Evening star., 1938-10-27
DEADLOCK ENDED
ON $10,614,021
D. c. SLUM PLAN
Compromise BY Straus and
A. D. A. Breaks Jam
in Negotiations.
ROOSEVELT TO GET
CONTRACT SHORTLY
Ihlder and Administrator Long
at Odds Over Financing
and Income Groups Served.
BY NELSON M. SHEPARD.

BY NELSON M. SHEPARD.
After . month of uncertainty over
the Districts slum clearance program,
negotiation of a $10,6l4,021 contract
for the Alley Dwelling Authority was
moving ahead harmoniously today
under compromise agreement said
to be entirely acceptable to Nathan
Straus, administrator Of the United
States Housing Authority.
In fact, it was Mr. Straus who broke
q two weeks silence on the subject
hate yesterday to disclose that he ex-
poets to submit the contract to Presi-
dent Roosevelt for approval within
two or three weeks" 1t will take that
long, at least, for the technical stan
Of the U. s. H. A. to draw up the con-
tract forms.
John Ihlder, executive officer of the
A. D. A. welcomed" the announce
ment which now paves the way for
the final working out Of a compre-
hensive slum clearance and rehousing
program to the full extent of the
$4,000, 900 earmarked for the District
On July 1.
Details Not Revealed.
The two housing ofiicials declined to
divulge any of the details involved in
the compromise, the achievement of
which removes obstacles that have de-
layed negotiations for q month. Mr..
Ihlder had not been notified "ofn-
caally" but he has known for several
days. at least that there was no
further need Of concern over the
working out Of the final details.
The announcement first was made
BY the Federal administrator at q
housing meeting In Alexandria, Va.
when he took occasion to compliment
the Alley Dwelling Authority for doing
. fine piece of pioneering" in Wash
ington. "Mr. Ihlder has now sub
mitted an admirable program for re-
housing slum dwellers," he remarked
In adding that the contract soon will
be ready for submission to the Presi-
dent.
Refusing later to admit more than
that an agreement has been reached,
he explained 1--WE probably said too
much already" That was because for
the past two weeks he and Mr. Ihlder
had agreed to say nothing more about
the local housing situation for pubi-
cation until the time was ripe.
At Odds for . Year.
For about year it has been widely
advertised in public print that the
two housing officials were far apart in
their views on the question OF "subsi-
di1ed housing" and more recently it
was disclosed they were also at odds
on the rents that should be charged
for public housing in Washington
under the local program Although
no statement was forthcoming to
clarity matters today, it was apparent
that there was full accord now on
such matters as financing the program
and the application of funds to keep
rents at desirable low level
The i've projects proposed In the in
itial program, two of them involving
slum reclamation, are expected to pro-
vide employment during the next year
for nearly 1000 men. Unless further
complications arise, the contract should
Be signed early in November.
The first draft of a proposed con-
tract was submitted by the A. D. A. on
September ~. A week later Mr.. Straus
indicated it was unsatisfactory, as the
plan took no cognizance of annual
Federal subsidies for reducing rents.
Before such plan could be accepted,
he said, assurance would have to be
given that subsidies can be eliminated
without destroying the objective of
tehousing the lowest income group"
100 Per Cent Loan Asked.
The A. d. A. application was made
on 100 per cent loan basis instead
Of the usual form Of 90 per cent loans
because, as Mr.. Ihlder pointed out then
and later, the District was not in q
position to raise the required 10 per
cent Of the cost. Again on October 8
Mr.. hlder supplied the u S. H. A. with
= information requested rs to his plan
for maintaining q low rental scale.
He proposed sliding scale Of rem
tails from 81 cents to 1925 . month
per room for families on relief and
those averaging below $503 annual in
come. These rentals were suggested
for about one-fourth of the 1920 fami-
lies capable of being housed by the
1ive projects. For families with in
comes ranging from an average Of
31,253 to 1854, about three -fourths
Of the tenants. he provided q rental
scale ranging from $614 to $10.70 .
room.
Earnings Widen Breach,
This plan was far from satisfactory
% the U. s. H. A. Mr.. Straus refused
70 recognize families earning between
1888 and 1864 IS properly belong
ing to the lowest income groups Con-
gress desired to serve. He contended
then that the Housing Act aimed to
provide low rentals for the group earn
ing no more than about $1,000"
The A. D. A. properties are exempt
from the payment of taxes to the Dis
trict. Mr.. 1hlder proposed that the
amount of the taxes be applied as =
subsidy to reduce the rents on one
fourth Of the houses for the families
within the lowest income groups.
This provided another cause of criti-
eism- BY . direct contribution of 10
per cent and acceptance of an annual
Federal subsidy, the U. s. H. A. con.
tended, all the rents could be fixed at
sufnciently low level within the reach
Of the smallest income group. In other
words, it meant there would be no ne
oessity Of requiring three-fourths Of the
families to pay higher rent to ac-
eommodate the other fourth.
Until now another deadlock APPEARED
70 threaten the success of the housing
program. Some way or other these
differences over questions of financinR
and rentals have been settled har-
moniously. Each agency has yielded on
some points. An ofncial statement vas
expected shortly to explain how the
revised plan will work out.