Lapas attēli
PDF
ePub

(b) You request that I indicate the basis for my opinion. In the Dallas Market Review of 1947 an analysis was made of the approved H. H. applications for rental units in the city of Dallas from June 7 to August 2, 1946. These units were classified according to the rent which was proposed to be charged for them. Out of the total of 498 such dwelling units, 8.4 percent or 42 such units, were to be rented for a monthly rental under $40; less than 20 percent of the units were scheduled to rent for $50. The need for housing is even more critical and the costs have increased since the summer of 1946. Sales prices have increased, and rents for dwelling units have increased to the extent permitted by the OPA. Under such circumstances, it is not reasonable to suggest that it will be possible for private builders to take care of the needs of low-income people.

In this connection, in the same survey to which I have referred, a copy of which is attached for your information, a new determination has been made of a lowincome family. Largely on the basis of information contained therein, the Housing Authority of the city of Dallas has determined that families whose gross income is less than $1,800 a year fall within the low-income class who are unable to pay enough rent to provide themselves with standard dwelling facilities and have inadequate resources to induce private enterprise to produce housing facilities for rental or sale to them. The persons having such income are admitted to low-income projects in Dallas. These particular figures relate to a normal family consisting of husband, wife and two children. The survey to which we have referred indicates that 20 percent of the families of this city have an income of $1,800 or less.

3. (a) You inquire as to whether I favor the provision of public assistance for low-rent housing as a means of supplying decent housing for such families.

I do favor the provision of public assistance for low-rent housing as a means of slum clearance and provision of low-rent housing for these persons who otherwise would be required to occupy slum dwellings.

It is obvious, however, that this is not a complete answer to the housing problem. Some form of public assistance in a program of urban redevelopment where there will be combined public assistance, public authority to condemn and acquire property and construction by private investors will assist in the solution of the problem. Primarily, private enterprise itself must provide the answer to the greatest portion of the problem.

(b) You request my estimate as to the number of low-income units which in my opinion it would be desired to provide in the city of Dallas over the next 4 years. A request was filed by the city of Dallas on December 1, 1944, for 2,800 low-rent dwelling units. This involved a proposal for the construction of low-rent housing units equivalent to 10 percent of the substandard dwelling units estimated to exist in the city. The exact need will depend upon the extent to which dwelling units can be made available by private enterprise and the existence or lack of an urban redevelopment program to provide dwelling units for such persons.

(e) You inquire as to the extent the city of Dallas would be in a position to finance construction of such low-rent housing. The city of Dallas would be able to assist in financing the cost of construction of such low-rent housing only to the extent and in the same manner as the city of Dallas has participated in the cost of construction and the maintenance of low-rent housing under the United States Housing Act of 1937 with respect to the existing low-rent projects.

(d) You inquire as to the extent to which the city of Dallas is in a position to furnish annual subsidies needed to permit such housing to be rented to such low-income families at rents within their ability to pay. The same answer must be given to this question. The city of Dallas can cooperate through tax exemption and through the provision of municipal services in the same manner in which the city is now cooperating with existing low-rent projects. It is not believed that the city can exceed the amount of its present participation.

(e) There are no State laws and subsidy loans available for such a program in Texas.

4. You inquire as to the present low-rent housing in our city. Under the United States Housing Act of 1937 there have been constructed 1,569 low-rent dwelling units developed under this program. We operate under lease agree ment a PWA project of 181 units.

(a) This housing has served low-income families. During the war some of these projects were made available to military personnel and essential war workers as a war measure. At the conclusion of the war, because of the desperate housing situation in this city, some persons having incomes greater than desired were permitted to remain in the projects because there was no place for them to

go.

Other than these two situations, however, the projects have served the lowincome families in the community.

(b) The housing developed under the United States Housing Act of 1937 has been built and operated efficiently. The administration of the city is proud of the accomplishments of the Commissioners of the Housing Authority of the city of Dallas in the construction and operation of these projects.

