Evening star., 1938-02-02
Keep Them Separate.

the President to the District Alley Dwell
Ing Authority, under terms of the Wag-
ner Housing Act, has no strings tied to
1t and will be spent, presumably, in
accordance with the successful policy
adopted by the authority.
Those who have watched the develop
ment OF this policy under the capable
direction of John Ihlder, executive Of
hcer OF the authority, must view with
some uneasiness, however. the tentative
proposals for amendment OF the Alley
Dwelling Act emanating from the re-
Gently established United States Housing
Authority. The suggestions for extend
Ing the territory In which the District
authority may operate. permitting it to
20 beyond the squares containing in
habited alleys in its construction of low
rental dwellings, are sound enough. They
have been made by the Alley Dwelling
Authority heretofore and incorporated in
amendments now before the Bureau of
the Budget.
But the proposal to amend the Alley
Dwelling Act to permit 1t to borrow from
the United States Housing Authority
contains dangers which should be an
ticipated and opposed by the local COM
munity. unless the Alley Dwelling Au-
thority is to pass out of existence and
fho Uhnln Srhanoo of c1 o1o
the District ditched, with local policy
placed exclusively In the hands of
Federal agency on which the community
has no representation whatever.
As written, the Wagner Act permits
the President to make grants to the
District Alley Authority. this money to
he spent as the Alley Dwelling Authority
directs. Under pending proposals, how
ever, the Alley Dwelling Authority would
obtain funds by borrowing from the
Federal Housing Authority. The Fed
eral authority would lend ninety per
cent OF the cost OF a project, the re-
manning ten per cent to be furnished by
the local community. The Wagner Act
contemplates subsidies which may be
applied toward the reduction OF rentals,
but the local community would furnish
twenty per cent Of the subsidy. Under
the present fiscal system this privilege to
borrow, II utilized would create an
other element Of confusion. The Alley
Dwelling Authority could not borrow un-
less Congress appropriated the necessary
local contribution. And if the appropria-
ton were made, the expenditure of the
borrowed funds would be made in ac-
cordance with the policy, not of the local
Alley Dwelling Authority, but of the
United States Housing Authority.
There seems to be fundamental
difference between the policies govern
Ing these agencies. The Alley Dwelling
Authority has combined slum reclama-
ton with the construction OF low-cost
housing, and has considered every ex-
penditure As an investment which must
be repaid In full from the proceeds of
slum reclamation, plus rentals. The
United States Housing Authority, on the
other hand, apparently plans to place
more emphasis on low-rent housing than
on slum elimination, with the low-rent
housing substantially subsidized by the
taxpayers. That plan may be shown to
be workable, even II expensive. But
first 1t should be shown to be workable
before anything Is done to undermine
the demonstrably successful work-even
though relatively small-already accom-
plished by the District Alley Dwelling
Authority.