Evening star., 1949-07-17

OF f6QeTal subsidies. On ETlOdys
seem almost like a drop in the
bucket.
And the sharpness of the con-
trast between the two is even
more emphatic when viewed on
the basis of subsidy payments
and construction cost than it Is on
the basis of the number OF units
involved.
A simple comparison on tho
basis of the number Of units
shows that while 10000 dwell
ings are contemplated in the
next six years, only 10000 units
have been produced since 1887
under the United States Housing
Act program.
Thus, on this basis. the new
program is less than Ave times
as large as the old.
But on the basis Of construction
cost, the new program may be
nearly nine times the size OF the
old program. for the total number
Of units built since 1887 cost
$782,851 $50, while *he maximum
construction cost OF the new pro-
gram can reach $6,844 ,000, 900.
according to Government esti-
mates.
It is on the basis Of annual
subsidies, however, that the
greatest contrast between the two
programs is provided.
The greatest amount payable IN
Federal subsidies in any one year
under the old program was $8.-
614.000. covering 101,951 units.
which is only one twenty-seventh
as large as the average amount
the Government estimates will be
required annually under the new
program.
CThe Government estimates that
even though a maximum subsidy
OF $308, 100000 a year Is provided
by the bill, only s238,000.o00 actu-
ally will be needed.
The grand total of subsidy pay
ments under the old program
amounted to $62,469,709 up to
March 81, this year.
N-Year Amortization
Any comparison of the subsidies,
Of course. must take into consid-
Grafton the fact that the old pro-
gram was based on an amortiza-
ton period OF so years, while the
new program is set up for amorti-
cation within 40 years.
Likewise, the wartime interval
brought a change in the level Of
what formerly was considered to
be "low family income" and this
and other factors-including oc-
cupancy by as late as mid-194s Of
2e percent Of existing public hous-
ing units by "over-income" fam
lilies needing no rent subsidies
has reduced Federal subsidy re.
quirements on the existing units.
Yet, even when this Is taken
into consideration, the increase IN
annual subsidy responsibilities as
sumed by the Federal Government
under the new bill provides the
most dramatic contrast between
the size Of the old program and
the size of the new one.
In addition to the 10000 low.
rent units built since 1887, an ad-
ditional $1,000 units built pre-.
viously by the Public Works Ad-
ministration are now subsidized
for low-income families. These
are In 636 separate projects op-
Grated by 244 municipal housing
authorities.
In addition to these 244 au-
thorities, there are 228 which also
have had some connection with
one or more of the housing pro-
grams administered by the Public
Housing Administration, including
war housing and veterans reuse
housing.
Besides these, there are about
200 other housing authorities scat
tered throughout the country
which have been legally organised
but which have not yet been active
in the Federal program.
Community Plans Due
Thus, there are about $40 COM
munities now legally set up to un-
dertake actual planning Of public
housing. No one yet knows how
many communities will partici-
pate in the new program. but Gov
ernment housing spokesmen ex-
pect that most of these $40 au-
thorities already constituted will
be interested. and that additional
authorities will be formed In other
communities.
Already the Housing and Homo
Finance Agency and the Public
Housing Administration have re-
ceived many requests for informa-
ton as to how communities may
obtain subsidy contracts or take
part In the slum-clearance pro-
gram.
Housing Administrator Foley
expects that about $4,000 units
can be put under construction in
the next IL months, but that the
slum clearance program will re-
quire a somewhat longer time to
get under way. ~
Within few weeks, 1t Is ex-
pected that FILA will be ready to
provide detailed instructions on
community participation In the
public housing program. Details OF
the slum-clearance and farm
housing programs will need some