Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-02-13

-operativeB Bids
For Nay|or Gardens
Left Open by DHC
By Robert }. Lewis
The way was opened yesterday for
the cooperative purchase of Naylor
Gardens, Government housing prof.
ect, when the Defense Homes Corp.
rejected all but two bids, those Of
the Veterans Cooperative Housing
Association and another cooperative
formed among tenants.
The DHC rejected all bids for
Harrington, mammoth Government
built housing project in Virginia.
On four other projects, certain bids
were held for further consideration.
The six properties up for bid cost
the Government about $56, 900
to build.
An authoritative source disclosed
that bids submitted by the Vet
Grams Cooperative Housing Asso-
citation, sponsored by District Post,
American Veterans of World War
II, and the Cooperative Association
of Naylor Gardens Residents Asso-
citation, were largely acceptable"
Only two things stand between
cooperative purchase of the 750-
apartment Naylor Gardens develop
ment, it was said First, an arrange
ment must be made through which
occupancy rights of present tenants
will be protected. Second, the two
groups, either through merger or
otherwise, must set up "the kind of
cooperative organization acceptable
to the Government so that its inter
ests will be protected.
Discussions will be opened very
soon" with the two groups in an
effort to bring about an agreement
to meet Government conditions, 1t
was said.
The DHC board directed that
some offers on Mclean Gardens,
Meridian Hill Hotel, Lucy Diggs
Stowe Hall and George Washington
Carvel Hall be held open pending
further negotiation with bidders and
discussion with the Reconstruction
Finance Corp, which holds mort
cages on the properties.
In case RFC approves offers for
those four properties, the bids will
be submitted to the Surplus Prop
erty Administration for review to
determine whether regulations gov
erning the sale are complied with.
The regulation provides that the
properties be sold at "the best price
obtainable and not less than cur
rent market value"
The board also acted to formalize
three conditions of sale for all six
properties, as follows:
/. All purchase contracts shall
provide preference to veterans and
servicemen's families to all vacancies
as they occur, for a period of four
years, or for the duration Of the war
emergency, If that is longer.
2. All purchase contracts shall call
for continued undisturbed occupancy
by present tenants, so long as they
comply with tenancy rules.
8. Purchasers shall be required to
agree not to raise rents for three
years, or during the period of rent
control, if that is longer, without
DIG approval.
50 Bids Considered.
With the exception of the two
cooperative groups, bidders names
were not disclosed.
DIG would not say how many
bidders are still in the running, al
though a spokesman Indicated the
number was small.
Originally, 80 bids for all six prop
critics were filed. Forty were re-
jected almost Immediately, after the
deadline for submission of bids in
early January had passed. At yes
terday's meeting, SO bids from %
separate bidders were taken up.
Wilson w. Wyatt, new national
housing administrator, took his
place on the DIG board yesterday
as ex-off1cio member. Under the
$40, 900, 600 Maryland corporation
charter, he is the sole stakeholder.
The Veterans Cooperative Hous-
ing Association, formed nearly two
months ago. submitted bids on Nay
Tor Gardens and Mclean Gardens.
Ray Sawyer, District Post COM
r1ander of the American Veterans OF
World War II, said today his organ
ization would meet shortly and
schedule a conference with DIG
officials.
May Open Membership.
He said he saw no objection to adj
hitting nonveterans into the vet
Grams cooperative, provided there
would be fair representation for
veterans.
we would like, however, to know
how many Naylor Gardens resi-
dents would want to join before
reaching any decision" he said. The
veterans cooperative agrees COM
pletely" with the condition that
rights Of present occupants shall be
protected, he added, explaining this
was made clear in the veterans, bid.
He added he was disappointed at
DHC's rejection of the bid on Nc
Lean Gardens, and said the organi-
zation would appeal to the Surplus
Property Administration to insist
that Government housing be sold
pursuant to surplus property regula-
tions and not in accordance with
special orders, as in this case"
The American Veterans Commit
tee. veterans organization not to-