TABLE IV.-Defense Housing program-Agent for Federal Public Housing Authority Statistical table reflecting annual rents and cost factors by properties

1 Total development cost represents latest estimate of all costs. Final costs not definitely fixed. In case of Knox Hill, the development cost was an estimate. United States Housing Authority constructed this project as agent for Federal Works Administration. Cost data not available in this office.

The economic rent includes amortization with interest over 35 years. This accounts for higher percentage of economic rent to development cost.

Annual rental schedule represents flat rents established by Federal Works Administration for these properties.

Analysis of cost factors represents the break-down of total gross receipts, now going directly to Federal Public Housing Authority.

Current operating costs include direct management costs, janitorial expense, utilities, actual repairs, maintenance and replacements.

Represents funds allotted to Alley Dwelling Authority by Federal Public Housing Authority for man-agement operations.

TEMPORARY SHELTER PROJECT

EMERGENCY FUND FOR THE PRESIDENT

Mr. WIGGLESWORTH. What is the story or necessity for the account which seems to be referred to in the need for $11,600,000 out of the President's emergency fund and the management of the projects set up out of that fund.

Mr. MANDELL. We have noted, Mr. Wigglesworth, in the justifications that in the emergency fund for the President, Defense Housing, Temporary Shelter (transferred to the Alley Dwelling Authority) that the Alley Dwelling Authority received a direct allotment of funds from the President of $18,900,000.

There has been a rescheduling of the demountable housing program since the date of original allocation for the District of Columbia and the metropolitan area resulting in the rescindment of $7,322,000. This sum was returned to the President's emergency funds. This rescinament was effective after the submittal of the Budget data for

1944.

Mr. WIGGLESWORTH. Which has been put in these demountable houses. Mr. MANDELL. That is right.

Mr. WIGGLESWORTH. What is the status of that; was that an emergency project or what was the project?

Mr. IHLDER. That was for temporary shelter, as an emergency project. The status is that some of the projects are complete and occupancy has begun; others are in various stages of construction. Mr. WILLGESWORTH. What is the emergency character?

Mr. IHLDER. Because of the urgent need for more dwellings.
Mr. WIGGLESWORTH. For what?

Mr. IHLDER. For war workers.

Mr. WIGGLESWORTH. For what war workers; for some particular plants?

Mr. IHLDER. Yes; our first defense housing was for civilian workers in the navy yard. Then when temporary housing came it was extended to provide for other Government agencies. At the beginning we used the first three categories of agencies as prepared by the Bureau of the Budget. Later this was expanded to include five categories of agencies as prepared by the Bureau of the Budget. At the present moment I am not sure whether it is five or four, but we are taking in war workers who are employed by war agencies as those agencies are classified by the Bureau of the Budget.

Mr. WIGGLESWORTH. When was this sum made available; when did you start on this project?

Mr. IHLDER. It was first made available about the middle of February.

Mr. WIGGLESWORTH. February of 1942?

Mr. IHLDER. That is right.

Mr. WIGGLESWORTH. You are acting as manager of that project? Mr. IHLDER. Yes.

Mr. WIGGLESWORTH. Will you furnish something for the record showing the cost of that management?

Mr. MANDELL. We have hardly gotten into the management cost of the project. It has just opened and the first tenants are going in. We have an estimate of the income and we also have an estimate of what the expenses will be. Actually no management expenditures have been incurred as of to date.

Mr. WIGGLESWORTH. Take the 2,000 demountable houses and the 700 houses that can be demolished.

Mr. IHLDER. Yes.

Mr. WIGGLESWORTH. Your table will show the cost per unit in that project?

Mr. MANDELL. Yes.

LOW RENT HOUSING FUND

Mr. WIGGLESWORTH. What about this low rent housing fund where you say you have made loan contracts and annual contributions contracts with the United States Housing Authority?

Mr. MANDELL. That is the finishing of our previous program with the United States Housing Authority, now under the Federal Public Housing Authority, by which we have loan contracts with that agency for building nine projects here in the District of Columbia for low income families.

Mr. FITZPATRICK. They are supposed to be self-liquidating.

Mr. IHLDER. Our financing principle right through is that rent shall pay our costs; that is what we call economic nonprofit rent, that it shall pay all costs.

On the title II, that is the U. S. H. A. or F. P. H. A. aided projects, a subsidy is provided by the Congress, and that subsidy is taken into account on those projects. The rent paid by the tenant plus the subsidy equals an economic rent on the property; consequently they are all expected to pay out, to have no deficit.

In the temporary war housing another factor comes into play.

Our figure for economic rent on war housing is based on a life expectancy of 35 years. The buildings could stand for 35 years, but they are temporary buildings and are supposed to be removed or demolished. We can sell the demountables and they can be moved to another site. The selling price will reduce the amount of the net cost.

The demolishables, of course, will have less salvage value, but we set up the economic rent on the life expectancy and if we fall short of the life expectancy there will be a loss which is charged to the cost of the war.

Mr. WIGGLESWORTH. Does the U. S. H. A. guarantee the short term obligations?

Mr. MANDELL. That is correct.

Mr. WIGGLEsworth. And to what extent?

Mr. MANDELL. They guarantee the outstanding short-term notes 100 percent. These notes at the present time amount to $6,829,000. Mr. WIGGLESWORTH. Has any interest been paid on these notes at all?

Mr. MANDELL. Oh, yes; the interest is continually being paid on them.

Mr. WIGGLESWORTH. It has been said that on a lot of this financing no interest is being paid, but that is not true as far as the Alley Dwelling Authority is concerned?

Mr. MANDELL. No.

COST OF MANAGEMENT AND RENT RECEIPTS OF AIDED PROPERTIES AND LANGSTON, TITLE II PROGRAM

Mr. WIGGLESWORTH. If you have not already covered it I wish you would give us the cost of the management and the receipts in each case and refer to each one of the projects.

Mr. MANDELL. Yes.

Mr. WIGGLESWORTH. So we can get an over-all picture of it.
Mr. MANDELL. Yes.

(The information requested follows:)

TABLE III.-Title II program-Federal Public Housing Authority-Aided properties and Langston statistical table reflecting annual rents and

cost factors by properties

Percent of economic rent to development cost.

Annual rental schedule 6.

Percent of rental schedule to economic rent..

Annual subsidy.

Percent of subsidy to economic rent.

Analysis of cost factors in economic rent:

ANNUAL RENTS AND COST FACTORS BY PROPERTIES, TITLE I PROGRAM Mr. DIRKSEN. In reference to this consolidated statement, would you put in the record, Mr. Ihlder, a statement showing a little different set-up: 1. Giving the initial function of the Alley Dwelling Authority? Mr. IHLDER. The initial function is the reclamation of slum areas and provision of proper housing for persons or families of low income. Mr. DIRKSEN. But will you set it up showing the different phases, giving the factors in the inhabited alley operation, the cost involved, the number of units?

Mr. IHLDER. That is title I of the act?

Mr. DIRKSEN. Yes.

Mr. IHLDER. Covering the item now before this committee of $12,000.

(The information requested follows:)