Evening star., 1942-01-15
Bill 10 [ega|ize
Big Apartment
Introduced
Present Law Blocks
Life Insurance Firm
In Alexandra Project

Life Insurance Firm
In Alexandra Project
,, . Star SIAN oQrrespondent.
RICHMOND, Va, Jan. 15.-Only
two days after the North Ridge
Citizens Association of Alexandria
announced plans for abandoning its
fight to prohibit the Metropolitan
Life Insurance Co. Of New York
from constructing 81, 900 900 apart
ment project, it was disclosed here
that legislation must be passed by
the General Assembly before the
project can be completed.
The housing development, planned
for an 187-acre tract in the Beverley
Hills section Of Alexandria, was
bitterly fought by the home owners
Of that area. led by an active cam
paign of the civic body.
A bill, introduced on the opening
day of the General Assembly yes
terday and having no apparent di-
rect connection with Alexandria. al
most escaped notice in the 81 legis-
lative measures which were hur-
riedly dropped into the House
hopper. The bill, and . discussion
with its sponsors. revealed that life
insurance companies under the
present law are prohibited from
owning or operating apartment
housing projects in Virginia.
Restricted 10 CITY Areas.
Known as House Bill No. Is. the
measure was introduced by Dele
gates Robert r. Baldwin, jr., OF
Norfolk and Charles c. Louderback
Of Page County.
The purpose Of the bill is to en-
large the scope of investments for
life insurance companies" Mr.. Bald
win explained. Its main features
are the granting of permission for
such companies to invest In low
cost housing projects and in bonds
Of terminals. tunnels and bridges"
That the measure is plainly drawn
to cover the Metropolitan Area Of
Washington Is indicated from the
language used. Investments by life
insurance companies in housing
projects would be restricted to areas
within = l0-mile radius of cities
having q population of 100000 on
more. There are only three areas
in the State that could be 80 af-
fected. They are territories ada
cent to Washington. D. c.; Rich
mond and Norfolk. The bill specifi-
cally states that, including In the
term city, the District of Columbia, .
80 Is to embrace the Washington
area.
The bill seeks to permit life insur-
ance Arms to make this type of in
vestment in real estate acquirpd BY
the company on Or ibsfore DG1kmhE
81, 1s47, for the purpose Of impruy-
ink the same to provide decent. So
and sanitary dwelling accommodA-
tions for persons Of low and mod
crate income, which will tend to re-
lieve the emergency In the housing
situation in large cities and their
environs."
Minimum Of 200 Families.
The bill also provides that invest
ments must be in projects providing
accommodations for not less than
200 families. The companies would
be prohibited from making such in
vestments when the funds involved
more than 10 per cent Of their total
assets or when such investments In
all real estate held amounts to more
than IS per cent of their assets.
The proposed legislation requires
that the life insurance companies
must first obtain authorization for
such investments from the State
Corporation Commission before con-
struction of houses "or other i'm
provements for any such housing
project" The proposed law directs
the commission to grant such au-
thorization when the investment
and location qualifications have
been met.
Neither the commission nor any
representative Of the commission
shall make public or disclose or
allow! to be made public or dis
closed the fact Of the making or
pendency Of an application, granting
Of an authorization. or any in
formation contained in an applica-
ton" The bill states the commits
sion would be allowed to make pub
hc this information not less than
80 days after action on the appli-
cation.
Legalizes Prior Investments.
A section apparently designed to
provide for investments already
made before the law is passed de-
clares: IF any such company, prior
to the date when this amendment
takes effect, has invested in real
estate for any such housing, its
application for authorization issued
pursuant thereto shall legalize the
said investment as If issued prior
to the making of the same"
Following defeat o. efforts by the
North Ridge Citizens Associat ton
to block the Metropolitan Life
project, . special committee was
appointed to study the problem.
This committee, comprising Stephen
Rice, Leo P. Harlow and Stanley j.
Tracy. was discharged At the asso-
ciation meeting Monday night when
1t reported that it felt nothing more
could be done on the part Of the
association or property owners.