Evening star., 1944-02-04
IhIder Assai|s
Association 5
Plan
Declares Subsidies
Would Undermine
Private Industry

The system of slum reclamation
proposed by members Of the WASH
ington Home Builders Association
would require costly Government
subsidies, which represent "the real
threat" to private enterprise, John
1hlder, executive officer Of the Ma
tional Capital Housing Authority,
charged in testimony today before
a Senate District Subcommittee.
Mr.. 1hlder was replying to testi-
mony presented Tuesday by Robert
P. Gerholz, president of the Ma
tional Association of Home Builders,
who contended NCHAs slum recIa-
nation program would be expensive
to the taxpayers and a step toward
socialism, endangering private en-
terprise. In his reply, Mr.. Ihlder
maintained that the NCHA is not
requesting Government subsidy for
slum reclamation work here, but
only loan of capital, which is to
be repaid with interest.
The program proposed by MEM
bers OF the Home Builders Associa-
ton would require both a construc.
ton and an operating subsidy which
together would cost the taxpayer
more than the NCHA's proposed
program, he asserted. Subsidies to
private builders and owners would
undermine the strength and inde-
pendence OF private enterprise by
making it seek Government protec-
ton against losses and forcing it to
comply with Government direction
IN its undertaking, he declared.
Sees Good Private Field.
III the Government is to pay the
bill, Government must say how
those bills are to be incurred" Mr..
Ihlder said. "As believer in pri-
vate enterprise, wish it to be free
and strong
Mr.. 1hlder suggested that private
builders here have profitable field
open to them-the construction Of
housing that will rent for slightly
more than the NCHAs low-cost
units and for less than now is
charged for adequate private hous-
ing.
The shortage of private housing
within this rent range is one of the
major hlndrances to the NCHA's
present program. Mr.. Ihlder said.
He explained that tenants of the
housing authorityS low rent de-
velAoments are expected to move
into private housing whenever their
income reaches a point where one
quarter of it will pay the rent for a
proper privately owned dwelling
At present, many NCHA tenants
are earning sufficient income to
move out of the low-cost public
housing units, but private housing is
not available.
Explains Relief Set-up.
Mr.. Ihlder discussed the fact that
only go of the 1000 families on
Board of Public Welfare relief rolls
are tenants Of NCHA. low-rent de-
F'yelopments. He explained that the
housing authority limits to Is per
cent the number Of relief families in
any one development, SO as not to
create 'poorhouse," and that re-
lief agencies take public housing
only when they cannot get suitable
private housing at equal or less cost.
The number of relief families in
NCHA developments is further re-
stricted by the fact that few of these
properties were available before
legislation gave preference to de-
tense and later to war workers.
Mr.. Ihlder also outlined the prob.
lem which the NCHA faced as a pio-
neer agency in public housing. He
contended that experience gained
through solution of these problems
has equipped the agency to carry on
the extensive slum reclamation pro-
gram that must now be undertaken.
Mr.. 1hlder was questioned closely
by Chairman Burton of the sub
committee and James C. Wilkes. at
torney for the Washington Home
Builders Association Senator Bur-
ton emphasized that the NCHA was
seeking money from Congress as
custodian of District funds. He said
he did not want to establish a prece-
dent which would lead housing au-
thorities in other cities to seek
money from the Federal Govern
ment rather from their State or local
governments
Mr.. Ihlder will testify again Mon-
day. He will be followed by other
witnesses supporting public housing.