Evening star., 1938-10-09
LOWEST INCOME
QUESTION SNAGS
ALLEYW0RKHERE
U. S. H. A. Won't Recognize
$1,000 to ST 900 Families
as Recipients.
STRAUS SAYS FIGURE
SHOULD BE NEAR ST. 900
Ihlder's Agency Must Revise
Plans if It Meets Approval
for Federal Loan.
BY NELSON M. SHEPARD.

BY NELSON N. SHEPARD.
Negotiations for q Federal loan to
rehouse the lowest income groups"
in the District received another set
back yesterday because the United
States Housing Authority refuses to
recognize families earning between
$l,253 and 1864 as properly belong
ing to the group Congress desired to
serve.
Administrator Nathan Straus took
this position in 4 public statement
after he had examined the scale Of
rentals and income groups which the
Alley Dwelling Authority submitted
two days ago IN Justification of it
avoidance Of straight Federal sub
sidy. He repeated an earlier az
nouncement that the U. s. H. A. int
prets the lowest income groups"
meaning those whose average inco:
is less than about 81 900 per year"
Despite this latest obstacle, the
lief was expressed that no doubt {
two agencies will be able to work
gether on q uniform basis. 1t me
however, that the A. D. A. must re
its plans again.
Different Income Groups.
The unique scale of rents which
Alley Dwelling Authority prop
was arranged to meet two different
come groups. In addition to the higi
income bracket, Executive Ofhcer JC
Ihlder Grew up plan Of rentals ran
ing from 81 cents a month per rooi
to 1925. These are planned for fam
lilies earning less than nothing to $50
annually. They would include onl,
one-fourth Of the families to be served
whereas the higher rentals, ranging
from $6.14 to 5000 per room, would
be paid by the other three -fourths.
The criticism of the y. s. H. A. is
directed at these higher rentals and
incomes. The lower rentals wotSd
be made possible by aid in the form
of tax exemptions.
The statement made last night by
Mr.. Straus follows:
In its letter to the United States
Housing Authority, the Alley Dwelling
Authority has supplied some Of the
data requested in regard to the pro-
posed rentals.
1T appears from the A. d. AS letter
that the rentals to be charged In three
fourths of the dwellings would be 50
high that they would serve groups
having an average income between
81 ,253 and 1864. The United States
Housing Act requires that projects re-
ceiving U. S. H. A. aid must serve the
lowest income group.
Less Than 81, ,oee Annually.
I'm view of discussions in Congress
while the bill was pending, We have
construed this to mean that projects
aided by the u. S. H. A. should be re-
stricted to that group whose average
income in normal times Is less than
about $1,000 per year
Under the Alley Dwelling Author
ity's proposal, only one-fourth Of the
families to be accommodated will be
in this group. In order that rentals
be low enough to reach this one-fourth,
the rents fixed for the remaining three
fourths in the project would be IN
creased to higher amount than other
wise would be necessary.
The United States Housing Act
makes its possible to achieve low rents
for all families in q project by means
of annual contributions from the q. S
H. A. We are prepared to make these
annual contributions available to the
Alley Dwelling Authority. Every con-
tract with a local authority approved
by the President to date. has con-
tanned this provision for annual con-
tributions.
THE application of the Alley Dwell
ing Authority is receiving very careful
study by our staff. Meanwhile, want
again to express the belief that, since
the u. S. H. A. is now working har-
moniously with more than 200 local
housing authorities from coast to coas,
on uniform basis which provide:
homes for families from the slums ano
does not compete with private indus
try, have no doubt that we will be
able to work successfully on the SAINT
basis with the Alley Dwelling Au-
thority, the local public housing agen.
cy for the District of Columbia"
Agencies Views Differ.
The two agencies are still ap-
parently far apart in their views on
meeting the housing situation in the
District.
Mr.. Straus would rehouse families
of less than 81, 1000 or $1,100 income
making no provision for those OF
slightly higher income, As he believe.
the intent Of the United States hous-
ing law Is to serve the lower income
groups.
The A. d. A., on the other hand
believes such = policy, If adhered tc
strictly. would create Z mo man!
land" providing 4 wide gap of familie.
requiring assistance but unable to re.
ceive it. Mr. Ihlder has repeatedly
bstated that private enterprise Is build
ing inadequately to meet the rental
needs Of the income groups under
$4,000. He has compromised by in.
cluding maximum Of 1864 In the
groups to be served.