
New Kensington..
Oil City_________
Philadelphia_____
Project name
Approval
outstanding
Dec.
31, 1960
Laurel-3, Richmond I... E
East Woodland________ E
Erieview Project No. 1.. P
Garden Valley_________ E
Longwood Project______ E
St. Vincent’s Center... E
Children’s Hospital P
Area.
D ennison-H un ter-H ub- P
bard.
Goodale .___ ______ E
Market-Mohawk_______ E
Central Business Dis- P
trict.
East Dayton URArea... E
Second Ward and Peck’s E
Addition.
Garfield Redevelopment P
Project.
Chase Park___________ E
Gunckel. ____ _ ____.. P
Ironville .. _________ P
Vistula Meadows______ P
River Bend. __________ P
West Federal___________ E
Seminole Hills URProject- P
North Broadway-Bay- P
shore.
Siuslaw Harbor________ P
South Auditorium_____ E
Third Street___________ E
Fourth Street__________ P
Juniata_____ __________ P
Southend Project______ E
Monocacy Creek_______ E
General Braddock Plaza. E
Dunlap Area_____ ______ E
W’est Side-Mine Fire___ E
Harrison Avenue_______ C
Water Street________ ___ P
Bethel Court.._________ C
C-West URArea_______ E
Blair Redevelopment__ E
Mill Street Project____ P
Hook Road Area No. 1 _ E
Hook Road Area No. 2.. E
Oliver Plaza____________ E
Canal Street No. 1_____ E
Jefferson Street________ E
Union Street__________ E
East Pittsburgh... _ __ P
Liberty Sassafras UR P
Project.
Peach-Sassafras____ ____ E
Market Street Area No. E
Project A-l____ _______ E
Project D, Section 1 E
Chestnut Street.
Project D, Section 2
Chestnut Street.
P
Reily Street___ _________ P
Cambria City Area B.._ E
Cambria City Area B P
No. 2.
Adams-Musser Towns P
Project No. 1.
River Road Project____ P
First Ward_____________ E
Mon-Yough. . _______ P
McKees Rocks Plaza___ E
French Creek Area_____ E
Greater Meadville In- P
dustrial Area.
Eastgate Area____ E
Market Broadway Area. E
First Ward_____________ P
Parnassus Triangle_____ P
East End Area.—______ E
Plaza Project___________ P
Drexel Avenue_________ E
Eastwick_______________ E
East Poplar Nos. 1, 4, E
5, 6.
East Poplar No. 2.. .. . c
East Poplar No. 3... ... C
East Poplar Urban Re- E
newal Area.
297
Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
State City
Pennsylvania____ Philadelphia_____
Pittsburgh_______
Pittston__________
Pottsville________
Rankin__________
Reading__________
Scranton_________
Sharon___________
Susquehanna
Township.
Swatara
Township.
Turtle Creek_____
Uniontown_______
Washington______
Wilkes-Barre_____
Wilkinsburg_____
Windber_________
York_____________
Rhode Island____ Providence_______
South Carolina... Columbia________
Spartanburg_____
Tennessee_______ Athens___________
Chattanooga_____
Clarksville_______
Clinton__________
Cookeville_______
Gallatin__________
Johnson City____
Knoxville________
Project name
Approval
outstanding
Dec.
31, 1960
Independence Mall P
URA.
Mill Creek Project_____ E
Morton Area___________ E
Norris__________________ C
North Allen (West Pop- E
lar).
Northwest Temple Uni- E
versity No. 2.
Northwest Temple Uni- C
versity No. 3.
St. Luke’s Area. E
Southwest Temple A___ E
Southwest Temple UR P
Area.
University_____________ E
Washington Square E
East Unit 1.
Washington Square P
East Unit No. 2.
West Mill Creek._____ P
Whitman UR Area _ P
Bluff Street.. __ _ _ ... P
Chateau Street West___ E
East Liberty, Section E
A.
Lower Hill________ _. E
Northside Allegheny P
Center.
Central Pittston_______ E
Centre Street UR Proj- P
ect.
Palisades Plaza________ E
Cherry Street__________ E
Court Street___________ E
Walnut Street____ ... C
Central City-Redevel- E
opment Area.
Petersburg Area________ C
Southside Flats.________ E
Washington Project____ P
West Side Area________ P
Central Business Dis- P
trict.
North Flats Project No. E
I.
North Flats Project No. E
2.
28th Street Edgemont... P
Mohn Street___________ P
Valley Center__________ P
Hollow Area___________ E
King’s Feed Store Site.. C
Old West School Area... E
Washington Central P
City.
Hazel Street____________ P
Lincoln Street P
Wilkinsburg Project___ P
Flood Distress Area____ E
Continental____________ E
Cookes Renewal Area.. E
Gate House Renewal
Area____ ____________ E
Park Lane... __________ E
Project Area No. 1
(Wellington)_________ E
Central Classical Project.
_ ____________ __ P
Lippitt Hill____________ E
Point Street____________ E
West River_____ ______ E
Willard Center No. 1... C
Willard Center No. 2___ C
University of S. C. Extension
Area. P
Urban Renewal Area E
No. 1.
Bank Street____________ E
West Side Area_______ E
Gallows Hollow________ E
Riverview____________ E
Town Center__________ P
Parkview______________ E
Town Creek . _ .. ___ E
Fall Street___ __________ E
Riverfront-Willow E
Street.
State City Project name
Approval
outstanding
Dec.
31,1960
Tennessee_______ Lebanon_________ Blue Bird Road Area... E
Memphis________ Court Avenue Project
Area No. 1.
P
Jackson Avenue________ E
Medical Center________ E
Railroad Avenue_______ E
Riverview Area________ E
Morristown______ Rhea Town Project
No. 1
E
Murfreesboro ... Broad Street Develop- E
ment.
Nashville________ Capitol Hill____________
East Nashville Area____
EE
Rogersville_______ Joseph Rogers Heights __ P
Shelbyville_______ Big Springs Area_______ E
South Pittsburg . Eastside Urban Re- P
newal Area.
Northside Urban Re- P
newal Area.
Springfield_______ Memorial Highway
Area.
E
Tullahoma______ Big Springs Avenue____ E
Union City______ Florida Avenue DeveL E
opment.
Waverly_________ Midtown_______________ E
Texas____________
Newtown______________ c
Austin___________ Thomas Jefferson
Heights Kealing Projp
ect.
Clute____________ Clute No. 1 UR Area__ p
Crystal City_____ Crystal No. 1__________ p
Edcouch_________ Delta Area No. 1 ______ p
Edinburg________ Gateway City No. 2___ p
Grand Prairie . South Dal worth________ E
Los Fresnos_____ City Urban Renewal
Area.
P
Lubbock_________ Coronado______________ E
Y ellowhouse Area______ P
Marshall________ South Alamo Area_____ P
Mercedes_________ Queen City No. 1______ E
Mission__________ Valle Hermose_________ P
Port Arthur..___ Port Arthur Heights___ E
Port Isabel____ _ South Port Isabel No. 1. P
San Antonio_____ Central West Area Proj.
No. 1.
P
Stanton__________ Central URArea_______ P
Waco____________ Bavlor Project No. 1A__ E
Jefferson Area__________ P
Vermont________
Wink____________ Central Area__________ P
Burlington______ Chaplain Street________ P
Virginia_________ Alexandria_______ Gadsby Project________ P
Charlottesville___ Vinegar Hill____________ P
Danville_________ Ridge Street___________ E
Union Street___________ E
Hampton________ Bridge Street__________ p
Harrisonburg____ Northeast Area________ E
Wolfe Street____________ P
Newport News___ North End Project____ P
Redevelopment Area E
Project No. 1.
Norfolk__________ Atlantic City__________ E
Downtown Area East... P
Downtown Area-North. E
Downtown Area-South.. E
Redevelopment Project E
No. 1.
Portsmouth______ Lincolnsville___________ E
Richmond_______ Carver_________________ E
17th Street Project_____ P
Roanoke_________ Commonwealth________ E
South Norfolk____ Berkley Avenue________ P
Liberty Street Project... E
Washington______ Seattle___________ Yesler-Atlantic_________ P
Tacoma__________ Center Street__________ E
Fawcett________________ p
Vancouver_______ Esther Short-Industrial
Park.
p
West Virginia___ Bluefield_________ Bluefield Avenue_______ p
Charleston_______ Summers Street Boule- p
vard.
Wheeling________ Center Wheeling_______ p
Wisconsin_______ Madison_________ Brittingham Area______ E
Triangle Area__________ P
Milwaukee_______ Eastside________________ P
Hillside________________ E
Lower Third Ward____ E
Puerto Rico_____ Aguada__________ Moropo________________ E
Aguadilla________ Villamar_______________ P
Aibonito_________ Coqui__________________ C
Anasco.. . _ _ Pueblo Nuevo___ E
298
Table VII-5.—Urban Renewal Project Directory—Con.
The letters in the final column of the following table represents:
P—Project planning
E—Contract executed
C—Project completed
State City Project name
Approval
outstanding
Dec.
31, 1960
Puerto Rico_____Arecibo__________ La Playa I_____________ E
La Playa II and III____ E
Arroyo___________ Brooklyn_______________ E
Bayamon________ La Machina____________ E
Tortuguero_____________ E
Cabo Rojo_______
Vista Alegre____________ E
El Cibao_______________ E
Caguas___________ Borinquen_____________ E
Carolina_________
La Placita______________
Catanito_______________
CE
Catano___________ Juana Matos___________ P
Cayey------------------ Barriada Sanchez______ E
Fajardo__________
El Hoyo_______________
Igualdad_______________
E
P
Guayama________ Carioca________________ E
Guayanilla______ Barrio Anasco__________ E
Guaynabo_______ Sabana_____________ ___ E
Humacao________ El Placer_______________ E
Juana Diaz______
San Ciriaco____________
Jornaleros______________
EE
Juncos___________ El Ensanche___________ E
Loiza____________ Sunoco_________________ E
Mayaguez _______ Columbia______________
Concordia-M arina______
E
E
Moca____________
Malecon_______________ E
Luna__________________ E
Naguabo ________ El Duque______________ E
Ponce____________ Cantera Survey Area ... E
El Bosque______________ C
Machuelito_____________ C
Machuelo______________ E
Quebradillas_____
Rio Piedras______
Palo de Pan____________
Del Carmen____________
El Monte______________
E
EE
San Jose (Open Land) .. E
Sabana Grande . _ Varsovia_______________ E
San German_____ Santa Rosa _ _____ ____ E
San Juan_________ Buenos Aires___________ E
El Embalse____________ E
Min ill as________________ E
San Sebastian___
Toa Baja________
The Hoare_____________
El Guayabal___________
Jalisco__________________
E
E
E
Utuado__________ Catano_________________ E
Vega Alta_______ Alto de Cuba__________ E
Vega Baja_______ La Pica________________ E
Virgin Islands___
A abucoa_________
Charlotte Amalie_
El Sapo________________
Barracks Yard_ . __
EP
Christiansted____ Water Gut____________ P
Frederiksted. _ .. Lagoon Street__________ P
Table VII-6.—General neighborhood renewal planning,
Dec. 31, 1960
Table VII-6.—General neighborhood renewal planning,
Dec. 31, 1960—Continued
State City Project name
Approved
outstanding
Dec. 31,
1960
Massachusetts___ Boston___________ Jamaica Plains_________ P
Parker Hill-Fenway___ P
South Boston__________ P
South End_____________ P
Haverhill________ Central Haverhill______ P
Lawrence________ Central Lawrence______ P
Winthrop________ Shirley Street__________ P
Michigan________
W orcester________ Expressway Area______ P
Buchannan______ GNRP Area___________ P
Detroit___________ Medical Center________ P
Lincoln Park_____ Raupp Rehabilitation P
Missouri_________
Project.
Columbia________ Douglas School Area___ P
Independence____ Central UR Area______ P
Kansas City_____ North Paseo Area______ P
New Jersey______
St. Louis_____ Tandy UR Area_______ P
Paterson_________ Central Paterson_______ P
New York_______
Trenton________ John Fitch Way_______ P
Binghamton_____ Central City Renewal P
Area.
Buffalo___________ Masten Park___________ P
Huntington______ Huntington Station____ P
Ithaca____________ Downtown Area_______ P
Kingston_________ Rondout UR Area_____ P
Little Falls_______ Main Street____________ P
Lockport_________ Downtown Area_______ P
North Carolina...
Utica___ East Utica UR Area___ P
Charlotte________ Brooklyn Area_________ P
Durham_________ Hayti-Elizabeth Street P
Area.
Greensboro_______ Warnersville Area______ P
Ohio_____________
Winston-Salem___ East Winston_________ P
Cincinnati_______ Avondale-Corryville___ P
Kevnon-Barr GNRP _. P
Cleveland________ Erieview_______________ P
University-Euclid_____ P
Pennsylvania____ Cheltenham______ Glenside Center________ P
Erie______________ Central City Area______ P
Lancaster________ Adams-Musser Towns.- P
McKeesport_____ GNRP Area___________ P
Pittsburgh_______ East Liberty___________ P
Susquehanna Edgemont UR Area___ P
Tennessee_______
Township.
Knoxville________ Mountain Fiew Area___ P
Yale Avenue UR P
Project.
Texas____________ Crystal City_____ West Crystal City Area. P
Donna___________ South Donna__________ P
Mercedes________ Central Queen City P
Area.
Mission__________ Lomita No. I Area_____ P
Vermont_________
Port Isabel_______ South Port Isabel______ P
Burlington_______ Battery Street_________ P
Washington_____ Tacoma__________ Downtown Tacoma___ P
West Virginia___ Bluefield_________ Beaver Pond___________ P
Wisconsin_______ Milwaukee_______ Eastside GNRP_______ P
State City
Alabama_________ Huntsville__ -
Alaska______
Mobile___________
Sheffield_________
Fairbanks
Arkansas____ ... Little Pock
California________ Oakland.
Connecticut____
Georgia__________
Stockton_________
Milford__________
Americus
Illinois__________
College Park_____
Cordele__________
Decatur__________
Savannah________
Chicago
Iowa___ ______
Peoria____________
Rock Island______
Des Moines
Maryland_______
Massachusetts___
Baltimore________
Boston___________
Project name
Approved
outstanding
Dec. 31,
1960
Heart of Huntsville P
Area.
Texas Street, UR Area.. P
Southeast Sheffield_____ P
Westside_____ _ - . P
South End, UR Area .. P
West Oakland- ____ P
West End- - P
Myrtle-Walnut Beach __ P
Forsyth Street_______ _ P
Harvard Avenue, UR P
Area.
Central UR Area____ _ P
Beacon Hill______ P
West Broad Street P
Lincoln Park____ _ _ P
Central____________ ... P
Northwest Area... ____ P
Oak Ridge_________ P
Mount Royal-Fremont. P
Back Bay___________ . P
Charlestown__ __ ... P
Dorchester. .. ... ___ P
Downtown-.. . P
Downtown North..___ P
East Boston. ..._____ P
Table VII-7.—Project feasibility surveys, Dec. 31, 1960
State City Project name Project
No.
Alabama________
Colorado________
Kansas__________
Missouri_________
Birmingham_____
Denver___________
Wichita__________
Mexico___________
Ensley-Pratt City Area.
Downtown Area_______
Orienta Park Area_____
Lafayette-Garfield______
R-17(S)
R-6(S)
R-9(S)
IR-ll(S)
Nevada__________
Ohio_____________
Tennessee_______
Texas____________
Las Vegas________
Akron____________
Memphis________
Austin___________
Dallas____________
Savoy____________
Westside_______________
Renewal Area No. 1____
Court Avenue Area____
Thomas Jefferson
Heights.
West Dallas____________
Southeast Savoy-Area
No. 1.
R-l(S)
R-17(S>
R-19(S)
R-5(S)
R-24(S)
R-43(S>
Virginia_________
Waco____________
Norfolk__________
Baylor Urban Area____
Downtown Area_______
R-14(S)
R-5(S)
299
Table VII-8.—Demonstration projects, Dec. 31, 1960
State City Project
No.
Approval
outstanding
Dec.
31,1960
California___________ Berkeley_____________________ D-l E
Oakland- _____ ____ ________ D-2 E
Sacramento_____________ ____ D-3 C
District of Columbia .- Washington ____ ______ ___ D-l E
D-2 E
Georgia______________ Douglas __ ______________ D-l C
Illinois____ __________ Chicago_ ____ D-l E
D-2 E
D-3 E
Louisiana__________ _ New Orleans _______________ D-l C
Maryland___________ Baltimore__ ____________ D-l c
D-2 E
Massachusetts_______ Massachusetts State at Large,.
Detroit ___________________
D-l C
Michigan____________ D-l E
D-2 C
D-3 E
D-4 E
Missouri_____________ St. Louis ________ __________ D-l C
New;Jersey____ _____ Newark_____________________ D-l E
New Jersey State at Large___ D-2 E
New., York______ ____ New York State at Large D-l E
D-4 E
New York City_____________ D-2 C
D-3 E
D-5 E
D-6 E
Ohio_________________ Cleveland _________________ D-l E
Pennsylvania________ Harrisburg _________ ______ D-3 E
Philadelphia_____ _______ ___ D-l E
D-2 E
Rhode Island______ Providence - _____ _________ D-l c
D-2 E
Tennessee __________ Dyersburg______ ______ ______ D-l c Puerto Rico_________ San Juan _________________ D-l E
Table VII-9.—Community Renewal Program, Dec. 31,
1960
State City Project No.
Colorado_____________________ Denver_____________________ R-IO(CR)
Illinois_______________________ Chicago____________________ R-40 ((J R)
New Jersey___________________ Trenton____________________ R-65(CK)
New York___________________ New York_________________ R-74(UR)
Oklahoma____________________ Tulsa______________________ R-4(C R)
Pennsylvania________________ Chester____________________ R-104(CR)
Texas________________________ Houston___________________ R-55(CK)
300
APPENDIXES
APPENDIX A
STATISTICAL SUPPLEMENT
I. Housing Production, Market Trends and Costs
Housing Production
Table Total dwelling units started: Page
A-l Housing units started, old and new series___________________________________ 305
A-2 Nonfarm housing units started, by sales and rental type, type of structure, location
and ownership____________________________________________ 306
A-3 Estimated construction cost of nonfarm starts by type of ownership_____________ 308
A-4 Nonfarm housing units started by region____________________________________ 310
A-5 Building permit activity, by State__________________________________________ 311
A-6 New housekeeping residential construction authorized in 3,014 selected permit-issuing
places by State___________________________________________ 312
A-7 Building permit activity in selected metropolitan areas________________________ 314
A-8 New housekeeping residential construction authorized in selected permit-issuing
places for 42 standard metropolitan statistical areas_____________ 315
Privately-owned nonfarm starts:
A-9 Nonfarm housing units started; privately owned, by type of structure and by FHA,
VA, and conventional program______________________________ 316
A-10 Nonfarm housing units started privately owned_______________________________ 317
A-ll New private housing units authorized in approximately 10,000 permit-issuing
places___________________________________________________ 317
A-12 Factory shipments of mobile homes and travel trailers________________________ 317
A-l3 Nonfarm housing units started, privately owned, by sales and rental tenure and type
of aid_______________________________________________________________ 318
Publicly-owned nonfarm starts:
A-14 Publicly-owned permanent nonfarm dwelling units started, by program___________ 320
A-l 5 Publicly-owned permanent nonfarm dwelling units started, by structure and location _ 320
Market Trends
A-l 6 Occupied dwelling units by type of residence and tenure__________________________ 321
A-17 Vacancy rates by type of tenure______________________________________________ 321
A-18 Rental vacancy rates and selected characteristics of available vacancies______________ 322
A—19 Home-owner vacancy rates and selected characteristics of available vacancies________ 323
A-20 Households by metropolitan and urban-rural residence for the 168 SMS Areas, 1950___ 324
A-21 Population by metropolitan and urban-rural residence:
Part A—168 standard metropolitan statistical areas of 1950 and change 1950-1959-_ 324
Part B—212 standard metropolitan statistical areas of 1960 and change from 1950__ 324
A-22 Births and marriages and rates per thousand of total population____________________ 325
A-23 Distribution of families, by total money income; also, median income of families_______ 325
A-24 Household formation trend___________________________________________________ 326
A-25 Average population per family unit____________________________________________ 327
A-26 Family units by type________________________________________________________ 328
A-27 Mobility of civilian population 1 year and over for year ending April 1959 and population
characteristics as of April 1959______________________________________ 330
A-28 Region of residence in 1959 by region of residence in 1958 of migrants in the civilian population
1 year old and over_________________________________________ 331
301
Construction Put In Place
Table Page
A-29 Construction put in place, all types both private and public showing the residential
(nonfarm) component_____________________________________________ 332
A-30 Gross national product and construction put in place, all types both private and public,
showing the residential (nonfarm) component________________________ 333
A-31 New construction put in place by private and public ownership, showing the residential
(nonfarm) component_____________________________________________ 334
A-32 Gross private domestic investment and new construction privately owned showing the
residential (nonfarm) component____________________________________ 335
Prices and Cost
A-33 Boeckh indexes of dwelling unit construction cost_________________________________ 336
A-34 Consumer price index________________________________________________________ 338
A-35 Output of selected construction materials________________________________________ 339
A-36 Construction materials: annual averages covering monthly indexes of output__________ 342
A-37 Civilian noninstitutional population, in labor force and not in labor force_____________ 343
A-38 Indexes of wholesale prices of selected construction materials, by groups and commodities- 344
Wages and Employment
A-39 Contract building construction, employment, and earnings by type of contractor______ 346
A-40 Sources of personal income____________________________________________________ 347
A-41 Disposition of personal income in the United States_______________________________ 348
A-42 Percentage distribution of personal consumption expenditures, by specified categories— 349
II. Home Financing
Foreclosures and Defaults
A-43 Nonfarm real estate foreclosures______________________________________________ 350
A-44a Nonfarm mortgaged units in structures with 1 to 4 units showing average debt per unit
and rate of foreclosures per 1,000 units mortgaged____________________ 350
A-44b Nonfarm dwelling units in all types of structures and mortgage status of units in structures
with 1 to 4 units___________________________________________ 350
A-45 Home loan defaults_________________________________________________________ 351
Nonfarm Mortgage Recordings of $20,000 or Less
A-46a Number and amount of nonfarm mortgage recordings of $20,000 or less_____________ 352
A-46b Percentage distribution of number and amount of nonfarm mortgage recordings of
$20,000 or less__________________________________________________ 353
A-47 Amount of nonfarm mortgage recordings of $20,000 or less for selected States________ 354
Nonfarm Residential Mortgage Debt
A-48 Mortgage debt outstanding on nonfarm residential properties, by one- to four-family
properties (homes), multifamily properties (apartments), and type of financing-------- 357
A-49 Mortgage debt outstanding on nonfarm residential properties (one-, to four-family homes
and multifamily-apartments), by type of financing and holder__________ 358
A-50 Mortgage debt outstanding on nonfarm one- to four-family homes, by type financing and
holder_________________________________________________________ 360
A-51 Mortgage debt outstanding on nonfarm multifamily-apartments, by type of financing
and holder_____________________________________________________ 362
302
bi Mortgage Insurance and Loan Guaranty
Federal Housing Administration:
A-52 FHA applications received and commitments issued___________________________ 364
A-53 FHA mortgage insurance written__________________________________________ 365
A-54 FHA mortgage insurance written, terminated, and outstanding_________________ 366
A-55 FHA property improvement loans_________________________________________ 366
A-56 Housing for the elderly and nursing homes under the FHA____________________ 367
Veterans Administration:
A-57 Home loans guaranteed under the Veterans Administration program____________ 368
A-58 Characteristics of VA primary home loans—maturity, downpayment, and sales
price__________________________________________________ 369
A-59 Financial characteristics of prior approval home loans guaranteed by VA________ 370
Secondary Market Functions
Federal National Mortgage Association:
A-60 Mortgage loan activity, combined operations_______________________________ 371
A-61 Functions and operations________________________________________________ 372
A-62 Special assistance functions_______________________________________________ 373
Voluntary Home Mortgage Credit
A-63 Loans placed, by State, price taken and agency__________________________________ 374
Savings and Loan Activities
A-64 Selected institutional savings_________________________________________________ 375
A-65 FHLBB advances, repayments, and balance of advances outstanding________________ 376
A-66 Mortgage lending by all savings and loan associations____________________________ 377
A-67 Net inflow of savings in all savings and loan associations__________________________ 377
III. Community Development Programs
Urban Renewal
A-68 HHFA activities in the field of urban renewal___________________________________ 378
Public Housing
A-69 Public housing units completed for occupancy___________________________________ 380
A-70 PH A low-rent housing under Public Law 171 (81C) as amended____________________ 381
A-71 PHA housing for the elderly__________________________________________________ 381
Community Facilities
A-72 College housing, advances for public works planning, and public facility loans________ 382
A-73 College housing program: total applications and construction______________________ 383
A-74 School construction projects under Public Law 815, as amended____________________ 384
Alaska Housing
A-75 Financing Alaska Housing, FHA and FNMA____________________________________ 385
IV. Fiscal Data
A-76 Housing and Home Finance Agency: Analysis of receipts and expenditures and effect on
Federal Budget—fiscal year 1960_____________________________________________ 386
A-77 Net budget expenditures or receipts (—), net assets and government equity with respect
to enumerated housing programs as of June 30, 1960____________________________ 387
303

Table A-l. — Housing units started, old and new series
In May I960 the Bureau of the Census discontinued the old series on housing starts, replacing it with a new
series beginning January 1959- The new series, which incorporates changes in both definition and
methodology, is at an appreciably higher level than the old. The new definition is somewhat
broader in scope and is more nearly comparable with data from the I960 Census of Housing.
Significant changes in the 1959 level
Item Old series New series
Total starts 1,378,000 1,553,000 /a
(1) Farm starts /b Excluded Included
(2) Alaska and Hawaii starts Excluded Included
(Permit issuing places (6,600 included (10,000 included
(Nonpermit areas (Quarterly surveys (Monthly surveys
(4) Starts in permit issuing
places without permits Coverage incomplete Coverage complete
a/ This level of the 1959 new series is 13 percent higher than that of the old,
reflecting percentage point increases of 2, 0.5, 7.5, and 3 due to changes in items
(1), (2), (3), and (4), respectively.
b/ This page presents the only information in this report on farm housing; farm starts
are not available separately because this component of the total is subject to very
high sampling variability.
(Thousands of housing units)
Series
and
year
Total, privately-owned and publicly-owned
Housing
units
Type of structure Area /a Region
Onefamily
Twofamily
Threefamily
or more
Metropolitan
Nonmetropolitan
Northeast
North
Central South Viest
Old series
Nonfarm
1959 1,378 1,095 52 231 946 432 253 318 459 348
I960
New series
Total
Farm & nonfarm
1959 1,554 1,251 59 244
Discont
1,077
inued
477 280 375 521 378
I960 1,280 1,001 49 230 878 401 231 302 438 310
Nonfarm
1959 1,531 1,229 58 24); 1,076 455 280 368 506 377
I960 1,258 979 49 230 877 381 230 297 421 309
a/ Metropolitan and nonmetropolitan areas in the old and new series are not comparable because old series used
1950 Census of Population definitions whereas new series is based on 1959 definitions. See "Standard
Metropolitan Statistical Areas" prepared by Office of Statistical Standards, Bureau of the Budget, 1959.
(Thousands of housing units)
Privately-owned starts
and Annual Seasonally-adjusted annual rate
year total peg Mar Apr May June July Aug Sept Oct Nov Dec
Old series
Nonfarm
1959 1,343 1,364 1,403 1,403 1,434 1,370 1,368 1,375 1,340 1,323 1,180 1,210 1,330
I960 xx 1,216 1,115 1,125 1,133 Discontinued
New series
Total
Farm Sc nonfarm
1959 1,517 1,533 1,546 1,598 1,613 1,597 1,577 1,578 1,450 1,509 1,378 1,356 1,451
I960 1,238 1,366 1,367 1,112 1,327 1,333 1,302 1,182 1,292 1,062 1,236 1,216 984
Nonfarm
1959 1,495 1,517 1,529 1,580 1,599 1,580 1,563 1,546 1,446 1,468 1,354 1,328 1,401
I960 1,216 1,291 1,347 1,098 1,307 1,315 1,265 1,164 1,273 1,040 1.200 1.203 975
Source: U. S. Bureau of the Census, C 20 Monthly and C 20-11 (Supplement) May i960
305
Table A-2. — Nonfarm housing units started, by sales and rental type, type of structure, location, and ownership
(In thousands of units)
Year
Sales and rental type Type of structure Location Ownership
Total Sales Rental
Onefamity
Twofamily
Threefamily
or more
Urban
Rural
nonfarm Private Public
Old series
1889 342 342 0
1890 328 328 0
1891 298 0 0 (D (D 0) 298 0
1892 381 -a 3D •s 3D 381 0
1893
1894
267
263 •c>rdl
d
cd
•H
c>d
•H
cd
267
263
00
cd nJ nJ Cl) cii
1893 309 p> -p •p 309 0
1896 237 a 237 0
1897 292 292 0
1898 262 262 0
1899 282 282 0
1900 189 123 66 123 31 33 189 0
1901 273 177 98 177 32 66 273 0
1902 240 171 69 171 32 37 'cd Ct) 240 0
1903 233 173 78 173 30 48 •H •H 233 0
1904 313 207 108 207 43 63 c>3 n>J 313 0
1905 307 336 171 336 64 107 0 307 0
1906 487 316 171 316 69 102 487 0
1907 432 291 141 291 39 82 432 0
1908 416 286 130 286 63 63 416 0
1909 492 328 164 328 73 91 492 0
1910 387 231 136 231 37 79 387 0
1911 393 249 146 249 62 84 393 0
1912 426 238 168 238 71 97 426 0
1913 421 264 137 264 72 83 421 0
1914 421 263 138 263 72 86 421 0
1913 433 262 171 262 73 98 433 0
1916 437 267 170 267 69 101 437 0
1917 240 166 74 166 31 43 240 0
1918 124 91 33 91 13 20 118 6/a.
1919 31-3 239 76 239 36 40 313 0
1920 247 202 43 202 24 21 196 31 247 0
1921 449 316 133 316 70 63 339 90 449 0
1922 716 437 279 437 146 133 374 142 716 0
1923 871 313 338 313 1*73 183 698 173 871 0
1924 893 334 339 334 173 186 716 177 893 0
1923 937 372 3*63 372 137 208 732 183 937 0
1926 849 491 338 491 117 241 681 168 849 0
1927 810 434 336 434 99 2*37 643 167 810 0
1928 733 436 317 436 78 239 394 139 733 0
1929 309 316 193 316 31 142 400 109 309 0
1930 330 227 103 227 29 74 236 94 330 0
1931 234 187 67 187 22 43 174 80 234 0
1932 134 118 16 118 7 9 64 70 134 0
1933 93 76 17 76 3 12 43 48 93 0
1934 126 109 17 109 3 12 49 77 126 0
Continued on opposite page
306
Table A-2. — Nonfarm housing units started, by sales and rental type, type of structure,
location, and ownership (concluded)
(in thousands of units)
Year
Sales and rental type Type of structure Location Ownership
Total Sales Rental Onefamily
Twofamily
Threefamily
or more
Urban Rural
nonfarm Private Public
Old series
1935 221 182 39 183 8 30 117 104 216 5
1936 319 239 80 244 14 61 211 108 304 15
1937 336 266 70 267 16 53 218 118 332 4
1938 406 316 90 317 18 71 262 144 399 7
1939 515 372 143 399 29 87 359 156 458 57
1940 603 446 155 486 37 80 397 206 530 73
1941 706 532 174 604 34 68 434 272 619 8*7
1942 356 252 104 293 20 43 227 129 301 55
1943 191 136 55 144/b 18/b 30/b 124 67 184 7
1944 142 115 27 118 11 13 96 46 139 3
1945 209 184 25 185/b 9/b 134 75 208 1
1946 670 590 80 590 24 4o4/b 267/b 662 8
1947 849 74o 109 740 34 75 480 369 846 3
1948 932 763/b "168/b 767 47 118 525 407 914 18
1949 1,025 792 233 794 37 194 589
Metropol
itan/c
436
Nonmetropolitan/
d
989 36
1950 1,396m- 1,151 245 1,154 45 197 1,022 374 1,352 44
1951 1,091 892 199 900 4o 151 777 314 1,020 71
1952 1,127 939 188 942 46 139 795 332 1,069 58
1953 1,104 933 171 938 42 124 804 300 1,068 36
1954 1,220 1,077 143 1,078 34 108 897 323 1,202/b 19/b
1955 1,329 1*,190 139 1,194 33 102 976 353 1,310 19
1956 1,118 981 137 990 31 97 780 338 1,094 24
1957 1,042 840 202 873 33 136 700 342 993 49
1958 1,209 932 277 975 39 195 827 382 1,141 68
1959 1,378 1,079 299 1,095 52 231 946 432 1,343 35
New series
1959 1,531 1,212 319 1,229 58 244 1,076/e 455/g 1,495 36
I960 1,258 966 292 979 49 230 877 381 1,216 42
Percent
change
1960/1959 -18 -20 -8 -20 -16 -6 -18 -16 -19 +17
* All-time high designation is limited to old series.
a/ Covers the 5,998 publicly-owned housing units completed during 1918-19.
b/ Components here do not equal total due to rounding.
c/ Urban data are available through 1953 with units in 1950 totaling 828,000; 1951, 595,000; 1952, 610,000; and
1953, 565,000.
d/ Rural nonfarm data are available through 1953 with units in 1950 totaling 568,000; 1951, 496,000; 1952,
517,000; and 1953, 539,000.
e/ Metropolitan and nonmetropolitan areas in the old and new series are not comparable because the old series
used 1950 Census of Population definitions whereas the new series is based on the 1959 definitions. See
"Standard Metropolitan Statistical Areas" prepared by Office of Statistical Standards, Bureau of the Budget,
1959.
