The Omaha guide., 1945-10-27

beyond recovery, according to a sur
vey entitled "The Urban Negro:
Focus Of the Housing Crisis" pub,
lished in the Real Estate Reporter
and Building News, leading realty
journal for the Greater New York
Area.
Conducted under the joint super
vision of A Coleman Blum and N
R. de Mexico, Editor and Editor
ial Associate respectively of the
magazine, the survey revealed there
has been almost no new private
construction in Harlem and other
Negro centers since the 1926 and
that, exclusive of the public and
quasi-public projects, none is o
templated for the future.
Prepared as a two-part repor,,
part one appearing in the October
issue, stated that: Since these
mortgages are based on the fixtur>
es Of the land and not the land
value itself, failure to amortize has
forced mortgage holders to keep
land values at exaggerated levels
by maintaining decrepit buildings
upon the land in the hope Of secur,
ing some return on invested capital.
The cost of land tnurn, frighten-
ed off prospective builders. The
cost of land-in relation to the eco
nomlc status Of its occupants and
its surroundings here represents a
poor investment"
The study fixed primary respon-
sibility for the depreciation of mar
ginal areas occupied by Negroes on
the landlords who do moi exercise
the same selectivity of Negro ten
ants as they would with whites. A
paradoxical situation develops as a
result. The value of a property on
the boundary Of the Negro comm
unity decreases, while the actual
evenue from rentals increases.
The report said: "As the Negro
community drew nearer and near
er" to a given white residential
zone, rentals (already reduced be-
low the economic base by the with
drawa1 of Weather elements among
the tenants) went lower still. The
landlords cut everything in an ef-
fort to induce the hites to remain
and. thus, block off the expansion
Of the Negro colony.
but the time inevitably came
when the landlords were financial
ly unable to maintain the drag.
Vacancies in the pure white build
ings reached as high as twenty-five
percent, and occupied apartments
(at inducement rentals) failed to
meet operation, maintenance and tan
costs. Periphers1 landlords faced
financial ruin. Their decisions had
been made for them.
In an effort to recoup losses
put on the books by long periods of
reduced rentals, landlords let apart
ments to first-camers among the
Negroes at prices intended to re-
establish economical operation of the
buildings. This entailed subsidiz>
ing the low rents charged remain
ing white tenants with the revenues
derived from colored occupants of
the buildings. Individual apartment
rents went skyhigh.
"At this point the landlords COM
mitted their biggest blunder. They
failed to exercise ordinary caution
in selecting tenants. The first Ne
gro TO arrive at a renting office
with the first months rem in hand
was also the first tenant installed.
Respectable families found themselv-
es living next door to petty racket
eers' saw whites in the same build
ing paid lower rents. Resentment
was taken out in casual disregard
Of the landlords interest in his
property. Buildings dtteriorated,"
The article cited real estate
milking" as another factor in Har-
lem's eNorbitant 1 rentals. Reporx~
ing that Harlem apartment houses
were originally built for wealthy
middle-class tenants, the study saie
building costs were calculated for
high rentals.
Mortgages were taken for almost
the full value of the buildings at
the time of their construction 40