Evening star., 1939-03-19
Housing
Continued from First Page.)

loan contracts already made with
the approval of the President. With
members of Congress beginning to
hear frantic appeals from local
housing authorities, Democratic
leaders in the House will seek to
force an immediate showdown on
the amendment, probably tomorrow
When 1t comes up on the floor.
Counting on the widespread senti-
ment IN favor of the program, Fed
eral officials were hopeful of a re-
versal vote.
AS in the case of the Alley Dwell
ing Authority in Washington. which
may lose half or all of the 81 900 900
it was authorized to borrow from
the Treasury this year, the action
in the House last week is like a
warning handwriting on the wall.
The situation is particularly acute
at this time for the U. S. H. A.
Senator Robert F. Wagner of New
York, its legislative father" and
| strongest advocate. is preparing to
press his bill to obtain another ap-
preparation of $500, 900 900 for hous-
ing. Even the most optimistic
among the administering officials
realize that Congress in its present
economy mood, will not vote any
where near that sum. They hope,
however, with some reasons of as
surance, for a few hundred million.
The joker in the House amend
ment which would be so destructive
Of the entire slum clearance pro-
gram is in the $500 limitation on
the overall" cost of unit develop
ment.
Projects Would Be Ineligible.
The overall cost includes non-
dwelling facilities. the construction
cost of the dwellings, equipment,
architect fees. overhead expenses
and above all the cost of slum build
ings to be demolished. 1T is ap-
parent that all projects now pend
ing would become ineligible" Mr..
Strauss reminded the Appropria-
tions Committee.
The reason is apparent when con-
oCl uCC1Oll SOoto CAlSllllS ChCe
cuted contracts are considered. The
average net construction cost per
dwelling unit of the U. S. H. A.
aided housing upon which main
construction contracts have been
approved is $3.50. But the average
overall cost of these same units
is estimated at $4507 in comparison
with the proposed $500 in the
pending amendment.
Taken individually the lowest
overall cost has been contracted by
the Austin CTex) Authority at So
673 per unit. The highest is $1,000,
in Detroit.
The low-rent housing program is
just beginning to develop from an
experimental state and results
achieved in New York City and
elsewhere indicate the success which
is meeting the efforts of local au-
thorities to reduce construction costs,
on which the whole future of the
program depends. Repeated insist
ence by U. S. H. A. officials have
brought costs down in New York to
81 200 room, or $4,000 for four
room dwelling.
Would Halt Further Plans.
Average costs of the Federal
aided program. according to statis-
tics supplied the House committee,
are actually $l,010 less than the
average net construction cost of pri-
vate dwellings in the same localities.
"The adoption of this overall cost
limitation would make it necessary
for the U. S. H. A. to stop all further
projects" Mr.. Strauss warned, "be-
cause the limitation Is so broad
and all inclusive as to make con-
templated low-rent housing impos-
sible of achievement"
Furthermore, he pointed out, un-
der the provisions of section 1O(e) of
the United States Housing Act, "the
faith of the United States is SOL
emnly pledged to the payment of all
annual contributions contracted
for" Local authorities, as in WASH