Evening star., 1938-10-04
SLUM CLEARANCE
PLAN IN DISTRICT
|SSNAGGEDA AGAIN
u. S. H. A. Asks Assurance
That Federal Subsidies
Won't Interfere.
STRAUS. CITES INTENT
OF CONGRESS IN LAW
Alley Dwelling Authority Asked
for Rental Estimates and
Group to Be Served.

Before the U. S. H. A. signs a con-
tract lending the District money to
rehouse its slum dwellers under a plan
that takes no cognizance of annual
Federal subsidies for reducing rents,
it was indicated today, assurance must
be given that such subsidies can be
eliminated without destroying the
objective of rehousing the lowest in
come group"
BY the lowest income group Ad-
ministrator Nathan Straus said it was
the practical intent Of Congress to
provide housing for the third Of a
Nation" with incomes in normal times
Of less than about $1,000 per year
For this reason, he disclosed, the
Alley Dwelling Authority, which ap-
piled on September "a for q 100 per
cent loan of $10,614,021 to start a
local program. has been requested to
furnish additional information show
ing estimates of the rentals intended
and also Of the income group to be
served. No rental estimates were in
cluded in the application. and with
respect to the income groups. the in
formation was not specific enough to
satisfy the Federal agency.
Without receiving such estimates,
and making a check of their validity"
said Mr.. Straus,' the U. S. H. A. would
be violating fiagrantly both the letter
and spirit of its law in approving any
loan for any locality"
The Old Stumbling Block Again.
From his observations it would ap-
pear that the long-awaited housing
program for the District again hinges
on the old stumbling block that for
merly held up proposed A. D. A. amend
ments, namely, subsidized rents versus
self-sustaining housing at higher
rentals.
The A. D. A. application was made
on 100 per cent basis instead Of
the usual form of 80 per cent loans
because it was pointed out then that
the District was not in position to
raise 10 per cent. John Ihlder, its
executive ofiicer. believed the A. D. A.
could carry out sounder program by
loan of the full amount. It would
also eliminate the necessity for a SUBJ
sidization Of 31a per cent of the total
cost to keep rents down to a lower
level. Offsetting this, however. the
District offered tax exemption for the
housing, in conformity with general
practice.
The present delay in acting on the
application involves solely the ques-
ton Of rentals and the income group
1t is proposed to serve
Would Speed Program.
THE U. S. H. A. is making every
effort to expedite the program in the
District" Mr.. Straus said. But #
it finds that additional time is neces-
sary to obtain information from the
A. d. A. as to the income groups which
the A. D. A. is planning to rehouse,
and to bring about the utilization in
the District of financing plan which
will rehouse slum dwellers in the lowest
income group rather than plan which
palpably and demonstrably cannot re-
house slum dwellers in the lowest
income group. then the U. S. H. A..
will take the time to do this.
mo other course would be consistent
with the specific terms of the United
States Housing Act and mindful of
the needs of those who need public
housing most"
The Federal administrator cited
statistics based on several of the first
U. S. H. A. contracts with Knoxville
Louisville, Baltimore. Pittsburgh and
New York City, showing estimated
shelter rentals with and without an
nual subsidies The income groups
also were recorded.
The monthly rent per room, without
subsidy, ranged from $3.50 in Knox
vile to $10.R5 in New York City. The
estimated average income group 10
be served ranged from $1,270 to 1870.
Subsidy Rents Lower.
Estimates under 80 per cent U. S.
H. A. loan, 10 per cent local loan and
annual subsidy showed a shelter rent
OF $3.50 per room for an average
income group OF $670. In the highest
bracket the rent was $5.18 and the
income was $685.. The estimated sub
sidized rent for Baltimore was given
as 81 and the income group as $770.
The non-subsidized rent was estimated
at $500 per room and the income
group at $3.50.
The A. D. A. had expressed the
belief that public housing should not
necessarily provide for ANY particu-
lar segment Of the low income" but
that it shall assure decent, safe and
sanitary dwellings for all" For pur-
poses Of income study it sought to
classify the Districts population by
income groups of $4,000 down. The
upper $4,000 classification was agreed
upon as representing roughly, the
A. D. A. stated, the lowest group now
reached, though inadequately, by pri-
vate enterprise.
Mr.. Straus claimed that statistics
bearing upon Washington may not be
precisely the same as for the repre-
sentative cities he cited, but added
that the margin Of variation cannot
possibly be sufhcient to affect the
validity of the conclusions Just drawn"
When the U. S. H. A. Is achieving
rentals Of $3.50 to $5.21 per room per
month in some cities serving fam
lilies earning an average Of $670 to
$685. per year, he indicated alterna-
tive rents of So and incomes not much
below 81 800 year would be entirely
unacceptable in the District.
"Such an alternative, even IL it
were not forbidden by our act" he
said, would defy the wishes Of every
worker, consumer and public spirited
group interested in rehousing the
slum dwellers of the District"
He added:
In carrying forward a program OF