The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-04-04
Housing Projects
Hit 400 Mark Now
President Sanctions Further
Loans Totuling Thirteen
Million Dollars

Million Dollars
Washington, D. C.-The number of
public housing projects for which
President Roosevelt has approved loan
contracts reached 400 today when, up
on recommendation of Nathan Straus,
Administrator of the United States
Housing Authority, the President
sanctioned further loans totaling $13,-
O04 900 to II local housing authori-
ties.
These loans, to defray 900 Of the
estimated $14,459,O0O cost of 1S low
rent and slum clearance projects,
brought the total of approved USHA
loans to $634, ,953,162 for 165 local
housing authorities in 80 States, the
District of Columbia, Hawaii and
Puerto Rico. The 400 projects which
make up their programs in 179 diff
ferent communities will provide to-
tai of 44,7OO decent homes in which
to rehouse more than $4,000 dwellers
from city slums and more than 5000
from ramshackle and insanitary farm
houses.
With Presidential approval of the
oath list of loan contracts, ear-mark-
ings outstanding for further loans
dwindled to 44,144,838, which with
the $634, $685. 1852 in approved loan con-
tracts, makes a total of $679,O98,OOO
in USHA commitments to 1872 local
housing authorities throughout the
| Nation.
To date, 1S9 USHA- aided projects
totaling 1901 dwelling units have
gone under construction or have been
completed. Tenants are occupying %
projects in Allentown, Pa; Augusta,
Ga; Austin, Tex; Buffalo, N. Y;
Charleston, S. c.; Dayton, Ohio; De-
troit, Mich; Jacksonville, Miami and
st. Petersburg, Fla; New York City
and Syracuse, N. Y; Newark, N. j.;
Toledo and Youngstown, Ohio, and
Vincennes, Ind.
The largest of the new loan con-
tracts was to Los Angeles for pro-
ject to provide about 800 decent dwell.
ings for low-income families in that
city, where one USHA-aided develop.
ment of 610 dwelling units is now un.
der construction and three others to.
falling 500 units are scheduled to be
advertised for bids this summer.
In each instance comprehensive
report on the need for slum clear.
ance and low-rent housing project was
filed with the USHA with the applica
tion for loan.
Accompanying each loan contrac
approved by the President today is al
annual contribution contract in which
the United Stat<s Aousing Authorit!
agrees to make annual contribution!
of not more than 3A 90 of the tota
development cost of the housing pro
ject.
These annual contributions are t.
maintain low rentals by bridging tn
gap between the economic rent neces
sary to maintain and operate tn
projects (including interest and amor
tization of the loan) and the socia
rent which low-income families of tn
slums can pay. The annual contri
buttons made by the USHA to insur
low rents are to be supplemented b.
contributions from the local com
munity to bring rents still lower.
The 81 20 merely represents tn
maximum annual contribution tha
the USHA at present can contract fo
under the United States Housing Act
Mr.. Straus emphasized. AS matte
Of fact, he pointed out, annual contri
buttons for the first II projects t
reach the occupying stage averag
20fo below the statutory maximum
indicating q saving of $5,600,000
year beginning in 19l3 when all pro
jects under the present program ar
occupied. This saving has been et
fected by numerous economics in con
struction and maintenance costs of tn
projects.
In addition the USHA makes sub
stantial interest profit on the fund
which it loans to local authorities
since the average interest it charge
under the terms Of the Act is 80
while it, itself, is borrowing at onl
| 3/Shc. AS a result, the whole ne
cost to the Government of rehouSin
a family from the slums has been re
duced to only Sc per month, or SIS
per person per month.
Commenting further on the slur
. clearance program, Mr.. Straus said
at is interesting to note that mos
= Of the sites selected by the local hous
ing authorities for their projects ar
in bad slums or blighted areas. How
ever, whether the site selected is i
the slums or in vacant area, tn
United States Housing Act require
that number of slum shacks or slur
tenements, equivalent to the numbe
of new dwellings, constructed, must b
5 eliminated. This requirement of tn
Act is met by an agreement, in ever
case, that such equivalent elimination
will be carried out, and the agreemer
imposes this obligation not only on tn
local authority, but on the local mum
cipal or county government as wei
Thus the United States Housing Au
| tborit,r proUca,,, ic In, ayary conmupit