Evening star., 1939-04-09
Housing Fund
Cut Distresses
Officials
SIushes Bound to
Handicap Program,
They Declare
By NELSON NJ. SHEPARD.

Oficials of the United States
Housing Authority and the local
), Alley Dwelling Authority. partners
In the largest program Of public
iow-rent housing ever undertaken
in the District, are in a state OF
nervous agitation over the slashing
of their operating funds tentatively
voted by the House and Senate.
The situation. while critical
enough, does not actually affect the
millions in loans already contracted
and earmarked for public housing
by the United States agency, which
yesterday received second loan
application for S5,631 900 from the
A. D. A. officials claimed, however,
the slashes and restrictions pro-
posed for the coming fiscal year
are bound to handicap very serious
ly the expeditions carrying out OF
all housing programs, both in WASH
ington and throughout the country,
unless they are eventually stricken
from pending appropriation bills.
The effect on the U. S. H. A., which
Is threatened with the loss OF nearly
, one-half of its administrative per-
sonnel, would be disastrous.
Critical Stage of Program.
The Alley Dwelling Authority,
which is now about to increase its
loans to a total of $12,230,0 900, Is
lust embarking on the critical stage
of its local housing program. Its
second loan application is for three
slum reclamation projects in the
Southwest, Southeast and Northwest
sections. They are areas now oc-
cupied by Negroes and the 9l2 new
Adwellings proposed for erection are
for Negro occupancy. -Four other
projects, two for whites and two for
Negroes, are being planned and
building operations may commence
on some of them within month.
With s15,OOO000 earmarked for
the District, the A. D. A. still can
borrow $2,770,0O0 more from the
United States agency. That would
be sufficient for one additional prof.
ect Of large size or two small ones
. To date the program involves ap-
proximately 2,169 modern dwellings
for as many families with incomes
below $1,100 a year. The average
rents will be 81 or under per room
per month.
Faces Loss of Revenue.
The Alley Dwelling Authority
faces the loss of all its own inde-
pendent operating revenue for the
coming fiscal year unless the con-
ferees on the Treasury-Post Office
supply bill agree to restore $780, 900
which the House had authorized it
to borrow from the United States
Treasury. The Senate had refused
to vote even that amount. although
the House had reduced the au-
thorization from $1,000, 900. While
the A. D. A. hopes the conferees
will restore the $500 900, the prospect
is none too encouraging.
Another loss also may be due
the embarrassed agency. Congress
had authorized, but did not appro-
pirate, funds for another S1,OOO,OOO
loan from the Treasury at the last
session This amount is expected to
be taken care OF in a deflclency
supply bill. 1t is hardly likely to
get approved.
The Treasury loans are necessary
and vital to the A. D. A. for several
reasons. From these loans it is in
tended to continue the work 1t has
done for the last four years In re-
claiming sordid inhabited alleys.
Some of those areas which are un-
suitable for rehousing are devoted
to profitable commercial uses. The
program has been successful and
economical, though operations in
the past have been on a small scale.
Subsidies to Cut Rents.
The second phase of A. D. A.
operations is done with loans from
the U. S. H. A. defraying 80 per
cent of the cost of Developments and
repayable, like the Treasury loans,
at the usual interest rates. The
United States agency contributes
annual subsidies to help reduce the
rents of the houses for the lowest
income families.
But there are two important re-
uuirements that must be met by any
local authority to obtai.- these Fed
eral loans. One is that an equal
number of houses must be demol-
ished or repaired for those erected.
The other is a limitation OF $1.50
per square foot for land acquisition.
To meet the equivalent demoh-
ton" clause in the contract and to
get around the price limitation, the
Alley Dwelling Authority was de-
pending in part, at least, on obtain
ing loans from the Treasury.
If these loans are to be denied,
John Ihlder, executive officer, told
(See HOUSING, Page B-3)