Evening star., 1944-02-29
Ultimate NCHA Cost
Will Rise 300 Pct,
Deckman Testifies
Federation Spokesman
Continues Attack on
Housing Agency

Continuing his attack on the
National Capital Housing Au-
thority, Joseph H. Deckman of
the Federation of Citizens As
sociations today presented ad-
ditional figures in supper of his
charges that public housing is
costly to the taxpayer.
For every 81 900 900 worth of hous-
ing the NCHA builds under Title
Of the Alley Dwelling Act, the ulti-
mate cost to taxpayers is $3.50 900
Mr.. Deckman told the Burton Sem
ate District Subcommittee.
The original cost of this housing
is amortized over a period of SO
years. The ultimate cost of $3,250,-
600 Is partially the result of tax ex-
emptions over this period, Mr.. Deck
man said. In addition, he said, the
Government must pay interest on
the original 81 ,0O0, 900 because of its
deficit financing position, and also
provides subsidies to the NCHA
equal over so years to the original
cost of the housing.
Charges Annual Deficit.
The NCHA has built approximately
SIS 100000 worth of housing here
under Title 2, Mr.. Deckman told
the subcommittee.
He also attacked claims of the
housing authority that its Title l
properties are self-liquidating. Ac-
tually, Mr.. Deckman contended, the
Title l properties, which include
liz housing units, operate at an
annual deficit of s21,O92.
NCHA records now show an an
nual operating profit but Mr.. Deck
man said this is because the hous-
ing authority does not consider its
tax exemption privileges or interest
and amortization of the original
cost.
Today's hearing was devoted tc
extensive discussion of the Housing
Authority's bookkeeping practices
and tax exemption and subsidy priv
ileges.
Chairman Burton of the subcom
m1ttee, John Ihlder, executive officer
OF the Housing Authority, and ar
| NCHA accountant all took part ir
the discussion.
Burton Defends Comparisons.
At the conclusion of yesterday.
hearings, Senator Burton comment.
ed that he considered comparison.
between the costs of public anC
private housing as 'vitally impor.
tant"
He said the important part o1
yesterdays testimony was the pres.
entation by Mr.. Deckman of "strik-
ing comparisons" between costs OF
three NCHA developments anC
three comparable private properties
He referred to the testimony which
matched Fort Dupont dwellings
(NCHA) against Greenway Apart.
ments; Frederick Douglass Dwell
ings (NCHA) against Suburban
Gardens, and Parkside Dwellings
(NCHA) against private housing al
3200;7 1900 East Capitol street.
Mr.. Deckman's figures showed
much lower per-rOOm costs for the
private developments.
While not prepared yesterday tc
answer these cost comparisons, Mr.
1hlder promised today that he will
present IAN adequate reply" when he
testif1es in rebuttal at the hearings
Wage Scales Vary.
Since he had not been shown the
data beforehand and was not sup
piled with a copy at the hearings
yesterday, he was not Immediately
prepared to comment on the ac-
curacy of the comparisons, he said
He indicated, however, he would
have some objections to Mr.. Deck
mans computations.
One reason private building costs
may be lower, it was developed yes
terday, is that most private builders
here pay lower wages to labor than
does the NCHA, which is required by
law to follow union wage scale
This variance. in wage scale, accord
ing to Mr.. Deckman's estimate, ac-
counts for a difference of about II
per cent in the costs.
The hearings were to be resumed
at 1880 pm. today, with Mr.. Deck.
man continuing his testimony.