Source: U. S. Bureau of the Census
307
Table A-3. — Estimated construction cost of nonfarm starts by type of ownership
Year
Total, private and public Privately owned Publicly owned
Cost
(000 omitted)
Average per
unit /a
Cost /b
(000 omitted)
Average per
unit /a
Cost /c
(000 omitted)
Average per
unit /a
Old series
1889 $806,000 $2,350 $806,000 $2,350 — —
1890 790,000 2,400 790,000 2,400 — —
1891 612,000 2,050 612,000 2,050 —-
1892 763,000 2,000 763,000 2,000 — — —
1893 583,000 2,175 583,000 2,175 —
1894 594,000 2,250 594,000 2,250 — —
1895 679,000 2,200 679,000 2,200 — — —
1896 606,000 2,350 606,000 2,350 — — —
1897 643,000 2,200 643,000 2,200 — —
1898 574,000 2,200 574,000 2,200 — — —
1899 608,000 2,150 608,000 2,150 — —
1900 433,000 2,300 433,000 2,300 —
1901 610,000 2,225 610,000 2,225 — — —
1902 572,000 2,375 572,000 2,375 ——
1903 607,000 2,400 607,000 2,400 —- —
1904 690,000 2,200 690,000 2,200 — —
1905 1,154,000 2,275 1,154,000 2,275 — — —
1906 1,170,000 2,400 1,170,000 2,400 —
1907 1,037,000 2,400 1,037,000 2,400 —— --
1908 1,034,000 2,475 1,034,000 2,475 — — —
1909 1,272,000 2,575 1,272,000 2,575 — —
1910 1,028,000 2,650 1,028,000 2,650 — —
1911 1,000,000 2,525 1,000,000 2,525 —- —
1912 1,113,000 2,625 1,113,000 2,625 ——
1913 1,108,000 2,625 1,108,000 2,625 — ——
1914 1,081,000 2,575 1,081,000 2,575 — —
1915 1,192,000 2,750 1,192,000 2,750 — —
1916 1,255,000 2,875 1,255,000 2,875 —- — -
1917 769,000 3,200 769,000 3,200 — - ——
1918 433,000 3,500 391,000 3,325 $42,000 $7,000
1919 1,258,000 4,000 1,258,000 4,000 — --
1920 1,068,000 4,325 1,068,000 4,325 — —
1921 1,771,000 3,950 1,771,000 3,95o —— —■
1922 2,957,000 4,125 2,957,000 4,125 — —
1923 3,775,000 4,325 3,775,000 4,325 — ——
1924 4,065,000 4,550 4,065,000 4,55o — —
1925 4,475,000 4,775 4,475,000 4,775 —
1926 4,112,000 4,85o 4,112,000 4,850 —— --
1927 3,910,000 4,825 3,910,000 4,825 — --
1928 3,613,000 4,800 3,613,000 4,800 — - w—
1929 2,453,000 4,825 2,453,000 4,825 — —
1930 1,494,488 4,525 1,494,488 4,525 — — —
1931 1,104,600 4,350 1,104,600 4,350 — —
1932 407,040 3,050 407,040 3,050 — — — —
1933 285,446 3,075 285,446 3,075 — ——
1934 368,483 2,925 368,483 2,925 —
Continued on opposite page
308
Table A-3. — Estimated construction cost of nonfarm starts by type of ownership (concluded)
Year
Total, private and public Privately-owned
Total Publicly-owned 1-family
Cost
(000 omitted)
Average
per unit/a
Cost /b
(000 omitted)
Average
per uniu/a
Cost /b
(000 omitted)
Average
per unit/a
Cost /c
(000 omitted)
Average
per unit/
Old series
1935 $757,397 $3,425 $732,522 $3,400 n.a. n.a. $24,875 $4,700
1936 1,271,039 3,975 1,193,733 3,925 n.a. n.a. 77,306 5,225
1937 1,382,360 4,125 1,365,791 4,100 n.a. n»a. 16,569 4,600
1938 1,583,936 3,900 1,561,610 3,900 n.a. n.a. 22,326 3,325
1939 1,948,340 3,775 1,763,932 3,850 n.a. n.a. 184,408 3,250
1940 2,299,447 3,825 2,072,155 3,925 $1,819,328 $4,075 227,292 3,125
1941 2,826,192 4,000 2,530,765 4,075 2,265,355 4,250 295,427 3,400
1942 1,343,458 3,775 1,133,846 3,775 982,546 3,900 209,612 3,825
1943 689,146 3,600 660,459 3,600 500,864 3,675 28,687 3,925
1944 496,054 3,500 483,231 3,475 393,982 3,450 12,823 4,125
1945 965,670 4,625 959,251 4,600 861,710 4,675 6,419 5,350
1946 3,769,767 5,625 3,713,776 5,600 3,255,170 5,525 55,991 7,000
1947 5,643,436 6,650 5,617,425 6,650 4,996,849 6,750 26,011 7,650
1948 7,203,119 7,725 7,028,980 7,700 5,995,475 7,850 174,139 9,625
1949 7,702,971 7,525 7,374,269 7,450 6,037,182 7,625 328,702 9,050
1950 11,788,595 8,450 11,418,371 8,450 9,985,690 8,675 370,224 8,450
1951 9,600,892 8,975 9,186,123 9,000 8,301,510 9,300 614,769 8,625
1952 10,208,983 9,050 9,706,276 9,075 8,903,905 9,475 502,707 8,600
1953 10,486,003 9,500 10,181,185 9,525 9,293,362 9,975 306,818 8,650
1954 12,478,237 10,225 12,309,200 10,250 11,447,043 10,625 169,037 9,050
1955 14,544,629 10,950 14,345,829 10,950 13,513,413 11,350 198,800 10,225
1956 13,077,028 11,700 12,814,776 11,725 11,990,006 12,225 262,252 10,825
1957 12,693,995 12,175 12,126,800 12,225 10,951,268 13,025 567,195 11,550
1958 14,499,311 12,000 13,678,459 11,975 12,070,927 12,950 8*20,852 1*2,075
1959 1*6,897,176 *12,250 *16,465,507 *12,250 1*4,517,503 1*3,450 431,669 11,775
New series
1959 19,572,569 12,775 19,140,900 12,800 16,253,576 13,425 431,669 11,775
I960 16,426,954 13,025 15,898,577 13,050 13,318,315 13,775 528,377 12,025
Percent
change
1960/1959 -16 +2 -17 +2 -18 +3 +22 +2
* All-time high designation is limited to old series. n.a. Not available.
a/ All average amounts are rounded to the nearest $25.
b/ Based on permit valuations adjusted for understatement of construction cost and, since 1946, on field surveys
in non-permit-issuing places. Excludes land and other nonconstruction items commonly included in selling
price.
c/ Contract values or estimated construction cost for individual projects.
Source: U. S. Bureau of the Census
591772—61--------21 309
Table A-4. — Nonfarm housing units started by region
(in thousands of units)
Year
Number of dwelling units Percentage distribution
Total Northeast
North
Central South West Total Northeast
North
Central South West
Old series
1948 932 198 205 316 213 10$ 21% 22% 34% 23%
1949 1,025/a 248 226 356 196 100 24 22 35 19
1950 1*,396 3*23 3*37 449 28? 100 23 24 32 21
1991 1,091/a 250 263 362 217 100 23 24 33 20
1952 1,127 251 262 367 247 100 22 23 33 22
1953 1,104 255 270 328 251 100 23 24 30 23
1954 1,220/a 243 326 360 292 100 20 27 29 24
1955 1,329 273 356 389 311 100 21 27 29 23
1956 1,118 229 303 334 252 100 20 27 30 23
1957 1,042 196 258 346 242 100 19 25 33 23
1958 1,209 211 290 413 295 100 18 24 34 24
1959 1,378 253 318 4*59 *348 100 18 23 34 25
New series
1959 1,531 280 368 506 377 100 18 24 33 25
I960 1,258/a 230 297 421 309 100 18 24 33 25
Percent
change
1960/1959 -18 -18 -19 -17 -18 XX XX XX XX XX
* All-time high designation is limited to old series,
a/ Components here do not equal total due to rounding.
Composition of regions and geographic divisions
Northeast North Central South West
New England E. N. Central S. Atlantic Mountain
Connecticut Illinois Delaware Arizona
Maine Indiana Dist. of Col. Colorado
Massachusetts Michigan Florida Idaho
New Hampshire Ohio Georgia Montana
Rhode Island Wisconsin Maryland Nevada
Vermont N. Carolina New Mexico
W. N. Central S. Carolina Utah
Middle Atlantic
Iowa
Virginia
W. Virginia
Wyoming
New Jersey Kansas Pacific
New York Minnesota E. S. Central
Pennsylvania Missouri Alaska
Nebraska Alabama California
North Dakota Kentucky Hawaii
South Dakota Mississippi
Tennessee
Oregon
Washington.
W. S. Central
Arkansas
Louisiana
Oklahoma
Texas
Source: U. S. Bureau of the Census
310
Tabla A-5 Building permit activity, by state
(Thousands of dwelling units)
State 195b/a 1955 1956 1957 1958 1959
All States 1,075 l,lb8 9b3 8b8 1,002 1,122
Alabama 12 13 12 13 19 18
Arizona 12 lb 12 16 21 2b
Arkansas b b b b b b
California 199 212 177 169 197 236
Colorado 19 20 15 13 18 16
Connecticut 17 18 18 16 lb 17
Delaware b b 3 2 3 2
District of Columbia 3 3 2 3 5 2
Florida b9 53 58 63 6b 66
Georgia 21 20 16 15 18 21
Idaho 2 2 2 2 2 2
Illinois 5b 68 59 b7 50 57
Indiana 21 21 20 15 16 19
Iowa 8 10 8 6 8 8
Kansas 11 10 8 6 8 8
Kentucky 11 13 9 7 9 11
Louisiana lb 15 12 11 15 16
Maine 1 1 1 1 1 1
Maryland 31 30 22 22 25 28
Massachusetts 22 25 23 16 19 21
Michigan 60 62 b9 bo 38 36
Minnesota 17 19 16 lb 19 20
Mississippi b b 3 3 3 b
Missouri 16 17 13 11 17 21
Montana 2 2 2 1 2 2
Nebraska 5 6 5 b 5 6
Nevada 5 b 2 3 3 3
New Hampshire 2 2 2 1 1 2
New Jersey b8 53 bb 3b 39 b5
New Mexico 6 6 5 5 10 8
New York 90 9b 75 63 77 96
North Carolina 12 13 n 9 12 13
North Dakota 2 2 2 2 2 3
Ohio 55 61 51 b3 b8 5b
Oklahoma 10 10 7 6 9 10
Oregon 8 8 7 b 6 8
Pennsylvania 38 b5 33 28 27 33
Rhode Island 3 3 3 3 3 3
South Carolina 5 5 b 3 3 b
South Dakota 2 2 2 1 2 2
Tennessee 16 17 12 10 lb 17
Texas 68 69 b6 50 70 68
Utah 7 8 6 6 7 8
Vermont b/ y y b/ b/ bf
V irginia 30 33 26 20 26
Washington 21 21 15 lb 19 22
West Virginia 3 3 3 3 2 3
Wisconsin 20 21 20 18 19 19
Wyoming 2 1 1 1 2 1
a/ Coirparable data are not available prior to 195b; starts data are not available by state; starts in selected
states were discontinued about the middle of 1959•
b/ Less than 500 units.
Source: U. S. Bureau of the Census
311
Table A-6. — New housekeeping residential construction authorized in 3,014 selected permit-issuing places by state
(Number of housing units)
State
1958 /a 1959 /a
Total
Private
(permit-authorized)
Public
(contract
awards)
Total
Private
(permit-authorized) Public
(contract
Total 1-family Total 1-family awards)
United States 1,073,762 1,030,567 771,576 43,192 1,149,716 1,123,452 860,853 26,264
Alabama 19,754 18,171 15,211 1,583 17,471 15,651 14,214 1,820
Alaska n.a. n.a. n.a. n.a. 269 269 208 0
Arizona 21,625 20,833 15,742 792 24,008 23,744 18,252 264
Arkansas 3,346 3,333 3,099 13 3,146 3,046 2,891 100
California 199,256 195,005 119,381 4,251 234,550 231,538 151,981 3,012
Colorado 18,995 17,743 13,209 1,252 15,792 15,792 13,173 0
Connecticut 15,561 15,217 13,272 344 18,184 17,850 15,497 334
Delaware 3,383 2,935 2,237 448 1,860 1,860 1,384 0
D. C. 5,964 4,975 331 989 1,624 1,592 278 32
Florida 88,929 87,400 68,933 1,526 89,684 89,244 75,263 440
Georgia 20,520 19,640 16,218 880 22,906 22,262 18,106 644
Hawaii n.a. n.a. n.a. n.a. 10,273 10,273 4,772 0
Idaho 1,662 1,662 1,502 0 1,803 1,802 1,647 1
Illinois 49,438 47,881 37,349 1,557 55,257 54,252 41,830 1,005
Indiana 15,901 15,901 15,070 0 19,279 19,008 18,370 271
Iowa 8,493 8,393 7,748 100 8,416 8,416 7,934 0
Kansas 8,257 7,993 7,503 264 8,291 8,243 7,751 48
Kentucky 8,028 7,900 7,026 128 9,074 8,874 7,555 200
Louisiana 16,224 15,530 12,440 694 16,241 16,073 14,537 168
Maine 1,543 1,516 n.a. 27 1,716 1,716 n.a. n.a.
Maryland 25,167 25,000 20,031 167 27,593 27,281 19,802 312
Massachusetts 20,409 18,169 14,806 2,240 20,642 19,955 17,821 687
Michigan 38,058 37,778 34,944 280 36,067 35,557 33,948 510
Minnesota 16,982 15,884 n.a. 1,098 16,508 16,508 n.a. 0
Mississippi 3,287 2,787 2,139 500 3,597 3,191 2,892 406
Missouri 21,652 20,666 16,996 986 24,346 23,028 17,894 1,318
Montana 1,461 1,461 1,244 0 1,660 1,654 1,394 6
Nebraska 5,327 4,927 4,099 400 5,757 5,541 4,850 216
Nevada 3,404 2,996 2,067 408 3,541 3,44o 2,593 101
New Hampshire 1,629 1,505 »ia. 124 2,071 2,071 n.a. 0
New Jersey 36,133 33,693 27,488 2,440 39,452 38,646 31,242 806
New Mexico 9,150 9,118 8,145 32 7,988 7,961 7,020 27
New York 84,539 75,404 36,590 9,135 93,564 86,823 39,969 6,741
North Carolina 12,264 11,017 8,580 1,247 11,806 11,469 9,772 337
North Dakota 2,327 2,327 1,616 0 2,672 2,352 1,774 320
Ohio 52,165 50,537 41,025 1,628 56,579 56,247 48,279 332
Oklahoma 8,087 7,819 6,832 268 9,335 9,291 8,442 44
Oregon 7,171 7,129 5,849 42 8,884 8,884 6,532 0
Pennsylvania 25,904 24,601 20,113 1,303 30,556 28,863 23,832 1,693
Rhode Island 2,771 2,735 2,618 36 3,316 3,316 3,209 0
South Carolina 3,166 3,166 3,020 0 3,754 3,632 3,300 122
South Dakota 1,517 1,517 1,459 0 2,055 1,835 1,746 220
Tennessee 15,058 14,241 11,243 817 17,112 16,325 12,898 787
Texas 76,030 74,677 62,368 1,353 73,005 72,622 62,439 383
Utah 6,907 6,906 6,310 1 7,816 7,517 6,593 299
Vermont 444 444 n.a. 0 418 418 n.a. 0
Virginia 30,196 28,452 24,251 1,744 33,244 32,937 26,489 307
■Washington 21,711 20,025 14,162 1,686 22,872 21,186 15,693 1,686
West Virginia 1,818 1,778 1,602 40 1,966 1,966 1,901 0
Wisconsin 20,054 19,688 14,443 366 20,085 20,085 15,182 0
Wyoming 1,550 1,547 1,444 3 1,611 1,346 1,285 265
Continued on opposite page
312
Table A-6. — New housekeeping residential construction authorized in 3,014 selected permit-issuing places by state
(concluded)
(Number of housing units)
State
I960
Total
Private
(permit-authorized)
Public
(.contract
Total 1-family awards)
United States 940,600 913,801 672,048 26,799
Alabama 10,963 10,339 9,872 626
Alaska 349 349 285 0
Arizona 21,023 20,961 17,546 62
Arkansas 2,904 2,904 2,737 0
California 191,769 189,785 117,334 1,984
Colorado 16,320 16,170 10,600 150
Connecticut 15,038 14,262 12,011 796
Delaware 2,543 2,543 2,231 0
D. C. 2,776 2,602 317 174
Florida 66,804 65,980 55,493 824
Georgia 20,380 19,790 14,684 590
Hawaii 8,179 8,129 4,867 50
Idaho 1,400 1,400 1,237 0
Illinois 48,572 42,124 29,319 6,448
Indiana 15,064 15,000 14,189 64
Iowa 6,431 6,431 5,701 0
Kansas 6,191 5,601 4,978 590
Kentucky 7,241 7,057 6,071 184
Louisiana 10,686 10,576 9,220 110
Maine 1,473 1,473 1,403 0
Maryland 21,040 21,040 14,935 0
Massachusetts 19,524 18,955 16,230 569
Michigan 26,867 26,727 25,050 140
Minnesota 13,268 13,244 9,304 24
Mississippi 4,735 4,122 3,274 613
Missouri 16,676 16,526 13,823 150
Montana 1,579 1,579 1,346 0
Nebraska 5,970 5,920 5,029 50
Nevada 5,165 5,060 3,725 125
Nev; Hampshire 1,631 1,631 1,571 0
New Jersey 34,667 31,782 23,763 2,885
New Mexico 4,789 4,773 4,291 16
New York 83,140 77,968 32,338 5,172
North Carolina 10,500 10,410 9,176 90
North Dakota 1,577 1,553 1,254 24
Ohio 47,021 46,305 38,658 716
Oklahoma 7,909 7,885 6,745 24
Oregon 8,576 8,373 5,985 203
Pennsylvania 27,858 26,287 19,544 1,571
Rhode Island 3,711 3,511 3,281 200
South Carolina 2,636 2,596 2,374 40
South Dakota 1,405 1,405 1,294 0
Tennessee 14,007 13,587 10,598 420
Texas 53,464 53,154 45,258 310
Utah 5,771 5,771 4,739 0
Vermont 267 267 263 0
Virginia 26,760 26,349 23,057 411
Washington 14,692 14,298 11,924 394
West Virginia 1,467 1,467 1,410 0
Wisconsin 16,293 16,293 10,286 0
Wyoming 1,487 1,487 1,428 0
a/ Comparable permit data are not available prior to 1958; data for United States include estimates for all
"n.a." items; housing units started are not available by state. n.a. Mot available.
Source: U. S. Bureau of the Census: C 49 and C 42 reports
313
Table A-7. — Building permit activity in selected metropolitan areas
(Thousands of dwelling units)
Metropolitan area 195b/a 1955 1956 1957 1958 1959
United States, total 1,075 l,lb8 9b3 8b8 1,002 1,122
Old series /b
Nonmetropolitan areas, total 21b 2b0 2a 198 22? 253
Metropolitan areas, total 861 909 722 650 775 869
Selected metropolitan areas, total 533 560 b56 b08 b66 529
As a percent of total metropolitan areas (62) (62) (63) (63) (60) (61)
Atlanta, Georgia 13 12 9 8 10 13
Baltimore, Maryland 15 15 12 13 11 11
Birmingham, Alabama 5 5 b 5 7 7
Boston, Massachusetts 11 11 10 7 9 10
Buffalo, New York 9 11 10 7 6 6
Chicago, Illinois b9 60 52 b2 bb 51
Cleveland, Ohio 13 16 12 12 10 12
Columbus, Ohio 7 8 7 5 9 8
Denver, Colorado 13 13 9 8 11 11
Detroit, Michigan bl bl 31 2b 2b 22
Indianapolis, Indiana 7 6 6 5 5 6
Los Angeles, California 10b 10b 89 81 81 90
Miami, Florida 16 16 17 18 19 16
Milwaukee, Wisconsin 10 8 8 9 7 6
New York-Northeastern New Jersey 9b 97 78 66 8b 106
Norfolk-Portsmouth, Virginia 7 6 5 3 5 5
Philadelphia, Pennsylvania 30 36 2b 20 21 26
Phoenix, Arizona 9 10 8 12 16 18
Rochester, New York b 5 3 3 3 b
Salt Lake City, Utah b b b 3 b b
San Diego, California 10 11 13 16 23 30
San Francisco-Oakland, California 28 32 22 19 25 29
Seattle, Washington 10 10 7 8 10 13
Washington, D. C. 2b 23 16 lb 22 25
a/ Comparable data are not available prior to 195b; starts data are not available by metropolitan areas.
b/ Metropolitan and nonmetropolitan areas in the old and new series are not comparable because old series used
1950 Census of Population definitions whereas new series is based on 1959 definitions. See "Standard
Metropolitan Statistical Areas" prepared by Office of Statistical Standards, Bureau of the Budget, 1959•
Source: U. S. Bureau of the Census
314
Table A-8. — New housekeeping residential construction authorized in selected pennit-issuing places for 42 sms areas
(Number of housing units)
Standard Metropolitan
Statistical Area
New series /b
I960 /a
Total
Private (permit-authorized) Public
(contract
Total 1-family Other awards)
Atlanta 13,042 12,987 8,442 4,545 55
Baltimore 6,762 6,762 5,686 1,076 0
Birmingham 3,925 3,675 3,431 244 250
Boston 9,826 9,397 7,209 2,188 429
Buffalo 4,105 4,005 3,384 621 •100
Chicago 40,570 35,042 23,229 11,813 5,528
Cincinnati 6,777 6,777 4,439 2,338 0
Cleveland 11,869 11,478 8,334 3,144 391
Columbus 5,325 5,201 4,351 85o 124
Dallas 13,520 13,520 10,184 3,336 0
Dayton 4,885 4,879 4,615 264 6
Denver 13,226 13,226 8,072 5,154 0
Detroit 15,037 14,897 13,802 1,095 140
Fort Worth 4,630 4,630 4,237 393 0
Honolulu 7,485 7,435 4,189 3,246 5o
Houston 7,997 7,977 6,005 1,972 20
Indianapolis 4,484 4,484 4,022 462 0
Jacksonville 6,350 6,350 5,684 666 0
Kansas City 7,054 6,664 5,735 929 390
Los Angeles 81,399 81,399 40,231 41,168 0
Louisville 3,878 3,878 3*495 383 0
Memphis 5,028 5,028 3,724 1,304 0
Miami 11,138 11,074 7,442 3,632 64
Milwaukee 8,165 8,045 3,645 4,4oo 120
Minneapolis-St. Paul 11,118 11,094 7,434 3,660 24
New Orleans 5,051 5,051 4,052 999 0
New York 69,692 64,65o 21,003 43,647 5,042
Orlando 5,288 5,288 4,883 4o5 0
Philadelphia 19,411 19,091 12,619 6,472 320
Phoenix 16,154 16,154 13,572 2,582 0
Pittsburgh 7,137 6,138 5,640 498 999
Sacramento 9,266 8,936 7,357 1,579 330
St. Louis 10,557 9,857 7,956 1,901 700
San Bernardino-
Riverside-Ontario 13,003 12,788 10,592 2,196 215
San Diego 14,374 14,372 11,630 2,742 2
San Francisco 27,884 27,498 14,546 12,952 386
San Jose 16,336 16,186 10,274 5,912 150
Santa Barbara 3,678 3,278 2,482 796 4oo
Seattle 7,395 7,395 6,167 1,228 0
Tampa-St. Petersburg 13,208 13,208 12,041 1,167 0
Tucson 4,325 4,325 3,588 737 0
Washington, D. C. 20,327 20,153 10,953 9,200 174
a/ Comparable permit data are not available; housing units started are not available by metropolitan area,
b/ See footnote /b on Table A-7.
Source: U. S. Bureau of the Census: C 49 and C 42 reports
315
Table A-9. — Nonfarm housing units started^ privately-owned, by type of structure and by
FHA, VA, and conventional program
(In thousands of units)
Year
Privately-owned With government first inspection
Conventional/
b
Total 1-family 2-family total
3 or more
family
©/
Total
Federal Housing
Adminis tration
Veterans
Administration
Total Homes Projects total
Old series
1935 216 182 8 26 14 14 13 1 202
1936 304 239 13 52 49 49 /c 49 1 255
1937 332 266 15 51 60 60 57 3 —— 272
1938 399 , 316 18 65 119 119 107 12 —— 280
1939 458/c 373 20 66 158 158 145 13 — 300
1940 530 448 26 56 180 180 177 3 — 350
1941 620/c 533 28 58 220 220 217 3 — 399
1942 301 252 18 31 166 166/c 160 5 — 136
1943 184 136 18 30 146 146 126 20 — 38
1944 139/c 115 11 14 93 93/c 84 10 — 45
1945 208 /c 185 9 15 50 41 39 2 9 158
1946 662/c 590 24 48 161 69 67 2 92 502
1947 846/£ 74o 34 72 389 229 178 51 160 456
1948 914/c 763 46 104 365 294 216 78 71 548
1949 989/2 792 35 162 455 364 253 111 91 534
1950 *1,352 1,151 42 159 6*78 /*4c87 3*28 1*58 191 674
1951 1,020/c 892 40 88 413 264 187 77 149 608
1952 1,069/c 939 46 84 421 280 229 51 141 647
1953 1,068/c 933 42 94 409 252 217 35 157 660
1954 l,2O24£ 1,077 34 90 583 276 251 25 307 618
1955 1,310 1*,190 33 87 670 277 269 8 3*93 640
1956 1,094 981 31 82 460 189 183 6 271 634
1957 993/c 840 33 120 296 168 150 18 128 696
1958 1,142 933 39 170 398/c 295 270 25 102 744
1959 1,343 1,079 *49 215 442/7 332 307 25 109 901
New series
1959 1,495 1,212 56 227 442/c
336
332 307 25 109 1,053
I960 1,216/c 966 43 208 261 226 35 75 880
1961
Percent
change
1960/1959 -19 -20 -23 -8 -24 -21 -26 +4o -31 -16
* All-time high designation is limited to old series,
a/ All-time high was 257,000 units in 1927.
b/ All-time high was 937,000 units in 1925.
c/ Components do not equal total due to rounding.
Sources: U. S. Bureau of the Census, Federal Housing Administration (HHFA), and Veterans Administration
316
Table A-10. — Nonfarm housing units started, privately-owned
(In thousands of units)
Year Annual
total
Seasonally adjusted annual rate
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Old series
1946 662 674 706 774 710 689 656 641 643 605 613 614 648
1947 846 690 717 699 704 740 797 843 899 993 1,031 1,027 963
1948 914 928 813 950 1,027 997 993 975 897 863 802 806 813
1949 989 800 779 803 892 911 935 964 1,028 1,092 1,149 1,244 1,266
1950 1,352 1,310 1,300 1,405 1,382 1,457 1,482 1,468 1,486k- 1,271 1,142 1,107 1,292
1951 1,020 1,360 1,171 1,071 975 984 941 918 961 1,054 1,012 970 973
1952 1,069 1,001 1,112 1,072 1,028 1,029 1,061 1,080 1,066 1,101 1,131 1,104 1,097
1953 1,068 1,104 1,092 1,128 1,134 1,083 1,071 1,036 1,007 1,029 1,034 1,068 1,039
1954 1,202 1,051 1,100 1,103 1,116 1,102 1,180 1,220 1,226 1,273 1,275 1,376 1,443
1955 1,310 1,410 1,324 1,349 1,363 1,381 1,372 1,316 1,311 1,285 1,214 1,176 1,174
1956 1,094 1,195 1,127 1,094 1,157 1,146 1,091 1,070 1,136 1,008 1,052 1,027 1,020
1957 993 962 935 933 962 994 995 1,015 1,056 1,012 1,020 1,009 1,000
1958 1,141 1,020 915 918 983 1,039 1,057 1,174 1,228 1,255 1,303 1,427 1,432
1959
New series
1,343 1,364 1,403 1,403 1,434 1,370 1,368 1,375 1,340 1,323 1,180 1,210 1,330
1959 1,495 1,517 1,529 1,580 1,599 1,580 1,563 1,546 1,446 1,468 1,354 1,328 1,401
I960
1961
Percent
change
1,216 1,291 1,347 1,098 1,307 1,315 1,285 1,164 1,273 1,040 1,200 1,203 975
1960/1959 -19 -15 -12 -31 -18 -17 -18 -25 -12 -29 -11 -9 -30
* All-time high designation-is limited to old series; see Table A-l on page $ regarding change to new series.
Source: U. 5. Bureau of the Census
(In thousands of units)
Table A-ll. — New private housing units authorized in approximately 10,000 permit-issuing places
Year Annual
total
Seasonally adjusted annual rate
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
1959
I960
1961
1,208
996
1,223
1,005
1,259
1,096
1,348
1,010
1,293
1,020
1,235
1,058
1,285
1,005
1,201
917
1,142
1,005
1,155
954
1,058
910
1,081
1,047
1,200
953
Percent
change
1960/1959 -18 -18 -13 -25 -21 -14 -22 -24 -12 -17 -14 -3 -21
Source: U. S. Bureau of the Census
Table A-12. — Factory shipments of mobile homes and travel trailers
________________________ (In thousands of units)_______________________
Year Units Year Units Year Units Year Units Year Units
1947 60 1950 63 1953 77 1956 140 1959 163
1948 85 1951 67 1954 76 1957 144 I960 142
1949 46 1952 83 1955 112 1958 134 1961 150/a
a/ Forecast.
Source: Mobile Homes Manufacturers Association
591772—61--------22 317
Table A-13. — Nonfarm housing units started, privately-owned, by sales and rental tenure and type of aid
(In thousands of units)
Total Type of tenure Type of aid /c
number Number of Percentage of total Number of Percentage of total
Year of housing units private starts housing units private starts
housing Sales- Rental- Sales- Rental- Government Conven- Government Conveniuijl
Is type/a type/b type type inspection tional inspection tional
1900 189 123 66 65% 35% MM 189 Mil » 100%
1901 275 177 98 6I1 36 mM 275 MM 100
190? 2110 171 69 72 28 MM 2I4.O MM 100
1903 253 1711 78 69 31 MM 253 MM 100
190Li 315 207 108 66 311 — 315 — 100
1905 507 336 171 66 3b >— 507 MM 100
1906 h87 316 172 65 35 — M b87 mm 100
1907 U32 291 1111 67 33 mm 1132 MM 100
1908 1*16 286 130 69 31 MM U6 MM 100
1909 1192 328 161i 6? 33 — 1192 — 100
1910 387 251 137 65 35 MM 387 — 100
1911 395 2119 1116 63 37 MM 395 MM 100
1912 1126 259 168 60 llO MM U26 MM 100
1913 1121 263 157 63 37 MM 1121 MM 100
191b 1121 263 159 62 38 — 1121 — 100
1915 1133 262 170 61 39 MM 1133 MM 100
1916 1137 267 170 61 39 Mm 1137 MM 100
1917 2110 166 75 69 31 MM 2110 MM 100
1918 118 91 28 77 23 MM 118 MM 100
1919 315 239 76 76 21i — 315 — 100
1920 2117 202 b5 82 18 Mm 2117 MM 100
1921 11119 316 133 70 30 1419 MM 100
1922 716 1137 279 61 39 M»M 716 MM 100
1923 871 513 358 59 bl MM 871 MM 100
1921l 893 5311 359 60 bO — 893 -- 100
1925 937 572 3*65 61 39 9*37 100
1926 8I19 1191 358 58 h2 MM 8119 MM 100
1927 810 U51i 356 56 b*b MM 810 MM 100
1928 753 1x36 317 58 112 MM 753 MM 100
1929 509 316 193 62 38 — 509 —— 100
1930 330 227 103 69 31 Mm 330 MM 100
1931 25b 187 67 73 27 MM 2511 Mm 100
1932 13b 118 16 88 12 Mm 131; MM 100
1933 93 76 17 82 18 Mm 93 Mm 100
193b 126 109 17 86 111 — 126 — 100
1935 216 182 311 8I1 16 Ill 202 6% 9b
1936 3011 239 65 79 21 119 255 16 8b
1937 332 266 66 80 20 60 272 18 82
1938 399 316 83 79 21 119 280 30 70
1939 1158 373 86 81 19 158 300 3b 66
19b0 530 11118 82 85 15 180 35o 3b 66
19bl 62o 533 86 86 111 220 399 36 6b
19b2 301 252 b9 8I1 16 166 136 55 b5
1943 181i 136 U7 711 26 1116 38 *80 20
I9bb 139 115 21i 83 17 93 115 67 33
Continued on opposite page.
318
Table A-13. — Nonfarm housing units started, privately-owned, by sales and rental
tenure and type of aid (concluded)
______________________________ (in thousands of units)_______________________________
Year
Total
number
of
housing
units
Type of tenure Type of aid /c
Number of
housing units
Percentage of total
private starts
Number of
housing units
Percentage
private
of total
starts
Salestype
/a
Rentaltype/
b
Salestype
Rentaltype
Government
inspection
Conventional
Government
inspection
Conventional
1945 208/d 185 24 89% 11% 50 158 24% 76%
1946 662 590 72 89 11 161 502 24 76
1947 846/a 740 105 87 13 389 456 46 54
1948 914/d 763 150 84 16 365 548 4o 60
1949 989/d 792 196 80 20 455 534 46 54
1950 l/*,d352 1,151 202 85 15 *678 674 50 50
1951 1,020 892 128 87 13 412 608 40 6o
1952 1,069/d 939 129 88 12 421 647 39 61
1953 1,068/d 933 136 87 13 409 660 39 61
1954 1,202/d 1,077 124 90 10 583 618 49 51
1955 1,310 *1,190 120 *91 9 670 640 51 49
1956 1,094 981 113 90 10 46o 634 42 58
1957 993 840 153 85 15 297 696 30 70
1958 1,142/d 932 209 82 18 398 744 35 65
1959 1,343 1,079 264 80 20 442 901 33 67
New series
1959 1,495 1,212 283 81 19 442 1,053 30 70
I960 1,216 966 250 79 21 336 880 28 72
1961
Percent
change
1960/1959 -19 -20 -12 XX XX -24 -16 XX XX
* All-time high designation is limited to old series.
a/ One-family starts.
b/ Two-family starts plus multifamily starts.
c/ From 1900 through 1934 all starts were conventional type; beginning 1935 these data include starts with
“ Federal Housing Administration’s first inspections, and beginning 1945 starts made with Veterans
Administration's first inspections; all data given here are worked from the number of starts after they were
rounded to thousands of units.
d/ Components here do not equal total due to rounding.
Sources: U. S. Bureau of the Census, Federal Housing Administration (HHFA), and Veterans Administration
319
Table A-14. — Publicly owned permanent nonfarm dwelling units started, by program
Year
Total
housing
starts,
all
programs
Federally owned programs State and local programs
Military
housing
other than
Capehart
units
Capehart
armed
services
housing
units
Atomic
Energy
Commission
units
Other
Federal
construction
units
Public
Housing
Administration
units
New York
City
Housing
Authority
units/a
State
college
housing
units
Other
State and
local construction
units
1949 36,321 2,412 -- 1,395 156 781 19,660 100 11,817
1950 43,64o 172 — 684 199 26,875 ■ 4,399 0 11,319
1951 71,207 447 548 65 65,201 1,436 0 3,510
1952 58,520 432 — — 0 190 52,747 1,731 0 3,420
1953 35,483 60 — 0 44 31,314 2,955 111 999
1954 18,638 12 — 118 116 14,155 3,656 193 388
1955 19,596 4,885 96 31 8,572 3,870 881 1,261
1956 24,236 4,324 3,783 100 545 4,794 5,189 3,497 2,004
1957 49,103 1,441 23,642 0 435 17,473 2,762 2,456 894
1953 67,907 1,383 34,667 0 262 19,970 6,319 3,585 1,721
1959 36,690 297 14,590 0 112 13,860 3,966 2,554 1,011
I960
1961
43,937 248 13,182 0 371 25,861 1,443 1,860 972
a/ Exclude Public Housing Administration units started under the New York City Housing Authority as. follows:
5,259 units in 1950; 2,641 units in 1951; 5,862 units in 1952; 2,246 units in 1953; 2,239 units in 195it;
3,916 units in 1955; 981 units in 1956; 2,856 units in 1957; 1,102 units in 1958; 2,003 units in 1959;
3,531 units in I960.
