Evening star., 1939-09-07
Too High Cost
Delays Housing
Project Here
is. n. A. Refuses
To Approve Bid
For 326 Homes

Washington's low-rent housing
program was set back, probably for
many weeks, today when the United
States Housing Authority rejected
the construction bid recommended
by the Alley Dwelling Authority for
Its Ridge road project, the first of
five now being planned.
The $1,360,000 low" bid of the
John McShain Co. of Baltimore,
according to the only announcement
made by John Ihlder, executive Of
ficer of the A. D. A, does not come
within the limit of the amount of
funds made available for the Alley
Dwelling Authority"
The A. D. A., he explained, will
Immediately begin revision of plans
and specifications and nall then re-
advertise for bids, in the hope of
securing lower offers
Cost Held Too High.
1t was learned that the United
States Housing Authority had sent
with its rejection slip" lengthy
communication stating the reasons
why the Ridge road dwelling units
were unacceptable because of higher
costs than the Federal agency is
willing to accept. Mr.. Ihlder, how
ever did not divulge the contents
of the letter and when his own an
nouncement of the rejection was
available at his Office it was said he
was attending meeting
The low bid one of five submitted,
was opened August 10 and its ac-
ceptance was recommended about a
week later when it was forwarded to
the U. S. H. A. for review.
A week ago it was apparent the
Ridge road bid would be turned
down, when it was known the A. D.
A. was at issue in favor of larger
fooms and doors for clothes closets
that would have added to the con-
struction costs.
326 Homes for Low Paid.
The Ridge road project, planned
for white occupancy, provides for
1876 dwelling units for families
within the lowest income brackets.
The so or more acres, about half
of which were to be utilized at this
time, belongs formerly to the Gov
ernment and the title is to be trans
ferred to the Alley Dwelling Au-
thority.
The construction costs planned at
the Ridge road project averaged
$3,54922 per unit, it was learned, or
1891 per room. Mr.. Ihlder con-
tended it was comparable and even
lower than some u S. H. A. dwell
ing costs in Eastern and Western
cities.
The statutory limitations for U. S.
H. A. projects in cities of 100000
or more population is $4,000 per
unit, or $1,000 per room. The Fed
eral agency, however, has striven
for lower costs and acceptable con-
tracts, was claimed, must be far
below he limitations.
S1,500,000 Available.
The A. D. A. average of $3.50 %
per unit, it was believed, does not
include the cost of the land, which
Is estimated slightly in excess of
S50,0O0, nor other items of develop
ment. 1t is, however, the actual cost
of construction.
The amount made available for
the total development of the Ridge
road project was in excess of $780,
900. 1t was included in the initial
loan contract of $6,600,0OO approved
February 2, last. Since then addi-
tional loans and projects have been
negotiated and plans are now being
drawn up for them.
Mr.. Ihlder first advertised for bids
on the Ridge road project June 90.
Because so few companies submitted
bids then the time was extended to
August 10.
A. D. A. officials today notified all
five of the bidders that the Federal
agency did not approve the letting
of the contract on the basis of the
bids submitted. There was no other
explanation.