Evening star., 1939-03-22
House Action
Threatens $50
u. ). H. A. Jobs
Housing Official
Says Force Would
Be Cut in Half
By NELSON NJ. SHEPARD


BY NELSON NJ. SHEPARD.
About half of the 1907 Washing.
ton employees of the United States
Housing Authority will be dis.
charged after June 30, officials dis.
closed today, unless Congress even-
tually knocks out points of order
sustained in the House that have
the effect of reducing the admins
trative expense allowance s2,5OO, 900
below the amount recommended by
the Appropriations Committee.
Viewing the wreckage with dis
may. Leon K. Keyserling, deputy
administrator and general counsel,
said the action of the House would
have a disastrous effect" on the
whole low-rent housing program.
The reduction would leave the
Authority with only $4,000, 900 avail
able for salaries and other admin
istrative costs. whereas the commit
tee had voted $4,500,0O0
Unless the Senate restores the
deleted provisions of the bill and
the House conferees agree" Mr..
Keyserling said, "a conservative esti-
mate would place the number Of
staff members that will have to be
dropped from the pay roll at 600 or
$50, or about half of the force in
Washington"
Preceded by Victory.
The disappointment came with
the final passage of the Interior
Department supply bill in the House,
containing U. S. H. A. section on
which other limitations are placed.
Passage of the bill with two admin
istrative provisions eliminated from
it followed signal victory Mon
day for the U. S. H. A.. That was
when many Republicans, defying
their leadership. joined forces with
Democrats to defeat an amendment
that would have forced cancellation
of s346 1000 900 in existing loan con-
| tracts by a drastic reduction in the
| overall cost allowed for housing
units.
Despite this encouragement. two
points of order deleting certain Ian
guage in the administrative provi-
sions were allowed to remain in
the bill as it finally passed the
House. They were agreed to without
/ discussion and without objection
when Representative White. Re-
publican. of Ohio suggested the Ian
guage was legislation. having no
place in an appropriation bill. The
points of order had to remain, under
the House rules.
Shifts Burden on Fund.
The practical effect of the first
provision deleted from the bill would
be to force the u. 8. H. A. to pay
out of the S4.50O,000 allowance for
administrative expenses at Federal
projects about 81 900 900 that neither
the Bureau of the Budget nor the
Appropriations Committee intended
to have charged against such ex-
penses. Under existing and pro-
posed continuance of the law all
necessary expenses in connection
with the management and operation
of the Authority's 50 Federal projects
are paid out of the rentals.
The imposition of these admins
trative expenses on the U. S. H. A.,
Mr., Keyserling pointed out. is con-
trary to the prevailing practices of
such similar agencies as the H. o. L.
c.. the R. F. c. and the FIJI A. in
connection with their revenue-p pro-
ducing properties.
+ The second provision deleted pro-
vided that out of administrative ex-
penses not to exceed $1.50O,0 900 shall
be available for such expenses in
CURED at the site of non-Federal
projects and shall be reimbursed by
the local authorities AS this money
is reimbursed it is made available
for administrative expenses of the
U. S. H. A. Thus there is is no actual
loss to the Federal agency. BY the
deletion of the above provision the
U. S. H. A. would be forced to pay
construction advisers on the sites
out of its own administrative funds,
without reimbursement. Thus it
would lose another S1.500,00O of the
authorized allowances.
Results in $500. 900 Cut.
! Although the $4,000 900 for admin
istrative allowances remains intact
in the bill. the practical effect of the
deletion of these two provisions
would be to deduct $2,5O0,0OO from
authorization.
Largely as result of these tech
nicalities involving points of order,
the authorization for U. S. H. A.
administrative expenses is in such
form as to make it impossible for the
Authority to carry out its functions
properly Mr.. Keyserling protested.
The amount of funds that would be
made available if the bill becomes
law in this form would be grossly
inadequates to meet the administra-
tive expenses"
There is another reason why the
restriction of funds would make it
harder for the Authority to operate
with so per cent reduction in it's
administrative personnel. With the
housing program launched in l4O
cities, there has been an increase of
about IS per cent in the work load
since the earlier part of this fiscal
year. BY midsummer the work load
will have increased to it's peak. with
an estimated 5000 dwellings being
occupied each month.
1t was for this reason that the
Bureau of the Budget had recon-
mended $5,500,00O for administrative
expenses, as it was anticipated the
staff would have to be enlarged.
(Anrvnrd Dem IN Snonk