The Theocrat

ZION STATE BANK AIDS LOCAL HOUSING WITH $1.5 MILLION
Report by Chamber of Commerce Housing Chairman Reveals 5 Year Progress
In a housing report to the Zion Chamber of Commerce, Tuesday evening, April 12th, Mr. L. R. Shafer, Chairman, disclosed the results of his committee's investigation of the real estate and home improvement
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ZION STATE BANK AIDS LOCAL HOUSING WITH

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permanent loans made by the Zion State Bank since 1944.

The housing chairman was gratified to obtain statistics from R. A. Burgess, Vice President and Cashier which show how our community has developed in this brief period. A total of $1,543,341.40 was loaned. This figure does not include numerous personal loans to home owners for the purpose of minor repairs and remodeling.

1946 was the peak year with $650,000.00 being loaned on real estate. The majority of this amount was used for building construction and the purchase of homes. Nearly 40 per cent of the bank's real estate loans that year were to veterans.

Analysis of the bank's statistics shows that approximately 500 loans make up the million and a half dollar total. This would indicate an average loan of $3,000.00. However, Mr. Burgess stated that several mortgages for business construction were for more than $50,000, and some home loans were for less than $1,000.00.

The amount borrowed for new residence construction was $286,350, but the largest single purpose of borrowers was to purchase existing homes, $533,122 went for this use. Another $231,422.90 went into remodeling and repairs.

On the business side of the real estate picture the results of the survey show that $244,250 was loaned for new construction, $73,750 for purchase of existing business properties, $56,539.50 to contractors and real estate brokers, and $117,907 for miscellaneous business purposes.

When interviewed following the release of these figures, neither Mr. Burgess, nor James Hotham, Assistant Cashier would estimate the number of additional dwelling units of all kinds created in Zion during recent years by remodeling and new construction.

The present mortgage loan policy of our local bank is consistent with sound lending practices of other financial institutions in this area. Your reporter found that the board of directors has established a maximum loan percentage on real estate loans of approximately 50 per cent of appraisal value. Terms are on a monthly payment basis up to ten years, and the prevailing interest rate is 5 per cent.

Mr. Burgess stated that the officers and directors have always maintained borrower relationships on a friendly individual basis and also feel that a basic need of the community is housing on the hundreds of individual lots in Zion that are now vacant. In most cases lots carry a considerable amount of delinquent taxes and assessments and the progress of Zion can best be assured by the erection of new homes on them.

Mr. Shafer's housing committee received a vote of thanks from the audience for the interesting report.

Mr. Burgess invited the entire membership of the Chamber of Commerce to attend next month's dinner meeting in

Harley McCormack introduced Mr. L. L. Freeman who delivered a very interesting address devoted largely to home financing.