Evening star., 1937-11-20
FEDERAL HOUSING AUTHORITY HOPES TO AVOID ERRORS

THE keystone to the new housing
program is the city itself Hous-
ing rehabilitation will be a local issue,
determined upon and carried through
by the respective cities with the Fed
eral Government acting only in a
financial and supervisory capacity 1t
is significant that of the many New
Deal agencies active in promoting
housing relief-Federal Housing Ad-
mlnlstration. Home Owners Loan
Corp, Resettlement Administration
P. w. AS housing division among
others-those bureaus which were pri-
marily financial in character IF. H. A.
and H. o. L. c. proved more than
moderately successful while those
which concerned themselves with So
cisl problems and actual construction
tas Resettlement and P. W. A. were
disappointments.
In promoting Nationwide housing
plan the United States Housing
Authority enjoys several advantages
over other Federal agencies which
attempted to solve the riddle of good
and adequate housing for the low
income groups. 1t has the benefit Of
its predecessors experience. 1t has the
good will and support of the United
States Chamber of Commerce. the
confidence of industry and business,
the whole hearted cooperation of the
United States Conference of Mayors
(which reflects the majority opinion
Of city governments) and the powerful
backing of the American Federation of
Housing Authorities. the leader in the
Nation wide movement for elimina ton
of city Slums. But, most important,
it has for working base what is gen.
orally conceded to be the best national
housing law in the world-the Wag-
ner-Steagall Act.
That law, which authorized estab-
lishment of the Housing Authority,
had a stormy trip through Congress.
Political factionalism delayed its en-
actment for three years: it survived
numerous attempts to kill it. mutilate
it or nullify its provisions. After minor
notifications it passed as Senator
Wagner originally introduced it only
after other administration programs
proved futile.
THE Wagner-Steagall Act makes
Federal money and credit avail
able to solvent cities through their
municipal housing authorities. That
Federal aid may amount to as much
as 100 per cent of the total cost of
municipal housing project whether it
be slum clearance, rehabilitation of
blighted residential districts, or low
rent housing. The amount of finan-
cial assistance to any particular project
is In the discretion of the housing
administrator. Numerous factors will
be considered in determining the per-
centage of cost to be borne by the
Federal Government. The principal
consideration will be the urgency of
the project need. While 100 per cent
financing will be rare, situations which
will require it are conceivable. For
instance, in city rayaged by floods
where thousands are homeless and
where the city, because of flood damage
and incidental expenses, is unable to
contribute any part of the housing
cost, humane considerations will be
paramount when the United States
Housing Authority acts on the local
authority's application.
The financial assistance offered by
the Wagner-Steagall Act is classified
under the headings Of: First, loans
second, loans and annual contribu-
tions; third, capital grants.
Loans may bs q high ~ 100 per