Source: U. S. Bureau of the Census
(Thousands of dwelling units)
Table A-15. — Publicly owned permanent nonfarm dwelling units started, by structure and location
Year
Total
public
starts
Type of structure Metropolitan
Nonmetropolitan
Urban Rural
1-family 2-family Multifamily nonfarm
1935 5 1 0 4 a/ a/ 4 1
1936 15 6 1 9 a/ a/ 13 1
1937 4 1 1 2 a/ a/ 4 0
1938 7 1 0 6 a/ a/ 7 0
1939 57 26 9 21 a/ a/ 56 1
1940 73 38 1*2 23 a/ a/ 63 10
1941 8*7 7*0 6 10 a/ a/ 6*5 2*2
1942 55 40 3 12 a/ a/ 42 12
1943 7 7 0 0 a/ a/ 5 3
1944 3 3 0 0 y 17 3 0
1945 1 0 0 1 a/ S/ 1 0
1946 8 0 0 8 a/ a/ 8 0
1947 3 0 0 3 a/ a/ 3 0
1948 18 3 1 14 a/ a/ 15 3
1949 36 2 2 32 a/ a/ 32 4
1950 44 3 2 38 35 9 42 2
1951 71 8 0 *63 *54 18 64 7
1952 58 3 0 55 44 14 55 4
1953 36 5 0 31 27 9 32 4
1954 19 1 a/ 18 18 1 n.a. n.a.
1955 19 4 a/ 15 16 4 n.a. n.a.
1956 24 9 a/ 15 13 11 n.a. n.a.
1957 49 33 a/ 16 22 27 n.a. n.a.
1958 68 43 0 25 38 *30 n.a. n.a.
1959 37 17 3 17 22 15 n.a. n.a.
1960/b
1961
42 13 6 22 23
_____________
19 n.a. n.a.
* All-time high. n.a. Not available. a/ Less than 50 units. b/ Preliminary data do not reflect
most recent revisions as shown in Table A-14.
Source: U. S. Bureau of the Census
320
Table A-16. — Occupied dwelling units by type of residence and tenure
All-time high. e - Estimated by HHFA. a/ Urban farm units are included. p - Preliminary,
n.a. Not available.
Source: U. S. Bureau of the Census
Type of residence
and year
Total
occupied
units
(000)
Total
units
reporting
(000)
Owner occupied units Renter occupied units
Number
(000)
Percent Number
(000)
Percent
Nonfarm & farm: 1890, June 12,690 12,690 6,066 47.8% 6,624 52.2%
190U, June 13,964 13,429 7,205 46.7 6,224 53.3
1910, April 20,236 19,762 9,084 45.9 10,698 54.1
1920, January 24,332 23,811 10,867 45.6 12,944 54.4
1930, April 29,903 29,322 14,002 47.8 15,320 52.2
1940, April 34,833 34,833 15,196 43.6 19,659 *56.4
1945) November 37,600 37,600 20,009 53.2 17,591 46.8
1930, April 42,826 42,826 23,560 55.0 19,266 45.0
1936, march 48,783 48,763 29,270e 60.0 19,515 e 40.c
1936, December 49,o74 49,874 30,121 60.4 19,753 39.6
I960, April P *53,026 *33,021 3*2,796 *61.9 2*0,225 38.1
Nonfarm: 1890, June 7,923 7,923 2,924 36.9 4,999 63.1
1900, June 10,274 9,780 3,567 36.5 6,213 *63.5
1910, April 14,132 13,672 5,245 38.4 8,427 61.6
1920, January 17,600 17,229 7,041 40.9 10,188 59.1
1930, April 23,300 22,917 10,550 46.0 12,367 54.0
1940, April 27,746 27,748 11,413 41.1 16,335 58.9
1943, November 31,281 31,281 15,878 50.8 15,403 49.2
1930, April 37,103 37,103 19,802 53.4 17,304 46.6
19>6, March *43,136 43,136-x- 25,456e 5*9.0 17,680 e 41.0
1936, December n.a. n.a. n.a. n.a. n.a. n.a.
I960, April n.a. n.a. n.a. n.a. n.a. n.a.
Farm: 1890, June /a 4,767 4,767 3,143 65.9 1,624 34.1
1900, June /a 3,690 3,649 3,638 64.4 2,011 35.6
1910, April Va 6,124 6,110 3,838 62.8 2,271 37.2
1920, January7a 6,731 6,381 3,826 58.1 2,756 41.9
1930, April 6,603 6,403 3,452 53.9 2,953 46.1
1940, April *7,107 7,107 3,783 53.2 3*,324 *46.8
1943, November 6,319 6,319 4,131 65.4 2,188 34.6
1930, April 3,721 5,721 3,758 65.7 1,963 34.3
1936, March 3,649 5,649 3,970e *70.0 1,679 e 30.0
1936, December n.a. n.a. n.a. n.a. n.a. n.a.
I960, April n.a. n.a. n. a. n.a. n.a. n.a.
Table A-17. — Vacancy rates by type of tenure
Item 1950
April
1955
IV Qtr.
1956
IV Qtr.
1957
IV Qtr.
1958
IV Qtr.
1959
IV Qtr.
I960
IV Qtr.
1961
IV Qtr.
All dwelling units 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100^0%
Vacant, available 1.6 2.7 23 23 2.9 3.0 3.5 For rent or sale (rental) 1.1 2.2 2.1 2.0 2.3 23 23 For sale only (home-owner) o.5 0.5 0.4 0.5 0.6 0.6 0.7
Occupied 93.3 91.7 91.7 91.0 90.9 90.9 90.3
Renter occupied 42.0 e 36.6 e 36.3 35.4 35.5 34.7 ~3
Owner occupied 51.3 e 55.1 e 55.4 55.6 55.4 56.2 56.0
Other units vacant, not
available 5.1 5.6 5.8 6.5 6.2 6.1 6.2
Seasonal 23 274 2.7 3.1 3.0 23 2.7
Held off market 1.5 e 2.0 2.0 2.2 2.1 2.3 2.4
Dilapidated 1.1 1.2 1.1 1.2 1.1 1.2 1.1
e - Estimated by HHFA.
Source: U. S. Bureau of the Census
321
Table A-18. — Rental vacancy rates and selected characteristics of available vacancies
a/ These data are available only for second quarter of each year. n.a. Not available,
e - Estimated by HHFA.
Item 1950
April
1955
IV Qtr.
1956
IV Qtr.
1957
IV Qtr.
1958
IV Qtr.
1959
IV Qtr.
I960
IV Qtr.
1961
IV Qtr.
All rental units 100.0$ 100.0$ 100.0$ 100.0$ 100.0$ 100.0$ 100.0$
Vacant, available 2.6 5.7 e 5.3 5.3 6.0 6.4 7.6
Occupied 97.4 94.3 e 94.7 94.7 94.0 93.6 92.4
Vacant, available
Region
Northeast 1.5 2.8 3.2 3.5 3.5 4.1
North Central 1.7 5.1 5.6 7.0 6.7 7.6
South 3.4 7.3 6.4 7.5 8.0 8.8
West 4.9 6.9 6.8 6.3 8.3 11.4
Area
Metropolitan 2.2 4.3 4.1 4.7 5.3 6.7
Nonmetropolitan 3.2 7.1 7.5 8.2 8.3 9.3
All vacancies, available 100$ 100$ 100$ 100$ 100$ 100$ 100$
Duration
Less than 1 month n.a. 36 34 36 32 32 31
1 up to 2 months n.a. 16 15 14 16 13 16
2 up to 4 months n.a. 18 17 17 17 18 18
4 up to 6 months
6 months or more
n.a.
n.a.
jbo J* ^33 8
27
8
29
9
26
Plumbing
With all facilities n.a. n.a. n.a. n.a. 67 71 71
Lacking facilities n.a. n.a. n.a. n.a. 33 29 29
Nonfarm vacancy /a
Monthly rent asked
All vacancies 100$ 100$ 100$ 100$ 100$ 100$ 100$
Less than $30 n.a. 24 22 24 19 19 15
$30 to $49 n.a. 36 33 32 30 28 31
30 to n.a. 26 30 28 32 31 30
75 to 99 n.a. 9 10 11 13 14 15
100 or more n.a. 5 5 5 6 8 9
Median amount rent asked
All vacancies $43 $44 $47 $46 $50 $51 $53
Metropolitan 50 50 52 51 56 60 61
Nonmetropolitan 34 36 41 39 45 42 43
Median monthly duration
by rent asked
All vacancies n.a. 1.9mos 1.9mas 2.0mos 2.0mos 2.4mos 2.3mos
Less than $30 n.a. 3.1 3.6 4.0 e 3.8 6.0 e 6.0
$30 to $49 n.a. 1.7 1.8 2.3 2.1 3.0 2.9
50 to 74 n.a. 1.1 1.4 1.5 1.6 2.0 1.8
75 to 99 n.a. 1.3 1.6 1.0 e 1.2 1.0 e 1.4
100 or more *n.a 2.0 1.8 1.4 1.7 1.5 1.7
Source: U. S. Bureau of the Census
322
Table A-19. — Home-owner vacancy rates and selected characteristics of available vacancies
a/ These data are available only for second quarter of each year. n.a. Not available.
Item 1950 1955 1956 1957 1958 1959 I960 1961
April IV Qtr. IV Qtr. IV Qtr. IV Qtr. IV Qtr. IV Qtr. IV Qtr.
All home-owner units 100.0/ 100.0/ 100.0/ 100.0/ 100.0/ 100.0/ 100.0/
Vacant, available 0.9 0.9 e 0.8 0.9 1.1 1.0 1.2
Occupied 99.1 99.1 e 99.2 99.1 98.9 99.0 98.8
Vacant, available
Region
Northeast 0.9 n.a. 0.7 0.9 0.9 0.9 0.8
North Central 0.7 n.a. 0.7 0.7 1.2 1.2 1.2
South 1.0 n.a. 0.9 1.0 1.0 1.1 1.7
West 1.3 n.a. 0.9 1.1 1.1 0.7 1.3
Area
Metropolitan 1.1 n.a. 0.7 0.9 0.8 1.0 1.2
Nonmetropolitan 0.7 n.a. 0.9 0.9 1.5 1.1 1.4
All vacancies, available 100/ 100/ 100/ 100/ 100/ 100/ 100/
Duration
Less than 1 month n.a. 19 17 17 18 18 18
.1 up to 2 months n.a. 14 14 14 15 14 12
2 up to 4 months n.a. 27 24 23 17 25 23
4 up to 6 months
6 months or more
n.a.
n.a. )40 )« } 46 12
38
11
32
11
36
Plumbing
With all facilities n.a. n.a. n.a. n.a. 88 87 86
Lacking facilities n.a. n.a. n.a. n.a. 12 13 14
Nonfarm vacancy /a
Sal.es price asked
All vacancies 100/ 100/ 100/ 100/ 100/ 100/ 100/
Less than $5,000 n.a. 21 15 14 11 7 9
$5,000 to $7,999 n.a. 17 16 15 8 }21
8,000 to 9,999 n.a. 12 15 9 9 )21 )19
10,000 to 14,999 n.a. 29 26 26 39 34 29
15,000 to 19,999 n.a. '22 '28 J* ^33 15 25
20,000 or more n.a. ) r 23 18
Median sales price asked
All vacancies $8,500 $10,200 $10,600 $12,000 $13,000 $13,000 $13,200
Metropolitan 9,100 12,400 11,700 14,100 15,000 15,000 15,200
Nonmetropolitan 6,300 6,500 9,100 9,100 12,000 11,000 11,000
Number of rooms
All vacancies 100/ 100/ 100/ 100/ 100/ 100/ 100/
1 and 2 rooms n.a. 2 2 2 3 2 1
3 and 4 rooms n.a. 28 22 18 23 17 18
5 and 6 rooms n.a. 51 55 62 54 62 60
7 rooms or more n.a. 19 21 18 20 19 21
e-Estimated by HHFA.
Source: U. S. Bureau of the Census
323
Table A-20. — Households by metropolitan and urban rural residence, for the 168 standard
metropolitan statistical areas of 1950
(Number of households are in thousands)
Residence
Number of households Percent distribution $ change
1956 from
1950
1950
March
1956
March
Change
1950-56
1950
March
1956
March
All households 43,554 48,785 5,231 100.0$ 100.0$ 12.0$
Standard metropolitan statistical areas 24,674 29,297 4,623 56.7 60.1 18.7
Central cities 14,661 16,115 i,4^4 33.7 33.0 9.9
Outside central cities 10,013 13,182 3,169 23.0 27.0 31.6
Urban 7,107 8,456 1,349 16.3 17.3 19.0
Rural 2,906 4,726 1,820 6.7 9.7 62.6
Nonfarm 2,372 4,057 1,685 5.4 8.3 71.0
Farm 534 669 135 1.2 1.4 25.3
Other territory 18,88'0 19,488 608 43.3 39.9 3.2
Urban 6,857 7,543 686 15.7 15.5 10.0
Rural 12,023 11,945 -78 27.6 24.5 -0.6
Nonfarm 6,282 6,965 683 14.4 14.3 10.9
Farm 5,741 4,980 -761 13.2 10.2 -13.3
Table A-21. — Population by metropolitan and urban-rural residence
Part A — 168 standard metropolitan statistical areas of 1950 and change 1950-1959 /a
(Number of persons are in thousands)
Residence
Number of persons Percent distribution $ change
1959 from
1950
1950
April
1959
April
Change
1950-59
1950
April
1959
April
Total persons 149,634 173,708 24,074 100.0$ 100.0$ 16.1$
Standard metropolitan statistical areas 83.800 22,52_4 16,124 56.0 57.5 19.2
Central cities 49,138 49,901 763 32.8 28.7 1.5
Outside central cities 34,663 50,023 15,360 23.2 28.8 44.3
Urban 23,704 29,7U 6,007 15.8 17.1 25.3
Rural 10,959 20,312 9,353 7.3 11.7 85.3
Nonfarm 8,158 17,713 9,555 5.5 10.2 117.1
Farm 2,801 2,599 -202 1.9 1.5 -7.2
Other territory 65,833 73.783 2x252 44.o 42.5 12.1
Urban 23,075 25,378 2,303 15.2 14.6 10.0
Rural 42,758 48,405 5,647 28.6 27.9 13.2
Nonfarm 20,519 29,288 8,769 13.7 16.9 42.7
Farm 22,239 19,U7 -3,122 14.9 11.0 -14.0
a/ Civilian population exclusive of Alaska and Hawaii.
(Number of persons are in thousands)
Part B — 212 standard metropolitan statistical areas of I960 and change from 1950
Residence
Number of persons Percent distribution Change in I960 from 1950
168 .
areas
1950 /a
212 areas /b 168
areas
1950
212 areas Number of persons Percent
1950 I960 1950 i960
168 to
212
areas
212
areas
both yrs.
168 to
212
areas
212
areas
both yrs.
Total 149,634 151,326 177,874 100.0$ 100.0$ 100.0$ 28,240 26,548 18.9$ 17.5$
Standard metropolitan
statistical areas 83,800 89,303 111,894 56.0 59.0 62.9 28,094 22,591 33.9 25.3
Central cities 49,138 52,391 57,365 32.8 34.6 32.3 8,227 4,974 16.7 9.5
Outside central
cities 34,663 36,911 54,530 23.2 24.4 30.7 19,867 17,619 57.3 47.7
Other territory 65,833 62,023 65,980 44.0 4i.o 37.1 147 3,957 0.2 6.4
Note: All figures preliminary except 168 areas, 1950.
a/ Civilian population exclusive of Alaska and Hawaii. b/ Includes military, Alaska, and Hawaii.
Source for Table A-20 and A-21: U. S. Bureau of the Census
324
Table A-22. — Births and marriages and rates per thousand of total population
a/ Adjusted for underregistration prior to 1933• b/ Estimated by using data of reporting states.
c/ Includes Alaska. d/ Includes Alaska and Hawaii; all data preliminary. n.a. Not available.
Year Births /a Marriages /b Year Births /a Marriages /b
Number(000) Rate Number(000) Rate Number(000) Rate Number(000) Rate
1900 n.a. n.a. 709 9.3 1933
1934
2,307
2,396
18.4
19.0
1,098
1,302
8.7
10.3
1905 n.a. n.a. 842 10.0 1935
1936
2,377
2,355
18.7
18,4
1,327
1,369
10.4
10.7
1909 2,718 30.0 n.a. n.a. 1937
1938
2,413
2,496
18.7
19.2
1,451
1,331
11.3
10.3
1910 2,777 30.1 948 10.3 1939 2,466 18.8 1,404 10.7
1911 2,809 29.9 n.a. n.a. 1940 2,559 19.4 1,596 12.1
1912 2,840 29.8 n.a. n.a. 1941 2,703 20.3 1,696 12.7
1913 2,869 29.5 n.a. n.a. 1942 2,989 22.2 1,772 13.2
1914 2,966 29.9 n.a. n.a. 1943 3,104 22.7 1,577 11.7
1915 2,965 29.5 1,008 10.0 1944 2,939 21.2 1,452 10.9
1916 2,964 29.1 n.a. n.a. 1945 2,858 20.4 1,613 12.2
1917 2,944 28.5 n.a. n.a. 1946 3,411 24.1 2,291 16.4
1918 2,948 28.2 n.a. n.a. 1947 3,817 26.6 1,992 13.9
1919
1920
2,740
2,950
26.1
27.7
n.a.
1,274
n.a.
12.0
1948
1949
3,637
3,649
24.9
24.5
1,811
1,580
12.4
10.6
1921 3,055 28.1 1,164 10.7 1950 3,632 24.1 1,667 11.1
1922 2,882 26.2 1,134 10.3 1951 3,823 24.9 1,595 10.4
1923 2,910 26.0 1,230 11.0 1952 3,913 25.1 1,539 9.9
1924 2,979 26.1 1,185 10.4 1953 3,965 25.0 1,546 9.8
1925 2,909 25.1 1,188 10.3 1954 4,078 25.3 1,490 9.2
1926 2,839 24.2 1,203 10.2 1955 4,104 25.0 1,531 9.3
1927 2,802 23.5 1,201 10.1 1956 4,218 25.2 1,585 9.5
1928 2,674 22.2 1,182 9.8 1957 4,308 25.3 1,518 8.9
1929 2,582 21.2 1,233 10.1 1958 4,250 24.5 1,451 8.4
1930 2,618 21.3 1,127 9.2 1959/c 4,292 24.3 1,494 8.5
1931
1932
2,506
2,440
20.2
19.5
1,061
982
8.6
7.9
196023
1961
4,295 23.9 1,527 8.5
Source: U. S. Department of Health, Education, and Welfare
Table A-23. — Distribution of families, by total money income; also, median income of families
Year
Percent distribution — all families = 100$ Median income
Under
$2,000
$2,000-
3,499
$3,500-
4,999
$5,000-
9,999
$10,000-
14,999/a
$15,GOO-
24, 999
$25,000
and
over
All
families
Urban
rural
nonfarm
Rural
farm
1944 37.6$ 33.3$ 17.2$ 10.12 1.82 XX XX $2,533 $2,794 $1,272
1945/l/e 34.0 35.8 16.7 12.2 1.4 XX XX 2,621 2,857/b 1,410
1947 27.3 33.4 20.0 16.6 2.7 XX XX 3,033 3,207 1,958
1948 25.1 32.1 22.1 17.9 2.8 XX XX 3,190 3,391 2,034
1949/e 26.9 31.8 20.9 17.6 2.6 XX XX 3,107 3,324 1,587
1950 24.7 29.5 22.6 20.0 3.2 XX XX 3,319 3,497 1,970
1951/e 20.6 25.3 25.4 25.2 3.6/a XX XX 3,714 3,913 2,131
1952/e 19.3 23.8 24.2 28.5 2.5 • .9 .4 3,889 4,in 2,226
1953/e 18.5 19.3 24.1 32.9 4.1 1.0 .3 4,233 4,462 2,131
1954 19.8 19.4 23.5 31.5 4.4 1.0 .4 4,167 4,4o6 1,968
1955/e 17.5 18.4 22.7 35.1 4.8 .9 .5 4,421 4,705 2,111
1956“ 15.4 16.4 21.2 39.1 5.9 1.5 •5 4,783 5,061 2,371
1957/e 14.9 15.3 20.2 41.1 6.5 1.4 .5 4,971 5,232 2,490
1958/e 14.3 15.1 19.3 41.2 7.6 1.9 •5 5,087 5,340 2,747
1959/c/e 13.4 14.6 16.5 43.2 9.1 2.4 .7 5,417 5,623/d 2,8OO/d
a/ Covers all families with incomes of $10,000 and over through 1951.
b/ Comparable amount for 1946 is $2,981; other data are not available for 1946.
c/ Includes Alaska and Hawaii.
d/ Not strictly comparable with earlier years due to use of I960 definition of a farm.
e/ Components do not add precisely to 100 percent due to rounding.
Source: U. S. Bureau of the Census
325
Table A-24. — Household formation trend
Number of households (OOP omitted)
and
month /a
Total Nonfarm Farm Change from prior year
Total Nonfarm Farm
1890 12,690 7,923 4,767 XX XX XX
1900 15,964 10,274 5,690 327/b 235/b 92/b
1901 16,345 n.a. n.a. 381 n.a. n.a.
1902 16,716 n.a. n.a. 371 n. a. n.a.
1903 17,108 n.a. n.a. 392 n.a. n.a.
1904 17,521 n.a. n.a. 413 n.a. n.a.
190$ 17,939 n.a. n.a. 418 n.a. n.a.
1906 18,394 n.a. n.a. 455 n.a. n.a.
1907 18,863 n.a. n.a. 469 n.a. n.a.
1908 19,294 n.a. n.a. 431 n.a. n.a.
1909 19,734 n.a. n.a. 440 n. a. n.a.
1910 20,183 13,989 6,194 449 n.a. n.a.
1911 20,620 14,358 6,262 437 369 68
1912 21,075 14,727 6,348 455 369 86
1913 21,606 15,187 6,419 531 460 71
1914 22,110 15,630 6,480 504 443 61
1915 22,501 15,949 6,552 391 319 72
1916 22,926 16,291 6,635 425 342 83
1917 23,323 16,643 6,680 397 352 45
1918 23,519 16,846 6,673 196 203 -7
1919 23,873 17,307 6,566 354 461 -107
1920 24,467 17,668 6,799 594 361 233
1921 25,119 18,255 6,864 652 587 65
1922 25,687 18,780 6,907 568 525 43
1923 26,298 19,492 6,806 611 712 -101
1924 26,941 20,182 6,759 643 690 -47
1925 27,540 20,745 6,795 599 563 36
1926 28,101 21,325 6,776 561 580 -19
1927 28,632 21,941 6,691 531 616 -85
1928 29,124 22,416 6,708 492 475 17
1929 29,582 22,851 6,731 458 435 23
1930 29,997 23,268 6,729 415 417 -2
1931 30,272 23,476 6,796 275 208 67
1932 30,439 23,541 6,898 167 65 102
1933 30,802 23,653 7,149 363 112 251
1934 31,306 24,118 7,188 504 465 39
1935 31,892 24,665 7,227 586 547 39
1936 32,454 25,253 7,201 562 588 -26
1937 33,088 25,917 7,171 634 664 -30
1938 33,683 26,518 7,165 595 601 -6
1939 34,409 27,249 7,160 726 731 -5
1940 35,153 28,001 7,152 744 752 -8
1941 35,929 28,786 7,143 776 785 -9
1942 36,445 29,433 7,012 516 647 -131
1943 36,833 30,206 6,627 388 773 -385
1944 37,115 30,722 6,393 282 516 -234
1945 37,503 31,158 6,345 388 436 -48
1946 38,370 31,944 6,426 867 786 81
1947 39,107 32,673 6,434 737 729 8
1948 40,532 34,116 6,416 1,425 1,443 -18
1949 42,182 35,687 6,495 1,650 1,571 79
Continued on opposite page.
326
Table A-24- —Household formation trend (concluded)
a/ Month for 1890 and 1900 is June; month for subsequent years is July. n.a. Not available.
b/ Annual average for preceding 10 years.
c/ Not strictly comparable with earlier years due to (1) includes Alaska and Hawaii and (2) a new definition of
Year
and
month /a
Number of households (000 omitted)
Total Nonfarm Farm Change from prior year
Total Nonfarm Farm
1950 43,554 37,279 6,275 1,372 1,592 -220
1951 44,656 38,587 6,069 1,102 1,308 -206
1952 45,504 39,554 5,950 848 967 -119
1953 46,334 40,503 5,831 830 • 949 -119
1954 46,893 41,399 5,493 559 /e 896 -338
1955 47,788 42,243 5,545 895 Z® 844 52
1956 48,785 43,136 5,649 997 893 104
1957 49,543 44,325 5,218 758 1,189 -431
1958 50,402 45,224 5,178 859 899 -40
1959 51,302 45,909 5,393 900 685 215
i960 /c 52,610 47,452/d 5,158/d 1,308 1,543 -235
a household was used.
d/ The nonfarm figure becomes 48,534 and the farm 4,0?6 when the I960 definition of a farm is used.
~oj Components do not add precisely to this total due to rounding.
Source: U» S. Bureau of the Census
Table A-25. — Average population per family unit /a
Year
and
month
Households
Families
All
families
Primary
families
Secondary families SubTotal
In families
households
1890, June 4.93 n.a. n.a. n.a. n.a. n.a.
1900, June 4.76 n.a. n.a. n.a. n.a. n.a.
1930, April 4.01 4.04 n.a. n.a. n.a. n.a.
1940, April 3.67 3.76 3.79 2.40 n.a. n.a.
1947, April
1948, April
3.55
3.49
3.67
3.64
3.69
3.66
2.53
2.29
n.a.
n.a.
2.77
2.76
1949, April 3.42 3.58 3.59 2.40 n.a. 2.72
1950, March 3.37 3.54 3.55 2.49 n.a. 2.71
1951, April 3.34 3.54 3.55 2.50 2.55 2.75
1952, April 3.32 3.54 3.55 2.52 n.a. 2.80
1953, April 3.28 3.53 3.54 2.54 2.45 2.81
1954, April 3.34 3.59 3.59 2.93 n.a. 2.69
1955, April 3.34 3.60 3.60 3.03 2.91 2.74
1956, March 3.33 3.59 3.59 2.74 2.60 2.82
1957, March 3.34 3.61 3.62 2.22 2.21 2.75
1958, March 3.35 3.65 3.65 2.78 2.45 2.90
1959, March 3.35 3.66 3.67 2.55 2.42 2.97
I960, March /b 3.35 3.68 3.68 2.53 2.58 2.87
a/ Mean population. n.a. Not available.
b/ See footnote c/ Table 24 on changes in definition of a household.
Source: U. S. Bureau of the Census
327
Table A-26. — Family units by type
(Numbers are in thousands)
Year
and
month
All
households
sum of
(1) and (2)
(1) Primary families (2) Primary individuals
Total Husbandwife
Other
male
head
Female
head Total Male Female
1940, April 34,949 31,1191 26,571 *1,510 3,410 3,458 1,599 1,859
191x7, April 39,107 31i,961i 30,612 1,129 3,223 4,143 1,388 2,755
1948, April UO,532 36,629 31,900 1,020 3,709 3,903 1,198 2,705
1949, April 42,182 38,080 33,257 1,197 3,626 4,102 1,308 2,794
1950, March 43,554 38,838 311,075 1,169 3,5911 4,716 1,668 3,048
1951, April hb,656 39,1187 3h,378 1,1511 3,955 5,169 1,731 3,438
1952, April 115,5011 110,205 35,138 1,118 3,949 5,299 1,756 3,543
1953, April 116,3311 110,1190 35,560 1,196 3,7311 5,844 1,892 3,952
1954, April 116,893 110,961 35,875 1,326 3,760 5,932 1,904 4,028
1955, April 117,788 111,713 36,266 1,303 4,144 6,075 2,019 4,056
1956, March 118,785 42,548 37,0113 1,373 11,132 6,237 2,004 4,233
1957, March 119,5113 113,210 37,711 1,208 11,291 6,333 1,984 4,349
1958, March 50,1102 43,445 37,967 1,2116 lx,232 6,957 2,274 4,683
1959, March. 51,302 113,9111 38,1120 1,252 U,269 7,361 2,386 4,975
I960, March /d *52,610 1*41,856 3*9,260 1,187 1*1,1109 *7,754 *2,624 *5,130
Percent 100.0$ 85.3$- 711.6$ 2.3$ 8.4$ 14.7$ 5.o$ .9.7$
(3) All families, sum of (1) and (li) (4) Secondary families /a /b
Husband- Other Female Total Husband- Other Female
Total wife male head wife male head head head
1940, April 32,166 26,971 *1,579 3,616 675 400 *69 *206
.1947, April 35,7911 31,211 1,186 3,397 *830 *599 57 174
1948, April 37,237 32,356 l,061i 3,817 608 456 44 108
1949, April 38,624 33,631 1,230 3,763 544 374 33 137
19^0, March 39,303 311,11110 l,181i 3,679 465 365 15 85
1951, April 39,929 311,683 1,170 11,076 442 305 16 121
1952, April 110,578 35,370 1,132 11,076 373 232 14 127
1953, April 110,832 35,782 1,208 3,8112 342 222 12 108
1954, April 111,202 36,Ohl 1,336 3,825 241 166 10 65
1955, April 1x1,9311 36,395 1,3 111 4,225 221 129 11 81
1956, March U2,81i3 37,200 1,404 h,239 295 157 31 107
1957, March 113,11115 37,8119 1,230 h,366 235 138 22 75
1958, March 113,7111 38,112 1,292 11,310 269 145 46 78
19$9, March 1111,202 38,585 1,285 11,332 261 165 33 63
I960, March 4*5,062 3*9,335 1,233 4*,494 206 75 46 85
Percent 100.0$ 87.3$ 2.7$ 10.0$ 100.0$ 36.4$ 22.3$ 41.3$
Continued on opposite page.
328
Table A-26. — Family units by type (concluded)
(Numbers are in thousands)
Year
and
month
(5) Married couples (6) Subfamilies /b
Total
c/
.Vith
own
household
c/
Without
own
household
Percent
without
own
household
Total Husbandwife
Other
male
head
Female
head
1940, April
1945, September
1946, June
19117, April
1948, April
1949, April
1950, March
1951, April
1952, April
1953, April
1954, April
1955, April
1956, March
1957, March
1958, March
1959, March
I960, March
Percent
1940, April
1947, April
1948, April
19119, April
1950, March
1951, April
1952, April
19^3, April
1954, April
1955, April
1956, March
1957, March
1958, March
1959, March
I960, March /d
Percent
28,517
28,200
31,550
33,5U3
34, 361i
35,1^25
36,091
36,136
36,696
37,106
37,346
37,570
38,306
38,9hO
39,182
39,529
1*10,205
100.0$
26,571
26, 835
28,850
30,612
31,900
33,257
31i,O75
311,378
35,138
35,560
35,875
36,266
37,0113
37,711
37,967
38,1120
3*9,260
97.6$
1,946
1,365
2,700
2*,931
2,464
2,168
2,016
1,758
1,558
1,546
1,471
1,304
1,263
1,229
1,215
1,109
.945
2.4$
6.8
4.8
8.6
*8.7
7.2
6.1
5.6
4.9
4.2
4.2
3.9
3.5
3.3
3.2
3.1
2.8
2*4
XX
2,062
n. a.
n.a.
*3,123
2,679
2,547
2,402
2,227
2,061
1,968
2,107
1,969
1,823
1,802
1,733
1,631
1,511
100.0$
1,546
n.a.
n.a.
2*,332
2,008
1,794
1,651
1,453
1,326
1,324
1,305
1,175
1,106
1,091
1,070
944
870
57.6$
52
n.a.
n.a.
83
68
109
113
89
104
64
98
68
1*16
95
74
102
113
7.5$
464
n.a.
n.a.
70'8
603
644
638
685
631
580
704
7*26
601
616
589
585
528
34.9$
(7) Unrelated individuals /b
sum of (2) and (8) (8) Secondary individuals /a /b
Total Male Female Total Male Female
9,277
8,1191
8,303
8,503
9,136
9,510
9,301
9,957
9,700
9,790
9,897
9,780
10,lili2
1*0,930
10,917
100.0$
*4,942
3,852
3,81iO
4,087
4,209
11,193
11,0119
11,3113
lx, 075
11,117
11,1112
11,002
11,230
11,1(36
4,339
39.7$
4,335
4,639
4,463
4,416
4,927
5,317
5,252
5,614
5,625
5,673
5,755
5,778
6,212
6,494
6*,578
60.3$
*5,819
4,348
4,400
4,401
4,420
4,341
4,002
4,113
3,768
3,715
3,660
3,447
3,485
3,569
3,163
100.0$
*3,343
2,464
2,642
2,779
2,541
2,462
2,293
2,451
2,171
2,098
2,138
2,018
1,956
2,050
1,715
54.2$
2*,476
1,884
1,758
1,622
1,879
1,879
1,709
1,662
1,597
1,617
1,522
1,429
1,529
1,519
1,448
45.8$
* All-time high.
a/ In households or quasi-households.
b/ Secondary families and secondary individuals do not include the heads of households; subfamilies live in
households and are related to, but do not include, the head of the household or his wife. Unrelated
individuals are persons not living with relatives.
c/ Goiiiparable data for number married couples for 1910 and 1930 are 17,175,000 and 25,174,000, including
16,250,000 and 23,649,000 with own household.
d/ See footnote /c Table A-24 on changes in definition of a household.
