Public Lqw 94 Efrective July 1953

When President Eisenhorver approved Public Law 94 on J,une 30, 1953, many important changes were made by its terms in the aftairs of the Federal Housing Administration.

For all lo-year debentures issued in connection with mortgage insurance programs the interest rate will be 2t/a/o and the rate on all debentures having a term in excess of 10 years rvill be increased from 2z/j/o to 3/o. The increased rates, concurred in by Treasury Secretary Humphrev, are efiective lvith respect to mortgages insured on and after July 8, 1953.

The National Housing Act provides for the issuance of debentures when properties are tendered to the Commissioner instead of payment in cash in order to permit the Federal Housing Administration to accomplish orderly liquidation of the acquired properties before being required to effectuate a cash satisfaction of the insurance liability. However, in order that this cash satisfaction may be accomplished at the earliest feasible date, debentures authorized with respect to all insurance written since Feb. 15, 1938, are callable on any interest payment date upon three months' notice.

In the current money market conditions an upward adjustment in debenture interest rate was felt necessary in order to bring the yield on FHA debentures to a level comparable with that of similar securities.

Furthermore, the term of debentures issued in connection with project mortgages insured under Sections 207 and 213 was reduced from 20 years to 10 years under the terms of the Housing Amendments of 1953, Public Law 94, approved on June 30, 1953.

Public Law 94 increases the insurable amounts under Section B, Title I, for the operative builder from $4,250 to $5,100. Insurable amounts for the owner occuDanr were increased from $4,750 to $5,700.

Under the same bill, authority was given to insnre under Title IX (Sections 903 and 908) for one additional year, to June 30, 1954, and Title VIII, military housing, has been extended to July I, 1954. Interest rate under Section 908 has been increased to 4%%. Interest rate under Section 213, cooperative housing, is increased to 4r/a/o on project mortgages and to 4l/o on individual mortgages.

Section 2O7, rental housing, was amended to change the maximum ratio of loan to value, to 8O/o-$7,200 per family

Douglas Fir in sizes to 24" x 24"

Redwood in sizes to 12" x12" - lengths to 24'

Planer capacity for surfacing up to 24" x24"

Rcmanufacturing facilities for regawing up to 34" x 34" unit, if the number of rooms does not equal or exceed four per family unit. A 90/o ratio of loan to value is authorized if the number of bedrooms equals or exceeds t\vo per farnily unit, provided the mortgage does not exceed $7,200 per family unit. Interest rates for Section 207 are 4%%.

FHA form 2476 (Bulder's Certification with Respect to Charges and Fees) has been revised and the change is reflected in item "E." FHA form 2477 (Mottgages Supplemental Certification Covering Charges and Fees) has also been revised and the charge is reflected in Item "D."

FHA form 2477 (Mortgagee's Supplemental Certificate) u'as revised July 1953. The revised certificate is required on all commitments issued on proposed construction on and after July 14, 1953. The mortgagee in executing the commitment shall strike out the reference to charges and fees ',r,'hich may be inconsistent with the collection of a discount from the builder. On outstanding commitments issued prior to July 14, 1953, the mortgagee may execute lorm 2477 and strike out the wording in the mortgagee's certification on the commitment pertaining to charges and fees.

Mogozine Prcrises llumboldr County Progress (From "ForestrY Digest")

A farm advisor turned forester, W. D. Pine, is credited by a California news magazine with filling an important role in bringing good forest practices to Humboldt County, Calif., the nation's second timber producing region.

N{r. Pine arranged a public meeting r,vhere Emanuel Fritz of the University of California School of Forestry explained timber values and the importance of selective cutting. From this meeting stemmed a series of organizations and activities designed to ensure a sustained timber yield in Humboldt County.

In an article entitled "Hope in the Humboldt," Fortnight says "Happily, the lumber industry in California is progressive. Top management can see the forest beyond the trees and is inclined to go along on any program designed to maintain the industry on a permanent basis."

