Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-02-07
BY ALFRED TOOMBS.

BY ALFRED TOOMBS.
A Federal Court in Baltimore early
next month will seek to untangle
complications which have grown out
of the purchase by the Alley Dwell
ing Authority of land for a temper
airy war housing project in a partly
sold subdivision covered by coven-
ants protecting previous home buy
crs from low cost construction.
The court will decide claims in
volving thousands of dollars which
have been filed since the Govern
ment took over the land and. if the
decision is against the ADA, the
cost Of the project will be increased
greatly.
Both the land company, headed
by E. Brooke Lee, Maryland Demo-
cratic leader, which sold the prop
erty, and other residents of the area
are seeking to increase the $4,000
which the ADA has set aside to cover
costs of the land.
The project involved is known AS
the Fairway development. 1t is in
Montgomery County, north of Forest
Glen road and about two miles
from Silver Spring. The land on
which the houses are being built
was owned by the Fairway Land Co.
Of which Mr.. Lee is president.
Company Seeks Higher Price.
The company signed a contract
with the ADA to sell the property
for $4,000, but now contends that
this compensation is not adequate
Others in the area claim that
the ADA. by building cheap, tenn
porary housing in the development,
has greatly reduced the value Of
their property.
The legal arguments revolve
about the ADA's responsibility for
certain covenants running with the
land. The ADA, in it's contract
with the Fairway company. assumed
responsibility for the covenants,
which provide that no houses shall
be constructed in the area costing
less than $1,000
AT the time the ADA took over
these covenants, it was known that
the cheapest kind4nf houses were to
be built in the area.
This is the history OF the de-
velopment: !.
=. Early last year, whcr~the ADA
was seeking land for war housing
construction, Mr.. Lee offered to sell
his property in the developments
known as Country Club Park and
Country Club View.
23S Lots Purchased.
The ADA signed a contract to
purchase 238 lots for $3.50 each or
$4,000 for all. These lots had been
selling individually 1r prices rang
ing from $3.50 to $3.50 or more.
The lots were scattered through
an established community of we'll
built houses-all protected by the
covenant prohibiting construction OF
homes costing less than $4,000.
In signing the contract the ADA
agreed to assume responsibility for
the covenants, w. P. Hudgins, prof.
ect development assistant. said. He
didn't know" why the clause had
been included in the contract but
said he felt it was only fair" that
the Government should assume re-
sponsibility for preaching the agree
ments.
The ADA thus assumed response
blllty for any damages other prop
erty owners might seek as a result
OF breaking the agreement. The
FairWay Company was relieved OF
liability.
Sought to Clear Title.
With the contract signed and the
deal closed, the ADA decided to con-
denim the land,
John Ihlder, ADA director, said
condemnation proceedings were
aimed at clearing the title" to the
land.
The ADA deposited s83 300 in Fed
eral Court in Baltimore to cover
cost Of the land Construction of
the houses was started
Later, $50 owners Of houses in the
community went to court to contest
the condemnation. They seek some
guarantee that the houses will be
torn down after the War-oT ask
damages for depreciation Of value
Of their homes.
If these property owners are
awarded damages, the money Noulo
have to come out Of the s83 300 de-
posted by the ADA to cover cost
Of the condemnation
Valuation to Be Tested.
Because Of TINS. the FalrWay com.
pany has decided to contest the
valuation Of the land
Mr. Ihlder insisted that the con
demnation was friendly" and MA
not being contested
There is no question, then. abou
the $4,000 price? That is all 70,
are going to pay?"
That is the price ne are goini
to pay he replied. 1T Is set fortl
in the contract. II is not going t
be raised
When Mr.. Ihlder was read para
graph Of the answer filed by til
Fairway company -- which claim
that the contract price is made
quate compensation for the prop
erty"-he said:
That's news TO me. We kno,
nothing Of any question having bee
raised On the valuation. We have
contract signed by the president O
the FairWay Co. setting the price
A jury will be chosen to hear tn