HOUSING: Knickerbocker Village

Smack in the middle of the slum-mulligan of Manhattan’s lower East Side two barefaced, rectangular apartments rear their bricks twelve stories into the air. Jointly christened Knickerbocker Village, they cover four whole city blocks. Between the two units is a concrete playground, and within each will be a garden. Each of the 1,593 apartments has wooden parquet floors, electric refrigeration, tiled bathrooms, outside windows. The elevators are self-operating. Rentals range from $22.50 for 2½ rooms on the ground floor to $87.50 for a 5½-room penthouse. Average is $12.50 a room. Knickerbocker Village will cost about $9,000,000, and with the exception of Rockefeller Center is the only large structure which Manhattanites have noticed abuilding these last two years. Last week it was ready for occupancy.

Because Knickerbocker Village is also Manhattan’s first experiment in government-financed, low-cost housing, RFC’s Chairman Jesse H. Jones, East-Sider Alfred E. Smith, many a minor wig gathered in its banner-decked playground to mark the day. Said Al Smith: “I was tempted to swap the Empire State Building.” Chairman Jones thumped the tub of slum clearance. Informed that the first of the two units was already 95% rented, while the second unit (to be opened Dec. 1) was 50% rented, he waved an expansive hand at the holiday bunting, declared: “I know of no … safer investment for public funds than to clear about 500 acres of your slums.”*

Whether or not Knickerbocker Village was a fitting inspiration for such official rejoicing was last week a red hot sociological question.

In 1929 Realtor Fred Fillmore French began buying land on the lower East Side. By swearing his 42 brokers to secrecy and using dummy corporations, he managed to get some 15 acres for $5,000,000. Then in 1931 he announced a grandiose scheme for the erection of a $50,000,000 development for junior Wall Street executives. At this point he found that he could not get credit. At the same time Fred F. French Operators, Inc. began passing its dividends on $14,000,000 of preferred stock. The project remained only a scheme with a staggering upkeep in land taxes.

When Congress authorized the RFC to make loans on slum clearance projects, Realtor French picked out the worst block in his holdings and ecstatically presented it to Mr. Jones as a worthy subject for clearance. His choice was “Lung Block,” so called because of its high tuberculosis mortality rate. On it lived 650 families. In its backyards were seven jakes. On this fester Mr. French proposed to build a low-cost housing project. Mr. Jones agreed to do business, and RFC lent 85% of the required $9,000.000.

Average cost of “Lung Block” to Knickerbocker Village was high: $3,116,000, or $14 per square foot. The tax assessment was therefore reduced by two-thirds to bring the monthly room rental down to the $12.50 stipulated by the RFC. Because the average rental on “Lung Block” had been about $5 a room, Knickerbocker Village remained a low-cost housing project only in the minds of the white collar workers, who proceeded to fill it.

With all this the sociologists could find but small quarrel. If the rent was too high for slum dwellers, at least Mr. French had never promised to do any better. What did draw their thunder was the fact that the Federal Government had disbursed its $8,000,000 on such an unscientific project in the first place. Their point: high buildings can never solve the housing problem in Manhattan. Reason: If all buildings were twelve stories high they would be uneconomically half empty, while if only enough twelve-story buildings were built to house the population the city tax on the remaining vacant land would have to come out of higher taxes on the used land. In either case the poor would suffer. Prime principle of good housing is to make it impossible for too many people to dwell on the same acre.

*PWA, not Chairman Jones’s RFC, supervises slum-clearance projects.