Source: U. S. Bureau of the Census
329
Table A-27. — Mobility of civilian population 1 year and over for year ending April 1959
and population characteristics as of April 1959
(Numbers in thousands of persons)
Date
and
characteristic
Total
civilian
population
Same
house
(nonmovers
)
Different house in the United States (movers)
Abroad
April
Total 1958 Same
county
Different county (migrants)
Total Within
a State
Between
States
Year ending April 1959
Number
Both sexes 170,658 137,018 32,804 22,315 10,489 5,419 5,070 836
Male 83,554 66,702 16,340 10,971 5,369 2,784 2,585 512
Female 87,104 70,316 16,464 11,344 5,120 2,635 2,485 324
White 15'1,761 122,691 28,302 18,610 9,692 4,952 4,740 768
Nonwhite 18,897 14,327 4,502 3,705 797 467 330 68
Percent distribution
Eoth sexes 100.0% 80.3% 19.2% 13.1% b/6.1% 3.2% 3.0% 0.5%
Male 100.0 79.8 19. 13.1 6.4 3.3 3.1 0.6
Female 100.0 80.7 18.9 13.0 5.9 3.0 2.9 o.4
White 100.o/b 80.8 18.6/b 12.3 6.4 3.3 3.1 o.5
Nonwhite 100.0 75.8 23.8 19.6 4.2 2.5 1.7 o.4
Characteristics as of
April 1959
Percent distribution
Metropolitan and urban
residence
Standard metropolitan
statistical areas 100.0 81.0 18.5 , 13.1 5.4/b 2.5 2.8 o.5
Central cities loo.q/b 79.3 20.0/b 15.4 4.7 2.1 2.6 0.6
Outside central cities 100.0 82.7 17«07b 10.9 6.0 2.9 3.1 0.3
Urban 100.0 84.0 15.6 10.7 4.9 2.1 2.8 o.4
Rural 100.0 80.9 18.8 11.2 7.6/b 4.0 3.5 o.3
Nonfarm 100. o/b 80.3 19.5 11.3 8.2 4.4 3.8 0.3
Farm 100.0 85.4 14.2 10.7 3.5 1.8 1.7 o.4
Other areas 100.0 79.3 20.2 13.0 7.2 4.o 3.2 o.5
Urban 100.0 77.0 22.4^b 14.5 7.8/b 4.o 3.9 0.6
Rural 100.o/b 80.5 19.0 12.2 6.87E 4.1 2.8 o.4
Nonfarm 100.0 78.2 21.2 13.2 8.0 4.6 3.4 0.6
Farm 100.0 84.1 15.8/b 10.7 5.0 3.3 1.7 0.1
Residence by regions
Northeast 100.0 86.1 13.4 8.6 4.8 2.8 2.0 o.5
White 100.0 86.7 12.8 8.0 i*f 2.8 1.9 o.5
Nonwhite 100.0 77.8 21.7 17.2 2.6 1.9 o.5
North Central 100.0 81.8 18.0 12.8 5.2/b 2.7 2.6 0.2
White 100. o/b 82.5 17.2 11.9 5.3 2.7 2.6 0.2
Nonwhite 100.0 72.1 27.6 23.4 4.2 2.4 1.8 0.2
South 100.0 76.6 23.0 15.9 7.1/b
7.9/b
3.7 3.3 0.4
White 100.0 76.5 23.0 15.1 4.1 3.7 o.5
Nonwhite 100.0 77.0 22.8 18.8 4.1 _ _ MM
1916 b6.6 b5.0 Mm 78.1 bo.9 MM M- MM MM
1917 3b. 8 57.9 M — 77.b b9.2 —m Mm MM M— —
1918 6b.3 66.5 Mm 78.8 66.6 । — n MM '•n MM MM
1919 7b.0 7b.2 — 85.3 88.2 — — -- — —
1920 83.7 83.6 — 100.2 105.1 ■4m MM MM M |, MM
1921 76.b 63.5 —— 115.1 80.9 —M MM MM mm MM
1922 71.6 59.b MM 118.5 65.7 MM MM —— — - —
1923 72.9 61.b Mm 121.6 65.8 Mm MM Mm — M—
192b 73.1 60.8 — 125.9 65.3 — — — — —
1923 73.0 65.8 126.b 6b.0 ■4m Mm MM MM MM
1926 73.6 68.0 Mm 125.2 63.0 MM Mm Mm Mm MM
1927 7b. 2 65.5 MM 123.2 61.8 ■■m MM M M MM mm
1928 73.3 6b.8 — — 120.3 60.9 — MM —M mm MM
1929 73.3 65.6 —— 117.b 60.3 — — — — —-
1930 71. b 62.b MM 11b. 2 58.9 Mm Mm _ MM MM
1931 63.0 51.b — 108.2 53.6 MM MM mm MM
1932 38.b b2.8 —M 97.1 b7.5 MM -M Mm Mm —M
1933 55.3 bl .6 M — 83.6 b5.9 MM MM mm MM MM
193b 37.2 b6.b — 78.b 50.2 — — — —
1933 38.7 b9.7 71.8 78.2 50.6 69.6 71.b 5b .6 58.1 67.2
1936 39.3 50.1 72.8 80.1 51.0 70.2 71.6 55.3 59.1 67.0
1937 61.b 52.1 75.b 83.8 53.7 71.3 72.3 58.5 60.8 68.8
1938 60.3 bS.b 76.6 86.5 53 .b 71.9 72.5 58.9 62.9 69.b
1939 39.b b7.1 76.1 86.6 52.5 70.2 72.6 59.6 63.0 70.6
19b0 39.9 b7.8 76.b 86.9 53.2 69.8 72.7 59.5 6b .1 72.8
19bl 62.9 52.2 78.3 88.b 55.6 72.2 73.1 61.0 66.b 7b.2
19b2 69.7 61.3 81.8 90.b 6b.9 78.5 75.1 66.9 69.5 76.3
19b3 7b. 0 68.3 82.8 90.3 67.8 78.2 78.7 73.8 75.3 80.2
19bb 73.2 67.b 8b. 7 90.6 72.6 78.2 81.2 79.0 83.b 82 .U
19b3 76.9 68.9 86.1 90.9 76.3 78.1 83.1 81.5 86.8 85.7
19b6 83 .b 79.0 88.3 91.b 83.7 82.1 87.7 87.b 89.7 88.6
19b7 93.3 95.9 95.0 9b.b 97.1 90.6 9b. 9 97.6 95.5 96.1
19b 8 102.8 lOb.l 101.7 100.7 103.5 100.9 100.9 101.3 100.b 100.5
19b9 101.8 100.0 103.3 105.0 99.b 108.5 10b .1 101.1 10b.1 103.b
1930 102.8 101.2 106.1 108.8 98.1 111.3 106.0 101.1 103.b 105.2
1931 111.0 112.6 112.b 113.1 106,9 118.b 111.1 110.5 106.5 109.7
1932 113.3 lib. 6 11b .6 117.9 105.8 126.2 117.2 111.8 107.0 115.b
1933 llb.b 112.8 117.7 12b.1 10b.8 129.7 121.3 112.8 108.0 118.2
193b 11b. 8 112.6 119.1 128.5 10b .3 128.0 125.2 113.b 107.0 120.1
1933 lib.5 110.9 120.0 130.3 103.7 126. b 128.0 115.3 106.6 120.2
1936 116.2 111.7 121.7 132.7 105.5 128.7 132.6 120.0 108.1 122.0
1937 120.2 115. b 125.6 135.2 106.9 136.0 138.0 12b.b 112.2 125.5
1938 123.5 *120.3 127.7 137.7 107.0 lb0.5 lbb.6 128.6 116.7 127.2
1939 12U.6 118.3 129.2 139.7 107.9 l*b6.3 150.8 131.2 118.6 129.7
I960 *126.5 119.7 *131.5 l*bl.8 109.*b lb6.2 1*56.2 *133.3 1*21.5 *132.2
* All-time high.
Source: U. S. Department of Labor
338
Tabla A-35« — Output of selected construction materials
Lumber and wood products
Tear
Softwood lumber
(million board feet)
Hardwood flooring
(thousand board feet)
Douglas
fir
plywood
(million
square
feet)
Insulating
boards
(tons)
Hardboard
(tons)
Production Shipments Stocks /a Production Shipments Stocks /a Production
1947 27,937 27,462 3,609 687,000 667,303 19,536 1,632 770,821 301,551
1948 29,076 27,698 4,956 907,338 865,056 56,655 1,875 905,786 364,562
19U9 27,741 27,807 4,889 842,758 835,951 57,174 1,898 622,199 216,530
1950 *31,528 *31,961 4,407 1,077,329 1,092,012 37,739 2,569 838,367 382,827
1951 30,383 29,710 5,082 1,048,320 994,420 89,662 2,875 917,847 347,825
1952 30,234 30,333 4,982 1,004,117 1,001,672 86,938 3,051 898,964 410,273
1953 29,562 28,770 5,777 1,004,558 1,010,972 73,449 3,705 950,889 423,418
1954 29,282 29,823 5,296 1,145,118 1,139,091 68,425 3,871 1,007,653 464,868
1955 30,293 30,198 5,386 *1,268,104 *1,258,914 70,045 4,947 1,092,890 529,558
1956 30,661 29,964 6,087 1,166,446 1,117,010 114,074 5,191 1,102,012 539,981
1957 26,758 26,952 5,894 953,706 947,023 107,028 5,378 994,000 569,000
1958 27,381 27,665 5,613 927,294 922,789 99,111 6,340 1,056,830 608,623
1959 30,674 30,563 5,766 1,034,098 1,022,299 95,470 *7,828 1*,172,880 734,428
I960 28,592 27,783 *6,358 914,856 884,913 1*15,626 7,771 1,042,177 *795,788
* All-time high.
a/ As of end of period.
Sourcesi Table compiled by Department of Commerce (BDSA) from data reported by the National Lumber
Manufacturers Association, the Douglas Fir Plywood Association, and the Bureau of the Census
Millwork products, and paint, varnish, and lacquer
Ponderosa
pine doors
Hardwood
doors
Sash Exterior
frames
Paint, varnish,
and lacquer —
Year
Production (thousands of units)
production for
trade sales
(thousands of
gallons)
1947 3,674 2,661 10,137 4,111 274,097
1948 *4,091 3,855 11,820 4,317 272,396
1949 3,539 3,379 11,173 4,130 253,609
1950 3,837 4,481 12,691 5,515 302,263
1951 3,281 3,778 10,850 4,566 270,722
1952 2,516 4,429 10,948 4,567 274,992
1953 2,487 4,783 11,419 5,072 288,094
1954 2,285 5,941 11,054 5,791 284'458
1955 2,253 6*,786 *12,734 7*,26o 312,510
1956 2,035 6,4o4 10,551 5,680 312,541
1957 2,014 5,486 9,869 5,279 313,128
1958 1,928 4,501 9,605 5,761 320,800
1959 2,474/a 4,613/a 11,049/a 7,118/a
5,345
346,000
I960 1,948 3,763 7,958 3*46,900
* All-time high,
_a/ Shipments. Beginning with January 1959 data for shipments only have been available. Special tabulations
prepared by the source agency indicate only minor differences between production and shipments.
Sources: Table compiled by Department of Commerce (BDSA) from data reported by the National Woodwork
Manufacturers Association (whose data on Ponderosa pine and hardwood doors, sash, and exterior frames
are only from member firms, and are not adjusted to represent full coverage^ and the Bureau of the
Census
339
Table A-35. — Output of selected construction materials (continued)
Portland cement, asphalt and gypsum products
Year
Portland cement
(thousands of barrels)
Asphaltprepared
roofing
Asphalt
sidings
Asphaltinsulated
brick
siding
Asphaltand
tarsaturated
felts
Gypsum
board
Gypsum
lath
Production Shipments Stocks
a/ *Shipm snts (thous ands of squares) Shipments
square
(million
feet)
1947 186,533 187,395 9,975 *71,461 4*,316 *3,686 15,262 2,181 1,704
1948 205,424 204,329 11,084 59,939 3,280 2,560 17,935 2,689 2,505
1949 209,863 206,193 14,706 52,357 2,499 2,188 16,689 2,565 2,016
1950 226,035 227,788 13,024 65,024 2,009 2,402 21,681 3,061 2,794
1951 246,065 241,184 17,993 59,117 2,078 2,411 22,098 3,398 2,756
1952 249,091 251,137 15,957 57,938 1,858 2,718 23,577 3,457 2,317
1953 264,023 260,888 19,231 56,703 1,557 2,794 25,778 3,753 2,437
195k 271,277 274,096 16,731 59,104 1,412 2,303 3*5,754 4,217 2,483
1955 296,829 296,275 17,536 62,582 1,288 2,195 34,629 4,946 *2,940
1956 316,465 311,571 22,412 57,590 1,208 2,055 29,774 4,824 2,675
1957 298,424 292,240 28,716 53,326 1,036 1,764 30,761 4,505 2,224
1958 311,471 309,699 30,718 58,228 1,040 1,616 31,840 5,263 2,155
1959' *339,091 3*38,350 31,459 59,528 935 1,516 34,225 *6,343 2,346
I960 319,010 314,879 *35,484 59,262 870 1,130 33,060 6,072 1,910
* All-time high.
a/ As of end of period.
Sources: Table compiled by Department of Commerce (BDSA) from data reported by the Department of Interior
(Bureau of Mines) and the Bureau of the Census
Iron and steel products in thousands of tons
Year
Line
Pipe
Concrete
reinforcing
bars
Galvanized
sheets
Nails Piling Rails
Cast-iron pipe Rigid
steel
conduit
Fabricated
structural
Pressure Soil steel
Shipments Shipments Bookings Backlog^
1947
1948
19U9
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
I960
1,503
1,888
2,534
3,669
3,187
2,882
3,507
2,595
3,084
3,376
4*,219
2,608
2,803
2,69Q
1,448
1,542
1,573
1,675
1,900
1,813
1,849
1,751
2,164
*2,518
2,300-
2,034
2,174
2,214
1,610
1,643
1,755
2,262
1,985
1,961
2,291
2,363
2,864
2,958
2,393
2,827
2,771
*3,057
799
860
731
*874
865
651
529
567
651
557
447
418
392
320
324
300
302
342
399
235
343
388
391
433
5*70
440-
341
423
*2,419
2,191
1,890
1,822
1,820
1,454
1,954
1,197
1,234
1,300
1,283
580
632
716
1,032
1,150
1,037
1,215
1,473
1,313
1,286
1,376
1,682
1*,747
1,351
1,278
1,441
n.a.
577
640
582
795
688
651
677
744
8*70
818
758
784
862
n.a.
232
254
192
240
281
225
221
228
281
3*59
353
327
295
265
2,606
2,718
2,594
2,829
3,419
3,178
3,777
3,979
3,659
3,780
*4,180
3,664
2,904
3,436
2,365
2,838
2,124
3,735
3,669
3,152
3,475
3,162
4,651
4*,736
3,073
2,773
3,223
3,210
n.a.
n.a.
n.a.
n.a.
1,175
1,033
1,010
743
1,029
1*,313
1,125-
1,135
1,194
1,116
* All-time high.
a/ Scheduled for fabrication in the next 4 months*
n.a. Not available.
Sources: Table compiled by the Department of Commerce (BDSA) from data reported by the American Iron and Steel
Institute, the National Electric Manufacturers Association, the American Institute of Steel
Construction, and the Bureau of the Census
340
Table A-35. — Output of selected construction materials (concluded)
Clay construction products
Year
Brick, common
and face
(million brick)
Structural clay
tile (thousand
tons)
Vitrified clay
sewer pipe
(thousand tons)
Hollow facing tile
(million brick
equivalent)
rloor and wall tile
glazed and unglazed
(thousand sq. ft.)
Production Shipments Production Shipments Production Shipments Production Shipments Production Shipments
1947 5,142 5,012 1,296 1,238 1,395 1,342 378 356 111,192 107,898
1948 5,842 5,707 1,263 1,251 1,496 1,433 335 322 104,061 102,251
1949 5,524 5,252 1*,358 1,259 1,463 1,350 370 357 99,146 93,115
1950 6,333 6,486 1,294 1*,317 1,549 1,568 434 432 127,746 127,302
1951 6,625 6,307 1,239 1,167 1,688 1,555 485 468 146,573 141,322
1952 5,889 5,642 977 994 1,649 1,548 413 389 132,058 123,267
1953 5,874 5,771 990 922 1,655 1,563 456 444 137,429 134,375
1954 6,720 6,657 981 908 1,763 1,703 481 464 177,988 176,253
1955 7,902 7*,741 935 929 2,112 2*,056 534 522 233,001 232,802
1956 8*,085 7,382 862 750 2*,154 2,039 5*76 5*35 251,388 231,262
1957 6,658 6,306 687 641 1,836 1,629 465 441 212,114 207,094
1958 6,489 6,459 574 543 1,773 1,772 484 453 221,768 215,710
1959 7,336 7,258 551 521 2,025 1,973 445 412 2*58,631 *252,545
1960p
1961
7,039 6,612 505 496 1,976 1,882 418 404 247,948 236,358
* All-time high. p - Preliminary.
Heating and plumbing equipment in thousands of units
Year Gas water heaters
Cast iron convectors
and radiators
(thousand sq. ft.)
Furnaces 'Residential
oil burners
sold
separately
Warm air
(all types and fuels) Floor and wall
Shipments Stocks/a Shipments Stocks/a Shipments Stocks/a Shipments Stocks/a shipments
1947 2,091 56 56,720 2,341 885 59 676 29 9*25
1948 1,730 94 6*0,333 5,101 777 85 530 57 274
1949 1,656 52 35,888 5,688 720 65 449 48 424
1950 2,563 63 48,175 2,951 1,100 75 *686 60 631
1951 2,074 90 42,512 *7,784 872 138 507 92 466
1952 1,996 74 36,898 3,859 928 106 548 59 505
1953 2,274 89 31,667 5,957 997 148 552 1*08 541
1954 2,445 103 28,941 5,434 1,152 130 610 74 516
1955 2,634 1*88 30,863 4,884 1,406 208 615 73 610
1956 2,712 134 29,567 3,810 1,355 218 492 70 532
1957 2,825 79 24,892 3,482 1,131 183 469 65 425
1958 2,911 141 22,350 3,993 1,235 169 495 47 382
1959 *2,995 105 23,559 5,181 *1,435 183 573 50 411
1960p
1961
2,520 70 18,082 4,000 1,230 2*25 470 70 328
* All-time high. p - Preliminary,
a/ End of period.
Source: U. S. Department of Commerce
591772—61--------23 341
Table A-36. — Construction materials: annual averages covering monthly indexes of output
(1947-49 monthly average = 100)
Composite
a/
Lumber Paint, Iron and Heating and
Year and wood Mill work varnish and steel plumbing
products lacquer products equipment
(1) (2) (3) (4) (5) (6)
1947 99.6 98.1 90.1 102.7 96.4 124.2
1948 103.1 105.2 110.5 102. 1 102.1 91.2
1949 97.8 98.0 99.4 95.1 101.3 84.7
1950 117.6 116.2 123.5 113.3 120.9 130.5
1951 115-5 114.2 104.2 101.5 125.8 105.8
1952 111.6 114.5 107.3 103.1 113.9 103.8
1953 118.4 115.7 114.5 108. 0 129.8 115.6
1954 120.3 117.3 130.2 106.7 125.2 122.8
1955 132.5 126.6 *149-7 117. 2 135.0 *147.0
1956 133.6 128.0 132.9 117. 2 141.6 137.1
1957 125.7 115.7 118.8 117.4 *143.0 120.0
1958 124.9 122.0 108.4 120.3 123.6 126.6
1959 *135.0 *140.1 121.9 129. 7 116.3 142.2
I960 131.4e 132.7 95.3 1*30.1 126.0e 120.5 e
1961
Percent change
I960 from 1959 -2.7 -5.3 - 21.8 +0.3 +8.3 -15.3
3-year summary
1947 - 49 100.2 100.4 100.0 100.0 99.9 100.0
1950 - 52 114.9 115.0 111.7 106.0 120.2 113.4
1953 - 55 123.7 119.9 *131.5 110.6 130.0 *128.5
1956 - 58 1*28.8 121.*9 120.0 118. 3* 1*36.1 127.9
1959 - 61
Year Portland Asphalt Clay construction lypsum Plumbing
cement products products products fixtures
(7) (8) (9) (10) (11)
1947 93.0 *114.4 97. 2 85.8 94.5
1948 102.4 98.2 103.0 112.9 112.3
1949 104.6 86.1 99. 7 101,1 93.4
1950 112.7 105.4 113. 6 127.5 125.2
1951 122.7 99.0 122.5 135.5 119.8
1952 124.2 99.8 110.3 129.2 94.7
1953 131.6 100.3 112. 0 138.9 101.0
1954 135.2 109.9 128.5 151.6 110.8
1955 147.9 112.4 154.2 178.2 139.8
1956 157.7 101.8 1*60.0 170.4 128.5
1957 148.5 96.5 133. 2 154.4 114.1
1958 155.3 102.6 132. 3 172.5 117.9
1959 *169.0 105.7 149.0 *203.4 *146.1
I960 159.0 102.7 143.Oe 188.8 128.4
1961
Percent change
I960 from 1959 -5.9 -2.8 -4.0 -7.2 -12.1
3-year summary
1947 - 49 100.0 99.6 100. 0 99.9 100.1
1950 - 52 119.9 101.4 115.5 130.7 113.2
1953 - 55 138.2 *107.5 131.6 156.2 117.2
1956 - 58 *153.8 100.3 1*41.8 *165.8 1*20.2
1959 - 61
* All -time. high. e - Estimated. a/ This composite index reflects a weighted combination of
materials shown in columns (2) through (11J.
Source: U. S. Department of Commerce
342
Table A-37. — Civilian noninstitutional population, in labor force and. not in labor force
(Includes all persons 11; years of age and over - in thousands of persons)
Year Total
In labor force Not in
labor
force
Percent of total persons Percent of
labor force
Total Employed
Unemployed
Employed
Unemployed
Not in
labor
force
Employed
Unemployed
All persons
19b0 99,8h0 33,6bo b7,52O 8,120 bb,200 b7.6 8.1 bb.3 85.b lb. 6
19bl 99,900 33,910 50,350 5,560 b3,99O 50. h 5.6 bb.o 90.1 9.9
19b2 98,6h0 36,blO 53,750 2,660 b2,230 5b.5 2.7 b2.8 95.3 b.7
191x3 9b,6hO 33,3bo 5b,b7O 1,070 39,100 57.6 1.1 bl .3 98.1 1.9
19bb 93,220 3b,630 53,960 670 38,590 57.9 .7 bl.b 98.8 1.2
19b5 9h,O9O 33,860 52,820 i,obo b0,230 56.1 1.1 b2.8 98.1 1.9
19b 6 103,070 37,320 55,250 2,270 b5,55o 53.6 2.2 bb.2 96.1 3.9
19b7 106,018 60,168 58,02? 2,lb2 b5,850 5b.7 2.0 b3.2 96. b 3.6
19U8 107,173 61,bb2 59,378 2,06b b5,733 55. b 1.9 b2.7  12 69
1950 100 31 10 21 7 lb 17 15 19 66
1951 100 32 *10 20 6 16 16 12 22 66
1952 100 36 8 20 6 15 15 11 15 7b
1953 100 37 7 19 7 lb 16 12 16 72
19511 100 36 8 19 6 12 19 8 19 73
1955 100 37 7 20 6 12 18 11 25 6b
1956 100 35 7 20 7* 13 18 10 22 68
1957 100 38 6 18 6 15 17 9 16 75
1958 100 38 5 19 6 13 19 17 7 76
138 *88 I? & 1? 3 ??
Sources: Federal Home Loan Bank Board, federal Housing Administration (HHFA), and Veterans Administration
353
Table A-47* — Amount of nonfarm mortgage recordings of $20,000 or less for selected states
(In thousands of dollars)
Year Arizona
California
Colorado Connecticut
District
of
Columbia
Florida Idaho Illinois Indiana Iowa
1940 $16,373 $360,802 $37,369 $79,730 $66,102 $88,200 $12,630 $228,342 $116,198 $56,225
1941 17,378 619,076 41,489 109,263 73,833 92,192 11,906 323,332 130,843 61,667
1942 13,324 487,182 33,168 91,833 36,839 31,216 6,376 262,196 118,629 47,726
1943 13,770 380,623 38,800 77,437 49,669 63,183 8,417 260,378 104,762 44,707
1944 16,024 771,901 30,079 83,108 38,866 100,769 10,778 320,381 120,230 55,632
1943 29,172 911,833 73,168 96,339 78,040 133,216 14,077 390,644 149,577 72,967
1946 63,774 1,738,648 116,682 198,198 109,041 240,972 27,796 663,879 293,873 133,984
1947 92,036 1,963,234 128,674 214,386 113,963 333,983 33,466 706,110 316,214 132,047
1948 93,944 1,747,323 139,326 238,233 102,286 336,113 39,483 763,913 307,666 134,775 -4^ C
1949 71,387 1,627,320 133,342 227,260 98,410 381,082 48,821 730,726 303,506 142,134
1930 114,330 2,391,963 232,712 303,121 132,883 336,202 67,737 948,832 406,794 200,872
1931 107,088 2,433,313 234,363 319,297 123,916 316,430 49,873 933,038 407,609 190,398
1932 131,424 2,633,037 281,979 363,141 118,224 373,961 47,897 1,037,304 438,114 202,773
1933 129,302 3,003,347 294,086 423,871 116,711 669,483 32,003 1,231,063 513,169 220,755
1934 176,920 3,436,417 394,674 430,371 110,063 821,180 63,369 1,433,103 609,750 268,119
1933 207,480 4,776,009 304,267 331,833 117,383 1,070,136 83,072 1,747,276 719,102 334,817
1936 184,707 4,931,731 438,739 333,104 98,270 1,110,130 82,920 1,639,312 650,672 299,960
1937 201,793 4,348,987 404,932 432,734 81,832 1,173,046 82,382 1,439,884 566,839 256,174
1938 260,280 3,043,334 466,346 463,120 86,094 1,362,432 103,997 1,330,802 639,007 305,263
1939 346,331 6,612,312 322,031 316,149 88,308 1,739,896 121,316 1,710,381 730,693 336,645
I960 /a 331,339 3,986,831 309,411 466,491 77,982 1,616,734 98,371 1,473,888 723,054 313,671
1961
1962
1963
1964
Percent change
I960 from 193$ +1.5 -9.3 -2.4 -9.6 -11.9 -8.1 -18.9 -13.8 -1.0 -6.8
3-year summary
1940 - 44 77,069 3,019,386 203,103 443,393 307,311 397,360 30,327 1,396,849 590,662 265,957
1943 - 49 334,313 8,010,398 613,392 974,616 303,740 1,447,366 163,643 3,277,274 1,372,838 615,907
1930 - 34 639,084 13,922,099 1,438,014 1,863,801 601,799 3,119,338 283,081 3,623,382 2,375,436 1,082,917
1933 - 39 1,200,593 25,934,613 2,336,333 2,318,962 472,309 6,477,680 473.887 8,087,833 3,306,313 1,532,859 L-y
Y
i960 - 64
10-year
summary
1940 - 49 431,382 12,030,184 816,497 1,418,009 811,301 1,844,926 213,970 4,674,123 1,963,500 881,864
1930 - 39 2,839,677 39,836,712 3,814,349 4,382,763 1,074,108 9,397,018 738,968 13,711,437 5,681,749 2,615,,776
I960 - 69
Continued on opposite page.
354
Table A-47. — Amount of nonfarm mortgage recordings of $20,000 or less for selected states (continued)
(In thousands of dollars)
Year Kansas Louisiana Maryland Massachusetts
Michigan Minnesota Missouri Montana New
York
North
Dakota
1940 $33,398 $55,546 $64,485 $202,048 $169,826 $81,056 $122,025 $10,935 $268,646 $7,717
1941 39,763 64,249 78,052 236,286 191,851 95,605 141,920 11,177 312,644 7,742
1942 36,369 52,794 83,819 186,217 169,422 66,423 124,068 6,924 246,015 4,958
1943 38,689 46,412 74,985 164,748 149,959 63,944 120,183 6,930 252,479 5,096
1944 39,003 57,591 80,589 196,336 155,812 81,234 143,827 8,659 337,573 7,128
1945 55,027 60,915 109,343 242,613 168,317 111,289 160,105 11,730 441,410 8,619
1946 125,472 120,888 270,027 497,696 386,278 213,248 274,732 22,630 903,295 14,700
1947 133,346 130,248 403,478 513,360 473,588 228,410 280,070 24,567 880,502 18,891
1948 117,588 138,783 352,753 543,158 479,446 226,096 291,067 27,550 1,002,669 20,721
1949 141,521 143,091 281,166 552,418 482,622 236,927 301,253 27,333 906,657 23,668
1950 188,254 177,481 383,616 691,150 702,836 338,892 403,075 42,477 1,260,096 31,714
1951 190,388 186,279 374,124 691,934 646,474 319,088 387,026 39,829 1,206,143 33,224
1952 236,445 210,093 383,080 785,553 616,749 333,226 456,633 40,038 1,202,205 39,757
1953 238,777 235,616 374,345 864,134 700,830 359,406 505,565 43,740 1,366,893 43,509
1954 281,351 283,734 418,112 922,212 883,743 439,748 599,516 55,184 1,519,796 46,210
1955 330,794 370,071 448,972 1,104,857 1,186,877 525,983 685,838 74,268 1,771,143 60,025
1956 315,125 346,530 417,687 1,080,325 1,090,332 466,062 609,789 78,647 1,623,446 59,261
1957 296,210 350,037 351,554 848,872 991,551 403,569 550,773 64,801 1,361,956 51,432
1958 318,290 391,805 405,475 928,825 1,058,965 465,214 645,415 67,711 1,713,031 61,404
1959 355,479 441,983 459,271 1,051,352 1,145,660 505,604 728,436 77,028 1,837,949 76,087
I960 /a
1961
1962
1963
1964
Percent change
273,977 384,620 427,777 996,897 969,499 436,411 669,026 69,183 1,550,023 67,973
I960 from 1959
5-year summary
-22.9 -13.0 -6.9 -5.2 -15.4 -13.7 -8.2 -10.2 -15.7 -10.7
1940 - 44 187,242 276,592 381,930 985,635 836,870 388,262 652,023 44,625 1,417,357 32,641
1945 - 49 572,954 593,925 1,416,767 2,349,245 1,990,251 1,015,970 1,307,227 113,810 4,136,533 86,599
1950 - 54 L,135,215 1,093,205 1,933,277 3,954,983 3,550,632 1,790,360 2,351,815 221,268 6,555,133 194,414
1955 - 59
10-year
summary
L,615,898 1,900,426 2,082,959 5,014,231 5,473,385 2,366,432 3,220,251 362,455 8,307,525 308,209
1940 - 49 760,196 870,517 1,798,697 3,334,880 2,827,121 1,404,232 1,959,250 158,435 5,553,890 119,240
1950 - 59
I960 - 6?
2,751,113 2,993,631 4,016,236 8,969,214 9,024,017 4,156,792 5,572,066 583,723 14,862,658 502,623
Continued on next page.
355
Table A-47. — Amount of nonfarm mortgage recordings of $20,000 or less for selected states (concluded)
(In thousands of dollars)
Year Ohio Oklahoma Oregon Pennsylvania
Rhode
Island Utah ■Washington
West
Virginia Wisconsin Wyoming
19110 $354,449 $53,645 $34,497 $238,167 $23,025 $19,018 $65,791 XX $88,184 $6,855
19111 434,842 56,693 41,037 299,360 26,682 22,224 80,303 XX 101,966 7,165
19112 382,999 53,764 31,754 272,656 22,193 20,207 73,495 XX 93,062 4,433
19113 396,557 58,532 38,204 244,421 22,223 16,271 79,114 XX 91,988 4,863
191111 459,016 69,623 41,277 275,072 28,350 20,433 82,867 XX 112,462 5,846
19115 549,562 84,820 48,447 347,855 34,812 21,354 97,846 XX 132,217 9,040
19116 993,071 148,608 100,938 647,719 55,168 40,668 234,917 XX 229,073 15,341
19117 1,059,900 171,927 137,067 653,554 65,213 50,371 273,425 XX 239,073 16,508
19118 1,005,314 192,870 142,431 691,269 76,173 55,778 259,471 XX 248,060 19,837
19119 944,576 223,893 156,469 658,437 75,504 60,917 298,186 XX 261,203 21,517
1950 1,331,311 301,851 200,681 835,552 93,368 86,391 413,255 XX 334,236 33,054
1951 1,328,721 263,467 190,829 891,418 88,349 83,125 372,280 XX 349,955 28,726
1952 1,542,352 257,469 193,327 923,032 89,213 94,869 397,744 XX 427,082 38,864
1953 1,638,974 267,165 196,800 996,402 100,603 94,046 402,621 XX 478,544 35,343
1954 1,842,938 300,953 235,504 1,082,022 105,469 144,417 573,153 $149,309 573,341 50,754
1955 2,319,152 328,976 284,155 1,274,047 124,097 197,150 671,448 179,059 638,186 53,326
1956 2,190,327 293,562 246,614 1,256,193 115,060 166,332 514,849 169,588 625,420 44,685
1957 1,995,023 251,531 212,506 1,109,588 89,300 145,953 436,583 165,611 511,408 38,832
1958 2,206,281 296,407 274,057 1,142,054 87,304 169,404 586,085 177,402 495,618 53,530
1959 2,487,683 364,062 321,941 1,371,814 95,855 195,768 635,450 181,180 584,641 66,617
I960 /a
1961
1962
1963
196I4.
Percent change
2,375,844 356,540 271,673 1,274,433 89,203 169,546 555,240 178,771 520,010 69,905
I960 from 195$
55 -year summary
-4.5
r
-2.1 -15.6 -7.1 -6.9 -13.4 -12.6 -1.3 -11.1 +4.9
19110 - 44 2,027,863 292,257 186,769 1,329,676 122,473 98,153 381,570 XX 487,662 29,162
19115 - 49 4,552,423 822,118 585,352 2,998,834 306,870 229,088 1,163,845 XX 1,109,626 82,243
1950 - 54 7,684,296 4390,905 1,017,141 4,728,426 477,002 502,848 2,159,053 XX 2,163,158 186,741
1955 - 59
10-year
summary
□,198,466 4534,538 1,339,273 6,153,696 511,616 874,607 2,844,415 872,840 2,855,273 256,990
19110 - 119 6,580,286 4114,375 772,121 4,328,510 429,343 327,241 1,545,415 XX 1,597,288 111,405
1950 - 59
I960 - 69
.8,882,762 ^925,443 2,356,414 10,882,122 988,618 1,377,455 5,003,468 XX 5,018,431 443,731
a/ Nebraska was a new addition in I960 with an amount of $176,046,000.
