THtr ARIZONA SGtrNE

Bv FRANK DA executive vice president

H E housing market continues strons in both Phoenix and Tucson. This can be attributed mainly to the rising demand for new housing. Phoenix and Tucson residential building is at an exceptionally high pitch with many contractors running six months to a year backlogs.

Through the first three quarters oi l9'7'7 , new housing units authorized in l,4etrcpolitan Phoenix are more than double the number for the same period in 1976! I{ousing unit authorizations in the Tucson area are up a more moderate increase at 39%.

The following is a breakdown of new housing units authorized.

The Merchant Magazine

Gary Finn has joined the sales force for Georgia-Pacific Corp., Billings.

Lee McCauley has joined the force of Boise-Cascade Building Materials and Services at Billings.

Builders Transport, Great Falls, has named Sid Hart traffic manager.

Dick Foss is now trader for Glacier Forest Products, Great Falls.

Ron Wilson is handling Montana accounts for North Pacific Lumber, Portland.

Spokane Hardware Supply is now represented in the Montana area bY Bill Pettingill.

Skip Dale at Billings is handling similar assignments for Jensen Byrd Company.

Percy Keck is now rePresenting Independent Lumber & Supply, Missou1a.

Lumber dealer Hubert White. Neifert-White Co., Townsend, has donned another hat with his election as president of the National Water Resource Association.

This report is taken from the Valley National Bank Progress Report, November lyl/.

The second quarter board of directors meeting was held in Phoenix, December 7, with comprehensive reports from Sentry Insurance Co. for Group Workmen's Compensation Insurance and from "Tat" Tatterson, representative from group medical insurance through Orth-Laprade and Tatterson Insurance Co.

The Association honored Carl Bastian, manager, Weyerhaeuser Co., Phoenix Division, with a dinner on December 6. Carl retires in January after 28 years with Weyerhaeuser Co. He is a member of the board of directors of our association and chairman of the very important Wood Promotion Committee.

By CHUCK LINK executive director

l:IRESIDENT Carter has signed Jlinlo law Thc Housing & iorrlmunlty Development Act of 1977.

In addition to a 3-year authorization of approximately $ I 1 billion for community planning and developntent. the housing aspects of the law are of importance to us. Following is a summary of the major housing provisions:

(A) Public Housing and Section 8housing assistance payments provides additional funding expected to make available decent housing for 344,000 low and moderate income families.

. $42.5 million wilt be reserved for public housing project administration.

$ 197 million will be for Sec- tion 8 projects financed by state housing agencies. $ 120 million will be reserved for elderly and handicapped programs.

(B) FHA Changes

Mortgage limit for FHA mortEage insurance under Section 203, 220 and 234 programs, is increased from $45,000 to $60,00 for single family homes.

. Single family mortgage limits under the subsidized home ownership Section 235 program is increased from $25,000 to s3 2,000.

. Title I home improvement loans are raised from $ 10,000 to $15,000, and the loan term from 12 to 15 years.

. The amount of downpayment required under the FHA Section 203 program retains the present requirement for a downpayment of 3% of the first $25,000 of the house appraised value, but requires a downpayment of only 5% over the $25,000. This compares with the previous downpayment of lO% of the amount between $25,000 and $35,000. and 2O7o ol the amount over $35,000.

(C) Graduated Payment Mortgages

. A graduated mortgage program will be established to help young families buy homes. Lower monthly payments during early income years with increases in payments as earning power expands.

(D) Section 236 Housing Subsidies

The Secretary of HUD is directed to make subsidy payments for utility costs and local prop- erty taxes that exceed initial operating expenses established for multifamily rental projects under Section 236. Payments will be made to the extent funds are available; on a 1-year basis.

(E) Rural Housing . Extended for one year under the Farmers Home Administration for rural housing programs; increases from S80 million to $ 105 million authorization for

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