Evening star., 1938-03-18
S16,S35,O()D SLUM
LOANS ADVANCED
U. S. H. A. Funds Will Go
for LoW-Rent Projects
in Five Cities.

The United States Housing Author
ity yesterday announced loans totaling
Sl6,835, 900 for low-rent housing
projects in five cities. The initial con-
tracts were announced by U. S. H. A.
Administrator Nathan Straus after
four and one-half months of prepara-
ton.
In a letter to Mr.. StrauS approving
the contracts, President Roosevelt de-
clared, We are launching an at."ch
on the slums of this country which
must 20 forward until every American
family has a decent home" The con-
tracts, he added, mark the beginning
of a new era in the economic and
social life of America"
Another encouraging sign was given
by Stewart Mcdonald, head of the
Federal Housing Administration, a
separate agency He told confer
ence of real estate men that more
mitted for F. H. A. insurance last
week shattered all previous records.
And" he commented, some say
we are having depression"
Says Business Widespread.
Mr. Mcdonald said this business
was widespread. with the largest pick
up on the Pacific Coast.
He told the real estate men, rep
resentatives of the National Associ-
alton of Real Estate Boards, that F.
H. A. was now able to offer better
bargain to home builders than at any
previous time in the history of the
country. There has been an increased
momentum in the issuance of insur-
snce on private mortgages since the
new regulations governing F. H. A.
went into effect February u.
The u S H. A. contracts were an
nounced by Mr.. Straus. a new recruit to
the Government service, with all the
fare of publicity that attended the
earlier years of New Deal expenditures.
Vice President Garner with a green
carnation in honor Of st. Patrick pinned
to the lapel of his coat. sat beside the
housing administrator as cameras
clicked and aides rushed to and fro.
The Vice President was there chiefly
because Austin, the Texas capital, re-
reived a loan of S643 900 for a project
that will rehouse 1856 families of slum
dWcllerS.
Steagall a Guest.
Representative Henry B. Steagall of
Alabama co-author of the Wagner
Steagall Housing Act under which the
loans are being made. was another
guest Then there was Senator Over
ton of Louisiana and number of
House members from States repre-
sented in the first cut of the $500,000,-
600 housing melon, as well as officials
of the New Orleans Housing Authority.
Other contracts approved earlier in
the day by the President were: New
Orleans, $8,4ll 900 for white and a
coiored project for a total of 1897
families: Charleston, S. c., Sl,017,000
for 216 families; Youngstown. Ohio,
$2,835 900 for 900 families. and Syra-
ruse, N. Y, s3,e3oo00 for 67s families
A total of 3,o77 new family dwelling
units will be provided in this initial
program, and with the cities putting
up 10 per cent of the cost the projects
will represent capital outlay of over
sls.7OO, 600
Mr.. Straus inspired other commune
ties with hope when he announced
that contracts will be forwarded to
the White House for approval in large
numbers during the next 80 days.
The disbursement of funds will be
made as soon as they are needed by
the five cities which were the first. he
said. to be submitted TO the U. S. H. A.
for approval. The cork is now out
of the bottle" he exclaimed
d. c. Awaits Million.
The District OF Columbia is waiting
FOR sl,000000 appropriation from
Congress, approved by the President
several weeks ago, to continue its own
slum clearance work under the Alley
Dwelling Authority. Unless proposed
amendments to the Housing Act are
approved, the A. D. A. cannot borrow
from the s500,000000 fund. all OF
which is to be "earmarked" within the
next year.
The shelter rentals for the newly
authorized housing projects range
from less than S2.70 per room per
month in Austin. up to around s4.2O
In New Orleans and about S425 in
Syracuse. Charges for utility services
will add monthly cost of about 50
per room. In announcing these ex-
pected charges. Mr. Straus said he was
aiming at the bulls eye" and be-
lleved he wouldn't miss.
Construction can start in the five
cities as soon as the local housing
authorities are ready. and its was the
understanding in Washington that
work would begin generally at once.
Roosevelt Enthusiastic.
Criticism directed at the delay in
initiating the first contracts was not
shared by President Roosevelt. The act
became law with his signature on
september l, last. Mr.. Straus took Of
flee November l.
1t is fine achievement, that only
Tour and one-half months later. the
housing program is actually launched
today in this substantial way" the
President wrote. These contracts are
but the beginning"
Funds totaling Sl68. AS 900 have
been "earmarked' to date in so cities
of l9 States.