Source: Federal Home Loan Bank Board
356
Table A-48. — Mortgage debt outstanding on nonfarm residential properties, by 1- to 4-family properties (homes),
multifamily properties (apartments), and type of financing
(Billions of dollars)
End
of
year
Nonfarm residential properties 1- to 4-family properties Multifamily properties
Total FHA
insured
VA
guar’t'd
Conventional
Total FHA
insured
VA
guar't1d
Conventional
Total FHA
insured
Conventional
1925 17.2 XX XX 17.2 13.0 XX XX 13.0 4.2 XX 4.2
1926 19.4 XX XX 19.4 14.8 XX XX 14.8 4.6 XX 4.6
1927 21.4 XX XX 21.4 16.4 XX XX 16.4 5.o XX 5.0
1928 23.3 XX XX 23.3 17.9 XX XX 17.9 5.4 XX 5.4
1929 24.9 .XX XX 24.9 18.9 XX XX 18.9 6.0 XX 6.0
1930 25.4 XX XX 25.4 18.9 XX XX 18.9 6.5 XX 6.5
1931 24.3 XX XX 24.3 18.1 XX XX 18.1 6.2 XX 6.2
1932 22.7 XX XX 22.7 16.7 XX XX 16.7 6.0 XX 6.0
1933 21.1 XX XX 21.1 15.4 XX XX 15.4 5.7 XX 5.7
1934 20.7 XX XX 20.7 15.6 XX XX 15.6 5.1 XX 5.1
1935 20.2 y XX 20.2 15.4 a/ XX 15.4 4.8 a/ 4.8
1936 20.0 o.4 XX 19.6 15.4 o.4 XX 15.0 4.6 a? 4.6
1937 20.0 0.8 XX 19.2 15.5 0.8 XX 14.7 4.5 a/ 4.5
1938 20.2 1.3 XX 18.9 15.8 1.2 XX 14.6 4.4 0.1 4.3
1939 20.8 1.9 XX 13.9 16.3 1.8 XX 14.5 4.5 0.1 4.4
1940 22.0 2.4 XX 19.6 17.4 2.3 XX 15.1 4.6 0.1 4.5
1941 23.2 3.1 XX 20.1 18.4 3.0 XX 15.4 4.8 0.1 4.7
1942 22.9 3.8 XX 19.1 18.2 3.7 XX 14.5 4.7 0.1 4.6
1943 22.4 4.3 XX 18.1 17.8 4.1 XX 13.7 4.6 0.2 4.4
1944 22.4 4.4 XX 18.0 17.9 4.2 XX 13.7 4.5 0.2 4.3
1945 23.3 4.3 0.2 18.8 18.6 4.1 0.2 14.3 4.7 0.2 4.5
1946 28.1 3.9 2.4 21.8 23.0 3.7 2.4 16.9 5.1 0.2 4.9
1947 33.8 4.3 5.5 24.0 28.2 3.8 5.5 18.9 .5.6 0.5 5.1
1948 39.6 6.4 7.2 26.0 33.3 5.3 7.2 20.8 6.3 1.1 5.2
1949 44.9 9.0 8.1 27.8 37.6 6.9 8.1 22.6 7.3 2.1 5.2
1950 53.6 11.8 10.3 31.5 45.2 8.6 10.3 26.3 8.4 3.2 5.2
1951 61.4 13.4 13.2 34.8 51.7 9.7 13.2 28.8 9.7 3.7 6.0
1952 66.9 14-7 14.6 39.6 58.5 10.8 14.6 33.1 io.4 3.9 6.5
1953 77.1 16.0 16.1 45.0 66.1 12.0 16.1 38.0 11.0 4.0 7.0
1954 87.2 16.9 19.3 51.0 75.7 12.8 19.3 43.6 n.5 4.1 7.4
1955 100.6 18.3 24.6 57.7 88.2 14.3 24.6 49.3 12.4 4.0 8.4
1956 1.12.1 19.4 28.4 64.3 99.0 15.5 28.4 55.1 13.1 3.9 9.2
1957 121.3 20.9 30.7 69.7 107.6 16.5 30.7 60.4 13.7 4.4 9.3
195o 133.0 24.8 30.4 77.8 117.7 19.7 30.4 67.6 15.3 5.0 10.3
1959 p 148.2 29.3 30.0 88.9 130.9 23.9 30.0 77.0 17.3 5.4 11.9
1960p 160.5 32.6 29.7 98.2 142.0 26.7 29.7 85.6 18.5 5.9 12.6
1961
Net change
5-years
1930 - 34 -4.2 XX XX -4.2 -3.3 XX XX -3.3 -0.9 XX -0.9
1935 - 39 +0.1 +1.9 XX -1.8 +0.7 +1.8 XX -1.1 -0.6 +0.1 -0.7
1940 - 44 +1.6 +2.5 XX -0.9 +1.6 +2.4 XX -0.8 0 +0.1 -0.1
1945 - 49 +22.5 +4.6 +8.1 +9.8 +19.7 +2.7 +8.1 +8.9 +2.8 +1.9 +0.9
1950 - 54 +42.3 +7.9 +11.2 +23.2 +38.1 +5.9 +11.2 +21.0 +4.2 +2.0 +2.2
Net change
1-year
1955 +13.4 +1.4 *+5.3 +6.7 +12.5 +1.5 *+5.3 +5.7 +0.9 -0.1 +1.0
1956 +11.5 +1.1 +3.8 +6.6 +10.8 +1.2 +3.8 +5.8 +0.7 -0.1 +0.8
1957 +9.2 +1.5 +2.3 +5.4 +8.6 +1.0 +2.3 +5.3 +0.6 +0.5 +0.1
1958 +11.7 +3.9 40.3 +8.1 +10.1 +3.2 -0..3 +7.2 +1.6 +0.6/b +1.0
1959 *+15.2 *+4.5 -0.4 *+11.1 *+13.2 *+4.2 -o.4 *+9.4 *+2.O +0.4 *+1.6
I960 +12.3 +3.3 -0.3 +9.3 +11.1 +2.8 -0.3 +8.6 +1.2 +o.5 +0.7
* All-time high. p - Preliminary.
a/ Less than $50 million. b/ All-time high $1.1 billion in 1950.
Sources: Federal Home Loan Bank Board, Federal Housing Administration (HHFA), and Veterans Administration
357
Table A-49. — Mortgage debt outstanding on nonfarm residential properties (1- to 4-family homes
and mu!t,if amily - apartments), by type of financing and holder
(in mill ions of dollars)
Year
and
type of
financing
Total
debt all
residential
properties
Private holders Federal agencies
Total
Financial institutions Individuals
and
others
a/
Federal
National
Mortgage
Association
Other
Total 6/
Savings
and loan
assns
Life
insurance
companies
Mutual
savings
banks
Commercial
banks
1946 28,098 27,426 19,747 6,998 4,015 3,588 5,146 7,679 6 666
FHA insured 3,906 3,895 3,352 422 1,228 315 1,387 543 6 5
VA guaranteed 2,400 2,400 2,315 977 254 194 890 85 0 0
Conventional 21,792 21,131 14,080 5,599 2,533 3,079 2,869 7,051 0 661
1947 3.3^755 33,124 24,619 8,679 5,070 3,937 6,933 8,505 _4 627
FHA 4,330 4,325 3,658 423 1,398 330 1,507 667 4 1
VA 5,5oo 5,385 5,225 2,035 843 477 1,870 160 0 115
Conventional 23,925 23,414 15,736 6,221 2,829 3,130 3,556 7,678 0 511
1948 39,613 38,895 29,712 10,099 6,789 4,758 8,066 9,183 199 519
FHA 6,413 6,223 5,527 "563 2,381 621 1,962 696 188 2
VA 7,200 7,064 6,486 2,397 1,104 755 2,230 578 11 125
Conventional 26,000 25,608 17,699 7,139 3,304 3,382 3,874 7,909 0 392
1949 44,886 43,682 34,018 11,384 8,389 5,569 8,676 9,664 828 376
FHA 9,o4o 8,636 7,521 717 3,454 918 2,432 1,115 403 1
VA 8,100 7,558 7,237 2,586 1,224 1,077 2,350 321 425 117
Conventional 27,746 27,488 19,260 8,081 3,711 3,574 3,894 8,228 0 258
1950 53,617 52,109 41,962 13,384 11,093 7,054 10,431 10,147 1,346 162
FHA 11,782 11,612 10,141 848 4,573 1,615 3,105 1,471 169 1
VA 10,300 9,036 9,086 2,973 2,026 1,457 2,630 -50 1,177 87
Conventional 31,535 31,461 22,735 9,563 4,494 3,982 4,696 8,726 0 74
1951 61,392 59,269 48,759 15,253 13,641 8,595 11,270 10,510 1,848 275
FHA 13,383 13,179 12,111 866 5,257 2,567 3,421 1,068 204 0
VA 13,200 11,481 10,911 3,133 3,131 1,726 2,921 570 1,644 75
Conventional 34,809 34,609 25,737 11,254 5,253 4,302 4,928 8,872 0 200
1952 68,878 66,281 55,144 18,028 15,045 9,883 12,188 11,137 2^240 357
FHA 14,690 14,370 13,428 904 5,681 3,168 3,675 942 320 0
VA 14,600 12,610 11,990 3,394 3,347 2,237 3,012 620 1,920 70
Conventional 39,588 39,301 29,726 13,730 6,017 4,478 5,501 9,575 0 287
1953 77,117 74,164 62,340 21,523 16,558 11,334 12,925 11,824 2,460 493
FHA 16,018 15,397 14,461 1,048 6,012 3,489 3,912 936 621 0
VA 16,100 14,196 13,653 3,979 3,560 3,053 3,061 543 1,839 65
Conventional 44,999 44,571 34,226 16,496 6,986 4,792 5,952 10,345 0 428
1954 87,196 84,201 71,506 25,586 18,557 13,211 14,152 12,695 2,474 521
FHA 16,889 16,087 15,192 1,170 6,116 3,800 4,106 895 802 0
VA 19,300 17,670 16,964 4,709 4,643 4,262 3,350 706 1,630 0
Conventional 51,007 50,444 39,350 19,707 7,798 5,149 6,696 11,094 42 521
Continued on opposite page.
358
Table A-49- — Mortgage debt outstanding on nonfarm residential properties (1- to 4-family homes
and multifamily - apartments), by type of financing and holder (concluded)
a/ Includes mortgages held by trust departments of commercial banks, pension funds, philanthropic and educational
institutions, fraternal and beneficial organizations, casualty and fire insurance companies, real estate and
mortgage companies, and other organizations and individuals.
b/ Includes mortgages held by FHA. and VA.
(in millions of dollars)
Year
and
type of
financing
Total
debt all
residential
properties
Private holders Federal agencies
Total
Financial institutions Individuals
and
others
y
Federal
National
Mortgage
Association
Other
Total 8/
Savings
and loan
assns
Life
insurance
companies
Mutual
savings
banks
Commercial
banks
1955 100,618 97,260 83,449 30,780 21,213 15,568 15,888 13,811 2,654 704
FHA insured 18,331 17,430 16,509 1,404 6,395 4,150 4,560 921 901 0
VA guaranteed 24,600 22,887 21,441 5,883 6,074 5,773 3,711 1,446 1,713 0
Conventional 57,687 56,943 45,499 23,493 8,744 5,645 7,617 11,444 40 704
1956 112,082 108,161 93,466 35,014 23,745 17,703 17,004 14,695 3,085 836
FHA 19,443 18,465 17,325 1,486 6,627 4,409 4,803 1,140 978 0
VA 28,400 26,332 24,988 6,643 7,304 7,139 3,902 1,344 2,068 0
Conventional 64,239 63,364 51,153 26,885 9,814 6,155 8,299 12,211 39 836
1957 121,28? 116,169 100,356 39,207 24,992 19,010 17,147 15,813 4,011 1,107
FHA 20,867 19,630 17,886 1,643 6,751 4,669 4,823 1,744 1,237 0
VA 30,700 27,964 26,111 7,011 7,721 7,790 3,589 1,853 2,736 0
Conventional 69,720 68,575 56,359 30,553 10,520 6,551 8,735 12,216 38 1,107
1958 133,027 127,800 110,161 44,714 25,921 20,935 18,591 17,639 3,936 1,291
FHA 24,757 23,274 20,626 2,206 7,443 5,501 5,476 2,648 1,483 0
VA 30,400 27,984 26,206 7,077 7,433 8,361 3,335 1,778 2,416 0
Conventional 77,870 76,542 63,329 35,431 11,045 7,073 9,780 13,213 37 1,291
1959 148,227 141,118 122,204 52,128 27,251 22,505 20,320 18,914 5,581 1,528
FHA 29,283 26,737 23,659 2,989 8,273 6,275 6,122 3,078 2,546 0
VA 30,000 27,016 26,023 7,187 7,086 8,589 3,161 993 2,984 0
Conventional 88,944 87,365 72,522 41,952 11,892 7,641 11,037 14,843 51 1,528
I960 160,500 152,647 132,626 58,870 28,885 24,382 20,489 20,021 6,341 1,512
FHA 32,650 29,294 25,945 3,179 9,181 6,829 6,756 3,349 3,356 0
VA 29,700 26,897 25,900 7,155 7,045 8,555 3,145 997 2,803 0
•Conventional
1961
FHA
VA
Conventional
1962
FHA
VA
Conventional
98,150 96,456 80,781 48,536 12,659 8,998 10,588 15,675 182 1,512
Sources: Federal Home Loan Bank, Veterans Administration, Federal Housing Administration (HHFA), Federal
National Mortgage Association (HHFA), and Office of the Administrator (HHFA)
359
Table A-50. — Mortgage debt outstanding on nonfarm 1- to 4-family homes, by type of financing and holder
(In millions of dollars)
Total Private holders Federal agencies
Year debt all Financial institutions Indi- Federal
and 1- to 4- viduals National Other
type of family Total 8/ Savings Life Mutual Com- and Mortgage
financing proper- Total and loan insurance savings mercial others Associties
assns companies banks banks a/ ation
1946 23,034 22,368 15,994 6,840 2,545 2,033 4,576 6,374 6 660
FHA. insured 3,692 3,681 3,172 415 1,108 288 1,361 509 6 5
VA guaranteed 2,400 2,400 2,315 977 254 194 890 85 0 0
Conventional 16,942 16,287 10,507 5,448 1,183 1,551 2,325 5,780 0 655
1947 28,199 27,574 20,558 8^475 3,497 2,283 6,303 7,016 _4 621
FHA 3,781 3,776 3,359 409 1,281 275 1,394 417 4 1
VA 5,500 5,385 5,225 2,035 843 477 1,870 160 0 115
Conventional 18,918 18,413 11,974 6,031 1,373 1,531 3,039 6,439 0 505
1948 33,279 32,569 25,015 9^841 4,943 2,835 7,396 7,554 197 513
FHA 5,269 5,081 4,762 545 2,043 467 1,707 319 186 2
VA 7,200 7,064 6,486 2,397 1,104 755 2,230 578 11 125
Conventional 20,810 20,424 13,767 6,899 1,796 1,613 3,459 6,657 0 386
1949 37,621 36,445 28,530 6,093 3i364 7,956 7,915 808 368
FHA 6,906 6,522 6,077 685 2,785 605 2,002 445 383 1
VA 8,100 7,558 7,237 2,586 1,224 1,077 2,350 321 425 117
Conventional 22,615 22,365 15,216 7,846 2,084 1,682 3,604 7,149 0 250
1950 te.175 43,707 35,387 13,116 8,478 4,312 9,481 8,320 1,333 135
FHA 8,563 8,406 8,014 812 3,683 1,009 2,510 392 156 1
VA 10,300 9,036 9,086 2,973 2,026 1,457 2,630 -50 1,177 87
Conventional 26,312 26,265 18,287 9,331 2,769 1,846 4,341 7,978 0 47
1951 51,718 49,655 41,060 14,844 10,610 5,331 10,275 8,595 1,825 238
FHA 9,677 9,496 9,315 84o 4,120 1,543 2,812 181 181 0
VA 13,200 11,481 10,911 3,133 3,131 1,726 2,921 570 1,644 75
Conventional 28,841 28,678 20,834 10,871 3,359 2,062 4,542 7,844 0 163
1952 58,508 55,985 46,846 17,645 11,757 6,194 11^250 9,139 2,218 305
FHA 10,770 10,472 10,237 885 4,365 1,793 3,194 235 298 0
VA i4,6oo 12,610 11,990 3,394 3,347 2,237 3,012 620 1,920 70
Conventional 33,138 32,903 24,619 13,366 4,045 2,164 5,044 8,2821 0 235
1953 66,102 63,333 53,592 20,999 13,195 7,373 12,025 9,741 2,365 404
FHA 11,990 11,464 11,242 1,020 4,673 2,020 3,529 222 526 0
VA 16,100 14,196 13,653 3,979 3,560 3,053 3,061 543 1,839 65
Conventional 38,012 37,673 28,697 16,000 4,962 2,300 5,435 8,976 0 339
1954 75,677 72,908 62,459 25,004' 15,153 9,002 13,300 10,449 2,327 442
FHA 12,778 12,081 11,975 1,149 4,802 2,234 3,790 106 697 0
VA 19,300 17,670 16,964 4,709 4,643 4,262 3,350 706 -1,630 0
Conventional 43,599 43,157 33,520 19,146 5,708 2,506 6,160 9,637 0 442
Continued on opposite page
360
Table A~50. -- Mortgage debt outstanding on nonfarm 1- to 4-family homes, by type of financing and holder (concluded)
(In millions of dollars)
Year
and
type of
financing
Total
debt all
1- to 4-
family
properties
Private holders Federal agencies
Total
Financial institutions Individuals
and
others
V
Federal
National
Mortgage
Association
Other
Total 8/
Savings
and loan
ass ns
Life
insurance
companies
Mutual
savings
banks
Commercial
banks
1955 88,249 85,234 73,837 30,001 17,661 11,100 15,075 11,397 2,443 572
FHA insured 14,337 13,607 13,356 1,390 5,104 2,576 4,286 251 730 0
VA guaranteed 24,600 22,887 21,441 5,883 6,074 5,773 3,711 1,446 1,713 0
Conventional 49,312 48,740 39,040 22,728 6,483 2,751 7,078 9,700 0 572
1956 99,001 95,466 83,369 34,004 20,130 12,990 16,245 12,099 2,867 666
FHA 15,505 14,706 14,265 1,472 5,381 2,897 4,515 441 799 0
VA 28,400 26,332 24,988 6,643 7,304 7,139 3,902 1,344 2,068 0
Conventional 55,096 54,430 44,116 25,889 7,445 2,954 7,828 10,314 0 666
1957 107,617 102,930 69,932 37,996 21,441 14,110 16,385 12,998 3,777 910
FHA 16,501 15,460 1*544, 1,603 5,541 3,140 4,370 806 "1,041 0
VA 30,700 27,964 26,111 7,011 7,721 7,790 3,589 1,853 - 2,736 0
Conventional 60,416 59,506 49,167 29,382 8,179 3,180 8,426 10,339 0 910
1958 117,687 113,026 98,532 42,890 22,374 15,640 17,628 14,494 3,58o 1,081
FHA 19,725 18,561 17,111 2,157 6,279 3,829 4,846 1,450 1,164 0
VA 30,400 27,984 26,206 7,077 7,433 8,361 3,335 1,776 2,416 0
Conventional 67,5'62 66,481 55,215 33,656 8,662 3,450 9,447 11,266 0 1,081
1959 130,909 124,666 109,260 49,587 23,586 16,887 19,200 15,408 .4,953 1,288
FHA 23,654 21,900 20,142 2,9144 7,125 4,631 5,442 1,758 1,954 0
VA 30,000 27,016 26,023 7,167 7,086 8,589 3,161 993 2,984 0
Conventional 77,055 75,752 63,095 39,456 9,375 3,667 10,597 12,657 15 1,288
I960 142,000 135,124 118,635 56,160 24,965 18,395 19,295 16,289 5,536 1,340
FHA 26,75c 24,077 22,150 3,130 7,945 5,055 6,020 1,927 2,673 0
VA 29,700 26,897 25,900 7,155 7,045 8,555 3,145 997 2,803 0
Conventional
1961
FHA
VA
Conventional
1962
FHA
VA
Conventional
85,550 84,150 70,785 45,875 9,995 4,785 10,130 13,365 60 1,340
a/ Includes mortgages held by trust departments of commercial banks, pension funds, philanthropic and educational
institutions, fraternal and beneficial organizations, casualty and fire insurance companies, real estate and
mortgage companies, and other organizations and individuals.
b/ Includes mortgages held by FHA. and VA.
Sources: Federal Home Loan Bank, Veterans Administration, Federal Housing Administration (HHFA), Federal
National Mortgage Association (HHFA), and Office of the Administrator (HHFA)
361
Table A-51.— Mortgage debt outstanding on nonfarm multifamily-apartments, by type of financing and holder
(In millions of dollars)
Year
and
type of
financing
Total
debt all
multifamily
properties
Private holders Federal agencies
Total
Financial institutions Individuals
and
others
Federal
National
Mortgage
Association
Other
Total 6/
Savings
and loan
assns
Life
insurance
companies
Mutual
savings
banks
Commercial
banks
1946 5,064 5,058 3,753 158 1,470 1,555 570 1,305 g/ 6
FHA insured 214 214 180 7 120 27 26 34 a/ 0
Conventional 4,850 4,844 3,573 151 1,350 1,528 544 1,271 c/ 6
1947 5,556 5,55o 4,061 204 1,573 1,654 630 1,489 £ 6
FHA 549 549 299 14 117 55 H3 250 a/ 0
Conventional 5,007 5,ooi 3,762 190 1,456 1,599 517 1,239 2/ 6
1948 6,334 6,326 L697 258 1,846 1,923 670 1,629 2 6
FHA 1,144 1,142 765 18 338 154 255 377 2 0
Conventional 5,190 5,184 3,932 240 1,508 1,769 415 1,252 0 6
1949 7,265 7,237 5,488 267 2,296 2,205 720 14742 20 8
FHA 2,134 2,114 1,444 32 r 669 313 430 670 20 0
Conventional 5,131 5,123 4,o44 235 1,627 1,892 290 1,079 0 8
1950 8,442 8,402 6,575 268 2^615 2,742 95Q 1,827 13 27
FHA 3,219 3,206 2,127 36 890 606 595 1,079 13 0
Conventional 5,223 5,196 4,448 232 1,725 2,136 355 748 0 27
1951 9,674 9,614 7,699 409 3,031 3,264 995 1,915 23 37
FHA 3,706 3,683 2,796 26 1,137 1,024 609 887 23 0
Conventional 5,968 5,931 4,903 383 1,894 2,240 386 1,028 0 37
1952 10,370 10,296 8,298 383 3,288 3,689 938 1,998 22 52
FHA 3,920 3,898 3,191 19 1,316 1,375 481 707 22 0
Conventional 6,450 6,398 5,107 364 1,972 2,314 457 1,291 0 52
1953 11,015 10,831 8,748 524 3,363 3,961 900 2,083 95 89
FHA 4,028 3,933 3,219 28 1,339 1,469 383 714 95 0
Conventional 6,987 6,898 5,529 496 2,024 2,492 517 1,369 0 89
1954 11,519 11,293 9,047 582 3,404 4,209 852 2^ 147 79
FHA 4,m 4,006 3,217 21 1,314 1,566 316 789 105 0
Conventional 7,408 7,287 5,830 561 2,090 2,643 536 1,457 42 79
Continued on opposite page.
362
Table A-51. — Mortgage debt outstanding on nonfarm raultifamily-apartments,
by type of financing and holder (concluded)
a/ Includes mortgages held by trust departments of commercial banks, pension funds, philanthropic and educational
institutions, fraternal and beneficial organizations, casualty and fire insurance companies, real estate and
mortgage companies, and other organizations and individuals.
b/ Includes mortgages held by FHA. c/ Less than $$00 thousand.
(In millions of dollars)
Year
and
type of
financing
Total
debt all
multifamily
properties
Private holders Federal agencies
Total
Financial institutions Individuals
and
others
y
Federal
National
Mortgage
Association
Other
Total b/
Savings
and loan
assns
Life
insurance
companies
Mutual
savings
banks
Commercial
banks
1955 12,369 12,026 9,612 779 3,552 4,468 813 2,414 171 172
FHA insured 3,994 3,823 3,153 14 1,291 1,574 274 670 171 0
Conventional 8,375 8,203 6,459 765 2,261 2,894 539 1,744 0 172
1956 13,081 12,693 10,097 1,010 3,615 4,713 759 2,596 218 170
FHA 3,938 3,759 3,060 14 1,246 1,512 288 699 179 0
Conventional 9,143 8,934 7,037 996 2,369 3,201 471 1,897 39 170
1957 13,670 13,239 10,424 1,211 3,551 4,900 762 2,815 234 197
FHA 4,366 4,170 3,232 40 1,210 1,529 453 938 196 0
Conventional 9,304 9,069 7,192 1,171 2,341 3,371 309 1,877 38 197
1958 15,340 14,774 11,629 1,824 5,295 963 3,145 356 210
FHA 5,032 4,713 3,515 49 1,164 1,672 630 1,198 319 0
Conventional 10,308 10,061 8,114 1,775 2,383 3,623 333 1,947 37 210
1959 17,316 16,450 12,944 2,541 3,665 5,618 1,120 3,506 628 240
FHA 5,429 4,837 3,517 45 1,148 1,644 680 1,320 592 0
Conventional 11,889 11,613 9,427 2,496 2,517 3,974 440 2,186 36 240
I960 18,500 17,523 13,791 2J1C 3,900 5^987 1,194 3,732 805 172
FHA 5,900 5,217 3,795 49 1,236 1,774 736 1,422 683 0
Conventional
1961
FHA
Conventional
1962
FHA
Conventional
12,600 12,306 9,996 2,661 2,664 4,213 458 2,310 122 172
Sources: Federal Home Loan Bank, Federal Housing Administration (HHFA), Federal National Mortgage
Association (HHFA), and Office of the Administrator (HHFA)
363
Table A-52. — FHA applications received and commitments issued
(Thousands of dwelling units)
Year
Home and project units Home units /a Project units
Total Proposed Existing Total Proposed Existing Total Proposed Existing
Applications received
1935
1936
1937
1938
1939
Not
available
74.9
143.0
149.5
243.2
270.2
20.6
47.8
49.8
131.1
179.8
54.3
95.2
99.7
112.1
90.3
Not
available
1940 310.9 236.8 74.1 305.2 231.2 74.0 5.7 5.6 0.1
1941 366.8 293.8 73.0 361.1 288.5 72.6 5.7 5.3 .4/b
1942 316.5 248.8 67.7 305.8 238.5 67.3 10.7 10.3 .4
1943 241.6 176.4 65.1 209.4 144.4 65.0 32.2 32.0 .1
1944 146.8 69.6 77.2 137.3 62.9 74.4 9.5 6.7 *2.8/c
1945 147.8 59.5 88.3 144.0 56.6 87.4 3.8 2.9 .9
1946 243.8 134.7 109.2 230.2 121.7 108.5 13.6 13.0 .7
1947 588.2 426.1 162.1 448.1 286.4 161.7 140.1 139.7 .4
1948 588.8 375.2 213.6 505.5 293.2 212.3 83.3 82.0 1.3
1949' 783.8 569.6 214.2 539.7 327.0 212.7 2*44.1 2*42.6 1.5
1950 809.1 *627.9 181.2 577.9 *397.7 180.2 231.2 230.2 1.0
1951 417.5 268.8 148.7 340.6 192.8 147.8 76.9 76.0 .9
1952 529.2 323.9 205.3 473.2 267.9 205.3 56.0 56.0 0
1953 507.5 327.2 180.3 434.0 253.7 180.2 73.6 73.5 .1
1954 622.9 383.4 239.6 578.1 338.6 239.5 44.8 44.8 .1
1955 628.0 314.9 313.1 618.6 306.2 312.4 9.4 8.7 .7
1956 473.1 227.6 245.6 442.8 197.7 245.2 30.3 29.9 .4
1957 540.4 266.2 274.3 472.8 198.8 274.0 67.6 67.4 .3
1958 *980.2 434.1 *546.1 8*87.7 341.7 5*46.0 92.5 92.4 .1
1959 918.4 440.8 477.6 846.9 369.7 477.2 71.5 71.1 .4
I960
1961
743.3 318.3 425.0 664.9 242.4 422.5 78.5/d 75.9 2.5
Commitments issued
1935 48.8 16.1 32.6 47.4 14.8 32.6 1.3/e 1.3 0
1936 128.1 45.1 83.1 126.6 43.6 83.1 1.5/e 1.5 0
1937 136.8 52.8 83.9 128.4 44.5 83.9 8*.UZ 8.4 0
1938 205.7 123.1 82.6 186.8 104.2 82.6 18.9/e 18.9 0
1939 213.2 150.9 62.3 206.8 144.6 62.3 6.3 6.3 0
1940 247.6 194.0 53.6 243.2 189.7 53.4 4.4 4.3 .1
1941 303.8 249.0 54.8 299.0 244.7 54.3 4.8 4.4 .4
1942 267.3 211.8 55.5 260.4 205.3 55.1 6.9 6.5 .4
1943 212.0 157.2 54.8 188.8 134.1 54.6 23.2 23.1 .1
1944 140.4 74.8 65.5 129.3 66.5 62.8 11.1 8.3 2*.8
1945 123.6 52.9 70.8 120.0 50.1 69.9 3.7 2.8 .9
1946 202.4 113.2 89.2 195.0 106.4 88.6 7.4 6.8 .6
1947 476.5 346.8 129.7 378.7 249.2 129.5 97.8 97.6 .2
1946 505.1 326.3 178.8 427.3 249.9 177.4 77.8 76.4 1.4
1949 636.7 453.9 182.8 467.6 286.3 181.3 *169.1 1*67.6 1.5
1950 684.5 5*26.2 158.3 527.7 3*70.5 157.2 156.9 155.7 1.1
1951 360.0 229.1 130.9 302.8 172.7 130.1 57.3 56.4 .9
1952 456.3 275.0 181.3 416.6 235.3 181.3 39.7 39.7 0
1953 442.8 276.8 166.0 399.2 233.3 166.0 43.5 43.5 0
1954 495.7 304.3 191.5 471.6 280.2 191.5 24.1 24.1 £/
1955 597.7 306.7 290.9 588.0 297.8 290.1 9.7 8.9 .8
1956 429.4 206.0 223.4 410.9 187.9 223.0 18.5 18.1 .4
1957 477.7 240.9 236.8 414.5 178.0 236.6 63.1 63.0 .2
1958 *775.8 335.5 4*40.3 *708.9 268.8 *440.1 66.9 66.7 .2
1959 600.6 283.7 316.8 549.3 232.8 316.6 51.2 51.0 .3
I960
1961
751.9 373.4 378.4 682.5 305.4 377.1 69.3/g 68.0 1.3
* All-time high.
a/ Applications thru 1944 based on number of cases; commitment data exclude Title I, class 3.
b/ Estimated on basis of loans insured. c/ Includes estimated 2,181 Sec. 207 units, based on loans insured.
d/ Excludes 2,463 beds under Sec. 232. e/ Based on net commitments (excludes expired commitments).
f/ Less than 50 units. g/ Excludes 932 beds under Sec. 232.
Source: Federal Housing Administration (HHFA)
364
Table A-53. — FHA mortgage insurance written
* All-time high.
a/ Excludes 171 beds under Section 232.
b/ Components do not add precisely to this total due to rounding.
Year Homes Projects
Total Proposed Existing Total Proposed Existing
Dwelling units
Cumulated 1934-1960 5,870,698 3,110,972 2,759,726 890,589 877,283 13,306
• 1934-1935 25,455 5!o5i 20,362 738 w 0
1936 83,920 21,415 62,505 624 624 0
1937 110,850 38,479 72,371 3,023 3,023 0
1938 122,160 56,437 65,723 11,930 11,930 0
1939 171,232 113,969 57,263 13,462 13,462 0
1940 182,974 136,562 46,412 3,559 3,446 113
1941 215,777 169,242 46,535 3,741 3,296 445
1942 235,766 185,184 50,582 5,842 5,458 384
1943 189,733 140,767 48,966 20,179 20,035 144
1944 157,138 106,296 50,842 12,430 9,655 *2,775
1945 103,378 54,789 48,589 4,058 3,137 921
1946 85,751 22,503 63,248 2,232 1,579 653
1947 150,091 71,361 78,730 46,604 46,446 158
1948 320,725 206,368 114,357 79,184 77,808 1,376
1949 319,506 185,375 134,131 133,135 131,622 1,513
1950 351,528 2*25,269 126,259 *154,597 1*53,477 1,120
1951 261,231 161,673 99,558 74,207 73,333 874
1952 246,109 122,764 123,345 39,839 39,839 0
1953 272,299 151,777 120,522 30,701 30,701 0
1954 222,665 121,847 100,818 28,257 28,257 0
1955 318,454 131,116 187,338 9,431 8,639 792
1956 253,300 105,315 147,985 11,177 10,933 244
1957 202,454 74,602 127,852 43,609 43,388 221
1958 *389,450 133,829 2*55,621 64,953 64,851 102
1959 505,493 200,222 305,271 43,976 43,632 344
I960
1961
373,261 168,720 204,541 49,101 47,974/a 1,127
Amount (000 omitted)
Cumulated 1934-1960 $46,030,582 $23,556,247 $22,474,335/b $7,992,272/b $7,943,454/b $48,819
1934-1935 93,882 22,331 71,551 2,355 2,355 0
1936 308,945 95,060 213,885 2,101 2,101 0
1937 424,373 168,867 255,506 10,483 10,483 0
1938 485,812/b 239,966 245,847 47,638 47,638 0
1939 694,764 486,366 208,398 51,851 51,851 0
1940 762,084 587,136 174,948 12,949 12,489 460
1941 910,770 727,758 183,012 13,565 12,014 1,551
1942 973,271 765,639 207,632 21,215 19,533 1,682
1943 763,097/b 553,146 209,952 84,622 84,047 575
1944 707,363^ 483,667 223,697 56,096 46,105 *9,991
1945 474,245 257,144 217,101 19,817 15,903 3,914
1946 421,949 120,088 301,861 13,175 10,889 2,286
1947 894,675 476,886 417,789 359,944 358,602 1,342
1948 2,116,043/b 1,431,988 684,056 608,711 605,800 2,911
1949 2,209,842 1,317,346 892,496 1,021,231 1,017,258 3,973
1950 2,492,367/b 1,636,678 855,690 *1,156,681/b *1,154,680 2,002
1951 1,928,433 1,215,535 712,898 583,774 577,545 6,229
1952 1,942,307 968,613 973,694 321,911 321,911 O
1953 2,288,626 1,258,558 1,030,068 259,194 259,194 0
1954 1,942,266/b 1,035,366 906,899 234,022 234,022 0
1955 3,084,767 1,269,179 1,815,588 76,489/b 73,347 3,143
1956 2,638,230 1,132,930 1,505,300 130,247 129,585 662
1957 2,251,064 880,143 1,370,921 597,348 596,517 831
1958 4,551,483 1,665,886 2,885,597 908,671 908,208 463
1959 *6,069,418 *2,562,611 *3,506,807 674,682 673,385 1,297
I960 4,600,506 2,197,360 2,403,146 723,500 717,993 5,507
1961
Sources Federal Housing Administration (HHFA)
365
Table A-54. — FHA mortgage insurance written, terminated, and outstanding
(In billions of dollars)
End
of
year
Gross insurance written
2/
Insurance terminated
and/or amortized/b
Estimated insurance
outs tanding
Total Home
mortgages
Project
mortgages
Total Home
mortgages
Project
mortgages Total Home
mortgages
Project
mortgages
1934 - 39 2.1 2.0 0.1 0.3 0.3 c/ 1.9 1.8 0.1
1940 2.9 2.8 .1 .4 .4 c/ 2.5 2.3 .1
1941 3.8 3.7 .1 .7 .7 c/ 3.1 3.0 .1
1942 4.8 4.7 .2 .9 .9 c/ 3.9 3.7 .1
1943 5.7 5.4 .2 1.4 1.4 c/ 4.3 4.1 .2
1944 6.4 6.1 .3 2.0 1.9 0.1 4.4 4.2 .2
1945 6.9 6.6 .3 2.6 2.5 .1 4.3 4.1 ,2
1946 7.4 7.0 .3 3.5 3.3 .1 3.9 3.7 .2
1947 8.6 7.9 .7 4.3 4.1 .1 4,3 3.8 .5
1948 11.3 10.0 1.3 4.9 4.8 ,2 6.4 5.3 1.1
1949 14.6 12.2 2.3 5.5 5.3 .2 9.0 6.9 2.1
1950 18.2 14.7 3.5 6.4 6.2 .3 11.8 8.6 3.2
1951 20.7 16.7 4.1 7.3 7.0 .4 13.4 9.7 3.7
1952 23.0 18.6 4.4 8.3 7.8 .5 14.7 10,8 3.9
19^3 25.5 20.9 4.6 9.5 8.9 .6 16.0 12,0 4.0
1954 27.7 22.8 4.9 10.8 10,1 .8 16.9 12.8 4.1
1955 30.9 25.9 5.0 12.5 11.6 1.0 18.3 14.3 4.0
1956 33.6 28.6 5.1 14.2 13.1 1.2 19.4 15.5 3.9
1957 36.5 30.8 5.7 15.6 14.3 1.3 20.9 16.5 4.4
1958 42,0 35.n 6.6 17.2 15.7 1.5 24.8 19.7 5.1
1959 48.7 41.4 7.3 19.4 17.5 1.9 29.3 23.9 5.4
I960 54.o 46.0 8.0 21.4 19.3 2.1 32.6 26.7 5.9
a/ Data exclude loans under Title I, classes 1 and 2 for property improvement and Title VI, Sec. 609 for
manufactured homes.
b/ The amount amortized is estimated by FHA. c/ Less than $50 million.
