Evening star., 1938-06-03
STRAUSEARMARKS
$10,0DO,O|)DFORD.C.
Housing Authority Ready to
Act as Soon as Measure
Is Passed.
BY NELSON M. SHEPARD.

Administrator Nathan StrauS an
nounced today the United States Hous-
Ing Authority is actually ready to
earmark an initial $10,000,000 for
slum clearance projects in the District
the Alley Dwelling Aupthority makes
formal application. From S., 900 900
to 100000 additional might be ear
marked for the District, he indicated,
should that amount be required.
His statement was made on the as
sumption the -Palmisano bill,
giving the A. D. A. the same status
as other housing authorities, becomes
law in the next few days. The
House may complete final legislative
action on the bill late today.
The housing administrator made 1t
clear tEat the responsibility for ini-
tiating slum clearance and low-rent
housing programs financed with U.
S. H. A. funds rests with the Alley
Dwelling Authority.
Additional Loan Provided.
The local Housing Authority under
pending legislation which requires only
House concurrence to Senate amend
ment empowers the A. D. A. to borrsw
Sl.O00.000 additional from the United
States Treasury annually for the next
HVe years. This is for the purpose
OF continuing its own ind:vidua, pro-
gram OF clearing inhabited alleys and
re-housing alley dwellers on sites which
may be acquired in outlying sections.
The amount of additional funds
which the Alley Dwelling Authority
may expect from the Federal Housing
Agency, Mr.. Straus pointed out, de-
pends on the final outcome of an
amendment in Congress giving him
an additional 100000, 600 for the ma
tional slum clearance program. Should
this amendment go through, he esti-
mated Executive Officer John Ihlder
could apply for probably $4,000 900
additional, but otherwise the District
could expect no more than another
$4,000, 900.
Mr.. Straus said that when the local
law is signed by the President. the
District Alley Dwelling Authority would
have exactly the same status as
authorities in other cities.
He estimated that a $4,000, 900
project here should provide new homes
at nominal rentals for between 1000
and 1000 families.
Early Start Expected.
Explaining that he could earmark
funds within 48 hours after Mr.. Ihlder
makes application, he said the expert
ence in other cities indicated it should
take no more than 30 to go days in
which to sign contract. BY this
figuring, projects should get started
in Washington before the summer
ends unless there are unforeseen de-
lays
Mr.. Ihlder would have available to
him, the administrator explained, all
necessary services of the Federal
agency. That means he would be
given the assistance of its technical
staff in the matter OF selecting sites,
planning, building and attention to
legal details.
This is precisely what the u. S. H.
A. is now extending in services to 1853
local authorities throughout the coun-
try.
At present, the U. S. H. A. lends up
to 30 per cent of the cost of projects
the financing Of the remaining 10 per
cent being up to local communities.
They can do this In any way they
please, through issuance of bonds,
donations Of land, or other means pro-
viding suitable security. Pending
amendments in Congress, which would
apply also to the financing arrange
ments of the A. d. A., would enable
the Federal agency to lend up to 100
per cent Of the entire cost. There is a
stipulation, however, that 10 per cent
OF the bonds would have to be sold by
the local agency and paid back before
annual subsidies are made on the prof.
ect.