Among factors listecl by the magazine as contributing to indtrstry permanence are the 17-man Humboldt County Forestry Committee, Redwood Region Conservation Council, Redr,vood Region Logging Conference, and state college forestry courses, the Tree Farm program, higl-r school and state college forestry courses, 4-H Club forestry projects, state forest practices act, Small Woodlands Council, the Junior Logging Conference and Save-the-Redwoods League.

The bounty, by 1951, was supporting 262 mills which annually produce 1,250,000,000 board feet. Ten years before. 24 mills produced 365J62,000 board feet.

Heovy Conslruclion Totols

According to Engineering News-Record, New York trade journal, heavy construction contracts for the week ending July 30, totalled $D7,471,000, and for the first 31 r,veeks of the year $9,235,000,000. That 'ivas 2/o over last year, which rvas previouslY high.

Arizonq Lumber Compony Entertoins Students Wirh log Comp Trip

A very happy event of the summer at Flagstaff, Arizona, was a log camp trip and entertainment supplied by the Saginaw & Manistee Lumber Cornpany for lN students of the college summer school. Freeman Schultz, vice president and general manager of the lumber company, acted as l-rost. The crowd of students and their hosts rode in decorated logging cars from Flagstafi to the Happy Jack logging camp beyond Mormon Lake. They were fed in the mess hall of the logging c?mp, and were shown logging operations in the Coconino National Forest, by F. tr. McDermaid, assistant supervisor of the forest.

Bessonelte Representing Oregonbord Hsrdboqrd

Glenn D. Bessonette, well known in the Southern CaliIornia building materials jobbing and dealer field, is now representing Western Hardboard Sales Company of Tacoma, sales agents for Oregonbord in the eleven western states, along with his major job of representing Associated Plywood Company, according to an announcement by Paul M. Smith, president of Western Hardboard Sales Company. Bessonette's territory for Oregonbord hardboard includes Southern California, New Mexico, and Arizona. He maintains oftices at 595 East Colorado Boulevard, Pasadena. Formerly associated with Bessonette and Eckstrom. a Los Angeles jobbing firm, his knowledge gives him a background on plywoods and hardboards that is essentially useful to the lumber dealer. contractors. and industrial users of hardboard.

Deportmenl Slore Soles Rise

According to the Federal Reserve ton, sales by the nation's department the u'eek ending July 25.

Huge Ford Volume

Board, in Washingstores rose 5/o for

Vqlco Distributes Insulite

Valco Distributors, Fresno, has been appointed a wholesale-distributor of Insulite building products. according to C. B. Sweet, vice-president and general manager.

Operating from their u,arehouse in Fresno. Valco Distributors service building material dealers in the San Joaquin Valley area.

Wqter-borne lumber Shipments

The Pacific Lumber Inspection Bureau reports f rom Seattle that Pacific Coast r,vater-borne lumber exports for June, 1953, totaled 108,740,999 board feet in -|une, against 104,662,088 the previous month and 108,76'1.15'l in fune last year.

Domestic shipments totaled l@,046,777 leet in June, against 189,889, 482 in May and 115,932,522 in _Jtine. 1952.

The report. compiled by the bureau in cooperation u'ith West Coast Lumbermen's Association, covers British Columbia, Puget Sound, Grays-\\rillapa Harbor. Columbia River, Oregon Coast and California ports.

For the first six months, the coast's expcrrts totaled 685,814,490 this year and 856,742,698 last year; domestic shipments, 1,108,368,282 against 7O0,2O7,578. British Columbia six month exports rvere 387,041,1.10 this r-ear against 575,862,834.

Lumbermqn Tolked Tqxes

J. A. Beaman, comptroller for the O'Malley Lumber Conrpany, Phoenix, rvas the principal speaker at the annual chamber of commerce banquet at Mesa. Arizona, in J.rly. He talked on "'What's Wrong With Arizona's Tax Situation."

Plone Output Will Continue

According to E. R. Breech, vice president, the Ford Motor Company manufactured 786,000 cars and trucks during the first 6 months of 1953, and will make a million more during the closing 6 months.

According to Admiral DeWitt C. Ramser.. president of the Aircraft Industries Association, the aircraft industry of the U.S. will continue indefinitely to produce military planes at the rate of 1,000 to 1,100 per month, just as it has been doing for many months.