Source: Federal Housing Administration (HHFA)
Table A-55. — FHA property improvement loans
(Dollar amounts in thousands)
Year Number
Net
proceeds
amount
Year Number
Net
proceeds
amount
Year Number
Net
proceeds
amount
1934 - 59 24,368,433 $13,353,067 1940
1941
194'2
653,841
680,104
427,534
$216,142
228,007
126,354
1950
1951
1952
1,447,101
1,437,764
1,495,741
$693,761
707,070
848,327
1934 72,658 27,406 1943
1944
307,826
389,615
86,267
114,013
1953
1954
*2,244,227
1,506,480
1*,334,287
890,606
1935 635,747 201,258 1945 501,441 170,923 1955 1,024,698 645,645
1936 617,697 221,535 1946 799,304 320,654 1956 1,013,086 691,992
1937 124,758 54,344 1947 1,247,613 533,645 • 1957 1,111,962 868,568
1938 376,480 138,143 1948 1,357,386 614,239 1958 1,038,315 868,443
1939 502,308 178,647 1949 1,246,254 593,744 1959 1,096,635
J.,QLL,S58__
996,642
. .282JlQ£.-
* All-time high.
Source: Federal Housing Administration (HEFA)
366
Table A-56. — Housing for the elderly and nursing homes under the Federal Housing Administration
__ (Dollar amounts are in thousands)
Section of law
and year
Applications received Commitments issued Insurance written
Number Amount Dwelling
units Number Amount Dwelling
units Number Amount Dwelling
units
Housing for the elderly
and nursing homes
All sections of law
Cumulated at end of
1956 1 $1,050 132 0 0 0 0 O' 0
1957 18 17,432 2,160 12 $L4,822 1,783 3 $5,853 822
1958 41 42,122 4,917 31 28,650 3,380 17 16,661 2,038
1959 61 61,931 6,869 47 41,990 4,740 31 30,894 3,517
I960 159 179,115 16,567 100 105,697 10,221 64 68,241 7,154
1961
Housing for the elderly
Section 207
Cumulated at end of
1956 1 1,050 132 0 0 0 0 0 0
1957 18 17,432 2,160 12 14,822 1,783 3 5,853 822
1958 /a 41 42,122 4,917 31 28,650 3,380 17 16,661 2,038
1959 61 61,931 6,869 47 41,990 4,740 31 30,894 3,517
I960 61 61,531 6,798 47 41,590 4,669 37 34,377 3,906
1961
Housing for the elderly
Section 231: Nonprofit
Cumulated at end of
I960 50 78,601 7,179 37 52,714 4,908 24 32,807 3,200
1961
Section 231: Profit-motivated
Cumulated at end of
I960 18 25,843 2,590 6 6,779 644 1 437 48
1961
Nursing homes
Section 232
Cumulated at end of
I960 30 13,139 2,468/b 10 4,614 932/b 2 621 171/b
1961
Housing for the elderly
and nursing homes
All sections of law: Net change
1956 1
£/.
1,050 132 0
2/
0 0 0
°/
0 0
1957 17 16,382 2,028 12 14,822 1,783 3 5,853 822
1958 23 24,690 2,757 19 13,828 1,597 14 10,808 1,216
1959 20 19,810 1,952 16 13,340 1,360 14 14,233 1,479
1960 98 117,183 9,698 53 63,706 5,481 33 37,348 3,637
1961
Percent change
I960 from 1959 390.0 491.5 396.8 231.3 377.6 303.0 135.7 162.4 145.9
a/ Includes one application and one commitment issued under Section 213> subsequently transferred to Section 207.
b/ The number of beds provided; this number is excluded from all totals for dwelling units.
c/ Dollar amount components of net change data may not add precisely to cumulated totals due to rounding; percent
change figures were computed before rounding; also, net change figures were derived prior to rounding.
Source: Federal Housing Administration
367
Table A-57. — Home loans guaranteed under the Veterans Administration program
Year
Number, in thousands Amount, in millions
Applications Appraisal requests
Loans
guaranteed
Loans guaranteed Outstanding
loan debt
end of
year
Total
New
and
proposed
Existing
V Total
New
and
proposed
Existing
~\
Principal
amount
Amount
of
guaranty
Cumulated:
1944 - 60 5,925 n.a. n.a. n.a. n.a. n.a. 5^574 $49,214 $26,704 $29,700
1944-1945 /c 51 n.a. n.a. n.a. n.a. n.a. 43 192 73 200
1946 520 n.a. n.a. n.a. n.a. n.a. 412 2,302 1,093 2,400
1947 559 n.a. n.a. n.a. n.a. n.a. 541 3,283 1,557 5,500
1948 330 n.a. n.a. n.a. n.a. n.a. 350 1,877 926 7,200
1949 345 n.a. n.a. n.a. n.a. n.a. 277 1,424 726 8,100
1950 623 *432/d 191/d n.a. n.a. n.a. 498 3,073 1,664 10,300
1951 378 259 118 390 164 226 447 3,614 2,124 13,200
1952 313 197 116 450 226 224 306 2,718 1,589 14,600
1953 323 208 115 475 251 223 322 3,061 1,781 16,100
1954 528 327 201 919 535 383 411 4,256 2,441 19,300
1955 6*69 411 2*58 1*,014 *621 3*93 6*49 7*,154 4*,024 24,600
1956 507 310 198 710 402 308 508 5,866 3,243 28,400
1957 249 180 69 252 159 93 306 3,758 2,028 *30,700
1958 182 120 61 339 234 105 146 1,864 978 30,400
1959 208 141 67 330 234 96 213 2,788 1,454 30,000
I960 14 0 102 4o 212 143 69 145 1,984 1,002 29,700
1961
5-ye ar
summary
1945 - 49 1,805 n.a. n.a. n.a. n.a. n.a. 1,623 9,078 4,375 8,100/f
1950 - 54 *2,165 1,423 741 2,234/e
2,645
1,176/e 1,056/e
995
*1,984 16,722 9,599 *n,2oo/f
1955 - 59 1,815 1,162 653 1,650 1,822 2*1,430 *11,727 10,700/f
Source: Veterans Administration for both sections.
Number of home loans guaranteed
Year Primary and secondary Primary Secondary
Total New or
proposed
Existing Total New or
proposed
Existing Total New or
proposed
Existing
Cumulated:
1944 - 60 5,493,770/g 3,176,100 2,317,670 5,086,150 2,845,595 2,240,555 407,620 330,505 77,115
1944-1945 23,995 2,815 21,180 21,865 1,355 20,510 2,130 1,460 670
1946 425,465 73,935 *351,530 414,010 66,815 *347,195 11,455 7,120 4,335
1947 535,290 235,255 300,035 487,665 198,445 289,220 47,625 36,810 10,815
1948 341,270 180,805 160,465 248,540 107,575 140,965 92,730 73,230 19,500
1949 271,295 162,520 108,775 173,415 83,775 89,640 97,880 78,745 19,135
1950 490,690 309,975 180,715 369,205 208,420 160,785 1*21,485 1*01,555 1*9,930
1951 428,675 303,150 125,525 395,215 272,365 122,850 33,460 30,785 2,675
1952 299,060 189,455 109,605 298,340 188,765 109,575 720 690 30
1953 316,825 202,015 114,810 316,765 201,965 114,800 60 50 10
1954 405,765 242,150 163,615 405,725 242,115 163,610 40 35 5
1955 6*54,020 3*97,660 256,360 6*53,995 3*97,645 256,350 25 15 10
1956 502,050 313,335 188,715 502,045 313,330 188,715 5 5 0
1957 302,050 218,805 83,245 302,045 218,800 83,245 5 5 0
1958 143,520 94,050 49,470 143,520 94,050 49,470 0 0 0
1959 210,515 145,415 65,100 210,515 145,415 65,100 0 0 0
I960 143,285 104,760 38,525 143,285 104,760 38,525 0 0 0
1961
* All-time high. n.a. Not available, a/ Include negligible number of loans for alteration and repair.
b/ Prior to December 1956, based on appraisal assignments, c/ Annual data in this section of table are
net changes of cumulated data, d/ Includes estimates for January through May. e/ Excludes 1950. f/ Net
change during 5 years. _g/ This total excludes about 60,000 alteration and repair loansj moreover, the annual
data shown in this section of table do not reflect subsequent adjustments made in cumulated totals.
368
Table A-£8. — Characteristics of VA primary home loans - maturity, downpayment, and sales price
Percent of loans with —
Year
Number
of
loans
(000)
Maturity Downpayment Sales price
Less
than
25 years
25
years
26-30
years Yes No
Less
than
$10,000
$10,000-
lb,999
$15,000
and
over
Total home loans /a
19b9 173 *75 25 0 67 33 73 2b 3
1950 369 61 35 57 b3 7*6 21 3
1951 395 52 3b ib 83 17 58 36 6
1952 298 62 31 7 *95 5 b5 b7 8
1953 317 59 36 5 92 8 35 56 9
195b b06 3b b*l 25 7b 26 31 58 11
1955 6*5b 22 33 b5 63 37 26 59 15
1956 502 2b 37 39 79 21 18 *59 23
1957 302 21 32 b7 9b 6 13 55 32
1958 ibb 21 18 61 76 2b 12 51 37
1959 210 15 13 72 b8 5*2 12 5b 3b
I960 lb3 13 11 *76 bO 60 10 b9 b*l
New and proposed homes
19b9 8b *62 38 0 62 38 70 26 b
1950 208 b7 b6 7 b6 5b *77 20 3
1951 272 35 b5 20 78 22 57 38 5
1952 189 bb b5 11 *93 7 bO 52 8
1953 202 bb b9 7 89 11 30 63 7
195b 2b2 lb *b9 37 67 33 23 67 10
1955 *398 5 30 65 52 b8 17 68» 15
1956 313 6 37 57 68 32 10 66 2b
1957 219 6 32 62 92 8 5 58 37
1958 9b 5 13 82 71 29 b 55 bl
1959 lb5 2 5 93 3b *66 b 59 37
I960 105 1 b *95 30 70 2 51 b*7
Existing homes
19b9 89 83 12 0 72 28 7*7 20 3
1950 161 79 20 1 72 *28 73 23 b
1951 123 78 20 2 96 b 61 31 8
1952 109 *92 7 1 99 1 52 38 10
1953 115 87 11 2 97 3 b5 b3 12
195b 16b 62 30 8 85 15 b3 bb 13
» 1955 2*# 50 37 13 81 19 39 b6 15
1956 189 5b *38 8 98 2 33 *b7 20
1957 83 60 31 9 *99 1 33 b5 22
1958 50 51 28 21 87 13 29 b3 28»
1959 65 b3 31 26 77 23 31 b2 27
I960 38 b3 31 2*6 67 33 33 b4 23
* All-time high.
a/ Excludes alteration and repair loans.
Source: Veterans Administration
369
Table A-59. — Financial characteristics of prior approval home loans guaranteed by VA
Specified characteristic by purchasers
monthly income (after taxes) 1956 /a 1957 /a 1958 /a 1959 /a i960 /a
Average monthly income........................... all incomes $473.10 $b8b.bO $491.05 $477.15 $504.10
Incomes: Less than $300 268.20 268.50 270.15 272.b0 271.80
$300 to 399 352.70 355.05 458.30 359.25 360.30
400 to 499 443.65 bb3.6o bbb.75 443.85 445.60
500 to 599 541.50 541.30 5b2.3O 542.25 542.25
600 to 699 640.20 640.35 641.90 641.70 640.65
700 to 799 7bo.5o 739.75 7bo.5o 7b0.25 741.25
800 and over 992.85 962.10 963.70 93b.35 963.30
Average monthly housing expenses....all incomes $106.65 $118.10 $121.60 $122.10 $130.25
Incomes: Less than $300 8b. 80 87.70 93.90 86.85 89.65
$300 to 399 97.25 103.30 106.b5 106.95 110.30
400 to 499 106.65 118.90 119.90 120.70 126.20
500 to 599 113. b'O 126.00 128.60 131.bo 139.10
600 to 699 118.80 131.bo 136.60 ibo.b5 148.40
700 to 799 12b. 70 138.85 141.70 149.40 155.35
800 and over 137.45 15b.05 162.90 16b.20 168.50
22.5% 2b. b% 2b. 8% 25.6% 25.8%
Incomes: Less than $300 31.6 32.7 3b. 8 31.9 33.0
$300 to 399 27.6 29.1 29.7 29.8 30.6
boo to 499 2b.0 26.8 27.0 27.2 28.3
500 to 599 20.9 23.3 23.7 2b.2 25.7
600 to 699 18.6 20.5 21.3 21.9 23.2
700 to 799 16.8 18.8 19.1 20.2 21.0
800 and over 13.8 16.0 16.9 17.6 17.5
Percentage distribution of loans....all incomes 100.0% 100.0% 100.0% 100.0% 100.0%
Incomes: Less than $300 5.8 3.9 2.8 2.5 2.4
$300 to 399 31.8 29.b 28.7 29.7 23.5
b00 to 499 28.0 29.6 31.1 3b.0 33.0
500 to 599 17.1 18.6 18.2 17.7 20.4
600 to 699 9.3 9.4 9.6 8.9 10.2
700 to 799 b.2 4.7 4.6 b.O 4.9
800 and over 3.8 b.b 5.0 3.2 5.6
Average liquid assets/b...................all purchasers $1,970 $2,215 $2,020 $1,720 $1,725
Incomes: Less than $300 1,250 1,325 1,100 850 680
$300 to 399 1,410 1,570 1,375 1,125 1,090
bOO to b99 1,790 1,975 1,870 1,515 1,395
500 to 599 2,180 2,375 2,170 1,960 1,810
600 to 699 2,655 2,920 2,590 2,815 2,410
700 to 799 3,lb0 3,550 3,025 3,750 3^185
800 and over 5,ibo 5,305 4,605 5,200 3,965
Average purchase price...........................all incomes $12,905 $13,790 $14,095 $13,930 $14,465
Incomes: Less than $300 9,585 9,820 9,265 9,065 8,945
$300 to 399 11,525 12,070 12,020 11,955 12,000
b00 to b99 12,920 13,665 14,010 13,815 14,005
500 to 599 13,900 lb,775 15,090 15,145 15,545
600 to 699 lb,685 15,625 16,165 16,320 16,715
700 to 799 15,620 16,610 16,785 17,610 17,710
800 and over 17,510 18,480 19,195 19,285 19,14o
Average downpayment.......................... .all incomes $9b5 $1,050 $725 $450 $395
Incomes: Less than $300 695 885 445 270 140
$300 to 399 765 860 525 305 260
bOO to 499 920 960 680 380 335
500 to 599 1,020 1,120 775 515 435
600 to 699 1,100 1,220 930 635 575
700 to 799 1,295 1,360 950 905 670
800 and over 1,950 2,060 1,565 1.235___ 725
a/ Based on 10 percent random sample of 227,500 loans in 1957; 109,500 in 1958; 16/4,500 in 1959; and 119,500 in I960,
b/ Cash on hand and the cash value of negotiable bonds and securities held by veterans at the time the loan
applications were filed.
Source: Veterans Administration
370
Table A~60 Federal National Mortgage Association mortgage loan activity: combined operations
* All-time high. a/ During the year or cumulated totals. b/ Less than $50,000.
Year
Contracts Purchases
a/
Repayments
a/
Sales
(gross)
£/
Other
credits
a/
Mortgage
portfolio
end of year
Executed
V
Canceled
2/
^Jndisbursed
end of year
Number of mortgages
1938 - 60 1,200,779 112,710 16,520 1,071,549 90,273 341,981 28,406 610,889
1938 24,031 303 3,381 20,347 191 20,156
1939 17,270 1,138 1,704 17,809 609 74 118 37,164
19U0 12,455 544 1,411 12,201: 1,620 1 266 47,481
1941 10,943 461 1,224 10,669 2,041 1 202 55,906
1942 4,586 221 100 5,489 2,795 79 58,521
1943 299 21 5 373 4,080 37,816 29 16,969
19UU 47 2 — 50 2,040 2 4 14,973
1945 15 1 14 1,295 11,143 —— 2,549
1946 9 5 5 533 1 2,020
1947 123 119 9 356 1 1,672
1948 56,833 633 27,629 28,690 330 30,032
1949 1*61,267 8,895 81,066 98,935 1,319 1,958 464 125,226
1950 135,103 3*1,904 45,2oo 139,065 1,099 *69,996 1,120 192,076
1951 75,112 20,955 13,113 86,244 1,005 16,286 751 260,278
1952 69,490 533 16,107 65,963 2,190 6,928 1,542 315,581
1953 61,596 1,300 23,238 53,165 2,972 26,81:9 768 338,157
1954 52,814 1,531 7,286 67,251 4,605 59,727 2,150 338,912
1955 34,403 1,418 4,140 36,191 8,084 8,430 3,250 355,344
1956 78,594 1,012 27,041 54,605 6,875 529 4,546 398,008
1957 92,774 4,477 24,477 90,861 6,668 343 2,111 479,747
1958 119,273 10,078 *92,8h3 4o,829 11,651 40,572 2,417 465,936
1959 91,080 19,042 25,635 1*39,246 1*6,536 516 3,674 584,456
I960 102,662 8,242 16,520 103,535 11,379 60,809 4*,914 *610,889
Amount (000,000)
1938 - 60 $12,727.9 $1,497.4 $576.1 $10,654.4 $1,524.8 $2,481.9 $306.1 $6,341.6
1938 102,2 2.5 17.5 82.2 1.9 MM 80.3
1939 69.9 5.5 7.8 74.1 6.7 .4 .5 146.8
1940 51.1 2.5 8.4 48.0 12.6 y 1.1 181.1
1941 42.3 2.1 6.3 42.3 15.7 1/ .9 206.8
1942 18.4 1.1 .4 23.2 18.8 .3 210.9
1943 1.2 .1 1.5 21,2 126.6 .1 64.5
1944 .2 •w ’ .2 12.3 y b/ 52.4
1945 .1 ••R y .1 6.5 38.6 7.4
1946 .1 1.8 8/ 5.6
1947 .8 ^0 .7 1.3 b/ 4.4
1948 431.9 226.7 197.9 3.0 199.3
1949 1,356.1 86.5' 824.1 672.2 21.1 19.8 2.2 828.4
1950 1,069.7 3*64.4 485.1 1,044.3 44.3 469.4 12.3 1,346.7
1951 684.1 252.8 239.1 677.3 55.5 111.1 7.9 1,849.5
1952 642.3 20.6 322.9 537.9 78.9 55.9 10.9 2,241.7
1953 733.3 45.0 637.9 542.5 93.7 221.1 7.7 2,461.6
1954 468.7 51.3 475.7 658.1 100.3 *525.2 18.1 2,476.2
1955 309.7 51.2 76.4 411.4 126.7 61.8 43.6 2,655.5
1956 912.1 18.3 360.3 608.7 124.5 5.o 48.4 3,086.3
1957 1,554.6 55.2 763.7 1,096.0 144.6 2.9 22.5 4,012.3
1958 *1,575.4 175.4 *1,540.9 622.8 183.9 482.3 30.9 3,938.0
1959 1,204.1 254.2 568.4 1*,922.4 2*30.4 4.5 43.4 5,582.1
I960 1,499.6 100.7 576.1 1,391.2 219.1 357.3 *55.3 6*,341.6
1961
Source: Federal National Mortgage Association (HHFA)
371
Table A-61 Federal National Mortgage Association: functions and operations
Functions,
operations
and year
Contracts Purchases
V
Repayments
a/
Sales
(gross)
V
Other
credits
y
Mortgage portfolio,
end of year
Executed 1/ Canceled
a/
Undisbursed
end of
year
Total FHA
insured
VA
guaranteed
Special Assistance Funci
Number of mortgages
11/54 - 12/60
dons
142,999 22,482 8,633 111,884 368 420 1,455 109,641 57,174 52,467
11/54 - 12/55 211; 8 206 0 0 0 0 0 0 0
1956 2,682 5 2,484 399 0 0 0 399 398 1
1957 12,196 177 10,310 4,193 4 0 1 4,587 4,570 17 i
1958 *96,797 1,905 *86,664 18,538 37 *390 8 22,690 16,065 6,625 >
1959 16,074 *16,645 11,485 *74,608 123 27 203 96,945 44,320 52,625#
I960
Secondary Market Operati
Number of mortgages
15,036
ons
3,742 8,633 14,146 *204 3 1*,243 *109,641 *57,174 52,467
11/54 - 12/60 339,998 20,345 7,887 311,766 3,551 44,604 4,473 259,138 139,000 120,138 '»
11/54 - 12/55 12,329 144 2,701 9,484 1 0 0 9,483 2,622 6,861
1956 75,850 838 *24,479 53,234 34 529 4o 62,114 14,887 47,227
1957 8*0,578 4,293 14,167 *86,597 266 343 242 147,860 36,840 111,020
1958 22,476 8*,173 6,179 22,291 727 4o,i6u 926 128,337 39,972 88,365
1959 72,095 2,397 14,150 61,727 1,240 340 1,340 187,144 86,065 101,079
I960
Amount (000,000)
76,670 4,500 7,887 78,433 *1,283 3,231 1*,925 2*59,138 *139,000 *120,138
11/54 - 12/60 $4,084.4 $263.3 $164.9 $3,656.2 $186.0 $519.0 $48.2 $2,903.0 $1,552.8 $1,350.2
11/54 - 12/55 114.1 1.5 26.5 86.1 .4 .0 .0 85.7 19.8 65.8
1956 842.3 10.9 2*83.4 574.5 6.2 5.o .3 61)8.7 138.6 510.1
1957 970.5 52.7 180.1 1,021.cn 28.7 2.9 2.3 1,635.8 367.5 1,268.3
1958 262,7 1*03.4 79.9 259.5 39.2 4*65.6 10.0 1,380.7 398.7 982.0
1959 876.5 34.7 187.2 734.6 47.5 3.5 14.5 2,049.8 925.8 1,124.0
I960
Management and Liquidati
Number of mortgages
1*,018.3
ng Functic
60.2
>ns
164.9 980.4 6*4.1 42.1 *21.1 2*,903.0 1*,552.8 1*,350.2
2/38 - 12/60 717,782 69,883 0 647,899 86,354 296,957 22,478 242,110 77,883 150,860
2/38 - 12/55 703,869 69,707 1,233 632,989 37,163 239,212 10,744 692,637 193,612 495,752
1956 46 169 78 972 6,841 0 4,506 335,573 90,770 244,795
1957 0 7 0 71 6,398 0 1,868 327,300 88,273 239,020
1958 0 0 0 0 10,887 21 1,483 314,909 85,338 229,565
1959 2,9H 0 0 2,911 15,173 149 2,131 300,367/b 81,107 216,346
I960
Amount (000,000)
10,956 0 0 10,956 9,892 57,575 1,746 242,ll(£e 77,883 150,860
2/38 - 12/60 $6,020.2 $898.0 $0.0 $5,122.2 $1,281.7 $1,945.3 $235.7 $1,659.5 $644.7 1 $832.5
2/38 - 12/55 5,860.8 892.0 42.8 4,927.2 621.9 1,629.9 105.6 5,625.5 1,940.5 3,274.0
1956 .9 5.8 8.1 28.6 118.2 .0 48.1 2,440.2 841.7 1,559.3
1957 .0 .2 .0 7.9 115.5 .0 20.2 2,304.3 797.7 1,468.5
1958 .0 .0 ,.0 .0 141.3 3.3 20.9 2,138.7 744.5 1,357.2
1959 15.0 .0 .0 15.0 162.3 .8 26.8 1,963.9^ 685.7 1,227.6
I960 ___ .0 .0 ^5 122.4 311.3 14.1 l,659.7e 644.7 832.5
* All-time high.
a/ During the year or cumulated for all years.
b/ Includes 2,914 Direct, DHC, and PHA notes,
c/ Includes 13,367 Direct, DHC and PHA notes.
d/ Includes $51 million Direct, DHC, and PHA notes.
e/ Includes $182.3 mi11jmi Direct, DHC, and PHA notes.
Source: Federal National Mortgage Association (HHFA)
372
Table A-62. — Federal National Mortgage Association — Special assistance functions
(in thousands of dollars)
Type of
special
assistance
Amount
authorized
12-31-60
Net
contracts
issued
Purchases
y
Contracts
outstanding
12-31-60
Liquidations
a/
Authorized
amount
available
12-31-60
Grand totals $2,675,000 $2,287,226 $1,876,040 $411,186 $96,913 $484,687
Presidential authority 950,000 752,049 411,589 340,460 22,512 220,463
Allocated 798,316 752,049 411,589 340,460 22,512 64,000
Disaster 10,000 864 864 — T5 9,181
Guam 7,500 250 199 51 5 7,255
Urban renewal 600,000 580,664 307,930 272,734 11,851 31,187
Alaska 48,000 44,954 38,686 6,268 2,242 5,288
Wherry - defense 11,072 11,072 11,072 — 4,649 6/
Elderly persons 120,000 112,501 51,094 61,407 3,590 11,089
Low cost 1,744 1,744 1,744 — 130 b/
Unallocated 151,684 — — __ — 156,463
Congressional authority 1,725,000 1,535,177 1,464,451 70,726 74,401 264,224
Allocated
Armed services 500,000 463,694 458,202 5,492 27,420 63,726
Section 803, Capehart 441,250 410,971 410,971 0 20,922 51,201
Section 809 58,750 52,723 47,231 5,492 6,498 12,525
Cooperative 225,000 228,444 163,210 65,234 12,430 8,986
Non-consumer 150,000 158,620 143,398 15,222 11,170 2,550
Non-consumer PL 86-372 12,500 11,917 6,528 5,389 11 594
Consumer 50,000 50,455 13,284 37,171 1,249 794
Consumer PL 86-372 12,500 7,452 — 7,452 — 5,o48
Low and moderate 1,000,000 8(44.039 843,039 — 34,551 191,512
a/ Cumulated from November 1, 1954 through December 31, I960,
b/ Program terminated, liquidations
Special assistance functions, all types
Period Contracts Purchases
£/
Sales
(gross)
y
Repayments
and other
credits/a
Mortgage portfolio end of year
Executed Canceled
a/
Undisbursed
end of year Total FHA VA
1954-1960
1954-1955
1956
1957
1958
1959
I960
1961
$2,623,350
7,150
68,954
584,116
*1,312,700
312,565
337,865
$336,124
94
1,617
2,314
71,970
*219,588
40,541
$411,186
7,056
68,812
583,551
*1,461,021
381,150
411,186
$1,876,040
0
5,582
67,063
363,260
*1,172,847
267,288
$17,537
0
00
*13,341
329
3,867
$79,376
0
23
448
3,540
22,702
5*2,663
$1,779,127
0
5,559
72,174
418,553
1,568,369
1*,779,127
$1,158,507
0
5,552
71,979
340,198
934,907
*1,158,507
$620,620
0
7
195
78,355
6*33,462
620,620
* All-time high.
a/ Cumulated from November 1, 1954 through December 31, I960 on first line; other data are for the calendar
year indicated.
Source: Federal National Mortgage Association (HHFA)
591772—61--------25 373
Table A-63. — Voluntary Home Mortgage Credit Program — number of loans placed by state, price taken, and agency
Item 1955 1956 1957 1958 1959 I960 1961 Cumulated
1955-1960
United States 8,100 12,941 7,402 6,109 6,105 4,686 45,343
Alabama 352 460 163 70 56 182 1,283
Alaska 1 1 0 0 0 0 2
Arizona 76 85 21 124 246 56 608
Arkansas 138 246 207 8 6 2 607
California 235 427 156 88 138 36 1,080
Colorado 137 255 85 60 25 46 608
Connecticut 0 1 0 0 0 0 1
Delaware 15 53 19 15 5 8 115
District of Columbia 53 192 62 21 5 8 341
Florida 94 141 50 33 1,656 38 2,012
Georgia 305 54o 184 198 160 384 1,771
Idaho 167 194 142 77 108 75 763
Illinois 673 426 265 no 238 687 2,399
Indiana 161 207 118 130 228 160 1,004
Iowa 268 233 172 99 157 211 1,140
Kansas 120 197 74 97 5 0 493
Kentucky 454 444 382 223 108 306 1,917
Louisiana 296 324 206 41 15 2 884
Maine 158 215 67 27 2 0 469
Maryland 84 300 181 181 171 87 1,004
Massachusetts 3 12 20 34 75 12 156
Michigan 214 365 123 91 99 43 935
Minnesota 96 81 36 4 24 8 249
Mississippi 163 293 210 42 27 227 962
Missouri 362 439 254 97 34 12 1,198
Montana 70 91 35 45 46 55 342
Nebraska 113 155 70 16 34 33 421
Nevada 17 50 6 11 10 1 95
New Jersey 32 19 54 109 1 0 215
New Mexico 82 197 70 179 158 31 717
New York 93 144 100 160 2 4 503
North Carolina 570 1,043 518 483 223 462 3,299
North Dakota 9 10 5 1 3 0 28
Ohio 316 567 288 528 564 287 2,550
Oklahoma 141 267 158 106 16 8 696
Oregon 184 276 225 181 148 124 1,138
Pennsylvania 230 501 117 77 70 56 1,051
Puerto Rico 25 81 136 446 3 0 691
South Carolina 245 318 234 240 189 89 1,315
South Dakota 60 38 25 29 43 33 228
Tennessee 156 512 261 363 104 566 1,962
Texas 425 993 707 261 80 36 2,502
Utah 47 108 509 479 409 28 1,580
Vermont 7 7 0 0 0 0 14
Virginia 158 523 221 160 149 93 1,304
Washington 275 435 321 199 147 135 1,512
West Virginia 64 364 104 75 38 30 675
Wisconsin 123 27 15 74 47 8 294
Wyoming 33 84 26 17 33 17 210
Price taken 8,100 12,941 7,402 6,109 6,105 4,686 45,343
100 or par 2,483 1,219 190 61 33 10 3,996
99.1 - 99.9 5 1 2 12 2 212 234
98.1 - 99.0 1,639 4,258 375 538 180 96 7,086
98.0 2,870 4,595 4,140 2,585 305 90 14,585
97.1 - 97.9 33 329 250 546 208 114 1,480
96.1 - 97.0 430 1,486 1,023 1,875 1,996 1,586 8,396
95.1 - 96.0 192 528 998 324 1,839 1,223 5,104
94.1 - 95.0 159 194 209 49 751 355 1,717
94.0 or less 21 38 165 88 159 782 1,253
Not reported 268 293 50 31 632 218 1,492
Agency 8,100 12,941 7,402 6,109 6,105 4,686 45,343
FHA 1,127 1,830 3,862 5,895 5,573 4,446 22,733
Individual 625 1,413 2,765 4,730 5,183 2,995 17,711
Builder 502 417 1,097 1,165 390 1,451 5,022
VA 6,973 11,111 3,540 214 532 240 22,610
Individual 6,349 9,691 3,421 137 377 156 20,131
Builder 624 1,420 119 77 155 84 2,479
Source: Voluntary Home Mortgage Credit Program (HHFA)
374
Table A-64' Selected institutional savings
(Billions of dollars)
End of year
Savings accounts Savings
Bonds
U.S.
Government
Reserves
of life
insurance
companies
Total
Net
change
during
year
Savings
and loan
associations
Mutual
savings
banks
C ommercial
banks
Postal
savings
Credit
unions
1920 1.7 4.8 10.5 0.2 */ 0.8 5.5 23.5 MM
1921 2.0 5.5 11.1 .1 .7 5.9 25.3 +1.8
1922 2.2 6.0 12.3 .1 .7 6.4 27.7 +2.4
1923 2.6 6.5 13.7 .1 */ .4 7.0 30.3 +2.5
1921i 3.2 6.9 15.0 .1 ®/ .4 7.7 33.4 +3.1
1925 3.8 7.3 16.3 .1 .4 8.6 36.6 +3.2
1926 4.4 7.8 17.2 .1 .4 9.6 39.5 +2.9
1927 5.0 8.4 18.7 .2 .2 10.6 43.1 +3.6
1928 5.8 8.7 19.3 .2 .1 11.8 45.9 +2.7
1929 6.2 8.8 19.2 .2 — 12.8 47.2 +1.3
1930 6.3 9.4 18.6 .2 •*MM 13.7 48.3 +1.1
1931 5.9 9.9 16.0 .6 —— 14.3 46.8 -1.6
1932 5.3 9.9 12.1 .9 */ MM 14.3 42.6 -4.2
1933 4.8 9.5 11.0 1.2 14.6 41.1 -1.5
193U 4.5 9.7 12.0 1.2 — 15.7 43.1 +2.0
1935 4.3 9.8 12.9 1.2 .2 17.2 45.6 +2.5
1936 4.2 10.0 13.7 1.3 0.1 .5 18.7 48.5 +2.9
1937 4.1 10.1 14.4 1.3 .1 1.0 20.2 51.2 +2.7
1938 4.1 10.2 14.4 1.3 .1 1.4 21.5 53.1 +1.9
1939 4.1 10.5 14.9 1.3 .2 1.9 23.0 55.9 +2.8
1940 4.3 10.6 15.4 1.3 .2 2.8 24.7 59.4 +3.5
1941 4.7 10.5 15.5 1.4 .3 5.4 26.6 64.4 +5.0
1942 4.9 10.6 16.1 1.5 .3 13.4 28.7 75.5 +11.2
1943 5.5 11.7 19.0 1.8 .3 24.7 31.4 94.4 +18.9
1944 6.3 13.3 23.9 2.4 .4 36.2 34.2 116.7 *+22.3
1945 7.4 15.3 29.9 3.0 .4 42.9 37.5 136.4 +19.7
1946 8.5 16.8 33.4 3.4 .5 44.2 40.7 147.6 +11.1
1947 9.8 17.7 34.7 *3.5 .5 46.2 43.8 156.3 +8.7
1948 11.0 18.4 35.0 3.4 .6 47.8 47.1 163.3 +7.1
1949 12.5 19.3 35.1 3.3 .7 49.3 50.2 170.5 +7.1
1950 14.0 20.0 35.2 3.0 .9 49.6 53.6 176.4 +5.9
1951 16.1 20.9 36.6 2.8 1.1 49.1 57.1 183.7 +7.3
1952 19.2 22.6 39.3 2.7 1.4 49.1 61.1 195.4 +11.6
1953 22.8 24.3 42.0 2.5 1.7 49.4 65.2 207.9 +12.5
1954 27.3 26.3 44.7 2.2 2.0 49.9 69.3 221.8 +13.9
1955 32.1 28.1 46.3 2.0 2.4 *50.3 73.7 235.1 +13.3
1956 37.1 30.0 48.5 1.7 2.9 50.1 78.1 248.5 +13.4
1957 41.9 31.7 53.8 1.4 3.4 48.2 82.2 262.5 +14.0
1958 48.0 34.0 60.0 1.2 3.9 47.7 86.6 281.4 +18.9
1959 54.6 34.9 63.0 1.0 4.4 45.9 91.7 295.5 +14.1
1960p *62.2 *36.3 ____ *67..5 ___ 0.8 4*.9 45.7 *96.1 3*13.5 +18.0
Summarized by 5-year periods - net change
1925 - 29 3.0 1.9 4.2 .1 a/ -.4 5.1 13.8 XX
1930 - 34 -1.7 .9 -7.2 1.0 y .0 2.9 -4.1 XX
1935 - 39 -.4 .8 2.9 .1 .2 1.9 7.3 12.8 XX
1940 - 44 2.2 2.8 9.0 1*.1 .2 *34.3 11.2 60.8 XX
1945 - 49 6.2 6.0 11.2 .9 .3 13.1 16.0 53.8 XX
1950 - 54 14.8 7.0 9.6 -1.1 1.3 .6 19.1 51.3 XX
1955 - 59 *27.3 8*.6 *18.3 -1.2 2*.4 -4.0 *22.4 7*3.7 XX
* All-time high. p - Preliminary,
a/ Less than 50 million.