(c) You inquire as to the effect of this housing on neighboring real estate values. Neighboring real estate surrounding each project has greatly improved, both as to character and value, immediately after the construction of these housing projects. The cost to the city of services rendered to the persons in the housing projects and in the neighborhood of the projects have materially decreased. As an illustration, in the 5-year period prior to construction of one project, there was a fire loss of 15 fires involving $8,782. For the 5-year period since the construction of the housing project, there has been only one fire loss, involving a total of $7.50. The chief of police of the city of Dallas advises that the number of police calls has been greatly reduced and that the existence of delinquency has become negligible in the project area. Health conditions have similarly improved. This is the inevitable result of providing standard dwelling facilities in an area which was formerly a typical slum area.

(d) You inquire as to whether this housing has presented competition to the builders or owners of standard private housing in the city. In our opinion it has not presented such competition, due to the fact that under the State law tenants admitted to these projects must come from substandard houses, and in Dallas, the housing authority has followed the practice of careful and exhaustive investigation before admitting low-income tenants.

5. (a) In answer to your query as to whether I favor a continuation of a program of Federal assistance to local communities along the lines of the United States Housing Act of 1937 as a means of aiding the communities to provide decent housing for low-income families, I do favor such a program.

(b) Under our existing State laws the city can continue to participate to the extent which it has participated under the United States Housing Ac of 1937. The city of Dallas is not in position to go further.

(c) You inquire as to any modifications in that program which would make it more effective or would make it more adaptable to conditions in Dallas. The housing problem in any community is essentially a local one. For that reason, it is imperative that the housing problem be approached from a local point. of view with the local agency under the supervision of the municipal government. It is necessary, of course, that there be supervision and financial assistance from the Federal Government. This financial assistance should be given by the Federal Government under conditions which provide sufficient safeguards to make certain that the money provided by the Federal Government is used for the purpose for which Congress provided it, but the Federal agency which makes such money available should not have control over the program. The program should be controlled locally. The Federal agency should have the same character of protection that any mortgagee has in controlling the expenditure of funds the mortgagee makes available. The program in Dallas has been conducted very much along these lines. It may not have been conducted in this manner elsewhere. In our opinion, it should be so conducted throughout the country. (d) You ask for a discussion of any alternate proposals we desire to recommend at this time.

I suggest none at this time.

6. Wholly aside from low-rent housing for low-income families, it is absolutely essential that a redevelopment program be instituted in this city to clear slums and blighted areas and make the land therein available to private enterprise for development. The city of Dallas, like most other large cities, has large areas adjoining immediately the business district which suffer from blight. Because of the proximity of business areas, exaggerated land values exist, and because of the proximity of such business areas better residential construction has moved to the outlying suburbs. The solution to this problem lies in the adoption of a plan analogous to that suggested in the Taft-Ellender-Wagner bill, which would eliminate blighted areas and slum conditions surrounding the business section. Such a plan, whereby the city or its agency would condemn such property, clear it, install streets and utilities where necessary, write down the excessive cost of such development and pay for such loss through a Federal subsidy, then make the land available to private enterprise at its use value for new housing con

structed in a manner consistent with a local plan of the municipal government for the development of the area, which would avoid future slums, offers in my opinion the most constructive answer to the problem of development of these areas which has been suggested. Under this proposal the public agency does not construct the houses, and public participation in the program is limited to the one area in which public participation is essential, that is in assisting in acquiring blighted areas and absorbing the difference between the cost of such areas and their use value.

7. (a) It is my opinion that some sort of public financial assistance is absolutely necessary to write off the excessive costs of acquiring and clearing the land in slums and blighted areas, and making it available to private enterprise for uses and construction under a plan of development approved by the city of Dallas. (b) There are several bases for this information. In the first place, the mere fact that these areas exist to the extent they do is the strongest argument that it is uneconomical and infeasible properly to develop these areas, otherwise it would have been done long ago by private investors.

In the second place, in various other cities of the country, repeated efforts have been made to accomplish such redevelopment without public financial assistance. These have failed. In the next place, those projects which have succeeded, such as the Metropolitan Life Insurance projects in New York, have succeeded in a large measure because of subsidy in the form of tax exemption for a period of years, which is permissible under the New York constitution. Finally, this opinion is based on the local conditions and the knowledge that there is a considerable differential between the cost of acquisition and improvement of these areas and the use value for residential construction. The other requirement for public participation is equally essential; that is, it is necessary that the power of eminent domain, vested in the city or its agency, be exercised in order to acquire the property for such a project.

