Executive Order 6868 (October 9, 1934) renamed the agency as the Alley Dwelling Authority, designated its membership, and outlined its functions.
As many of these squares were not adapted to low-rent housing, the Authority sought amendments that would enable it to build dwellings for low-income families equal in number to those displaced by its slum reclamation on other sites.
In addition to building and acquiring housing, the Authority managed and maintained the properties as well as provided social services, such as day care, tutoring and recreational activities, for residents.
Higher rent prices were acceptable at the time because of a boom in available jobs, which created a more competitive supply and demand market for housing.
Older houses were typically cheaper than new homes, some of which had running water, gas heaters and cooling systems.
The Black population in DC Alleys was at its zenith during the late nineteenth century, although they could not afford sufficient housing.
John Ihlder, a supporter of public housing and an executive officer for the ADA, dealt with implementing alley development.
The two exchanged letters in order to deal with St. Mary's court apartment which was specifically built for “negro occupancy,”.
The government stated that this was inaccurate, that the reasoning for the Blacks being moved out from these alleys was for them to improve the conditions of their living environment.
Their plan was to put indoor plumbing and polish the housing and make more room, and made Blacks move into low income home for 3–4 months.
Eleanor Roosevelt was a strong advocate for the Washington Housing Authority, as she looked to put an end to discrimination.
[5] On June 12, 1934, the District of Columbia Alley Dwelling Act was passed, establishing the Washington Housing Authority as an independent agency.
The ADA effectively mended the initially horrid living conditions and the problems that arose with overpopulation in Snows Court.