Source: Federal Home Loan Bank Board
375
Table A-63. — FHLBB advances, repayments, and balance of advances outstanding
* All-time high.
a/ Term 1 year or less.
b/ Amortized loans, term more than 1 year but not exceeding 10 years.
c/ Not available.
d/ End of year data are net changes.
(Dollar amounts in millions)
During year End of year
Advances Repayments Balance outstanding Member institutions
Year by tO Tnncr NKt.u mvb er -Pn ercent
FHL FHL Total . / . Secured Unsecured------------------------------------------------
banks banks term /a term Total Borrowing Borrowing
1932 $1 0 $1 $1 0 $1 0 c/ c/ c/
1933 90 $3 83 43 $42 84 $1 2,080 c/ c/
1934 39 37 87 27 60 82 3 3,066 1,769 £8
1933 39 43 103 44 39 77 26 3,467 2,192 63
1936 93 31 143 31 94 109 36 3,761 2,483 66
1937 123 68 200 34 146 139 41 3,932 *2,707 69
1938 82 83 199 43 134 167 32 3,931 2,607 66
1939 93 112 181 32 129 143 36 3,920 2,339 60
1940 134 114 201 74 127 142 39 3,864 2,262 39
1941 138 140 219 103 114 143 74 3,824 2,037 34
1942 100 190 129 34 73 98 31 3,788 1,388 37
1943 137 176 110 69 41 84 26 3,748 919 23
1944 239 219 131 106 23 108 23 3,699 821 22
1943 278 213 195 176 19 139 36 3,697 916 23
1946 329 231 293 184 109 230 63 3,698 1,420 38
1947 331 209 433 218 217 344 91 3,703 l,8o4 49
1948 360 280 313 237 238 401 114 3,679 1,993 34
1949 233 337 .433 231 202 322 m 3,860 1,800 47
1930 673 292 816 347 269 368 248 3,930 2,279 38
1931 423 433 806 308 298 397 209 3,981 2,221 36
1932 386 328 864 364 300 633 231 4,036 2,037 31
1933 728 640 932 634 318 638 314 4,134 2,147 32
1934 734 818 867 612 233 372 293 4,234 1,923 43
1933 1,232 702 1,417 991 426 943 474 4,336 2,408 36
1936 743 934 1,228 798 430 820 408 4,426 2,241 31
1937 1,116 1,079 1,263 747 318 887 378 4,301 2,018 43
1938 1,364 1,331 1,298 683 613 891 407 4,370 2,040 43
1939 2,067 1,231 *2,134 *1,191 943 1*,360 7*74 4,624 2,443 33
I960 1,943 *2,097 1,981 1,089 892 1,307 674 4*,716 2,371 30
1961
Summarized by 3-year periods /d
1933 - 39 432 337 +94 +23 +69 +63 +31 +834 +370 xx
1940 - 44 788 839 -30 +34 -104 -37 -13 -221 -1,318 xx
1943 - 49 1,373 1,270 +302 +123 +177 +214 +88 +161 +979 xx
1930 - 34 3,146 2,711 +434 +381 +33 +230 +184 +374 +123 xx
1933 - 39 6*,344 *3,277 *+1,267 +379 +688 +788 +479 +390 +320 xx
Source: Federal Home Loan Bank Board
376
Table A-66. — Mortgage lending by all savings and loan associations
(Dollar amounts in millions)
Year Total
loans
Purpose of loan Insured associations
Construction Home purchase Other /a
Amount
Percent
of
Amount Percent Amount Percent Amount Percent total
1936 $755 $178 24$ $230 30% $347 *46% n.a. n.a.
1937 897 234 26 327 36 336 38 $430 48%
1938 798 220 28 266 33 312 39 418 52
1939 986 301 31 340 34 345 35 580 59
1940 1,200 399 33 426 36 375 31 745 62
1941 1,379 437 32 581 42 361 26 883 64
1942 1,051 191 18 574 55 286 27 671 64
1943 1,184 107 9 802 68 275 23 835 71
1944 1,454 95 7 1,064 *73 295 20 1,085 75
1945 1,913 180 9 1,358 71 375 20 1,449 76
1946 3,584 615 17 2,357 66 612 17 2,799 78
1947 3,811 894 23 2,128 56 789 21 2,865 75
1948 3,607 1,046 29 1,710 47 851 24 2,755 76
1949 3,636 1,083 30 1,559 43 994 27 2,887 79
1950 5,237 1,767 34 2,246 43 1,224 23 4,352 83
1951 5,250 1,657 31 2,357 45 1,236 24 4,501 86
1952 6,617 2,105 32 2,955 45 1,557 23 5,848 88
1953 7,767 2,475 32 3,488 45 1,804 23 6,984 90
1954 8,969 3,076 34 3,846 43 2,047 23 8,176 91
1955 11,255 3,984 35 5,155 46 2,116 19 10,457 93
1956 10,325 3,699 *36 4,620 45 2,006 19 9,695 94
1957 10,160 3,484 34 4,591 45 2,085 21 9,668 95
1958 12,182 4,050 33 5,172 43 2,960 24 11,560 95
1959 1*5,151 5*,201 34 6*,613 44 3,337 22 1*4,578 96
i960
1961
14,299 4,678 33 6,128 43 *3,493 24 13,796 9*6
* All-time high.
a/ Includes loans for refinancing, reconditioning, and other miscellaneous types.
Source: Federal Home Loan Bank Board
Table A-67. — Net inflow of savings in all savings and loan associations
(In millions of dollars)
Year Total Insured Other Year Total Insured Other Year Total Insured Other
1937 n.a. 82 n.a. 1946 1,139 956 183 1955 4,891 4,549 3*42
1938 n.a. 142 n.a. 1947 1,159 971 188 1956 5,006 4,709 297
1939 n.a. 246 n.a. 1948 1,147 975 172 1957 4,765 4,535 230
1940 n.a. 302 n.a. 1949 1,446 1,263 183 1958 6,063 5,767 296
1941 n.a. 329 n.a. 1950 1,487 1,332 155 1959 6,604 6,361 243
1942 n.a. 293 n.a. 1951 2,079 1,897 182 I960 *7,629 7*,383 246
1943 615 527 88 1952 3,084 2,836 248
1944 875 729 146 1953 3,642 3,384 258
1945 1,041 871 170 1954 4,416 4,152 264
* All-time high. n.a. Not available.
Source: Federal Home Loan Bank Board
377
Table A-68. — HHFA activities in the field of urban renewal
Program
Cumulated from 1949 During calendar year (net change)
Thru I960 Thru 1993 1994 1999 1996
Program for community improvement (workable program)
Communities certified 1,241 XX 2 78 68
Active plus expired but in process of recertification 919 XX 2 78 61
Expired and not in process of recertification 322 XX 0 0 7
Urban renewal program under Title I, Housing Act of
19U9> as amended
Communities with project approvals /a 479 180 8 30 47
Project approvals /a 870 260 18 62 92
Planning (including GNRP) 389 200 -8 39 69
Contract 444 60 26 23 22
Completed 41 0 0 0 1
Feasibility surveys approved 12 XX XX XX XX
Community renewal programs approved 7 XX XX XX 1
Demonstration projects approved 34 XX 0 6 12
Project approvals: dollar amounts, 000 omitted
Capital grant, reservations and earmarkings $1,866,160 $348,900 $28,600 $176,900 $273,000
Financial assistance authorized and disbursed
Urban renewal grants, authorized 1,142,108 109,200 4i,4oo 38,400 39,700
disbursed 364,818 8,700 12,600 37,600 16,100
Loans and advances, authorized /b
outs tanding /b
1,642,787 119,900 31,000 99,300 62,600
667,414 39,206 20,782 10,990 39,228
Community renewal grants, authorized 2,664 XX XX XX XX
disbursed 239 XX XX XX XX
Demonstration grants, authorized 2,796 XX 0 128 929
disbursed 1,787 XX 0 21 202
Urban planning assistance program under Section 701,
Housing Act of 1994, as amended
Types of areas assisted
Small areas 1,464 XX 0 79 169
Metropolitan, regional, or other areas 112 XX 1 8 12
States 10 XX XX XX XX
Federal grants approved: dollar amounts, 000 omitted
Small areas $8,193 XX 0 $220 $670
Metropolitan, regional, or other areas 4,943 XX $16 239 969
States 269 XX XX XX XX
Relocation feasibility findings under Section 109(c),
Housing Act of 1949, as amended
Communities with projects certified 214 XX 0 2 4
Projects certified 304 XX 0 2 4
Relocation housing, Section 221
Communities with programs certified 393 XX 0 12 27
Dwelling units: certified 103,677 XX 0 1,772 10,980
applications under FHA received 42,938 XX 0 0 164
mortgage insurance written under FHA 27,220 XX 0 0 16
Redevelopment housing, Section 220
Communities with projects certified no XX 0 21 4
Projects certified 168 XX 0 35 7
Dwelling units: in applications received under FHA 31,038 XX 0 3,046 2,749
in mortgage insurance written under FHA 22,498 XX 0 0 1,108
Continued on opposite page
378
Table A-68. — HHFA activities in the field of urban renewal (concluded)
During calendar year (net change) Program
1957 1958 1959 I960 1961
249 338 321 185
Program for community improvement (workable program)
Communities certified
229 317 214 TH Active plus expired but in process of recertification
20 21 107 167 Expired and not in process of recertification
36 85 31 58
Urban renewal program under Title I, Housing Act of
1949, as amended
Communities with project approvals /a
62 154 51 171 Project approvals /a
2 -So 77 Planning (including GNRP)
57 92 85 79 Contract
3 6 16 15 Completed
8 1 2 0 Feasibility surveys approved
XX XX XX 7 Community renewal programs approved
6 3 1 6 Demonstration projects approved
$192,600 $304,900 $64,500 $477,560
Project approvals: dollar amounts, 000 omitted
Capital grant, reservations and earmarkings
168,400 226,700 255,700 270,608
Financial assistance authorized and disbursed
Urban renewal grants, authorized
30,200 49,700 78,500 131,418 disbursed
226,500 362,600 383,300 401,987 Loans and advances, authorized /b
71,682 112,765 174,291 198,469 outstanding /b
XX XX XX 2,664 Community renewal grants, authorized
XX XX XX 235 disbursed
708 305 158 572 Demonstration grants, authorized
398 387 431 348 disbursed
292 324 156 452
Urban planning assistance program under Section 701,
Housing Act of 1954, as amended
Types of areas assisted
Small areas
19 16 38 18 Metropolitan, regional, or other areas
XX XX 0 10 States
$1,708 $1,696 $795 $3,103
Federal grants approved: dollar amounts, 000 emitted
Small areas
985 506 1,261 1,370 Metropolitan, regional, or other areas
XX XX 0 265 States
30 50 66 62
Relocation feasibility findings under Section 105(c),
Housing Act of 1949, as amended
Communities with projects certified
34 79 96 89 Projects certified
87 75 98 54
Relocation housing, Section 221
Communities with programs certified
51,717 22,994 17,915 -1,701 Dwelling units: certified
6,768 11,803 13,526 10,277 applications under FHA received
520 6,418 9,291 10,975 mortgage insurance written under FHA
19 17 21 28
Redevelopment housing, Section 220
Communities with projects certified
26 25 31 44 Projects certified
3,595 9,810 5,718 6,124 Dwelling units: in applications received under FHA
5,606 3,215 7,865 4,664 in mortgage insurance written under FHA
a/ Includes active urban renewal projects and general neighborhood renewal planning.
b/ Includes urban renewal planning advances, temporary project loans, and definitive loans.
Sources: Urban Renewal Administration (HHFA), Federal Housing Admi.nistrati,on (HHFA), and
Office of the Administrator (HHFA)
379
Table A-69. — Public housing units completed for occupancy
Year
All
public
housing
V
Low rent
War and
defense
housing
Veterans ’
reuse
Total housing
U. S. Housing Act All
except
u. s.
Housing
Act
Total
All
except
Public
Law
171
Public
Law
171
y
Total 1,1165,985 1160,629 1138,990 169,1151 269,539 21,639 739,70b 265,652
1935 0 0 MM MM MM 0 MM MM
1936 798 793 M — M M Mm 798 Mm M —
1937 7,376 7,376 MM MM MM 7,376 MM MM
1933 13,1165 13,1165 M- MM MM *13,1165 MM MM
1939 11,960 h,960 11,960 11,960 —- -- --•
19b0 3U,3O8 3h,3O8 31i,3O8 311,308 MM MM Mm MM
19bl 120,851 *61,065 *61,065 *61,065 MM 11 59,786 MM
19h2 156,901 36,172 36,172 36,172 MM MM 120,729 MM
19’43 371,700 211,296 2)4,296 21i, 296 M Mm 3117,b*ob —
19bb 153,596 3,269 3,269 3,269 — — 150,327 ——
19b5 Wi.,157 2,080 2,080 2,080 MM mm bo,171 1,906
19U6 1311,8)47 1,925 1,925 1,925 MM MM b,051 12 8*,871
19h7 107,097 b66 I166 1166 mm MM Mm 106,631
19h8 30,066 1,3118 1,3118 II16 1,202/c MM 1,550 27,168
19119 1,2112 5h7 5U7 280 267g — — 695
1950 1,636 1,255 1,255 232 1,023/d Mm M 1 381
1951 10,2116 10,2)46 10,2h6 252 9,99b Mm MM MM
195? 63,835 58,258 53,258 MM *58,2^8 MM 5,577 MM
1953 611,773 58,21b 58,21b Mm 58,21)1 MM 6,559 MM
195b 117,7311 1111,293 bb, 293 — 1111,293 — 3, bbl
1955 21,008 20,899 20,899 ■1 1 20,899 MM 109 M M
1956 11,993 11,993 31,993 MM 11,993 MM MM MM
1957 10,513 10,513 10,513 »1.l» 10,513 Mm Mm —
1958 15,1172 15,1172 15,1172 MM I5,b72 MM MM MM
1959 21,8115 21,8115 21,8115 MM *28115 MM »i» 1 MM
I960 15,566 15,566 15,566 MM 15,566 — — —
Summarized by 5-year periods
1935 - 39 26,599 26,599 11,960 ll, 960 1 , —B 21,639 MM .1 I
19110 - bb *837,356 159,110 159,110 159,110 MM MM 678,2b6 MM
19115 - 119 317,U09 6,366 6,366 li,897 1,1169 MM b5,772 265,271
1950 - 51i 188,22b 172,266 172,266 11811 171,782 MM 15,577 381
1955 - 59 80,831 80.722 80,722 -- 80,722 — 109 —
* All-time high.
_a/ Covers programs administered by HHFA or PHA; all units completed do not continue necessarily under PHA
management.
b/ Excludes 110 units in a former PWA project and 228 units in part of a former Public Law 671 project
rehabilitated under Public Law 171; however, these units are now under the management of PHA»
c/ Built under provisions of Public Law 301, later brought under Public Law 171.
d/ Includes 753 units started under Pulbic Law 301.
Source: Public Housing Administration (HHFA)
380
Table A-70. — PHA. low-rent housing under Public Law 171 (810) as amended
* All-time high.
a/ Includes 1,437 localities.
Year
Newly initiated dwelling units Reactivated
dwelling units
With reservations Annual
contributions
contracts
executed
Placed
under
construction
Completed
Placed
under
construction
Completed
Total
Preliminary
loan
executed
Cumulated: 7-13-49
through 12-31-60 402,323/a 379,819 369,373 292,463 233,319 11,949 11,798
Annual data:
1949 218,804-“- 83,729 0 0 0 684 0
1930 41,229 *166,744 77,796 26,032 0 4*,926 270
1931 19,839 21,244 *89,736 6*7,232 6,874 1,984 3*,120
1932 42,934 43,381 44,993 33,798 33,174 1,414 3,084
1933 686 4,848 n,o4o 30,319 3*6,362 1,466 1,832
1934 0 0 0 16,094 43,833 130 440
1933 1,666 1,336 30,212 8,318 19,191 230 1,708
1936 14,103 10,317 43,603 4,418 11,333 498 440
1937 10,880 8,681 3,401 20,666 10,033 0 438
1938 16,376 13,338 24,920 21,080 13,344 342 128
1939 11,261 3,706 30,046 13,327 21,743 233 102
I960 24,323 18,223 11,606 28,779 13,370 0 196
1961
Source: Public Housing Administration (HHFA)
Table A-71. — PHA housing for the elderly
a/ Includes 213 localities.
Status Dwelling, units
December 31, 1938 December 31, 1939 December 31, I960 December 31, 1961
Total, all stages 7,628 13,438 23,241/a
Under program reservation, not
under ACC 863 1,278 6,893
Under annual contributions
contracts, not under construction 3,638 10,174 13,149
Under construction 907 1,323 4,066
Completed, under management 220 681 1,133
Source: Public Housing Administration (HHFA)
591772—61--------26 381
Table A-72. — Programs of the Community Facilities Administration
College housing, advances for public works planning, and public facility loans
(Dollar amounts are in millions)
Program
Cumulated from approved date or inventory at end of year
1954 1955 1956 1957 1958 1959 I960 1961
College housing loans
approved April 20, 1950
Statutory authority $300.0 $500.0 $750.0 $925.0 $925.0 $1,175.0 $1,675.0
Loans approved (net) 124.4 i6o.i 362.2 583.4 821.8 951.9 1,153.9
Reservations outstanding 31.3 100.0 150.8 219.1 99.2 206.3 364.6
Unencumbered authorization 149.7 240.0 239.1 124.9 7.6 29.4 160.1
Undisbursed commitments 58.9 68.1 211.7 304.2 363.5 254.6 282.7
Loans and advances disbursed 65.5 92.0 150.5 279.2 458.3 697.3 871.1
Loans repaid 0.6 1.1 3.7 5.4 8.3 14.8 23.9
Loans outstanding 64.9 90.9 146.8 273.8 450.0 682.5 847.1
Net expenses 0.6 1.0 1.6 3.0 4.7 2.2 2.4
Advances for public works planning
approved August 2, 1954
Applications, number
Pending or in process 28 60 151 153 236 205 153
Approved (net) 0 24 171 446 915 1,234 1,626
Plans not completed 0 23 112 222 403 340 371
Plans completed 0 1 59 224 512 894 1,255
Repayments, full and partial 0 0 0 35 107 266 476
Authorization appropriated $1.5 $4.5 $12.0 $17.0 $24.0 $30.0 $36.0
Advances pending .2 1.3 5.2 4.9 7.8 6.0 6.5
Approved (net) 0 .2 4.2 10.9 22.8 29.4 37.5
Undisbursed 0 .2 4.8 8.3 15.2 14.7 14.7
Disbursed 0 a/ .4 2.6 7.6 14.7 22.8
Loans repaid
Loans outstanding
00
0
a/
a/
.3
. 6
2.0
2.1
5.5
5.1
9.5
8.6
14.2
Survey expenses 0 V a/ a/ v a/ .1
Balance available 1.5 4.2 7.8 6.7 3.3 578 7.0
Public facility loans
approved August 2, 1954
Applications, number
Pending or in process 0 18 61 121 77 70 63
Approved construction (net) 0 2 25 100 180 240 297
Not yet started 0 2 22 53 74 63 65
Not completed 0 0 3 39 67 82 59
Completed 0 0 0 8 39 95 173
Authorized 0 $100.0 $100.0 $100.0 $100.0 $100.0 $150.0
Panrii ng 0 1.8 12.2 39.3 29.2 19.6 11.1
Approved (net) 0 .1 2.6 21.5 52.3 74.5 89.9
Undisbursed 0 .1 2.6 16.8 35.9 33.6 39.6
Disbursed 0 0 a/ 4.7 16.4 40.7 50.2
Loans repaid 0 0 0 0 a/ .1 .3
Loans outstanding 0 0 a/ 4.7 1674 40.7 50.0
Net expenses 0 a/ .2 .7 1.1 1.6 1.9
Balance available 0 99.8 97.2 77.9 46.6 23.9 58.5
a/ Less than $£0,000.
Sources: Community Facilities Administration (HHFA), and Division of Finance and Accounts (HHFA)
382
Table A-73. — College housing program: total applications and construction
Source: Community Facilities Administration (HHFA)
Item
Number of
applications
Dwelling units
in applications
Dwelling units put
under construction
and
year Received
2/
kith funds
reserved
1/
With loans
approved
c/
With funds
reserved
d/
With loans
approved
2/
Total
£/
Started
but not
yet/d
completed
Completed
c/
Cumulated or inventory
thru end of year
Total 1951 /b
1952
1953
1954
1955
1956
1957
1958
1959
I960
1961
57
158
287
392
701
979
1,310
1,545
1,889
2,245
0
34
63
49
103
157
186
143/a
192/a
304
17
43
104
158
213
401
602
828
993
1,193
805
12,108
12,233
8,000
25,755
32,696
50,743
28,233/a
46,7007a
83,002
5,015
12,643
28,858
38,086
48,933
99,214
148,348
200,008
233,077
281,797
910
5,974
18,457
28,820
39,728
67,092
110,501
172,925
208,139
252,569
910
5,974
17,459
16,069
13,287
28,744
44,501
64,884
56,420
43,286
0
0
998
12,751
26,441
38,348
66,000
108,041
151,719
209,283
College housing
Beginning April 1950
thru end of year
1951
1952
1953
1954
1955
1956
1957
1938
1959
I960
1961
57
158
287
392
701
979
1,255
1,469
1,799
2,131
0
34
63
49
103
157
164
127/a
182/a
292
17
43
104
158
213
401
602
802
954
1,138
805
12,108
12,233
8,000
25,755
32,696
48,233
26,866/a
45,467/a
81,946
5,015
12,643
28,858
38,086
48,933
99,214
148,348
197,379
228,930
275,802
910
5,974
18,457
28,820
39,728
67,092
110,501
172,115
204,888
247,694
910
5,974
17,459
16,069
13,287
28,744
44,501
64,074
54,268
41,211
0
0
998
12,751
26,441
38,348
66,000
108,041
150,620
206,483
Student nurseintern
housing
From July 1957 •
thru end of year
1957
1958
1959
I960
1961
55
76
90
114
22
16
10
12
0
26
39
55
2,510
1,367
1,233
1,056
0
2,629
4,147
5,995
0
810
3,251
4,875
0
810
2,152
2,075
0
0
1,099
2,800
Net change:
annual data
Total 1$»51 /b
1952
1953
1954
1955
1956
1957
1958
1959
I960
1961
57
101
129
105
309
278
331
235
344
356«-
0
34
29
-14
54
54
29
-43/a
49/a
1*12
17
26
61
54
55
188
201
2*26
165
200
805
11,303
125
-4,233
17,755
6,941
18,047
-22,510/a
18,467/a
3*6,302
5,015
7,628
16,215
9,228
10,847
50,281
49,134
5*1,660
33,069
48,720
910
5,064
12,483
10,363
10,908
27,364
43,409
6*2,424
35,214
44,430
910
5,064
11,485
-1,390
-2,782
15,457
15,757
2*0,383
-8,464
-13,134
0
0
998
11,753
13,690
11,907
27,6^2
42,041
43,678
*57,564
Percent change
I960 from 1959 3.5 128.6 21.2 96.6 47.3 26.2 XX 31.8
*■ All-time high.
a/ Includes both contingent and firm
b/ Includes 1950 activity.
reservations. c/ Cumulated.
d/ Inventory.
383
Table A-74. — School construction projects under Public Law 815, as amended
a/ At end of 1951 funds were reserved for 397 projects; at end of 1952, for 1,203 projects.
Section of law
and status 1953 1954 1955 1956 1957 1958 1959 I960 1961
Number at year end
Cumulated from 9-23-50
Total, all sections
Funds reserved 1,379/a 2,090 2,583 2,883 3,407 3,727 4,125 4,416
Recommended by HHFA 1,328 1,962 2,504 2,846 3,326 3,674 4,058 4,333
Started 1,221 1,509 2,166 2,643 3,046 3,465 3,815 4,162
Completed 419 1,054 1,490 2,102 2,549 3,008 3,413 3,796
Sections 202, 203, and 204
Funds reserved 1,332 1,460 1,471 1,470 1,469 1,469 1,469 1,469
Recommended by HHFA 1,327 1,436 1,471 1,470 1,469 1,469 1,469 1,469
Started 1,221 1,336 1,447 1,469 1,469 1,469 1,469 1,469
Completed 419 1,049 1,294 1,413 1,452 1,469 1,469 1,469
Sections 305 and 5
Funds reserved 41 536 954 1,181 1,650 1,925 2,274 2,528
Recommended by HHFA 1 466 879 1,150 1,576 1,878 2,215 2,454
Started XX 147 623 989 1,343 1,715 2,014 2,315
Completed XX 5 177 616 942 1,321 1,691 2,026
Sections 309, 9, 310, and 10
Funds reserved 6 30 63 78 115 140 167 189
Recommended by HHFA XX 29 63 75 113 136 165 lb 9
Started XX 14 30 64 78 ill 143 166
Completed XX XX 6 16 37 65 82 110
Sections 401 and 14
Funds reserved XX 44 95 154 173 193 215 230
Recommended by HHFA XX 31 91 151 168 191 209 221
Started XX 12 66 121 156 170 189 212
Completed XX XX 13 57 118 153 171 193
Net change during year
Total, all sections
Funds reserved 176 711 493 300 524 320 398 291
Recommended by HHFA 288 634 542 342 480 348 384 275
Started 746 288 657 477 403 419 350 347
Completed 370 635 436 612 447 459 405 385
Sections 202, 203, and 204
Funds reserved 129 148 -9 -1 -1 0 0 0
Recommended by HHFA 287 109 35 -1 -1 0 0 0
Started 746 115 111 22 0 0 0 0
Completed 370 630 245 119 39 17 0 0
Sections 305 and 5
Funds reserved 41 495 418 227 469 275 349 254
Recommended by HHFA 1 465 413 271 426 302 337 239
Started XX 147 476 366 354 372 299 301
Completed XX 5 172 439 326 379 370 335
Sections 309, 9, 310, and 10
Funds reserved 6 24 33 15 37 25 27 22
Recommended by HHFA XX 29 34 12 38 23 29 24
Started XX 14 16 34 14 33 32 23
Completed XX XX 6 10 21 28 17 28
Sections 401 and 14
Funds reserved XX 44 51 59 19 20 22 15
Recommended by HHFA XX 31 60 60 17 23 18 12
Started XX 12 54 55 35 14- 19 23
Completed XX XX 13 44 61 35 18 22
Source: Community Facilities Administration (HHFA)
384
Table A-75. — Financing Alaska Housing, under Federal Housing Administration and
Federal National Mortgage Association programs
Federal Housing Administration /a
Year
Dwelling units in mortgages insured for — Amount
insurance
written
homes and
projects
(thousands)
Homes
and
projects
Homes
Total Projects New Existing
April 1949 - December I960 8,712 4,859 2,342 2,517 3,853 $13O,865/b
Net annual increase:
1949 792 43 8 35 749 8,830
1950 1*,561 130 28 102 *1,431 *17,672
1951 1,255 238 117 121 1,017 13,785
1952 588 202 71 131 386 8,325
L 1953 1,267 9*97 *678 319 270 17,240
1954 825 825 581 244 0 12,882
1955 283 283 141 142 0 4,461
r ^6 153 153 12 141 0 2,522
1957 272 272 52 220 0 5,303
1958 4n 411 130 281 0 9,234
1959 558 558 193 3*65 0 12,907
1960p 747 747 331 416 0 17,180
* All-time high. p - Preliminary.
a/ Program authorized under PL 52, 81st Congress, these data exclude 563 home mortgages with insurance written
of $3 million prior to Public Law 52.
b/ Include $524,000 in project mortgages not reflected in annual data.
Source: Federal Housing Administration (HHFA)
Financing authorized under —
Federal National Mortgage Association
Year
Public Law 52, 81st Cong, /a Public Law 560, 83d Cong.
Dwelling
units
Mortgages Portfolio
/b
(000)
Dwelling
units
Mortgages Portfolio
/b
Number (000) ' Amount
(000) Number Amount
(000)
April 1949 - December I960
Net annual increase:
5,660 2,323 $73,672 $27,191 2,051/c 2,051/c $47,352/c $36,519
1949 1,248 138 11,142 783 -- — — —
1950 561 22 6,563 7,286 _ —— _
1951 886 60 10,128 11,713 — “ __ _ _
1952 1,054 635 15,904 14,454 — — _ _
1953 1*,590 *1,147 *23,574 36,936 — — _ --
1954 321 321 6,296 5*3,836 0 0 0 0
1955 — — 63 50,360 2 2 30 0
1956 — — — 2 44,812 41 41 594 453
1957 — — 0 42,580 264 264 5,597 3,277
1958 — — 0 32,620 442 442 10,422 10,361
1959 — — 0 29,574 641 641 14,715 21,798
I960 -- 0 27,191 *661 6*61 *15,994 *36,519
* All-time high.
a/ Authority to finance under Public Law 52 expired August 2, 1954.
b/ At end of period.
c/ Cumulated from November 1954 through December 1963.
Sources Federal National Mortgage Association (HHFA)
385
Table A-76. — Housing and Home Finance Agency: Analysis of receipts and expenditures and effect on
Federal Budget - fiscal year I960
(Thousands of dollars)
Disbursements Receipts Net disbursements
or receipts (-)
Net use of funds for all programs
Acquisition and realization of assets
Mortgages purchased vs. sales and repayments $1,723,539 $744,850 $978,689
Loans to local governments vs. repayments
Urban renewal 126,978 124,527 2,451
Low-rent housing 131,866 129,675 2,191
Other 21,552 15,594 5,958
Loans for college housing vs. repayments 210,364 7,516 202,848
Collateral acquired on insurance claims vs. sales
and recoveries 110,993 13,659 97,334
Other 447 9,208 -8,761
Total acquisition and realization of assets 2,325,739 1,045,029 1,280,710
Expenses and income
Interest and dividends paid vs. those received
on loans 229,544 317,131 -87,587
Fees paid for services vs. fees and premiums for
services rendered 24,301 202,839 -178,538
Administrative and non-administrative expenses 87,947 XX 87,947
Other 11,801 7,404 h,397
Total expenses and income 353,593 527,374 -173,781
Grants-in-aid to local governments 238,148 XX 238,148
Increase or decrease in selected working capital 91,514 116,971 -25,457
Common stock subscribed to FNMA Secondary Market XX 22,554 -22,554
Total program funds - gross budget and trust
expenditures, disbursements, and receipts 3,008,994 1,711,928 1,297,066/a
Financing the program above - funds provided to
(disbursements) and by (receipts) the Treasury
or private market
Transactions with the Treasury
Repayments vs. borrowings from Treasury 1,738,824 1,974,433 -235,609
Retirement of guaranteed borrowings vs. new issues 58,604 87,016 -28,412
Cash balances - increases vs. decreases 87,225 30,011 57,214
Investment in U.S. securities vs. sales and
redemptions 407,904 329,904 78,000
Appropriations repaid vs. received 94,205 268,047 -173,842
Transactions with private market
FNMA Secondary Market debentures retired vs. issued 1,018,488 2,012,905 -994,417
Total financing transactions 3,405,250 4,702,316 -1,297,066
a/ Budget expenditures $309,065 and remainder trust expenditures of FNMA Secondary Market operations.
Source: Office of the Administrator (HHFA)
386
Table A-77. — Net budget expenditures or receipts (-), net assets and government equity
with respect to enumerated housing programs as of June 30, i960
(Millions of dollars)
Net
budgetary
expenditures
cumulative/a
6/30/60
Status of government equity
Net
assets
Liabilities
Government
equity
1. Salaries and expenses $117.8 $2.1 $1.1 $1.0
2. College housing loans 754.7 772.6 10.8 761.8
3. Public facility loans 1:6.5 116.3 1.0 115.3
Public works planning:
11. Revolving fund 12.1 lli.li — lli.li
5. Administrative expenses 2.0 — — —
Urban renewal:
6. Revolving fund 380.0 81.1 5.5 75.6
7. Administrative expenses 33.8 -- — --
8. Urban planning grants 7.3 _
9. Liquidation of certain expired programs /b 1,756.5 132.8 9.3 123.5
10. Community disposal (AEC Towns) -51.11 8.2 .2 8.0
Federal National Mortgage Association:
11. Secondary market 1112.8 157.8/c 157.8
12. Special assistance 1,6111.5 1,701.0 1111.1 1,656.9
13. Management and liquidating 1,277.5 1,800.3 131.8 1,668.5
111. Federal Housing Administration -602.7/d 1,150.1 283.11 866.7/e
15. Public Housing Administration 981i.5^ 1112.9 118.2 911.7
16. Federal Home Loan Bank Board -1116.0 3711.6 21.0 353.6/f
Total 5,989.9 6,3811.2 556.li 5,827.8
Calculation of net position
Government equity as of June 30, I960 $5,827.8
Deduct: Cash and investments from receipts already
credited against expenditures:
Federal Housing Administration $582.3
Federal Home Loan Bank Board 332.8
Total 915.1
Net budget expenditures 5,989.9
Net position (deficit) at June 30, I960 -1,077.2
a/ From inception of each program to June 30, I960.
b/ Includes war and defense emergency housing programs; Alaska Housing; Prefabricated Housing Loans; War Public
Works; Defense Community Facilities; First and Second Advance Planning Programs; and certain public facility
loans.
c/ Government side only; excludes operations financed with private capital and borrowings carried in trust
fund section of the budget.
d/ Excess of receipts from fees, premiums and sale of property over costs of operation and settlement of
insurance claims.
e/ Includes reserves established from insurance fees and premiums. Contingent liability for insurance
guarantees outstanding against the reserves amounted to $31.1 bi Hi on.
f/ Includes reserves established from insurance premiums. Contingent insured liability amounted to
$511.8 billion.