(c) The city of Dallas would be in a position to provide assistance in the provision of utilities such as water and sewage facilities, parks, streets, and schools. The city is not in position to finance such a program without outside help.

(d) Such funds are not available for this purpose.

(e) In my opinion, the proposal in S. 866, providing two-thirds of the net cost of local urban redevelopment program be carried by the Federal Government and one-third by the locality, is reasonable; nevertheless, as stated above, the city of Dallas could participate only to the extent and in the manner hereinbefore set out.

(f) I make no alternate proposal at this time.

8. In the event a program for the redevelopment of blighted areas should be instituted in the city of Dallas, it is my thought that preference as to occupancy of any dwelling units constructed on the project should be given to the prior residents of the project. I recognize, however, that there may be persons living in such an area whose incomes are so low that it would be impossible for them to become occupants of the new dwellings constructed by private enterprise in the area. When this condition exists, it would be my suggestion that these persons be housed in existing public housing projects. In instances where public housing is not available for such persons, additional public housing would have to be made available for them.

9. (a) Texas does not have urban redevelopment legislation.

(b) Inapplicable to the situation in Texas.

(c) Inapplicable.

10. No additional comment.

CITY OF MADISON, WIS.,

December 30, 1947.

Hon. ROBERT F. WAGNER,

United States Senate, Washington, D. C.

DEAR SENATOR WAGNER: Your letter with respect to survey of urban redevelopment and public housing, recently received by the president of our city council, has been referred to my office.

The city of Madison has a housing authority created by virtue of Wisconsin statutes and by ordinance of the city of Madison. The housing authority was requested to make answer to the questions which you submitted with respect to urban redevelopment and public housing.

I take pleasure in transmitting with this letter a copy of the report of the Madison Housing Commission on the subject above mentioned. I trust you will find it of some value in your study of housing conditions.

Very truly yours,

Enclosure.

LEONARD C. HOWELL, City Manager.

SURVEY OF URBAN REDEVELOPMENT AND PUBLIC HOUSING

1. Based on your knowledge of conditions in your city, what is your estimate as to the approximate number of low-income families now living in substandard housing, in slums, or under other unsatisfactory housing conditions?

Answer. As of November 30, 1947, the Madison Housing Authority estimated a current active unsatisfied demand of about 1,500 dwelling units over and beyond buildings now under construction or the subject of permits issued as of that date. This demand is for rental and sales units and at all price ranges. Of this number it is estimated that about 1,000 should be provided so as to require monthly payments of no more than $50. For the most part this unsatisfied demand for 1,500 units represents families that are now living doubled up, split up, under greatly overcrowded conditions, or on the verge of eviction.

In addition to this compelling need, it is estimated that Madison has a minimum of 100 family groups that are earning low incomes and at the same time are living under housing conditions that are bad from the standpoint of both structures and facilities. Housing is considered substandard where it is either in need of major repair or is lacking in one or more basic facilities such as a bath, flush toilet, or central heat. These units are substandard in both respects. These figures are based on spot surveys made in 1946 by the MHA to follow up the 1940 census. In 1940 there were some 837 dwelling units reported as being substandard in one respect or another and it is now estimated that in addition to the approximately 100 families living in units that are both structurally unsound and lack basic facilities there are probably about 500 low-income families now living in units that although structurally fair to good still lack basic facilities. Rents for these units run $15 to $20 per month higher than for complementary "slum" properties. Families forced to live in these quarters may be just as badly off as those living in quarters rated "bad" on all counts.

2. (a) In your opinion will private enterprise be able now or in the foreseeable future to provide decent housing, new or old, for all of these families at rents or prices within their ability to pay?

Answer. No.

(b) Please indicate, briefly, the basis for your opinion.

