Evening star., 1937-12-19
Dc. ALLEYFUNDS
CONFERENCE AIM
Early Participation of Capt.
tai in Housing Program
Likely.

A conference tomorrow is expected
to pave the way for early participa-
ton by the District Alley Dwelling
Authority in the Governments new
S500,000,000 housing program.
At the suggestion OF President
Roosevelt, who is seeking a way to
make an allotment for local slum
clearance, the problem will be dis
cussed by Nathan Straus, administra-
tor of the United States Housing Au-
thority, and John Ihlder, executive
officer of the A. D. A.
There are questions of policy in
addition to the important one of find
Ing funds that must be decided be-
tween the two officials The Federal
Housing Authority will have no funds
to carry out the provisions of the
Wagner-Steagall Housing Act until
them available.
$7,000,000 May Be Obtained.
There are indications that $7,000,0O0
eventually will be allocated to the
District Alley Dwelling Authority over
period of two years and the Presi-
dent is understood to be ready to
make an immediate authorization of
sl,800,000 as soon as he can find funds
to tap.
The local A. D. A. operates under a
separate act of Congress, but is eligible
for funds from appropriati made to
carry out the housing act. Only
President Roosevelt, however, can al
locate funds to the District.
Since there is no connection be-
tween the A. D. A. and the Federal
Housing Authority, there are many
other matters of policy and admin
istration that require clarification or
agreement. These matters will be
taken up at the conference tomorrow,
which is really continuation of con-
versations held last week at the
White House.
Point of Accord.
The only point on which there seems
to be perfect accord is the exemption
of the District from the rule requiring
local communities to put up 10 per
cent of the capital cost of projects.
The A. D. AS policy of slum clear
ance has been approved by Congress.
Its methods are considerably differ
ent from those contemplated by the
Federal Housing Authority. 1t has
taken over some alleys and, in the
case OF Hopkins place, has recondi-
toned some of the old houses and
built new ones. Most of the alley sites
acquired have been converted to nom
residential purposes, such as garages
and parking areas
Will Rehouse Slum Dwellers.
The Federal Housing Authority will
eliminate slums and rehouse the for
n1er slum dWellers in new homes built
In other sections. The Federal plan
Is built on basis of rent subsidies,
While the A. D. A. fixes rents as low
as possible, but sufficiently high to
repay the cost of the entire project
over long period of years. In most
cases its rents are slightly higher
than the $3.50 minimum monthly
room rent to which Mr.. Straus is
said to aspire.
The question of rent subsidies it was
expected also will enter into the con-
ference.
Senator Wagner, Democrat New
York, said yesterday he was studying
possible amendment of the Wagner
Steagall act to make it easier for cities
10 take part in the Governments low
cost housing program. His suggested
amendments were said to be in line
with the views of Mr.. Straus who feels
the need of much more flexible pro-
gram than the law now permits.
Some cities, Senator Wagner said.
because of restrictions in their char
ters or State laws may be unable to
put up the 10 per cent of construction
cost OF a project required by the pres
ent law.
Effect Of Amendment.
An amendment he is considering. he
said, would allow such cities to nav
instead part of the rental subsidy
which the Federal Government other
wise would pay. In effect this would
allow the city to pay its 10 per cent
on the installment plan-throueh the
rental subsidy over period of years
instead OF making fiat payment at
the time of construction.
cine present law provides that after
housing project is completed the city
and the Federal Government pay an
nual rental subsidies amounting to the
oliterence between the rent paid by
the tenants and the rent which would
be charged on similar non-subsidized
project. The city, required to pay 20
per cent makes its payments by tax
concessions)
senator Wagner said that because
OF the time necessary for preparation
OF the amendment it would not be
introduced until the regular session
beginning in January.