Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-02-28
District Groups
Ask Changes
In Housing Bill
Elimination of Tax
, Exemption on Future
Construction Urged
By DON S. WARREN.

BY DON S. WARREN.
+, Inclusion of number of amend.
ments to the McCarran bill to estab.
fish a new system for Washington
slun clearance and redevelopment
programs was proposed today to the
Housing Subcommittee of the Senate
District Committee by spokesman fol
business and civic groups.
These include changes to leave tt
the Board of Public Welfare and the
Commissioners all questions of finan.
cial assistance given tenants in low.
rental housing that would be pro-
vided by the suggested new District
=. Housing Agency and would elimi-
nate any tax exemption for public
housing" hereafter erected.
The amendments were proposed
by Edward r. Carr, speaking for the
Metropolitan Home Builders Asso-
citation; Joseph H. Deckman, for the
Federation of Citizens Associations
and Lewis T. Breuninger, president
of the Washington Real Estate
Board, also speaking for the Steer
ing Committee on slum clearance.
consisting of Representatives of nine
business, banking and civic groups.
More Hearings Scheduled.
At the suggestion of Senator Bur-
ton, Republican, of Ohio the sub
committee scheduled additional
hearings for tomorrow and Friday
mornings, so as to give more oppor-
tunity for testimony on the terms
of the bill of Senator Capper, Re-
publican, of Kansas which, in many
respects, is in conflict with the
measure sponsored by Senator Nc
Carran, Democrat, of Nevada.
One of the major changes in the
McCarran bill, proposed by the first
three witnesses today, provides that
no public housing shall be con-
structed unless the proposed new
redevelopment agency-which would
replace the National Capital Hous-
ing Authority-first determined that
the ultimate cost to the Federal
and District governments would be
less than if the work were per-
formed by private enterprise.
Also, in compiling comparative
costs, 1t was proposed that public
housing costs should include tax
exemption, lower interest rates,
longer periods OF amortization and
free services rendered by Govern
ment agencies.
In support of the proposal TO bar
tax exemption for low-rental hous-
ing erected by Government
agency. Mr.. Carr turned to plans
drafted for possible redevelopment
of Logans Court which, he declared,
showed that if tax exemption en- the
project were granted public
agency 1t would amount in go years
time to 100 per cent subsidy of
the project costs. The home build
ers' group has contended that there
are hidden costs in the present
system of subsidizing public housing
and that tax exemption is one of
these.
Low Rentals Seen Necessary.
MIR. Carr also declared that If
private builders had such tax ex-
emption in the suggested Logan s
Court plan they would be able to
cut by SIS month their outline of
rentals otherwise ranging from $38
to $50 month.
Senator Saltonstall, Republican,
of Massachusetts, interjected that he
believed some tenants would need
rentals as low as SIS a month and
asked the witness if private builders
would be interested in that rental
level. Mr.. Carr replied that in that
field private builders would need
some Government assistance. The
tax exemption that a public agency
would receive under the Logan's
Court plan, under present methods,
he continued, would be enough to
pay the whole cost of the site within
so years. TT would be better to give
the, agency the land than to grant
tax exemption he said.
Senator Capper said he was some
what discouraged over the progress
made in clearing Washington s
slums, declaring they were but
little if any better now than when
he began study of the problem 26
years ago. Il don't care if the work
is done by public or private agencies,
so long as the slums are cleaned up"
he said.
Cites Relief Reports.
Mr.. Breuninger, in urging approval
of the McCarran measure with the
suggested amendments, declared
that the NCHA had failed to pro-
vide low rental housing for families
in the worst need" and cited reports
to show that while the District last
year had some 1000 families on
rent relief lists, less than so of these
were given housing in the projects
built by the public agency.
Another witness, N. C. Hines,
executive director of the Home
Builders Association, recalled that
Just year ago 48 builders had
appeared before another District
subcommittee to pledge themselves
in writing to build more than $4,000
units of low-rent housing within
six years, starting as soon as such
construction work was permitted.
Such work, he said, would take
care of the occupants of the alley
dwellings and the worst of the
other slum buildings in the District.
Potomac Federation