Note.—The above table includes the programs of the Housing and Home
Finance Agency, and of the Federal Home Loan Bank Board, which was a
constituent agency of HHFA during a substantial part of the time covered
by the table. It does not include the expenditures and contingent liabilities
of the Veterans Administration for direct and guaranteed home loans, or
those of the Department of Agriculture for assistance to farm housing.
NOTES ON COLUMN HEADINGS
“Net Budgetary Expenditures” as shown in the first column
are computed from cumulative financing as shown in the budget
schedules. Due to special accounting treatment of a few unusual
transactions, this method can produce minor discrepancies from
operations statements, which are not available on a cumulativefrom-
inception basis. Such discrepancies, however, would be
negligible in magnitude in relation to totals.
“Net Assets” represent assets as shown in the balance sheets
of the respective programs at June 30, 1960, net of valuation
reserves for losses on acquired properties and loans outstanding
and similar items. Unexpended balances of appropriations and
Treasury borrowings have been eliminated except as noted.
“Liabilities” are as reported on June 30, 1960, balance sheets.
Current liabilities for programs financed with Treasury borrowings
include accrued interest owed to Treasury. This is properly
classified as a liability for the purposes of this table, as the
figures do not reflect cost to Treasury of funds provided for these
programs (which would somewhat exceed interest paid and accrued
because of the statutory low interest rate on college
housing).
The PHA statement of financial condition as of June 30, 1960,
as printed in the Budget, does not include any liability for future
387
annual contributions to be made pursuant to existing contracts
under the low rent housing program. GAO has contended that
the principal amount of bonds and notes guaranteed should be
shown as a liability in the financial statement, and PHA statements
now show this entry. As of June 30, 1960, this amount
was approximately $3.5 billion.
“Government Equity” represents the difference between assets
and liabilities at June 30, I960. It is believed that the theoretical
amount which could be realized from liquidation of the
assets on hand at least equals and probably exceeds the book
value, but not in an amount significant in relation to the totals
involved.
NOTES ON INDIVIDUAL PROGRAMS
1. Salaries and expenses. Cumulative net budgetary expenditures
from appropriation, “Housing and Home Finance Agency,
Office of the Administrator, Salaries and Expenses.” Excludes
amounts appropriated for administrative expenses of urban renewal
and public works advance planning programs, shown
separately in the table. Includes $5 million spent for housingresearch.
2. College housing loans. Expenditures reflect funds drawn
from Treasury for loans, advances and administrative expenses.
Net assets consist primarily of loans receivable. Liabilities
reflect accrued interest due Treasury and unearned fees for
inspection and audit.
3. Publie facility loans. Expenditures represent funds drawn
from Treasury for public facility loans and advances and administrative
expense. Assets are loans receivable. Liabilities
are accrued interest owed Treasury and unearned fees for inspection
and audit.
4. Public works planning—revolving fund. Expenses reflect
advances made for planning. Assets represent advances to be
repaid.
5. Public works planning—administrative expense. Expenditures
from appropriated funds for administrative expenses of
public works advance planning program.
6. Urban renewal—revolving fund. Expenditures represent
grants paid from appropriated funds and net borrowings from
Treasury for planning advances and project temporary loans.
Assets consist of loans receivable from local public agencies.
Liabilities reflect accrued interest owed Treasury and unearned
fees for project audit and inspection.
7. Urban renewal—administrative expenses. Expenditures
from appropriated funds for administrative expenses of urban
renewal programs.
8. Urban planning grants. Expenditures from appropriated
funds for matching grants for urban planning assistance.
9. Liquidation of certain expired programs. Expenditures
were chiefly for construction of war and defense housing ; loans
and grants for war public works ; and for a variety of specialpurpose
loans. Net expenditures reduced by proceeds of property
sales, amortization, and interest collected on loans, etc. Assets
consist mainly of accounts receivable and bonds.
10. Community disposal (AEC towns'). Expenditures column
represents net receipts from sale of properties and mortgages.
Assets are almost entirely purchase money mortgages and improvement
loans receivable. Liabilities are miscellaneous current
accounts payable, earnest money deposits, etc.
.11 . FNMA secondary market. Expenditures represent Government
paid-in capital. Assets and Government equity are
preferred stock held by Treasury and retained earnings. Excludes
assets acquired by means of private nonguaranteed borrowings
and offset by approximately equivalent liabilities.
12. FNMA special assistance. Expenditures reflect amounts
drawn from Treasury for purchase of mortgages under special
assistance programs and for administrative expenses. Assets
are almost entirely mortgages held in portfolio. Liabilities include
accrued interest due Treasury ; deposits for insurance and
taxes; prepayments on mortgages; and reserves for accrued
annual leave.
13. FNMA—management and liquidating. This item is similar
to special assistance, but consists of mortgages acquired under
operations prior to the 1954 Charter Act, and certain mortgages
originated in liquidation of war and emergency housing. Nature
of expenditures, assets and liabilities identical to No. 12 above.
14. Federal Housing Administration. Expenditures column
reflects net budgetary receipts from operations. Assets consist
of Government securities held as investments, assigned and
Commissioner-held mortgages, acquired properties, defaulted
Title I notes, and certain miscellaneous items. Liabilities are
mainly debentures in process and outstanding, with smaller
amounts for accrued interest payable, unearned insurance premiums,
and current accounts payable.
15. Public Housing Administration. Expenditures are mainly
annual contributions to low rent housing projects, with lesser
amounts of net borrowings for planning and temporary loans,
and amounts spent from appropriated funds for administrative
expenses. Assets are loans receivable from local housing authorities,
plus a handful of federally-owned projects. Liabilities
represent unpaid accrued annual contributions, and are offset
by a like amount of cash in the assets column.
16. Federal Home Loan Bank Board. Expenditures column
reflects net budgetary receipts from operations. Assets are
mainly reserves invested in Government securities, and liabilities
mainly unearned insurance premiums.
Source: Office of the Administrator (HHFA).
388
APPENDIX B
EXECUTIVE MESSAGES AND FEDERAL LEGISLATION
AFFECTING HOUSING
A. EXECUTIVE MESSAGES
President Eisenhower’s address to the Congress
on the State of the Union 1 opened with a discussion
of the world situation. In particular, he
discussed the possibilities of world peace but with
proper safeguards. The President asserted that
the Nation would pursue the missions of peace
from a position of broadly based military strength.
Turning to the domestic scene, the President
viewed 1960 as a year of record prosperity, but
also expressed his concern about inflation. Toward
the conclusion of his Message, the President
referred to the future growth of our population
which would be concentrated in large urban areas.
This growth would add to our urban problems
which, he believed, should be solved in the traditional
American way of State and local
responsibility.
In his Budget Message,1 2 the President recommended
that during fiscal year 1961, expenditures
be kept at $79.8 billion. The Message called for
a surplus of $4.2 billion to be applied toward the
national debt.
For housing, the President requested only “the
authority necessary to continue important existing
programs,” including urban renewal, public
facility loans, public housing, and secondary market
operations of the Federal National Mortgage
Association. He urged that the direct loan program
for veterans be permitted to expire on July
25, 1960; and that higher interest rates be authorized
in the veterans’ and military housing
programs. He recommended termination
of the present college housing program and the
transfer of its activities to the Department of
Health, Education, and Welfare.
In his letter to the Congress transmitting the
Economic Report required by the Employment
Act of 1946, the President summarized the economic
developments of the year and the steps
taken to promote the balanced growth of the
economy.
His report3 referred to the increased availability
of mortgage credit and, to a lesser extent,
lower borrowing costs. However, he reported,
expenditures on residential construction in 1960
1 House Doc. 241. S«tl) Cong., 2d Sess.
2 House Doc. 255. 86th Cong.. 2d Sess.
3 House Doc. 268. 86th Cong.. 2d Sess.
were 10 percent below those in 1959. Correspondingly,
outstanding mortgage debt on one- to fourfamily
homes rose by $11 billion in 1960, compared
to a $13 billion increase in 1959.
The President cited several administrative steps
taken in 1960 to aid declining residential construction.
In February, the Federal Housing Administration
announced new procedures to facilitate
the sale of existing houses traded in on the purchase
of new homes; in April, the downpayments
on FHA -insured loans were reduced; and in July,
the purchase of FHA-insured loans by the general
public was authorized.
Changes were also made in programs involving
Federal financial assistance for housing construction
and purchase.
1. FNMA raised the prices paid for housing
loans purchased through its secondary market operations.
Two price increases of one-half point
were announced, the first in July and the second
in August. The maximum loan per dwelling under
the secondary market program was raised
from $15,000 to $20,000 in January; and in October
the issuance of standby commitments for the
purchase of existing homes was authorized.
2. Under the College Housing Program, priority
was given to loan applications for construction
that could be commenced early.
3. The Urban Renewal Administration inaugurated
administrative procedures to aid localities
in expediting the planning, execution, and completion
of projects.
The President proposed that the existing programs
for housing and community development
would be enhanced by the repeal of program statutory
termination dates and the removal of limitations
on authorization amounts. Specifically,
the President recommended that present authorization
limitations be removed on the amount of
mortgages that can be insured by FHA; legislative
limits be removed on grants for urban renewal
projects and permanent annual appropriation
authority be substituted; FHA Title I home
improvement program be made permanent; and
interest ceilings be eliminated or raised on VAguaranteed
and FHA-insured mortgages on
rental, elderly, and military housing.
In August, when the Congress resumed its deliberations
after the convention recess, the Presi389
dent submitted a special message4 which, opened
with a discussion of the foreign situation and
then urged Congress to adopt legislation dealing
with a series of domestic problems. Among measures
recommended by the President was increased
Federal assistance in the construction of educational
facilities.
On May 14,1960, the President returned to Congress
without his approval H.R. 7947.5 This bill
would have allowed financial institutions that are
required to purchase. FNMA stock, to write off
as a tax deductible business expense the difference
between the purchase price and the fair market
value of the stock. The President in his veto
message accepted the principle of the bill, but
objected to its “retroactive application ... in a
highly discriminatory manner.”
B. THE CONGRESS AND FEDERAL
LEGISLATION
The Congress made numerous attempts at enacting
major housing legislation in 1960. On
June 16, the Senate passed S. 3670, a proposed
Housing Act of 1960, at a $1.87 billion total figure.
On June 15 the House Banking and Currency
Committee favorably reported HR. 12603, another
omnibus housing bill, at a $1.36 billion total
figure. Earlier, on April 28, the House passed
HR. 10213, an Emergency Home Ownership Bill
which, as an aid to housing construction, would
have increased the authorization of FNMA in the
secondary mortgage market by $1 billion. Congress
was unable to reach agreement on any of
these bills.
1. HOUSING JOINT RESOLUTION OF 1960
In a stalemate over a comprehensive housing
program, Congress, as a part of Public Law 86-
788, approved September 14, 1960, authorized the
continuation of certain programs in immediate
need of further funds or extension of authority.
Section 2 of Public Law 86-788? (1) extended the
FHA Title I home repair and improvement program
for 1 year until October 1, 1961, and removed
the dollar limitation on the authorization
of the program; (2) increased by $500 million the
college housing loan authorization, of which $50
million was designated for other educational facilities
and $50 million for housing of nurses and
interns; and (3) increased by $50 million the
public facility loan authorization.
2. FNMA STOCK—TAXATION
Section 8 of Public Law 86-779, also approved
September 14, 1960, provided that whenever the
amount of capital contribution evidenced by a
share of common stock exceeds the fair market * 6
4 Senate Doc. 115, 86th Cong., 2d Sess.
6 House Doc. 390, 86th Cong., 2d Sess.
value of the stock as of the date of issue of such
stock, the initial holder of the stock is entitled to
treat the excess as ordinary and necessary expenses
incurred in carrying on a trade or business.
In connection with the sale of the stock by such
a holder, the basis of the stock for tax purposes
must be reduced accordingly. These tax changes
apply with respect to taxable years beginning
after December 31, 1959.
3. REAL ESTATE INVESTMENT TRUSTS
Section 10 of Public Law 86-779 provided that
income from the passive ownership of real estate
by a real estate investment trust and distributed
to beneficiaries is exempted from corporate income
tax before it is distributed. The trust must
have 100 or more beneficiaries, with no five persons
owning more than half of the beneficial interest.
At least 75 percent of its gross income must be derived
from real property; and at least 90 percent
of its gross income must be in the form of dividends,
interest, rents, gains from the sale of stock
and real property, and property tax abatements.
This section provides substantially the same tax
treatment for real estate investment trusts as
present law provides for regulated security investment
companies.
4. MILITARY FAMILY HOUSING—FHA
MORTGAGE INSURANCE
Public Law 86-500, approved June 8, 1960, increased
from 20,000 to 25,000 the units authorized
for “Capehart Act” family quarters and sets
new limits on the cost of such units. It also
extended for 1 year the termination date for the
improvement, demolition, or change to other use
of substandard Capehart Act housing.
5. NASA AND AEC HOUSING—FHA MORTGAGE
INSURANCE PROGRAM FOR CIVILIAN EMPLOYEES
Public Law 86-578, approved July 5, 1960, restored
Section 809 (armed services housing) FHA
mortgage insurance program eligibility to essential
civilian employees of the National Aeronautics
and Space Agency at certain installations.
These employees lost the benefits of this section
earlier upon the transfer of the installations from
the Defense Department to the NASA.
Public Law 86-774, approved September 13,
1960, extended the Section 809 program to civilian
employees of the Atomic Energy Commission in
Los Alamos County, N. Mex.
6. HAWAII OMNIBUS ACT
Public Law 86-624, approved July 12,1960, contained
technical amendments to the National
Housing Act and to Public Law 815, 81st Congress
(School Construction), in light of the admission
of Hawaii as a State.
390
7. OVERSEAS HOUSING LOANS
The Mutual Security Act of 1960, approved May
14, 1960 (Public Law 86-472), declared that, consistent
with other purposes of the Development
Loan Fund, special consideration should be given
to loans and guaranties to stimulate activities.
C. APPROPRIATIONS
The Temporary Appropriations Act, 1961
(Public Law 86-569), approved July 2, 1960, contained
temporary Housing Agency appropriations
for the period June 30 to August 31, 1960, pending
enactment of fiscal 1961 appropriations.
The Independent Offices Appropriation Act,
1961 (Public Law 86-626), approved July 12,
1960, contained fiscal 1961 appropriations for the
Housing Agency.
The Supplemental Appropriation Act, 1961
(Public Law 86-651), approved July 14, 1960,
contained additional appropriations for fiscal 1960
for payments under annual contributions contracts
for low-rent public housing.
The Second Supplemental Appropriation Act,
1960 (Public Law 86-424), approved April 13,
1960, contained additional appropriations for
urban renewal and urban planning grants and increased
the limitation on administrative expenses
of FNMA.
The Departments of Labor, and Health, Education,
and Welfare Appropriation Act, 1961
(Public Law 86-703), approved September 2,
1960, contained funds for technical services of
CFA in connection with the school construction
program of the Office of Education and the waste
treatment works construction program of the Public
Health Service under the Pollution Control
Act. It also contained funds for expenses of the
1961 White House Conference on Aging.
The General Government Matters Appropriation
Act, Fiscal 1961 (Public Law 86-642),
approved July 12, 1960, provided an emergency
fund to the President for national defense, and
funds for the Council of Economic Advisers, the
President’s Advisory Committee on Government
Organization, and the Advisory Commission on
Intergovernmental Relations. It also contained
general provisions applicable to the Housing-
Agency.
The Department of Agriculture Appropriation
Act, 1961 (Public Law 86-532), approved June 29,
1960, contained funds for farm housing under Title
V of the Housing Act of 1949 and the Bankhead-
Jones Farm Tenant Act.
D. CONGRESSIONAL INVESTIGATION AND
STUDIES
PROBLEMS OF THE AGED AND AGING
Senate Resolution 65, 86th Congress, authorized
the Subcommittee on Problems of the Aged and
Aging of the Senate Committee on Labor and
Public W elf are to examine existing programs operated
by public and private agencies and to determine
if additional Federal assistance is needed in
solving the problems of the aged.
The first report6 of the Subcommittee was submitted
on February 23, 1960, and dealt with the
views, experiences, and advice of several thousands
of individuals and organizations—public
and private—throughout the Nation. Based on
information collected by the Subcommittee, the
report: (1) depicts the present status of the aged
and aging; (2) describes what is currently being
attained in the field, and (3) sets forth basic
recommendations on what were found to be the
major problem areas of the aged—finances, medical
care, housing, employment, and proper use
of leisure time.
The Subcommittee’s housing recommendations
included: (1) an additional 10,000 public housing
units each year for low income elderly persons;
(2) essential health and social service facilities
in all multiple-housing elderly projects that involve
direct Federal loans to nonprofit groups;
and (3) service and recreational facilities in
FHA-insured elderly sales and rental housing.
REVIEW OF EXPENDITURES AT GRANITE CITY
ENGINEER DEPOT
On May 23,1960, the House Committee on Government
Operations published a report6 7 on the
alleged overexpenditure of funds for housing at
the Granite City Engineer Depot, Granite City,
The Committee on Labor and Public Welfare
published a report8 on the conditions of American
nursing homes.
JOINT ECONOMIC REPORT—EMPLOYMENT,
GROWTH, AND PRICE LEVELS
The report9 of the Joint Economic Committee
of the Congress, filed on January 26, 1960, contained
the following general findings and
conclusions:
(1) It is possible with proper policies to achieve
a high and sustained rate of economic growth and
relatively full employment, without creeping or
galloping inflation.
(2) Under the present policies followed by the
Administration, the Treasury, the Federal Reserve,
and the Congress, we would have to choose
between growth equal to our potential, on the one
hand, or price level stability, on the other.
(3) Our future growth will depend on what
we do now. If we pursue policies which will
foster growth, the economy could grow at a rate
of approximately 4.5 percent a year over the next
15 years. This is a sharp contrast to the rate of 2.3
percent of the last 6 years. These are amounts
large enough to spell the differences between a
6 Senate Report No. 1121
7 House Report No. 1637.
8 Committee Print.
9 Senate Report No. 1043.
391
rapid or slow increase in our standards of living
and between meeting our public responsibilities
at home and abroad fully or stintingly.
(4) In order to get a rate of growth close to our
potential, we must reduce the inflationary bias
of the economy so that we will not have to choose
between growth, on the one hand, or stable prices
on the other. We must then pursue programs of
growth.
(5) Our inadequate economic policies have contributed
a good deal to the difficulties of recent
years. Since the end of the 1954 recession, public
policy has been concentrated primarily on curbing
inflation. This has been done on the mistaken
assumption that such a policy will automatically
promote economic growth. The methods used
assume that the inflation of recent years was
caused by generally excessive money demand.
Our studies find that the real sources of inflation
primarily lie elsewhere.
(6) However, we also find that policies designed
to promote growth will not automatically
prevent inflation. While high output serves to
raise productivity, a high rate of growth requires
high levels of monetary demand.
(7) Concentrations of market power partially
contributed to the inflation of recent years. Antitrust
and similar policies designed to improve the
competitiveness of the economy are important in
reducing this source of inflationary strain but
cannot be relied on exclusively for preventing increases
in the general level of prices.
JOINT COMMITTEE ON WASHINGTON
METROPOLITAN PROBLEMS
House Concurrent Resolution 172, 85th Congress,
authorized the Joint Committee on Washington
Metropolitan Problems to study problems
created by the growth and expansion of the District
of Columbia, and its metropolitan area, how
such problems are being met, and how they affect
the District of Columbia.
A final report10 was submitted by the Committee
on August 23, 1960, entitled “Washington
Metropolitan Problems : Progress and Prospects.”
The report reviews the actions taken on its
recommendations.
Staff reports (Committee Prints) were published
by the Committee in 1960, on—
Organization for Transportation in the National
Capital Region : Selected Documents
National Capital Transportation Act of 1960
(Hearings before the Joint Committee on Washington
Metropolitan Problems)
National Capital Transportation Act of 1960
(Report to accompany S. 3193 and H.R. 11135)
Committee print of S. 3193 and H.R. 11135, as
amended by the Committee
A discussion guide to Washington area metropolitan
problems.
10 Senate Report No. 1903, 86th Cong.
STUDY OF MORTGAGE CREDIT
'Die staff of the Subcommittee on Housing,
Senate Committee on Banking and Currency,
submitted to the Committee a report11 on the
study of mortgage credit. The report contained
findings and recommendations relating to demand,
need, and supply of credit, basic Federal programs;
and middle-income housing.
SUBSIDY AND SUBSIDYLIKE PROGRAMS OF THE
UNITED STATES GOVERNMENT
The staff of the Joint Economic Committee
submitted a report12 on the extent and impact
of Federal Government subsidies. The report
listed the FHA, URA, PHA, and FNMA as
among those governmental organizations which
might be considered to partake of or involve an
element of subsidy.
E. COMMITTEES ESTABLISHED BY
PRESIDENT EISENHOWER
ADVISORY COMMISSION ON
INTERGOVERNMENTAL RELATIONS
On January 31, 1960, this Commission submitted
its Second Annual Report on the problems
of the Federal, State and local agencies of government.
Among the areas selected for further
study by the Commission were: (1) periodic Congressional
reassessment of Federal grants-in-aid
to State and local governments; (2) intergovernmental
relations and responsibilities with respect
to mass transportation facilities and services in
metropolitan areas; (3) possible measures by Federal
and State governments to facilitate metropolitan
area planning and development; and (4)
economic data regarding metropolitan areas.
PRESIDENT’S COMMISSION ON NATIONAL GOALS
On November 16, 1960, this Commission submitted
its report. Among the goals recommended
for housing and community development were:
(1) a full range of housing opportunities outside
the central cities for minority families and for
other low-income families; (2) an adequate
supply of suitable housing for low- and middleincome
families who need or want to live in
central areas; (3) a greater volume of investment,
private and public, in renewal and redevelopment;
(4) effective regional planning and stronger landuse
controls; (5) incentives for effective planning,
land-use control, and strong local government, in
all Federal and State programs of financial assistance;
(6) responsible programing of local
housing requirements; and (7) expansion of the
market for new and improved housing and of the
range of consumer housing choices.
11 Committee Print.
32 Committee Print.
392
F. EXECUTIVE ORDERS
Executive Order 10894, issued November 17,
1960, established the President’s Committee on
Migratory Labor and appointed the Housing and
Home Finance Administrator as a member.
Executive Order 10859, issued February 5,1960,
revoked Executive Order 10758, issued March 4,
1958, which established a career executive program
within the civil service system.
G. SUMMARY OF MAJOR STATE LAWS
AFFECTING HOUSING OR COMMUNITY
DEVELOPMENT ENACTED DURING
1960
ALASKA
Division of State Planning—S.B. 191, approved
April 26.
Creates a Division of State Planning for the
State of Alaska. The Division is empowered to act
in an advisory capacity to operating departments
and agencies of the State. It is authorized to make
and enter into contracts, and to accept grants and
services from the Federal Government, State,
municipal or local governments, or private or
civic sources.
COLORADO
Community Facilities—S.B. 23, approved March 18.
Authorizes municipalities to create metropolitan
sewage disposal districts. The districts are
empowered to plan, alter, enlarge, extend, improve,
construct, reconstruct, develop, redevelop,
operate, and maintain sewer systems; to contract
with agencies of the Federal Government; to accept
funds from the Federal Government; and to
issue their own revenue bonds to finance the costs
of such sewer systems.
GEORGIA
Atlanta Region Metropolitan Planning District—Act
847, approved March 17.
Authorizes Clayton, Cabb, DeKalb, Fulton, and
Gwinnett Counties and the City of Atlanta to
establish an Atlanta Region Metropolitan Planning
District. The District is authorized to act in
advisory capacity to the local governments in
local planning matters involving land use, transportation
facilities, public utilities, governmental
facilities and services, natural resources, and other
physical, social and economic factors. The District
is authorized to contract for, accept, and expend
grants from the Federal Government for
planning purposes.
HAWAII
Urban Renewal in Disaster Areas—Act 5, approved
July 6.
Adds a provision to the Urban Renewal Law to
the effect that where the Board of County Supervisors
and the Governor certifies an area for disaster
assistance, the Redevelopment Agency may
authorize the undertaking and carrying out of an
urban renewal project in the area.
KENTUCKY
Urban Renewal—S.B. 257, approved March 28.
Amends the provisions of the law relating to
condemnation of real property for urban renewal
and redevelopment purposes. It empowers the
circuit courts of the State to appoint an impartial
commission to determine the value of condemned
property.
LOUISIANA
Investments of Domestic Insurers—Act 145, approved
June 28.
Amends existing law relating to domestic insurers
to permit a mortgage loan or purchase of a
mortgage loan in an amount up to three-fourths
of the value of improved real property.
Housing Authorities Law—Act 278, approved
July 7.
Amends the law relating to city and parish
housing authorities to authorize the housing authorities
to provide housing projects or redevelopment
projects designed especially for the use of
families of which the head or the spouse is 65
years of age or older. The authorities shall fix
income limits for occupancy and rents after t*aking
into consideration family size, composition, age,
physical handicaps, and other related factors.
MASSACHUSETTS
Investments—Chapter 422, approved May 23.
Rewrites provisions concerning investments by
banking institutions in mortgage loans. It also
authorizes investments in obligations insured or
guaranteed by the Federal Housing Administration,
or under Title I of the Bankhead-Jones Farm
Tenant Act.
Urban and Industrial Renewal Division—Chapter
776, approved November 23.
Creates a State Division of Urban and Industrial
Renewal which is empowered, among other
things, to advise the Governor and General Court
on all State and Federal legislation affecting urban
and industrial renewal, to provide technical advice
and assistance to cities and towns and other
agencies of the Commonwealth, to achieve maximum
utilization of all Federal funds available for
the support of urban and industrial renewal programs,
and to accept all gifts, grants, or other
funds from the Federal Government.
NEVADA
Investments of Domestic Insurers—S.B. 66, approved
March 17.
Amends existing law relating to investments by
a domestic insurer to permit a mortgage loan or
393
purchase of a mortgage loan in an amount not to
exceed $30,000 per parcel of real property.
NEW YORK
Investments of Savings and Loan Associations—
Chapter 493, approved April 12.
Amends existing law relating to investments of
savings and loan associations to permit a mortgage
loan or purchase of a mortgage loan in an amount
up to three-fourths of the value of real property
improved by a single- or two-family residence,
where the loan does not exceed $25,000.
New York State Housing Finance Agency—Chapter
671, approved April 18.
Establishes the New York State Housing Finance
Agency to aid local housing authorities in
obtaining low interest mortgage loans and for
other purposes. The Agency is authorized to apply
for and accept Federal grants or other aids,
to enter into contracts, and to issue bonds and
notes.
New York State Housing Corporation—Mortgagee
Remedies—Chapter 655, approved April 18.
Amends existing law relating to the State Housing
Finance Agency and Limited-Profit Housing
Mortgage Corporation to allow them all the remedies
available to a mortgagee under the laws of the
State.
Planning Assistance—Chapter 696, approved April
16.
Amends existing law to provide additional assistance
and coordinate between the State planning
agency and municipal, county, regional, and
other local planning agencies.
Urban Renewal—Chapter 1044, approved April 30.
Authorizes the city of Schenectady to issue
bonds for urban renewal purposes. No downpayment
shall be required prior to the issuance of
such bonds.
Open Spaces and Areas—Chapter 945, approved
April 28.
Authorizes any county, city, town, or village
to acquire, by purchase or otherwise, the fee or
any lesser interest or right in real property in
order to preserve open-space areas for public use
and enjoyment. Communities shall be entitled
to expend public funds.
VIRGINIA
Investments of Domestic Insurers—Chapter 116,
approved February 29.
Amends existing law relating to investments of
domestic insurers to permit a mortgage loan in
an amount up to three-fourths of the value of real
property improved by a single family residence,
where the loan does not extend over 25 years.
County Urban Renewal Authorities—Chapter 501,
approved March 31.
Empowers certain counties to create urban renewal
authorities. The authorities may, among
other things, make surveys to determine the extent
of slum and blighted areas, formulate plans
for the removal or rehabilitation of slums and
blighted areas, issue bonds, and exercise the right
of eminent domain.
394
APPENDIX C
PUBLICATIONS OF THE HHFA, I960
The following lists include new and revised
publications of the Office of the Administrator
and the constituents of the Housing and Home
Finance Agency in 1960. A complete list of publications
for 1960 and the preceding years may
be found in Publications of the Housing and
Home Finance Agency.
Publications are available free from the issuing
agencies unless indicated otherwise.
Office of the Administrator
Annual Report. Thirteenth Annual Report
(covering calendar year 1959) of the Housing and
Home Finance Agency. *$1.50.
Basic Statutes, Public Regulations, and Formal
Orders of the Administrator. (Includes laws and
Executive Orders which authorize the HHFA
programs, including mortgage insurance, secondary
market operations, slum clearance and urban
renewal, public housing, college housing loans,
public facility loans, and advances for public
works *planning.) This loose-leaf publication is
available from the Superintendent of Documents
at a cost of $16 each for domestic addressees ($4
additional for foreign mailing). The subscription
price includes the original 1955 issuance and
all revisions since then and until an indefinite
future date.
Capital Funds for Housing in the United
States. 40 c*ents.
Federal Programs for Housing the Elderly.
5 cents each; $2.50 per 100 c*opies.
HHFA Career Opportunities Series:
Careers in Housing
Career Opportunities for Auditors
Career Opportunities for Engineers
Career Opportunities for Field Representatives
Career Opportunities for Finance Analysts
Career Opportunities for Secretaries and
Typists
The Housing Intern Program
Housing and Home Finance Agency—Its Organization
and Functions.
Housing for the Elderly ... A Fact Booh.
(Statistical data.)
‘Available at price shown from Superintendent of Documents,
U.S. Government Printing Office, Washington 25, D.C.
Housing for the Elderly . . . Direct Loan Program.
(Policies and requirements of the Administrator.
)
Housing References. (This bimonthly bibliography
is a selected list of publications and an
index of articles concerning housing and urban
development.)
Housing Statistics. (Compiled from Government
and other sources, this monthly publication
provides current statistical information on housing
production and costs, home financing, and
community development programs.)
Program for Community Improvement (Workable
Program). (Supersedes earlier publication,
“How Localities Can Develop a Workable Program
for Urban Renewal,” on basic requirements
a locality must meet.) 40 c*ents.
Publications of the Housing and Home Finance
Agency.
State Enabling Legislation (for) Urban Redevelopment
and Urban Renewal. (List of citations
to statutes, constitutional provisions, and
court decisions.)
Suggested Land Subdivision Regulations. 50
c*ents.
The Urban Planning Assistance Program. 5
c*ents.
The Urban Renewal Program—A Current
Appraisal.
The Voluntary Home Mortgage Credit Program—
What It Is, How It Works. 5 cents each;
$2.50 per 100 c*opies.
The Workable Program for Community Improvement.
(Citizens’ explanation of the nature
and purpose of such a program.) 15 c*ents.
What's New in Housing the Elderly?
Federal Housing Administration
ABC's of FHA. FHA 421, revised August
1960. 5 cents. $2.50 per 100 c*opies.
Dealers' and Contractor s' Guide, Property Improvement
Loans. FH-30A, revised February
1960. 10 c*ents.
Digest of Insuralble Loans. FHA 2575, revised
January 1960. 10 c*ents.
Feasibility of Curved Alignment for Residential
Sanitary Sewers. FHA 704. *$1.25.
395
FHA Appraised Values and Maximum Mortgage
Amounts for 1-Family Residences: Specified
Statutory or Administrative Limits for Section
203 (b). FHA 426, revised April 1960.
FHA C ooperative Housing Program (Management
Type). FHA 3250, revised October 1960.
15 c*ents.
FHA Facts for Home Buyers. Revised May
1960.
FHA Notes on Nursing Homes. FHA 696, revised
September 1960. 15 c*ents.
FITA's Rental Housing Program: What It Is,
How It Works. FHA 415.
Housing For You When Void re 62: What FHA
Does About It. FHA 699. 15 c*ents.
Improve Today with FHA. FH-39, revised
April 1960. 5 c*ents.
Minimum Property Standards for Nursing
Homes. FHA 334. 20 c*ents.
Property Improvement Loans: General Administrative
Policy Applicable to Property Improvement
Loans Reported for Insurance under Title
I of the National Housing Act. FH 20A, revised
May 1960.
Technical Studies by the Federal Housing Administration.
FHA 470, revised November 1960.
This Is the FHA. FHA 2650, revised March
1960. 15 c*ents.
Public Housing Administration
Annual Report. Thirteenth Annual Report for1
Calendar Year 1959.
100.000 Senior Citizens. Revised 1960.
The Low-Rent Public Housing Program in
Brief. Revised in 1960.
Low-Rent Public Housing—What and Why.
Revised in 1960.
Recreation for the Community. Revised in
1960.
♦Available at price shown from Superintendent of Documents,
U.S. Government Printing Office, Washington 25, D.C.
Federal National Mortgage Association
FNMA Semiannual Report
Report and Financial Statement of the Secondary
Market Operations (Quarterly)
Secondary Market Operations Pamphlet
Elderly Persons Housing Mortgages Pamphlet
Urban Renewal Housing Mortgages Pamphlet
FNMA Secondary Market Operations Portfolio
Sales Brochure
Urban Renewal Administration
Family Surveys in Conservation Areas. (URA
Technical Guide No. 5.) 15 c*ents.
Home Improvement—Lessons from Experience.
(URA Bulletin No. 2.) 25 c*ents.
Implementing Conservation. (URA Technical
Guide No. 4.) 10 c*ents.
Oakland {California) Mobilizes for Urban Renewal.
(URA Bulletin No. 1.) 35 c*ents.
Questions and Answers on Relocation Payments.
(URA Technical Guide No. 2.) 15 c*ents.
Selecting Areas for Conservation. (URA Technical
Guide No. 3.) 15 c*ents.
Selecting Consultants for Project Planning.
(URA Technical Guide No. 1.) 25 c*ents.
Urban Renewal Manual. (Prescribes the Federal
policies, procedures, and requirements applicable
to Local Public Agencies carrying out slum
clearance and urban renewal projects under Title
I of the Housing Act of 1949, as a*mended.)
This loose-leaf publication is available on a subscription
basis from the Superintendent of Documents
at a cost of $15 each for domestic addressees
($4 additional for foreign mailing). Subscription
price will cover the original 1960 issuance and
all revisions for approximately two years.
Urban Renewal Notes.
U.S, GOVERNMENT PRINTING OFFICE:196!
396