Evening star., 1936-09-05
BY WILLIAM c. McCLOY.


BY WILLIAM c. McCLOY.
In New York City, the cooperation
between the Federal Government and
the city government is much further
advanced than in most localities.
Uncle Sam and Father Knickerbocker
went into partnership in order to Gre
ate the project known as First
Houses"
This Is not one of the so Federal
p. w. A. projects. 1t is unique
experiment of special interest to the
rest Of the country, for the collabora-
ton between city and Nation will
probably be followed in future hous-
ing policy everywhere-as was fore
shadowed in the Wagner bill-a pre-
view of what is likely to become the
permanent method of slum clearance
and rehousing in all American COM
munities.
1t is a method that puts the greater
responsibility upon the local author
ity-as in England-the national gov
ernment's function being largely con-
fined to supplying a limited grant or
a loan at low interest, with technical
advice based on Nationwide expert
ence.
Should the United States Supreme
Court uphold the decision of Federal
district courts in Louisville and Gin
cinnati that the Government has no
constitutional right to condemn slum
property, this New York method of
dealing with the housing problem
through a city housing authority, with
Uncle Sam in the background as
mentor, will be the sole method Of
slum clearance possible in all States.
Low Interest Rate Factor.
New York is the only city where
the municipal housing authority has
built a project of its own in addition
to cooperating with the P. w. A.
projects. The reason for this Is that
New York is the only city that can
at present command the same credit
and low interest as the Federal Gov
eminent. Elsewhere, city govern
ments are charged such high interest
rates that they cannot finance low
rent housing without Federal aid.
In New York this Summer settle
ment Of eight buildings was finished
and opened to tenants under the
name of First Houses" 1t is the
first public housing project in this
country built by city authority.
The land purchase for first houses"
was financed by the city housing au-
thority issuing bonds and mortgages
of its own to private Individuals
Vincent Astor and Bernard Baruch-
the first bonds and mortgages ever
issued by local housing authority in
America. The authority financed its
own research and administration by
selling the materials salvaged from
the old slum buildings it tore down.
It received no money from city or
State. The new building materials
and the labor were furnished by Uncle
Sam through the Works Progress Ad-
ministration, with the exception of
the bricks, which were those of the
old tenement structures used over
again to build the new sanitary homes.
Ownership Transferred.
In July the Federal w. P. A. for
mally transferred ownership to the
New York Housing Authority. The
title to the property Is now IN the
authority,s name, as the P. w. A.
projects also will be when they are
finished.
First and greatest difficulty facing
the New York Housing Authority at
the beginning was the excessive cost
Of land In slum areas. Below Third
street and east of the Bowery land
was assessed in 1884 at s6.12 per
square foot-the total cost for land
and buildings was $10.27 per square
foot. North of Third street and east
of Third avenue figures are higher.
averaging 1888 per square foot of
land and house. These rates are
much higher than in any other Amer
1can city. In Chicago most slum land
Is valued at 50 per square foot, or
100000 per acre-a high value COM
pared with smaller cities, but small
when compared with New York's fan
tastic rate, ranging from $6.12 to
S10.27 per square foot.
Such assessments make it impos-
sible for unsubsidized private enter
prise to build healthy apartments for |
the rentals now paid. Even the city |
housing authority had difficulty in |
assembling land at sufficiently low |
rate to build apartments that could |
rent from IS to 81 per room per |
month.
Many Houses Vacant.
In its search for a site the Housing |
Authority discovered a group Of four
and five story "old law tenements" at |
Avenue A and Third street, so dilapi-
dated that many were vacant In
spite of this, the land was assessed
at 1922, $500 and the buildings at |
$4,000.
The greater part of this property |
was owned by Vincent Astor and he
agreed to sell at one-half the assessed
valuation. In December, 1894, the
City Authority bought his 53,666.5
square feet of land at So so per square
foot, the whole, including adjustments |
in taxes and insurance, amounting to |
S189, 81. Mr.. Astor received q 65- |
year purchase money bond and mort
gage, paying 11a per cent the first
year and 32 per cent thereafter, the |
bond to be tax-exempt.
But it was q different story when |