Evening star., 1949-11-16
DC. Land AgencyGets
Key SIum Clearance
Role Under FHA Policy
By Robert J. Lewis
ReoI Esfots Editor Of The Star

Redevelopment and Land Agency
gained new Importance in the
Washington public housing picture
today as result of a tentative new
policy disclosed here at the con-
vention of the National Associa-
tion of Housing Officials by Com
missioner John Taylor Egan Of the
Public Housing Administration.
Mr.. Egan indicated that PHA
will not grant use of Federal sub
sides for local public housing
projects having site costs exceed
ing about 20 per cent of the total
project cost.
Owing to comparatively high
cost of slum land and buildings in
Washington, it appeared that this
policy effectively would prevent the
National Capital Housing Au-
thority from undertaking to build
a substantial number of units any
where except on vacant or sparse
ly-occupied land.
Land now occupied by slum
dwellings, it appeared almost Ger
tain, would be too expensive for
NCHA to acquire within the 20 per
cent cost limit without the aid of
the Redevelopment and Land
Agency.
Sees Little Clearance Possible.
Under the new National Housing
Act. the redevelopment agency
could acquire slum areas and
write down" acquisition costs so
that the areas could be resold
either to private developers or
NCHA. A third of the difference
between the purchase cost and the
written down" resale price would
have to be met by the District,
with the Federal Government con-
tributing the remaining two
thirds.
After hearing Mr.. Egan's state
ment, John Ihler, director of the
National Capital Housing Author
ity. said he thought it was "rea-
sonable one"
He added, however. that NCHA
would find it difficult" to, clear
slums and replace them with
proper public housing units "un-
less there is effective co-opera-
tion" with the redevelopment
agency operating under the
amendments permitting District
participation in redevelopment
provisions of the National Hous-
ing Act.
lowing to high costs of land
and slum buildings in the Dis
trict," he said. very little slum
clearance would be possible under
a 20 per cent limitation on site
COSTS"
Puts Maximum at S8,450 a Unit.
Asked whether NCHA would be
prevented under the 20 per cent
limitation from building within
the near future on any other sites
than those at present vacant, Mr.
nhlder said:
"NCHA expects to develop a
program which will utilize sites
in congested areas. sparsely occu-
pied areas and vacant areas
Mr.. Egan raised the question of
whether. in case a higher limit on
site costs was permitted, the avail
able funds could be stretched to
provide the 10000 public housing
units which he said Congress ZAP
parently believed" could be pro-
duced.
If the $4,000 units are to be
provided, with the subsidy avail
able, the maximum development
cost could not exceed an average
of $8,450" per unit. he said.
THE present level of building
costs, particularly in large cities,
will make it difficult to even ap-
proximate this average cost.
Lee Johnson Speaks.
ANY diversion of low-rent hous-
ing subsidies to cover write-downs
in the cost of slum sites will make
the attainment of such an average
cost even more difficult"
He suggested that in case high
cost sites are justified on sound
planning considerations" that the
difference between a 20 per cent
cost and the actual cost be made
up from either wholly local do
nations or joint contributions by
the Federal Government and the
city, with the Government con-
tributing two-thirds and the city
providing one-third.
At another session yesterday,
Lee F. johnson of Washington,
executive vice president of the Ma
tional Housing Conference, an
association of organizations which
advocate Federal support for pub
lie housing, said he believed
"wholeheartedly that we have an
obligation to do everything in our
power" to support middle-income
housing legislation aiding CO.
operatives and non-prof1t groups.
At today's session Warren Vim
ton. first assistant commissioner
of the Public Housing Admins
tration. said he believed local
housing authorities should not try
to avoid engaging in politics.
Rather than to try to divorce
themselves from local politics
housing authorities will, I am
sure. ultimately find it both nec-
essary and advantageous to take
part in local government, and by
the sincerity ond integrity of their
purposes improve and stimulate
local political life
He said local authorities should
expect to depend to a greater ex-
tent in the future on appropria-
tion OF local funds for certain
costs, and that they should not
be afraid Of this prospect.
II know the cry will be raised
that this will inject housing au-
thorities into local politics. But
they are already in local politics,
and inevitably So"