Evening star., 1953-04-19
Cleanup
Is Threatened
In Southwest
House Unit Action
Would Boost D. G.
Outlay for Project
By George Beveridee


An unexpected new threat to
further redevelopment projects
in Southwest Washington has
been imposed by the House APP
preparations Committee, it was
learned last night.
The action, which would dras-
tically increase the Districts
cost of participating in the re-
development scheme, was pro-
posed in the Housing and Home
Finance Agency appropriation
bill sent to the House Friday.
That same measure also added
these two other hurdles to plans
for ebuilding slum ridden
Southwest areas:
l. A committees proposal to
kill public housing would make
very difficult" present plans for
rehousing many families dis
placed from Southwest slums.
The Redevelopment Land Ag-
ency has planned to call on Ma
tional Capital Housing Authority
public housing units, still in the
planning stage, as new homes
for the loWer-income families.
2. The committee has ordered
the HHFA. before making rede-
velopment grants, to check cities
health, sanitation ard safety
codes and consider the feasi-
bility of achieving slum clear.
ance objectives through rehabi-
litation of existing dwellings and
areas"
B Project Is Unaffected.
None of these three provisions,
officials said, would affect rede-
velopment of Area B, the To-
acre Southwest tract bounded by
Fourth, I and South Capitol
streets and the Pennsylvania
Railroad tracks.
The RIA already has been
allocated HHFA loans and grants
covering major costs of the B
project.
Under the new House proposal.
formula. the Districts one-third
share of the net cost for Project
B is covered entirely by $3.6 mil
lion worth of public construction
to serve the new area.
Under the new House proSal,
however, provision of such ia
cilities could not be Counted as
the local third share. In
stead, the city's share would
have to be provided directly.
This, one official said, would
mean cash, land contribution.
demolition, or bearing of some
other direct expense.
Three Alternatives.
John r. SearleS, jr., RIA di-
rector, said he was not aware Of
the new proposal. He said that
for future projects. however.
language of the bill would indi-
cate three alternatives.
One is that the city could
make a cash contribution. The
second is that cleared land could
be sold for enough money to
meet the net program costs. The
other is a direct appropriation.
made from a $40 million trust
fund authorized by Congress in
the 1945 District Redevelopment
Act.
The question of getting a large
amount of money from investors
for cleared land. the official
pointed out, depends on the re-
turn the investor expects after
he rebuilds the area. This, in
turn, would mean such areas
would have to feature homes for
high-income families.
RoadblOck Anticipated.
1T would certainly make diff
f1cult any projects for low-cost
housing. unless the District were
prepared to pay it's share" Mr..
Searles said.
Both Mr.. SearleS and James
Ring, NCHA executive director,
agreed that a cutoff OF future
public housing would be tre-
mendous roadblock to future
redevelopment.
Mr.. Ring indicated the House
committees proposed ban would
affect about half of the NCHA's
4,000-unit building program. The
program has been authorized by
the Public Housing Administra-
ton, but Federal aid contracts
have beer signed for only about
half of them.