The Wilmington morning star., 1940-02-11

( Der cent and will be retirable over
a maximum period Of - years.
The second group Of two contracts
which the Local Authority holds
with the USHA are the Annual Con-
tributions Contracts. These provide
that. in order to make rents avail
able TO citizens Of low income, the
lUSHA will pay to the Local Author
.ity an annual subsidy not exceed
ing 3 IL per cent Of the total over
all development cost Of New Brook
Ign Homes and 3 "a per cent Of the
development cost Of Charles T. Mes
bitt Courts.
The subsidy rate thus exceeds the
interest rate by not more than one
half Of n per cent The excess viii
be applied TO amortization. Since
interest costs decline annually as
come Of the bonds are retired, the
subsidy should be sufficient ulti.
mately almost to cover the entire
cogt Of debt service.
The second means Of reducing
rents is through tax exemption OF
the properties Of the Local Author
ity. The North Carolina Housing
Authorities Act Of 1885 provides.
and the State Supreme Court has
ruled, that properties Of Housing
Authorities set up by cities and de-
voted to the purpose Of providing
decent housing without profit are
engaged in fulfilling a public neces-
sity and are therefore exempt from
taxes.
S12,8 800 TAXES PAID
This feature Of the housing pro-
gram has met with some criticism.
The critics, many Of them, are hon
estly skeptical over exempting a por-
ton Of the city's real estate from
taxes.
No doubt it is impossible to give
an answer which will dispel all
doubt on this subject. There are i'm
portant considerations, however,
which will be weighed by all fair
minded citizens, whatever their at
titude toward public housing. There
is the fact that public housing Of
the type being erected in Winning
ton will certainly improve the econ
omic, social and cultural level Of
those who will occupy the dwellings,
and is therefore emitted to consider
alton in the same category as pub
lie schools and public health work.
There is the fact that the property
which is being razed to make way
for the new projects is exceedingly
slow in the payment Of taxes; wit
ness the fact that on its sites valued
for taxes at s125,0 600. the Housing
Authority has paid or will pay a
total Of some s12,s00 current and
delinquent taxes-almost five full
years Of taxes!
It must also be borne in mind that
the choice is not between tax-pay.
ing and mountaineering decent homes
for families Of the lowest income
group. The choice is between non
tax-paying decent homes and the
present conditions of fifth and squa.
Tor. Which Of curse near that
modern living Accommodations sir ply
cannot be provided for the low-in.
come group if taxes are paid. The
taxes on a $4,000 home, for example,
will run s66 a year in Wilmington.
This Is s1.27 a week, or $3.50 a
month. The average rent now paid
by negro tenants of substandard
houses Is 1892 per month. Il ia
$3.50 in taxes would do to the mea-
ger budgets of such families If they
were located in privately-cwned, tax
paying homes, valued at $4,000 each.
1t would be an error to conclude,
however, that an effort is being
made here to convey the impression
that all occupants Of suh.standard
houses must be housed in tax-free
dwellings if hey are to have decent
accommodations. Improved building
techniques and materials (perhaps
profiting from the lessons learned
in the public housing field) can
keep the overwhelming preponder-
ance Of u dwellings on the tax
books. 1t is simply that, if we are
to learn anything at all from our
existing housing situation, we must
recognize that there is a certain
group Of citizens who must receive