Evening star., 1934-03-18
SIX SLUM WORKS
NOW UNDER WAY
p. w. A. LoW-Cut Housing
Gets Start Despite
Months of Delay.

sites, the housing division of the P.
w. A. has succeeded at last in getting
six large low-cosG housing and slum
clearance projects actually under way.
The six, located in New York, Ohio,
Pennsylvania, North Carolina and
Virginia, are the first out of approx
mately 800 projects submitted, to
clear away all obstacles and opposi-
ton. perfect the organization of
limited dividend corporations and see
the beginning of actual foundations
and walls.
All are the result of loans from the
housing division of the P. w. A. and
none has been undertaken by the
Federal Emergency Housing Corpo-
ration. The work of the corporation
has been delayed by a ruling several
months ago by Controller General
McCarl that its charter provisions ex-
ceeded the powers authorized by the
recovery act. Since that time Attor-
ney General Cummings has upheld
the constitutionality of the corpo-
ration. but he, also. criticized the
charter for conveying excessive
powers. AS result an amended
charter is now being sought in Della
ware, under whose laws the corpo-
ration was set up originally.
Projects Of Its Own.
Meanwhile, under direction Of Sec
retary Ickes, as president, and Col.
Horatio B. Hackett, as general man
ager, the corporation has proceeded
with plans to undertake projects of
its own and probably will announce
within the next few days plans for
taking over part Of seven projects
transferred more than a week ago
| from the P. w. A. to the corporation.
These, when undertaken, will be con-
structed and afterward operated by
| the Government.
The corporation now has a total of
S123,670, 500 for its operations. This
includes 100000 900 allotted by the
Public Works Administration as a
| subscription to the original capital of
| the corporation. The remainder was
| allotted when the seven projects were
transferred from P. w. A. The money
! previously set aside as loans for them
was added to the capital.
These seven projects represent a
part of the difficulties confronted by
the administration in carrying out the
| low-cost housing program which has
| had the enthusiastic support of Mrs.
Roosevelt. Relief Administrator Hop
kins, a half dozen cabinet members
and many public spirited and philan-
thropic citizens all over the country.
| Two of them. located in Atlanta,
| - haI Ia
! dend corporations were organized. the
projects were found to be necessary,
from standpoint of slum residents in
the city; sites were located and prices
were accepted as reasonable. Then
the corporation was confronted with
the problem of finding a sufficient
number Of stockholders who were will
ing to invest their money for a long
time at a low rate Of interest. Tech
wood, Inc, was to receive a loan of
s2,600,000 and the University Housing
Corporation of Atlanta was to be ad-
vanced S1,212 500.
Revocation of Allotments.
Sponsors Of the projects found they
could raise sufficient local support to
take care of only Is per cent Of the
total investment and Secretary Ickes
was forced to revoke the allotments.
All that money was turned over to Col
Hackett's corporation.
The other projects for which loans
were revoked for similar causes were
$2,025, 900 to the Spence Estate Hous-
ing Corporation, Brooklyn, N. Y;
$4,000 to a Hutchinson, Kans.. cor
| poration: S12,o0o.oOO to the Cleve-
land Home Incorporation; S4,46O,0 900
to the Indianapolis Community Plan
Committee, and $l,333,000 to the
Harms Park Housing Corporation,
Chicago.
The six projects now under way,
however, have managed to escape the
pitfalls that befell the seven rejected
proposals and the 2oo-odd others
found either unnecessary or not
feasible.
The biggest of them all is the Hill
side Housing Corporation in the
Bronx, New York This limited divi-
dend corporation is backed by Nathan
Straus, Andrew j. Eden and other
public-spirited New Workers who have
| taken an attitude of preferring to be
helpful rather than to seek profits on
an investment. The corporation has
been advanced a loan of $5,184,4 to
which they have added an unan-
nounced sum, which was spent for
acquisition of land.
1t will cover 141a acres near the
Boston Post road in the Bronx within
easy access to transportation to all
business centers of New York. The
land will be only "a per cent occu-
pied by the huge series of apartment
houses, leaving ample open space for
parks and recreation facilities.
Size and Rates.
| Altogether 108 four-story walk-up
/ apartments and four siX-story ele-
vator apartments will be constructed.
They will be flreproof and will in
| clude a total of 4,934 apartments. The
maximum rental cost will be S11 per
room or less and the corporation has
pledged to apply all savings to re-
| ducing the rental rates. Only enough
to pay 4 per cent interest and retire
the loan will be kept as the corpo-
ration's income.
| The next largest project is also in
New York. 1t is located in Woodside,
Borough of Queens, and is managed
by Boulevards Gardens, Inc. A loan
Of S3,450, 900 at per cent has been
made to construct 10 six-story semi
fireproof elevator apartments of 1852
residential units, totaling 5,644 rooms.
The maximum rental is to be S11 per
room. The apartment houses will be
only 20 minutes ride from the heart
of Manhattan and will replace an in
tensely congested slum area.
The third largest project represents
an entirely different type of improve
ment. The American Federation oi
Full Fashioned Hosiery Workers form
ed the Juniata Park Housing Corpo-
ration at Philadelphia to provide mod
ern living quarters for its own mem
bers. Four and a half acres of land
were purchased in the Kensington dis
trict of Philadelphia on which num-
Der OF three-story semi-fireprooi
buildings will be constructed at cost
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