Evening star., 1945-12-29
Surplus Rule Governs
Federal Housing Sale
Here, kIutznick Says
BY ROBERT J. LEWIS.

Government surplus property rules
require the Defense Homes Corp. to
dispose of District area properties
involved in cooperative ownership
dispute "at the best price obtain
able" which shall be mot less than
the current market value" Philip M.
Klutznick, commissioner of the Fed
eral Public Housing Authority, said
yesterday.
He made the statement at a press
conference to which proponents of
cooperative ownership were invited
to air their views.
Coming as new development was
a statement that the Naylor Gar
dens Citizens Association plans to
hold mass meeting next week at
which tenants will discuss a CO.
operative ownership plan.
Bids Due January S.
Controversy over cooperative
ownership proposals broke out re-
Gently after the DHC advertised for
sale the 56,000,000 in Federally
owned property here. The six pro-
jects previously had been up for sale
nearly two years. Closing date for
bids Is midnight January S.
Mr.. Klutznick explained at the
outset that he had taken the un-
usual step of inviting disputants to
the conference so the whole subject
could be discussed at length.
Present were Ray Sawyer COM
mander of the local Amvets post,
which is seeking to lease Mclean
Gardens and Naylor Gardens,
with option to purchase at a later
date: Edmund j. Flynn, real estate
dealer, who said he plans to submit
cooperative ownership proposal
for Naylor Gardens and asked that
the January deadline be extended.
and Edward F. O'Hara vice presi-
dent of Lodge 647, United States
Special Police, who said he repre-
sented 1900 members who supported
Mr.. Flynn's plan.
RFC to Be Repaid.
Mr.. Klutznick explained the Re-
construction Finance Corp. had
loaned DHC s54,O0o,oo with which
to build a total of 26 properties.
Eighty-two per cent of the money,
he said, was loaned for construction
of the six projects here. DHC seeks
to sell the properties so that it can
repay RFC.
So far, the FPHA commissioner
explained, DHC has received an ag-
gregate of ITS offers for the 26
properties. About Is offers have
been received for Mclean Gardens,
he said.
Mr.. Klutznick, also DHC board
president, explained the board
would entertain bids for purchase
from cooperative or any other
organization.
He made it clear that the proper |
ties were offered for sale-not for
lease, as the Amvets' committee pro-
poses. He added, however, that any
plan, whether for sale or lease. would
be considered. He also emphasized
that all bids for purchase could be
rejected by the board.
Some Under Lanham Act.
In an attempt to clear up what he
said was misunderstanding over
sale of FPHA projects in South |
Bend, Ind, and Dayton, Ohio, to
mutual ownership corporations, he
said funds for that housing were OBJ
tanned through the Lanham Act. Al
different set of rules governs disposal
of District DHC properties than for
Lanham Act projects, he said.
Denying he held any antipathy to
the cooperative ownership move
ment, he said:
"Our job is to administer laws, not
to create movements"
Mr.. Klutznick explained the prop
critics were first announced for sale
January 26, 1914. Judging from
the recent furry, you would think
these properties had just been put
on the market" he remarked.
Mr. Klutznick said the board will
consider "any plans or proposals
that may be offered" whether or
not they include definite money
offers. Referring to the AmvetS'
plan, he said proposals don't need