Lehman and Rabinowitz to Build Model Houses

Lieut-Gov. Herbert H. Lehman and Aaron Rabinowitz, member of the New York State Board of Housing, are making possible the erection of model apartment buildings on the East Side through the purchase of a site comprising two and a half city blocks for $550,000. The estimated cost of erection will be $2,300,000. Acquisition of the property was announced by the Housing Board.

The houses, to have modern improvements as well as a swimming pool, roof gardens and roof playgrounds, are to be erected under the “limited dividend” plan of the housing law as soon as the old buildings of the plant of R. Hoe and Company, printing press manufacturers, are demolished. Maximum rentals will not exceed $12.50 a room. The buildings will house 400 families. Neither Lieut-Gov. Lehman nor Mr. Rabinowitz will seek to make a profit from the transaction.

Immediate construction of the apartment houses has been decided upon. The buildings are to be erected under the “limited dividend” plan of the State Housing Law and the net income from the rental of the buildings at no time can exceed 6 per cent a year. If such a condition should arise that this rate is exceeded it must go back to the tenants in rebates.

“While there has been much talk about development of modern housing on the east side,” said Mr. Rabinowitz, “obviously there has been little action. This project is the first actual step in this line in Manhattan. As soon as the present occupants remove, the buildings will be torn down and shortly afterwards construction will be started by a limited dividend company.

“Credit for the suggestion which led to the purchase of the land goes to Miss Lillian D. Wald, head worker in the Henry Street Settlement, and a valued friend of Lieut-Gov. Lehman and myself. It also is my hope that these buildings will stand as a tribute to former Gov. Smith, who conceived and put into operation the State Housing Law.”