Evening star., 1944-04-03

Fear Of OverbuiIding
Under NCHA Plan
| Voiced at Hearing
Fear that the slum reclama-
tion program proposed by the
National Capital Housing Au-
thority will wreck the postwar
washington real estate market
was expressed today by David B.
Karrick, immediate past presi-
dent Of the District Building
Owners and Managers Associa-
ton, in testimony before the
Senate District Subcommittee
investigating housing conditions
here. H
Mr.. Karrick said his fear is based
on belief that the proposed public
slum reclamation program would
not be limited to replacing existing
slum dwellings, but would add to
the total number of housing units
in the District area This addi-
tional housing would draw tenants
away from privately owned housing,
thereby creating a large number of
vacancies in the private dwellings.
Because incomes from their proper
ties would be reduced, private owners
would no longer be able to meet
operating and fiscal charges, and
great wave of foreclosures would re-
suit, he maintained.
Many Vacancies Predicted.
Regardless of the slum reclama-
ton program, there will be large
vacancy in residential rental prop
erty here after the war, Mr.. Karrick
predicted. He said "it is reasonable
to believe" that the apartment
vacancy will be at least 10 per cent
within a few months or year
after the war ends.
In support of this prediction, he
pointed out that 106,326 housing
units have been built or programmed
here since the war began-one new
unit for each 1.3 persons added to
the Federal payroll in this area.
During the last war, he recalled,
only one new housing unit was
erected here for each 90 persons
added to the Federal payroll. Despite
this lower rate, a comparatively
small amount of building created a
large number of vacancies within
a few years after the last war, he
said.
Mr.. Karrick said the NCHA's
past operations indicate that If it
Is given authority to conduct an
extensive slum reclamation pro-
gram, 1t will add to the total num-
Der Of housing units. He expressed
fear that 10000 or $4,000 dwellings
would be added to the existing 275,-
600 units In the District II the
lNCHA is given $1,000 900 to spend
over . 20-year period, as suggested
by John Ihlder, executive officer Of
the agency. .,-,. 4
- Tax Increase Feared. '
Mr.. Karrick pointed out that the
INCHA now owns more than 400
acres Of land that Is vacant or in
use for temporary war housing.
This land, on which 10000 housing
units can be built, very likely
would be used as the site of so
called slum clearance housing" he
told the subcommittee. He further
contended that the construction of
many thousands of additional tax
exempt public housing units would
result in increased tax burdens on
privately owned property.
Mr.. Karrick said the Building
Owners and Managers Association
favors elimination of the slums but
insists that no more units should
be constructed under the program
than are demolished.
The association favors the slum-
reclamation plan proposed by the
Washington Home Builders Associa-
ton because it believes that prop
critics built to replace the existing
slums should be on the District tax
rolls, he said.
H. Clinton Smith, private builder
and cost expert, appeared before the
subcommittee today to explain fur
ther the comparisons between pri-
vate and public housing costs which
he presented Saturday. One major
reason that public costs are higher
is that the NCHA must pay A-scale
wages to its labor he said. He esti-
mated the A scale is approximately
20 per cent higher than the B-scale
wage paid by most speculative pri-
vate builders.
James c. Wilkes, attorney for the
Home Builders Association, placed
In the official record figures which
he said showed the average man
agement cost on the NCHA's slum
clearance ana low-rent housing
properties to be approximately 13
per cent. Mr.. Wilkes pointed out
that private builders have said man
agement costs would not exceed S
per cent If the properties were pri-
vately operated.
Builders Submit Pledges.
approximately so private builders
nave submitted signed pledges as
surfing that if their plan is adopted
they Will construct up to 23650 low
rent housing units here within a
slX-year period. Builders signing
the commitments and the number
OF units they have pledged to con-
struct are as follows:
| First Each of the
| N year of ) succeed
Ed dTarI c program. ing years
lSiartaa =; YET r------- 100 100
IMa.nie DaLiel l--------- "0n goo
WILLIS HSaIritz HSaIritz --------- zoo 200
lprestn, - e --------- 100 100
lrIestoE f. Wire 200 300
nonToe warren ------ 200 900
wesley Buchanan 100 100
En1sn.A oi eGuLnihser--- 80 100
eugene n Phlfer------ so so
"a. a. Mace -- 200 900
TiaIence w: Gosnell----- 100 100
IL. Jarrett BeitZel