The Wilmington morning star., 1944-01-09
Housing and Public Revenues

Noting recent brief article in these col
umns citing that the San Francisco Housing
Authority had purchased and removed from
the tax books some So, $780, 900 worth of prop
erty, Henry r. Emory, executive secretary
of the Wilmington Housing Authority, quotes
the Lanham act, listed as Public Law 849 of
the 10th Congress as it affects land purchases
and compensations in lieu Of taxes, and it's
application to Wilnnington's housing projects
In the interest of public information it ap-
pears advisable to quote here this section of
the Lanham act, and also Mr.. Emory's ex-
PLANTATION OF the course pursued by the local
housing authority.
From the act:
The Administrator shall pay from rem
tails annual sums in lieu of taxes to any
state and, or political subdivision thereof,
with respect to real property acquired and
held by him under this act, including i'm
provements thereon. The amounts so paid
for any year upon such property shall ap-
proximate the taxes which would be paid
to the state and, or subdivision, exempt
from taxation with such allowances as
may be considered by him to be appropri-
ate for expenditure by the government
for streets, utilities, or other public serv-
ices to serve such property.
From M. Emory's explanation:
Under the terms of this provision Of the
act the government paid very substantial sums
to New Hanover county and the City of Will
mington in 1941 1912, and 1913. The method
applied in determining the amounts to be
paid is to assess the whole estimated value
Of the particular project and then deduct
therefrom such items as streets, water mains,
etc., as may be considered to be furnished
normally by the municipality. To the remain
ing figure prevailing city or county tax rate
is applied to determine the amount payable
1--WE have set up in our budgets for 1914 an
estimated amount OF about 100000 for pay
to the city and county governments. OF this
amount the city will receive approximately
$4,000 and the county the remainder
1T is fact that any property which may
currently be acquired for the purpose of con-
structing public housing thereon would nee
essarily have to be used for war housing as
opposed to peace-time housing and therefore
pIeSuIIldDly WOulu De purchased under the
terms Of the Lanham Act quoted above There
fore, the provision for payments in lieu of
taxes would, of course, apply
THE government paid roughly $40, 900 for
the lands and properties on which the war
housing was built and I am sure that this
land was valued the tax books at great
deal less than 100000. Improvements erected
thereon cost something in excess Of SIG, OO0,-
600, and while agreement has not been reach
ed as to the tax value OF some Of the most
recently constructed projects, it does appear
to be certain that the annual taxes payable
on all the war housing combined will run be-
yond 100000 year"
1t would seem from this that city and county
revenues receive definite benefit through
the housing projects inasmuch as the property
occupied by them was vacant to start ;th
and is now covered with buildings from the
rental of which the authority contributes SUBJ
stantially to the treasury Of each government.