Answer. In 1940 only 25 percent of all rental units in Madison were on the market at rents below $30 a month. As compared to other comparable capital and university cities, Madison has long been deficient in the number of tenant units offered in low-price ranges. Standard rental construction for years just prior to the war has been unable to enter price ranges below $40. Now the gap is even greater between top rents that can economically be paid by low-income families and the lowest rents offered in new, standard construction. Private building of rental units in the last 2 years in Madison has provided about 75 units all at rentals upward from $75. Construction is now under way on a good many more rental units but all of these units will rent at figures well above $50. The current high cost of building makes it impossible for private industry unaided to produce units for those who can't afford to pay more than $50 a month. Key building statistics in the Madison area during 1946 and 1947 are as follows:

[blocks in formation]

3. (a) If it is your opinion that private enterprise will not be able to provide decent housing for all such families, do you favor the provision of publicly assisted low-rent housing as a means of supplying decent housing for such families?

Answer. Yes.

(b) If so, what is your estimate of the number of low-rent units which, in your opinion, it would be desirable to provide in your city over the next 4 years? Answer. 400 to relieve shortage of rental units; 200 to replace substandard properties.

(c) To what extent is your city in a position to finance the cost of constructing such low-rent housing?

Answer. This is a matter which the city council would have to decide. In 1939 the council voted down a joint local-Federal low-income project. The city has limited revenues. Its property tax base is crippled by the fact that so much of the property in the city is already tax-exempt (about 30 percent). It cannot enact levies on income. The city is not in a position to contribute much if any of the capital cost of constructing such housing.

(d) To what extent is your city in a position to furnish annual subsidies needed to permit such housing to be rented to such low-income families at rents within their ability to pay?

Answer. This is another question that the council would have to determine. This probably would depend on the exact terms under which Federal moneys might be offered.

(e) To what extent are State loan and subsidy funds available for such purposes?

Answer. No State loan funds are available. The State under chapter 412 of the 1917 session laws set aside funds for veterans housing. Up to $9,000,000 will be made available in the next 2 years to be donated to local authorities putting up veterans projects for rent or sale.

Grants are made on the basis of 10 to 15 percent of capital cost of the project. Subsidy is used to bring rents down to proper level. No State aid of any kind for nonveteran housing.

NOTE.-A 192-unit rental project for veterans, sponsored by local authority, has been approved by the council. Details of plan and degree of city and State aid are set forth in attached statement.

4. If there is low-rent housing in your city developed under the United States Housing Act of 1937:

(a) Has the housing served low-income families?

(b) Has the housing been built and operated efficiently?

(c) What has been the effect, if any, of this housing on neighborhood?

(d) Has this housing presented competition to the builders or owners of standard private housing in the city?

Answer. None.

5. (a) Do you favor a continuation of a program of Federal assistance to local communities, along the lines of the United States Housing Act of 1937, as a means of aiding the communities to provide decent housing for low-income families?

Answer. Yes.

(b) If so, to what extent is your city in a position to pay a portion of the construction cost of such housing? (This may be indicated by the approximate percentage of the capital cost of any low-rent housing projects which your city would be able to provide.)

Answer. Council would have to decide this. Recommend 10 percent.

(c) Have you any modifications in that program which, in your opinion, would make it more effective, or would make it more adaptable to conditions in your city?

Answer. No.

(d) Please outline briefly, and describe the practical effect of, any alternative proposals which you desire to recommend as a feasible means of meeting this phase of the housing problem.

Answer. None.

6. In your opinion, wholly aside from low-rent housing for low-income families, is a redevelopment program necessary for your city in order to clear slums and blighted areas and making the land therein available for new private and public development?

Answer. Yes. Madison has scattered slum or blighted areas but no great concentrations of substandard units. It will be necessary over the years to provide for redevelopment of these and other areas.

7. (a) If so, in your opinion, is some form of public financial assistance necessary to write off the excessive costs of acquiring and clearing the land in slums and blighted areas if it is to be made available at prices which will permit its redevelopment for the use which your city determines is most appropriate? Answer. Yes.

(b) Please indicate, briefly, the basis for your opinion.

[blocks in formation]
« iepriekšējāTurpināt »