Evening star., 1936-11-23
Unsolved Housing Problem

.UnsOlVed housing frODlem
One of three suggestions TO the Busi-
ness Advisory Council of the Depart
rnent of Commerce by the President in
his letter published Friday was q study
OF the problem of improving living con-
ditions of low income groups through
low-cost housing and slum clearance"
Perhaps Mr. Roper's committee can
add something to the store of knowledge
already accumulated during the depres-
sion concerning low-cost housing and
the lack of It, But whether 1t does or
not, the President Is already plainly
committed to an attack on this part of
the housing problem in the next Con-
sress. I'VE who believe in better housing
have not been defeated" he told an
East Side audience in New York during
the campaign. "I am confident that the
next Congress will start us on our way
with sound housing policy" This
Sound housing policy" is presumably
enunciated in the Wagner -Ellenbogen
June, but never came to a vote in the
House The Federation of Labor conven-
ton in Tampa has just declared that the
bill can and must be passed this COM
ing Winter" Last week Mayor La
Guardia told the mayors assembled here
that the bill should be passed and a
large-scale low-cost housing program
initiated.
Provision of residential housing is, of
course, far behind normal pre-depression
years, when the average rate of con-
struction was about 100000 dwelling
units year. AS against about 100000
new dwelling units built in 1890, fewer
than $4,000 were built in 1882 and 1888.
And In spite of the marked revival this
year, the years construction may not
exceed 25O,00O new dwelling units.
The Federal Government, through the
Home Loan Bank system, the H. o. L. G.
and the Federal Housing Administration,
has done much to save homes for finan-
cially distressed owners and to encourage
new home construction and home re-
pairs But the efforts of these agencies
have been aimed more at helping the
people of moderate, If not high, incomes
Low-cost housing for the low-income
groups is the chief objective of the
Wagner -Ellenbogen bill. And in three
and a half years of experimentation in
low-cost housing by the p. w. A. and
other agencies, nothing substantial has
been accomplished in this field. The p.
w. A., meeting numerous unforeseen
difficulties and laboring under short
age of funds, has been able to complete
only one of fifty-one projects in lowcost
housing construction and slum elimina-
ton. Three others are nearing compile
ton and the remainder are in various
stages of planning or construction.
The unsolved problem in low-cost
housing is still the problem Of furnish
ing housing to low income groups at
rents they can afford to pay. P. w. A.
did not solve that problem in its COM
pleted project at Atlanta, which has
accommodated higher income group of
tenants than the slum dwellers who were
replaced. It's other projects will not solve
the problem. As the President himself
stated at a press conference last May,
while the p. w. A. provided excellent
dwellings, they are not essentially, low
cost housing. Low-cost housing presum-
ably means housing for those who earn
less than Thousand dollars a year.
The Wagner bill attempts an answer
by establishing Federal Housing Au-
thority, empowered to lend and grant
funds to local agencies and given the
authority to engage in demonstration
projects. The original bill would have
appropriated $500 900 900 for such pur-
poses. The bill which passed the Senate
last June appropriated $10,000,00O, au-
thorizing additional expenditures of
$50 100000 in the succeeding three years.
If approved by the administration, the
passage of the bill next session might
be taken for granted. But it would be
wise to emphasize "low-cost" housing and
to limit the income group that can bene-
At therefrom. The fundamental objec-
ton to the Wagner bill, of course, is
that once the Government. undertakes
the provision Of housing, through grants
Of loans. It becomes difficult to discrim-
mate in the selection of beneficiaries,
and governmental responsibility becomes
practically unlimited.