Daily News from New York, New York • 175

DAILY OCTOBER -3, 1972 y.5 PwhR vo Wwt.llhmm9 By OWEN MORITZ The Times Square area, which has many houses but few homes, is expected to get an $80 million middle-income apartment development, it was learned yesterday. Rents will be pure Park Ave. projected to go as high as $115 a room, a record for gov ernment-aided construction. The State Housing Division has 11 rl 11 I kT IPPi MANHATTAN t'W l-ariranraflmrnim I the sponsor is now seeking approval of the City Planning Commission to alter the area's zoning from commercial to residential. Unlike most Mitchell-Lama projects, which are geared to large families, the planned Times Square development will be filled mainly with studios, one and two bedroom apartments.

The thinking given a tentative site okay to the HRH Housing Development Corp. to build a Mitchell-Lama middle-income development, containing two 46 story buildings and a number of townhouses, in the square block bounded by 42d and 43d Ninth and Tenth Why would anyone want to build in Times Square? "Because mortgages from the state. In return, the builder-sponsor limits himself to a return, and tenants are traditionally e-stricted to earning an annual income no more than six or seven times their annual rent. But, because rents for one-bedroom apartments could go as high as $460 a month, meaning a -total annual rent of $5,520, families earning up to $38,640 would be eligible as i 1 e-income families." is that it would bouse people working in the theater district we exnect the west midtown area and also provide an alternative NEWS map by staff artist Bob Juffras Map locates $B0-million middle income development. for smaller apartments now avail i Kips May IPlasa Said far 20M Zeckendorf, 42, said that his 67-year-old The, massive Kids Bav Plaza housing de to expand enormously, saia Kicn-ard Ravitch, president of HRH.

"We see thi as an anchor for a new residential Times Square." Plans filed with the state call for $94.50 a room, and Ravitch himself calculates it will go about $100 a room. But the Citizens Housing and Planning Council, a major civic group here, reckons rents will go up to $115 a room and is split over the advisability of providing tax relief for a quasi-luxury building. Ravitch is a former president of the council. With the state's tentative okay, able on the upper East Side. Ravitch says his firm has taken an option on the site, now covered by a parking lot.

He is not troubled by the fact that the West Side Airlines Terminal, once located across 42d St. from the proposed housing site, was closed last summer, in part because of the area's decline. Housing built under the state's 16-year-old Mitchell-Lama law customarily gets two indirect subsidies tax abatement from the city and low-interest long-term velopment on the East Side has been sold by the Aluminum Co. of America for more than $20 million to a syndicate headed by William Zeckendorf son of the real estate tycoon, it was disclosed yesterday. At the same time, Alcoa disclosed that it father, who built Kips Bay Plaza in 1957, had been "very active" in the negotiations.

Located between First and Second Aves. and 30th and 33d Kips Bay Plaza comprises two building's of 21 stories each with 1,120 apartments. A shopping center on Second Ave. also was part of thede al that had been in the works for five months. also was negotiating the sale of Lincoln Tow- ers, its huge housing project on the West Side.

What's in a Name? We'll See twm Hairs U.S. ft I 114 mmmmm CL. br1 Uk kLj' ft By NORMA ABRAMS and BERT SHANAS In a major decision in the battle over aid to parochial schools, a special three-judge federal court unanimously struck down as unconstitutional yesterday portions of the state's parochial school aid bill that would have provided as much as $25 million in tuition assistance payments to low-income families. But at the same time, in the most encouraging sign to date for parents of children in parochial schools, the court upheld what could come to as much as $15 million in income-tax benefits to middle-income families. The court also reaffirmed its earlier decision to wipe out about $4 million in state subsidies for maintenance and repairs of nonpublic school buildings.

The part of the aid bill that the court found constitutional a i-to-1 ruling allows families which earn up to $25,000 to deduct from $100 to $1,000 per pupil per year, depending on their income, from their total gross income on state returns. A family earning $8,000 for example, could deduct $1,000, for an actual saving of about $50 in taxes; while a family earning $25,000 could deduct $100, for an actual savings of about $12. NEWS photo by Anthony Casaie But in upholding the tax benefit plan, the judges denied a motion to completely dismiss the suit leaving open the possibility of further legal interpretation. Leo Pfeffer, attorney for the Committee for Public -Education and Liberty, which challenged the state aid bill, said, "We will take that portion of the bill to the U.S. Supreme Court immediately." "We now have won two out of three parts of our suit," Pfeffer said.

"The decision on this third part means it must now go to the Supreme Court." Msgr. Joseph O'Keefe, education secretary of the New York Catholic Archdiocese, said he was "very disappointed" at the decision on tuition assistance, but "greatly encouraged" by the ruling on tax benefits. "The first part is disappointing because we feel it was the low-income families that needed help the O'Keefe said. "But the second part shows the courts are starting to think about parents. This is a definite start.

No problem in life is solved with a fiat." First Amendment Rules The part of the bill struck down by all three judges would have provided from $5 million to $25 million in reimbursement of tuition to parents whose state taxable income is under $5,000. Under the plan, such parents would have received the lesser of Ann Marie Pipoto, 20, looks over shoulder of Parks Commissioner August Heckscher-in his Central Park office as he checks suggested names for the baby gorilla born to Lulu, the Central ParltJ gorilla. Readers of THE TSEWS nave seni mousanas oi suggesiea namrs me i.i Heckscher will announce a choice soon. Bv martin Mclaughlin Stating that the city has "turned the corner" on welfare growth, Human Res-sources Administrator Jule Sugarman announced yesterday that 1,714 persons went off the city welfare rolls in July, usually a peak growth month. As of the end of July, the city welfare population numbered In spite of the fact that the cut from the welfare budget by Mayor Lindsay to balance the city budget.

because he has so exaggerated the figures that he has lost credibility." The monthly rise in welfare figures has also shown a declining trend. In the first quarter of the calendar year January through March, 1972, the average monthly increase was 5,664 persons. For the second -quarter, April through June, the average monthly increase was 666 persons. This plus July's decrease and the new management procedures instituted within his department prompted Sugarman to declare that his department "could very either 50 of the actual tuition The major decrease in July- they paid or $50 per pupil in grades 1 through 8 and $100 per sharp increase in the rejection of new applications, face to face re-certification of existing cases, a new photo identification system and the droping of neligible drug addicts. He also said that it was due in part to the department's assembling of the "best management team in the country." Asked whether the pressures applied by State Welfare Inspector General Berlinger accounted for some of the decreases, Sugar-man said: "While Mr.

Berlinger pupil in secondary school. In ruling the plan unconstitu rolls dropped by 3,404 persons in April, only three months before Sugarman stressed that the July drop was "dramatically significant" because the rolls have had their greatest monthly growth historically during the months of June, July and August. He said that the 1,714 decrease brought a saving or $718,201 over the previous month. Taken over the year, the July savings would reduce the city's welfare bill between $8 and million, far short of the tional, the judges conceded that any closings of Catholic schools was in the aid to dependent children category, mainly welfare mothers and children. This category accounts for over two thirds of the total welfare population.

The aid to disabled category, which carries most of the drug addicts, also had a substantial drop. Sugarman attributed the -drop ici- "ittcludhiw a would "cast a heavy burden" on the state. But the judges said. Economic hardship alone is not well meet, with Mayor Lindsay's enousrh to overcome the stric- his certainly been a stimulus, he order jjjj growth for the tnVeS of the First AmendmentV- hasp- af.0U jttT WOf iiacai year..