Evening star., 1933-10-29
HOUSING
AGENCY NOW READY
Corporation Formed Under
Laws of Delaware for SIum
Clearance Program.

The Government yesterday definitely
embarked in the real estate business to
| build. on its own initiative, with public
funds, low-rental apartments. and slum
clearance projects. This became known
when Harold L. Ickes, Secretary Of the
Interior, announced the filing by the
Government of a certificate of incor-
poration in Wilmington, Del, for the
Public Works Emergency Housing Cor
poration.
Secretary Ickes, speaking IN his ca
pacity as public works administrator,
said the function OF the corporation will
be ito construct. reconstruct, alter or
repair and to aid others in the con-
struction OF low-cost housing or slum
clearance projects, apartments or
houses"
All Of the stock, he explained. will be
held for the United States and the cor
poration will be operated as an agency
of the Public Works Administration.
The capital will be supplied from the
S., 300 100000 public works fund and
the amounts required will be allocated
on the basis of projects approved. In
addition, the corporation may borrow
money. subject to the approval Of the
administrator OF public works,
Nominal Capital at Start.
The corporation will begin business
with only nominal capital.
In the strict sense of the term, Secre-
tary Ickes explained, the venture does
not amount to competition with private
interests.
The corporation" he said will en-
! gage in low-cost housing which other
wise would not be undertaken" Under
the provision of the national industrial
recovery act, this corporation has au-
thority to acquire by purchase or by
exercise of the power of eminent do
main. any property necessary in con-
nection with the projects undertaken
administrator
In addition to buildings, the corpora
ton has power to locate, lay out, con-
struct and maintain roads parks, play
grounds, recreational facilities. sewers
and other utilities in connection with
the projects and to build, equip and
maintain low-cost homes.
The plan was discussed by Secretary
Ickes several weeks ago on the basis
of report submitted by Robert R.
Kohn. chief Of the housing division OF
the Public Works Administration. At
the time, Secretary Ickes ventured the
opinion that the Governments pur-
pose would be to build and sell the
property rather than to operate as a
landlord. It's sale. he explained, would
permit the creation Of revolving fund
and allow additional building opera
tions.
Lower Rentals Seen.
The plan. the Secretary of the In
terror and his associates Of the Public
Works Board believe, will produce
housing at rentals which never before
have been obtained.
THE formation of this corporation,
said Secretary Ickes. "is the outgrowth
of our recent experiences in the P. w
A. in attempting to increase building
labor employment in the field Of low
cost housing. Our experience indi-
Gates that We may not depend upon
private enterprise or limited dividend
corporations to initiate comprehensive
low-cost housing and slum clearance
projects.
"The future financial stability Of
many urban centers depends upon the
prompt reclamation Of their slum
areas The director Of the housing
division of the P. w. A. proposes during
the next few months to promote q bet
ter understanding of the serious nature
Of housing conditions in some 20 cities.
In this connection he will make a per-
sonal Nationwide survey.
Relatively few Of our cities realize
that bad housing has a direct effect
on their revenues To meet this situa-
ton more Is required than isolated
action on the part Of individuals. Move
ments to better conditions must be
launched by a body of citizens who
realize that action must eventually be
guided by a State. county or municipal
authority. The efforts of the admins
traitor and the corporation will be to
encourage the creation of such au-
thorities"
IF the loan is made at per cent in
terest with amortization at 2.56 the
rents will average $3.50 per room per
month" the announcement said