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_______________—_______________————-—
Federal Works Agency - John M. Carmody, Administrator Vol.1, No.45 - June18, 1940 U. S. Housing Authority - Nathan Straus, Administrator
M H S 11 ' T '

t. ope Ina est own Wton [irOJect Sets Low Record
I ' I u
Wlth Housmg hole“ ‘11 Cost of Annual Contribution
With the completion this summer of Sta-
dium Terrace, 70-1111it low-rent housing When Cuney Homes, USHA—aided project be the constant, and the subsidy the variable.
development in MOUN'C HOPE, W2 Va. (P01): in Houston, Tex., is open to tenants some The local authority’s ﬁrst task will be to dis-
22750); the little W951? Virginia tOWII Will be- time in July, Uncle Sam’s contribution per cover the existing rental market—what fam-
- 001116 the smallest C0111111‘-1111t.‘,’ 311 the United family will be $6.57 per month or $1.52 per ilies now living in substandard housing actu-
States to have a USHA—aided PUbliC housing week—the lowest Federal subsidy achieved ally are paying. With this factor as the
project. to date on any USHA-aided project. constant, the amount of subsidy will be cal—
‘ To those who are accustomed to associate The phenomenally low annual subsidy of culated to bridge the gap between the rental
low-rent housing and slum clearance with 1.862 percent of the development cost of the the tenant can pay and the rental he would
large metropolitan cities such as New York, project for Cuney Homes nearly halves the pay if the entire cost of the development
the Mount Hope project will serve as a re— maximum subsidy (3.5 percent) permitted were to be amortized from rent alone. In
minder that housing for the lower income under the United States Housing Act. It practically every case, this will mean a re—
» groups is a problem which confronts all com— was achieved after months of careful study duction in subsidy from the Federal Govern-
munities, regardless of size. on the part of USHA ofﬁcials, and indicates ment. At the same time, it will tend to keep
The sturdily built, two—story duplex frame an important advance in the Authority’s project rentals about the same or slightly
houses which make up the project are de— ﬁnancial policy. On the basis of the maxi- below what low-income families pay for sub-
signed for the families of miners employed mum Federal subsidy, the monthly Federal standard housing. In Houston, the local
in the nearby coal mines. Because Mount contribution for each family would have authority has been studying the problem of
Hope is a one-industry community, it was been $12.36. subsidy reduction for months, and has given
necessary, before the project could be ap— Originally, due to a lack of complete in- USHA oﬂicials complete cooperation.
proved, that there be some reasonable as— formation on local rental markets and to a The annual incomes of the Negro fam-
surance that the coal industry in Mount desire to attain the lowest rentals possible, ilies admitted to the Houston project are
Hope will continue to provide employment contracts called for the maximum sub— expected to average only $618 a year as com—
during the 60-year amortization period of sidy permitted under the law. More and pared with the $758 annual average income
the project. Following a study of the re- more, however, USHA and local ofﬁcials of Negro families living in substandard
sources of the mines, it was disclosed that have been impressed with the fact that Fed- housing throughout the city. Project ten—
the Mount Hope coal ﬁelds and those in the eral subsidies might well be lowered and ants will pay an average shelter rental of
adjoining county should be workable for rents still kept within reach of the lowest only $18.03 a month; whereas Negro fam-
approximately 125 years. income groups. ilies living in substandard housing in Hous-
. In order to cut cost of the project to the Until a few months ago the maximum an- ton pay an average shelter rental of $16.34.
minimum, the city of Mount Hope gave the nual contribution from the Federal Govern- Thus both rentals and incomes in the proj—
local authority excellent cooperation. The ment was considered a constant factor by ect fall well within the low—rent housing
site of the project was donated by the city; means of which rents could be driven down market for the city as established by the
(Continued on page ,1) as low as possible. In future, the rental will local authority’s thorough going survey.
This housing project, which provides new homes for 70 , . f2, 1 2 ' , ‘ . ' _ - -
low-income families, marks blount Hope, W". Va., as ' ‘ " "*V ‘ . ‘ V‘ - i
one of the most progressive small towns in the country. 7 ’ l 5 2 2
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