Evening star., 1939-05-25
SIunl Projects
Cut.$851,000;
60 10 President
Economies Trim
3 Developments
To $4,258,000
BY NELSON SHEPARD.

A second Federal loan contract
for three slum-clearance and re-
housing projects in the District, it
was learned today, has been reduced
1851 900 below the $5,631 900 re-
quested by the Alley Dwelling Au-
thority on April 8. Along with a
batch Of similar contracts for other
cities, it is now ready to be sent to
President Roosevelt for his approval
The reduction made in the local
contract, which now involves 81
25S, 900, represents savings worked
out during six weeks of negotiations
between officials of the A. d. A. and
the United States Housing Author
ity, for the general objectives are
unchanged. Located in the South
west, Southeast and Northwest Sec
tions, the proposed projects would
provide new dwelling units for 912
colored families of incomes below
81 900 . year.
The U. S. H. A. loan would defray
90 per cent of the total development
cost, the local capital participation
being estimated at $522,00O. The
latter included also a 10 per cent
margin Of safety for possible over
runs in contracts.
eWould Be Tax Exemnt
At a virtual cost of s214 per fam
lily, tha contracts call for an an
nual Federal contribution of $685.,
$50 to help reduce shelter rents to
an average minimum of S325 per
month per room. Local contribu-
tions in tax exemption of the prop
critics would likewise be applied to
the rent reductions.
Two of the sites selected are spotty
slum areas, the other being gener-
ally 50. The cost of the slum build
ings to be torn down was estimated
at $754.255.
The first loan contract for the
Alley Dwelling Authority, approved
as far back as November 20, was for
IS 800 900. 1t called for four prof.
ects to rehouse 1857 families. One
Of the sites chosen was for white
families, so the way the program
shapes up now, six of the seven
public housing developments to be
undertaken in the District are for
colored families. Langston Terrace
on Benning road NE, built by the
Public Works Administrations for
mer Housing Division but now oper-
ated by the U. S. H. A., is another
colored development.
Sites Not Disclosed.
The sites of the three new pro-
jects now awaiting presidential ap-
proval have not been divulged ncr
are they likely to be at this time
The other sites, however, are on a
Government-owned tract in TIE
Benning area bisected by Ridge
road NE; Alabama avenue and
Twenty-f1rst street Sc, and two
slum areas in the southeast and
southwest.
The work Of acquiring all the
necessary land in these areas, the
coordination of projects plans
With proposed street extension, the
arrangements for utility services ir
the outlying districts have involved
much tedious negotiation. While
it was believed the time is approach
ing for the Alley Dwelling Au-
thority to call for bids on the two
outlying projects, no definite in
formation has been given out.
The U. S. H. A. had earmarked
total Of 100000 for loans to the
local authority and with the second
contract approved. only s4,142 900
would remain. That should be
sufficient, it would seem, for three
additional projects.
Congress has deprived the A. D
A. of the privilege of borrowing
81 900 ,000s from the Treasury for it's
own individual program of alley
clearance and non-subsidized hous-
ing. At least it has been deprived
Of borrowing the amount for the
next fiscal year. For that reason
the A. D. A. is entirely dependent
on the Federal authority for loans