Evening star. [volume] (Washington, D.C.) 1854-1972, 1952-05-18
S.W. Plan
Here's the Arithmetic
OF RedeveIopment
By Hugh Humphrey


The newest program. blueprinted by
two local architectural firms, is also
the most ambitions of the three so
far devised. Its proponents see it as
potentially the most profitable hous-
ing venture ever undertaken around
here. Opponents fear it could turn
out to be a colossal headache.
The physical details of the plan are
pretty we'll understood by now. Its
financial intricacies, however, are
somewhat overwhelming at first
glance. The arithmetic of the thing
is what concerns us here.
City redevelopment is an old story,
but nothing this big has ever been
tried before. Just for acquiring the
necessary 427 acres and demolishing
present buildings on them, the cost
could run upwards Of $50 million.
This part Of the operation-buying
up the land and clearing it-would
be up to government, national
and local. Under the Housing act of
1949. the Federal Government is
authorized to put up two-thirds of
the necessary cash for projects of this
sort, while local governments finance
the remainder.
First Step
Fortunately, the whole thing would
not have to be done at one fell
sWoop The first stages of the rede-
velopment plan would concentrate on
two sections of the total area, desig-
mated A and B. These sections
cover approximately one-fourth of
the overall acreage and would require
an outlay of $125 million to get them
ready for new construction.
Under the 2-to-1 ratio, therefore,
projects A and B would cost the
District approximately $4,166 900.
The Districts bill for the entire
Southwest redevelopment plan would
be about $16.5 million.
So far as the District is concerned,
the money is on hand-even for the
entire program. The District Rede-
velopment Land Agency-which adj
vanced the plan-has a revolving
fund of $40 million authorized by
Congress in 1916. The authorization
expires in 1856, so this bankroll must
be used within the next four years or
revert to the Treasury. If this fund
were to be used for the Southwest
have 10 years-after 1956-to repay
1t to the Treasury.
No Down Payment
The Land Agency, however, seems
to prefer another method of defray-
ing the District cost. one which would
not involve so large a cash outlay.
Under the Housing Act. a local gov
eminent is permitted to make up its
share OF such projects by donating
municipality owned land in the rede-
veloped areas and by contributing
demolition labor on buildings which
must come down. The construction
of public buildings and other facil-
tiles which directly benefit the new
community also are given credit on
the bill.
If the Districts work crews-which
might be taken off less important
jobS-could be put to work demolish-
ing old houses in the Southwest, their
payrollS could be charged off against
the city'S contribution. If new police
and fire stations are erected in or
near the new development, a part
of their cost could be similarly
charged off.
, There would be, however, one hitch
in attempting to work out the Dis
trict contribution along these lines.
Under the law, this type of non-caSh
contribution must equal half the total
cost of land. instead of one-third.
The Housing Act provides another
financing method. The Commission
ers are empowered to include rede-
velopment expense in their annual
budgets. A last resort would be the
bond issue.
Displaced Persons
A major problem at this first stage
would be displacement of the people
who now live in the Southwest area.
The Redevelopment agency would
negotiate with all home owners and
real estate firms holding property
there. Each would be offered what
was considered fair price for the
holdings. Tenants would be promised
first chance to buy or rent new homes
when they were built.
If homeownerS and tenants should
oakland many already have indi-
Gated opposition to giving up their
old homes-court condemnation pro-
ceedings would have to be started.
These could take years. if large
number of cases were involved. In
the end. however, assuming the Gov
eminent stood firm, the tenants
would be displaced, either by sale
agreements or by condemnation
orders which would pay them court
fixed price for their property.
During demolition and construc-
ton, housing officials admit that the
already overcrowded Washington
housing situation might get worse.
You can't displace several thousand
people without throwing them into
other sections. Homes would have to
be found for the refugees in that
period.
Who Pays?
After the land was acquired and
cleared, it would be sold to private
builders. In this way. it is estimated,
the District and Federal governments
should get back about half of the
original investment. Actually. there
probably would be definite commit
ment from builders to buy the land
before demolition was started.
Once he had acquired tract of the
land, either by auction or bids,
builder would be required to keep the
type and rental or sale cost of his
projects within the plans general
framework. Having done 40. he