Evening star., 1938-08-06
LOW-RENT HOMES
ARE HELD SECURE
Large Size to Resist Blight
Also a Factor to Insure
Steady Returns.

their greatest security in projects
stand deteriorating neighborhood in
f1uences and low enough in rental to
tap the vast market provided by fami-
lies of moderate income.
Though high rental projects may
pay handsome returns during the first
two or three years, the project which
continues to pay satisfactory returns
during bad years and good is the
exception rather than the rule. Studies
Of rental housing experience conduct
ed by the Federal Housing Admins
tration and described in the current
issue of Insured Mortgage Portfolio,
official F. H. A. publication, indicate
that income from moderate rental
projects is more stable through good
years and bad than those from luxury
apartments.
The chief advantage enjoyed by
low rental projects is the vast demand,
growing out of the fact that the great
est number of American families fall
into the medium income group. In
many instances demand for moder-
ately priced accommodations increases
during depression periods, due to the
tendency of many families to move
out of higher rental buildings into
medium priced accommodations.
Full Occupancy at Once.
"Well-planned low rental projects
such as are embraced in the F. H. A.
program frequently have attracted ad-
vance applications for many times the
number of units they offered" the
article states. Hence they have been
able to obtain full initial occupancy
following completion. The careful Sc
lection, of tenants permitted under
such circumstances is an important
factor in maintaining the character
Of the project and assuring a low rate
of turnover and vacancy with conse-
quent savings in repairs and main
tenance"
The findings of the Finincial Survey
of Urban Housing, which demonstrate
that on the average families paying
the highest rents in 1929 decreased
their rent payments by greater per-
centage than families in the middle
rent groups" is an indication of the
reason for the stability of earnings
Of the moderate rental project.
The favorable experiences of such
relatively low rent, limited dividend
corporations as the Washington Sani-
tary Housing Corp, City and Sub
urban Homes Co. of New York and
Chatham Village in Pittsburgh offer
further evidence in this same general
connection.
How far the fine records of sus-
tanned earnings were due to good
planning, good management and the
fact that they were on a sufficiently
large scale to resist blight, and how
far to the fact that rents in each were
low enough to appeal to a relatively
large number of families in each COM
munity is difficult to say.
Records Stand in Contrast.
"However, their records stand in
marked contrast to a number of large
apartment developments which were
competently handled from the techni-
cal and management side but were
designed to attract families paying
higher rentals"
In view of the striking" success of
the moderate income projects which
were constructed prior to the depres-
sion and the poor record of the more
expensive types of structures the Fed
eral Housing Administration Is limit
ing its insurance of mortgages to
projects which provide for moderate
rentals.
The tendency of some sponsors still
to desire to construct the more ex-
pensive units is attributed more to
the fatal fascination" of planning
housing which Incorporates every lux
try. Another error which is fire.
quently made is that of planning a
project to fit a piece of land already
owned and making the improvements
conform to other structures in the
vicinity, regardless of the condition
of the rental market and the demand
for various types of accommodations.
Overequipped, expensive structures
for which there is not a healthy
demand are especially subject to OBJ
solescence growing out of the con-
struction of substantially similar struc-
lures. Neighborhood changes and
other similar factors also bring
high mortality among such types of
structures.
Projects similar to those constructed
under the F. H. A. program are
large enough on the average to with
stand shifts in neighborhood charac-
ter and are planned with long
range investment program in mind.
Full occupancy at moderate rentals
for long periods of time rather than
partial. high rent occupancy are the
objectives behind rental housing plan
ming under the F. H. A. program.