Evening star., 1936-08-23
|CKES THROWS OUT
bids ON LANGSTON
TERRACE HOUSING
Low Proposal Is Nearly
$3.50, 900 Above Balance
for LoW.Rent Site.
SECRETARY DECLARES
ESTIMATES EXCESSIVE
Increased Construction Costs Held
Certain to Force Up Charge
to Tenants.
BY NELSON NJ. SHEPARD.


In rejecting as excessive" the bids
for construction of P. w. AS Lang
ston Terrace development, Secretary
lckes yesterday again hewed TO the
line Of a policy that calls for keeping
rents as low as possible for prospective
tenants with small incomes.
The low bid of 81 ,523 900 submitted
$3.50 600 the remaining balance of the
$1,600,000 allotment for the Benning
road project. From this balance there
remains to be deducted such expenses
as grading, architects fees and admin
istrative costs in computing the "rea-
sonable" construction cost of the 3l7
family units.
Increased land and construction
costs must inevitably be reflected in
increased rents,' Secretary Ickes
warned yesterday.
The P. w. AS housing division is
fighting to keep its rents as low as
possible. For that reason, when it ap-
pears that either land costs or con-
struction costs may be unreasonable,
appropriate action is taken to assure
the Government getting the project
at the lowest possible cost, so that low
rents may be achieved over the go
years that a housing project may be
in operation"
Rejection Had Precedent.
The rejection of those bids marked
the third time in the checkered his
tory of local housing efforts that Ickes
had been forced to decisive action in
fighting for reduced costs in the in
terests of low rents.
At the outset. three years ago, he
abruptly withdrew offers for land in
the neighborhood of Howard Univer-
sity, claiming the prices demanded
defeated the purposes of low-cost
housing. Later, in the southwest sec
ton, when property owners sought to
raise prices, he resorted to condemna-
tion proceedings. He was defeated in
that move by court injunction
brought by woman property owner.
1t was the District Supreme Court
decision declaring the Federal Gov
bOdA0 A4OO NOl4QClA4Ll AdIlO 4Ok
housing purposes that drove P. w. A.
eventually to the outskirts of Wash
ington where land was obtainable by
direct purchase.
S1,400,0GO Net Available.
The 14-acre site on Benning road,
near Fourteenth street northeast, cost
P. w. A. S82,950, or IA cents square
foot. The completed contract for the
foundations added S65.84O to the
original costs. When allowance Is
made for other necessary expenses be-
fore the superstructures can be start
ed, there will be balance of around
s1,400,000, probably less, officials said
Ickes indicated yesterday new bids
will be invited and it was expected
that these would more nearly meet
what the housing division regards as
reasonable" offers.
Until the ultimate cost Is known
definitely, it is impossible to determine
the rents the prospective colored ten
ants will be called on to pay. Charges
for such services as water, light and
heat also remain to be computed in
the amortization payments over a Co.
year period.
Whatever the amount, officials said
the rents must be kept at rate that
will return SIS per cent of the total
cost of project.
In Atlanta, where the first tenants
have been received in the new Tech
wood Homes slum clearance project,
rentals range from S1640 monthly for
three-room apartments to $3.50 for
the highest price six-room group
house. Utility service will be sup
piled at cost.
Comparison Basis Lacking.
No definite comparison can be made
between the Atlanta rents and those
that eventually will be charged In
Washington. The land costs in At
lanta, where a tenement section was
demolished. exceed the price paid for
(See HOUSING, Page B-3)