A groundbreaking ceremony was held last week for the 80-unit Faircliff Plaza East Apartments, to be built on 14th Street between Euclid and Fairmont streets. The apartments will provide rent-subsidized housing to the 14th street community, which already has approximately 1,300 units of new or renovated housing.

Participating in the groundbreaking ceremony were Robert Moore, D.C. housing and community development director, representatives of the U.S. Department of Housing and Urban Development and the 14th Street Project Area Committee, a neighborhood group that works with the city on development projects, members of the Advisory Neighborhood Commission and representatives of the community sponsors, including Redeemer Baptist Church and the Greater First Baptist Church of Mount Pleasant Plains.

The same sponsors, including the two churches and a joint venture of John F. Clark and Stauffer Inc., previously built the 112-unit Faircliff Plaza on the west side of 14th Street, completed about one year ago. The new $3 million garden apartments are expected to be completed in about 18 months.

The new building will have 24 one-bedroom units, 40 two-bedroom units and 16 three-bedroom units. Tenants will be charged no more than a quarter of their incomes and the remainder of their rents will come from federal subsidies, under the Section 8 program for lower-income persons.

Those who have been displaced from homes in the 14th street area by city action will have first priority to rent the new apartments, followed by those displaced from other community development areas, then other neighborhood residents.

Construction is being financed through a provision of federal law that permits public-housing authorities to designate nonprofit corporations to issue tax-exempt bonds. The District's National Capital Housing Authority and the Faircliff developers have established a non-profit corporation to sell the bonds, which are secured by an HUD mortagage guarantee.