Evening star., 1938-10-08
lHLDER FORMULA
. Of 67-CENT RATE
GIVEN ATTENTION
Alley Dwelling Authority
Plan UtiIizes D. c.
Tax Exemption.
DIPS HOUSING AID
TO LOWEST STRATUM
Plan Is Based on 100 Pct. Loan.
Range Per Room Per Month
Goes Up to $3.25.
BY NELSON M. SHEPARD.

VlQe new dwellings, lOT 1dullllCS Oh re.
lief in the District at monthly rent
ais as low as 81 cents a room-an
outside" estimate said to be far be-
low the lowest quoted on subsidized
houses anywhere in the country.
The plan submitted for the approval
of the United States Housing Author
ity contained a sliding scale of rentals
ranging from 81 cents and 81 cents to
1925 a room for families with incomes
averaging below $503. A second scale
for income groups Of 1928 to ST. ,654
proposed rentals from 1914 to $10.70,
comparable to low subsidized rentals
in other cities.
While Federal officials had no op-
portunity to comment early today, the
subsidized plan worked out by the
local agency for families Of little and
no incomes constitutes clear chal-
lenge to other public groups engaged
in the Nationwide rehousing and slum
clearance program. 1t came as q sur
prise move in reply to reminder from
the Federal agency that the A. d. A.
had neglected to disclose its plans
with regard to rentals in applying for
a 100 per cent loan Of $10,614,02l to
start the local program for rehousing
slum dwellers.
Law Balks Loan Cut.
The Alley Dwelling Authority had
met yesterday afternoon to consider
a suggestion from the U. s. H. A. that
it change its application from 100
per cent to q 30 per cent loan. Execu-
tive Oficer John Ihlder notified the
Federal administrator. Nathan Straus,
that the application for 100 per cent
must be renewed on legal advice Of
the District Government. The A. D.
A. had been advised, he said, that
the Commissioners have no authority
to obligate the District to make 10
per cent contribution of the cost Of
the progrsn. Although Congress au-
thorized. it neglected to provide the
necessary appropriation.
Mr.. Ihlder wrote: The Alley DWELL
ing Authority, frankly. is concerned
over the possibility Of assuming obliga-
tions in the form Of developments for
which only partial funds are pro-
vided.
Would the United States Housing
Authority be willing to contract that
in case . 90 per cent loan were
negotiated and it later proved i'm
practicable to secure the remaining 10
per cent by the means suggested, the
United States Housing Authority
would convert the 80 per cent loan
into 100 per cent loan?"
Mr.. Ihlder pointed out that the
acceptance Of 80 per cent loan
would cause a delay in requesting
Congress for the. appropriation and
also would increase costs. There are
factors, he reminded. which both
agencies wish to avoid in desire
to get the housing program started
as early as possible.
Points Out Lack of Sites.
Explaining his proposals at a press
conference. Mr.. Ihlder expressed the
earnest hope" that the rent scale
would prove acceptable to the Federal
agency The A. D. A. had found it
"dificult," he. wrote Administrator
Straus, because sites for the five
projects have not been secured nor
have plans for the houses yet been
approved by the U. S. H. A. For
this reason he had been reluctant"
to compute the rents in advance.
The plans propose to make dwell
ings available for the Lowest income
group" as the United States Housing
Act requires. While reminding that
the minimum rentals are far below
the lowest provided anywhere else. he
pointed out that the actual rent
scale will be "in accordance with
the varying family needs"
All the rents are below those in
dwellings built in adequate supply
by private enterprise and for that
reason there is no fear of public COM
petition.
In an accompanying memorandum
on the rent scale, Mr.. 1hlder said
the income group for whom private
enterprise is not now building ade-
quately ranges down from approxi-
mately $4,000. "It may be noted"
he added, that the District Medical
Society in its proposed new service
to families Of low income places
the dividing line at $4,000. So $1,6s7
(the maximum which the A. D. A.
will meet) Is well below the dividing
line"
Works Out Subsidy Plan.
The A. d. A. has worked out q
subsidy plan Of its own to bring rent
levels to the unbelievably low figure
of 81 cents. It proposes to do it by
utilizing the District governments
contribution, the sums derived by
exempting the authority's land and
houses from taxation. These sums 1t
will use to reduce the rent Of those
among its tenants who cannot afford
to pay cost rent.
The amounts of tax exemptions
listed total $9,521.14 monthly or q
yearly sum of $115,253.68.
About one-fourth of the 1870 dwell
ings provided under the initial pro-
gram will thus be set aside for families
either on relief or of such small earn
ing capacity as to require rental aid.
This method will make the new
dwellings available to all the economic
levels among the low income groups
for whom private enterprise does not
provide" Mr.. Ihlder/ said. by 50
making it possible for non-self-
supporting families to live among self
supporting families. the A. D. A. Is
following recognized sound social prac-
tice, while segregation Of dependent
! families In communities by themselves
Is recognized as unsound."