Evening star., 1938-01-29
100000 GRANT
ASSURESSTART IN
SLUM CLEARANCE
President Orders Sum Be
Provided for Long De.
Iayed Project.
WOULD BRING A. D. A..
UNDER WAGNER ACT
Straus Says Aim Is to Place Hous.
ing Body on Footing With
Other Cities.
BY NELSON SHEPARD,

BY NELSON SHEPARD.
A comparatively early start on a
huge slum clearance program for
Washington was assured today as a
result of the issuance Of long delayed
directions from President Roosevelt.
More significant than his order for
an initial Federal grant of 100000
to the Alley Dwelling Authority was
proposed legislation designed to bring
the local agency under the borrow
ing" clause Of the Wagner-Steagall
Housing Act. Its full effect on the
A. D. A. remains to be seen. Under the
proposed legislation, it was said, the
Alley Dwelling Authority may or
may not" lose its present Federal
status.
Announcement Of the Presidents
directions was made late yesterday
by Administrator Nathan Straus of
the United States Housing Authority,
who Is engaged now in bringing local
communities into line with the $500.
100000 low-rent housing program au-
thorized by Congress.
No Strings Attached.
The 100000 grant, to which 1t
Is understood no strings are attached.
will be turned over to the A. D. A,
as soon as funds are made available.
1t Is to serve as a sort of stop
gap" to prevent interruption of the
present work Of the A. D. A., whose
own funds are practically exhausted.
It will come from $4,000, 900 .au-
thorization for the immediate needs
Of the U. S. H. A. that is tied up now
in the first deficiency appropriation
bill. This bill has not yet been re-
ported to the House.
The proposed legislation, which Mr..
Roosevelt desired to be initiated 'si-
multaneously," would enable the A. D.
A. to borrow funds as needed from
the Federal agency in carrying out
a tWo-year slum clearance program
estimated at $7,308,559. That is the
amount requested.
Straus Explains Program.
A four-point legislative program
now being drafted was explained by
Administrator Straus. Especially sig
nificant is the first point, which hs
claimed would permit the A. D. A.
to operate anywhere" instead OF
being restricted, as it is now, to op-
Grating wholly within alley areas.
The legislation also provides:
That the A. D. A. be permitted
to borrow from the U. S. H. A. up to
80 per cent of the capital cost of
any project, the same as other agen-
cies, or to borrow up to 100 per cent
if and when Congress so amends the
housing act
1t would make the agency eligible
for annual Federal grants or SUBJ
sides intended to bring down the
level Of rents.
1t would insure that there are
dwellings erected here with rents
calculated to meet the pocketbooks
Of slum dwellers or others, white or
colored, who cannot now afford to
rent decent houses.
Mr.. Straus explained that all the
legal entanglements involving the
Alley Dwelling Authority since en-
actment Of the new housing act have
not been Strengthened out" He as
sured that it was the intention OF
President Roosevelt, however, to Sc
cure the passage Of legislation bring
ing the A. D. A. into conformity with
other local housing authorities un-
der the Wagner Act.
"The President and Mrs. Roosevelt
both are very much in favor of see
ing substantial and effective slum
clearance program undertaken in
Washington" Mr.. Straus said.
Independent Agency.
The Alley Dwelling Authority now
operates as an independent agency
Of the Federal Government with the
Commissioners serving on its board.
Whether 1t will lose its Federal identi-
ty under the proposed legislation and
be made strictly local agency un-
der the municipal government, as in
the case Of some 200 newly estab-
lished housing authorities, Is a mat
ter about which officials are not very
clear.
President Roosevelt alone Is au-
thorised to allocate funds TO the
A. D. A. It was presumed that pro-
posed legislation would leave him out
Of the picture.
The amount that the A. D. A.
would borrow in any one year from
the U. S. H. A., it was suggested,
would be fixed in the District budget
If the A. D. A. loses its Federal status.
Mr.. Straus said it would not be
necessary for the local agency to
put up any cash" in advancing its
10 per cent share of the cost. Bonds
or other forms of security would be
acceptable.
He considered it essential to the
success of the whole slum clearance
program, however, that the housing
act be amended 50 as to enable the
U. S. H. A. to loan the entire capital
cost. An effort is being made by
Senator Robert F. Wagner of New
York to put through such an amend
ment.
Unwin Gives Views.
Sir Raymond Unwin, noted British
housing authority, who conferred with
Mr.. StrauS yesterday, said the re-
quirement that local agency put
up 10 per cent Of the cost was q
definite handicap, an unnecessary
complication" which would hamper
the development Of . program. In
England, he said. the government
loans to the smaller authorities 100
per cent Of the cost.
Sir Raymond is the "father" Of
Englands housing program, under
which 100000 homes have been
erected since the World War.
While some weeks may pass before
legal matters connected with the Dis
trict's Alley Dwelling Authority are
entirely Strengthened out, Mr.. Straus
said he would like to see large and
effective slum clearance project un-
der way in Warrington to demon
strate" to Congress. how . local au-
thority can operate successfully under