Evening star., 1946-03-07
kIutznick Asks
Congress Action
On DHC Sales
Says Agency Lacks
Authority to Give
Priority to Veterans

Priority to Veterans
Philip M. Klutznick, president of
the Defense Homes Corp, today put
up to Congress the question of
whether veteran organizations shall
be granted priority for the pur-
chase OF six surplus war housing
projects in the District.
The DHC president, who also is
commissioner of the Federal Public
housing Authority, told a House
committee additional legislation
would be needed if veterans are to
receive first opportunity to buy the
property.
1T is for Congress to determine
whether it desires to change the
present law" he said.
Reviews Controversies.
Testifying before the House Com.
mittee on Expenditures in the exec
utlve departments at his own re-
quest, Mr.. Klutznick reviewed the
controversy with veterans groups
which has beset the DHC since
shortly after it advertised the six
projects for sale last December. He
pointed out that DHC's hands have
been tied in disposal of the prop
critics.
Since veterans are granted no
priority, they cannot buy it (the
properties on a noncompetitive
basis or at a price concession be-
low other bidders" he pointed out.
Asked by Chairman Manasco of
the committee whether he had any
suggestion as to amendment of the
law, Mr.. Klutznick responded he
had no wish to "usurp the function"
of Congress, but that wed be
much more happy If we had one
set OF rules under which to dispose
of war housing"
He added that rules set up for
disposal of Lanham Act housing
would be suitable for disposal Of
DHC properties.
Got 11-Million Bid.
During the course of his testi.
many, Mr. Klutznick revealed that
the highest bid received for Nc
Lean Gardens was $11,250, 900, in
contrast to bid of 100000 re-
ceived from the Veterans Co-opera-
tive Housing Association.
The DHC head defended the
agency's rejection of a bid by the
Veterans Cooperative Housing As
sociation for the purchase of Nc
Lean Gardens as having been re-
quired by law because the bid was
substantially less than other offers
as well as being less than the Gov
ernment's investment" in the prop
erty.
The rejection was not an ar.
bltrary action" he continued, but
was made in conformance with the
law. The DIG had no authority
either to grant the veterans CO.
operative price discount or to sell
the project to them on a noncom-
petitive basis"
Outlines DHC Policies.
If the law is not changed. Mr..
Klutznick said, DIG will continue
its present policies Ito protect the
interest of veterans to the full ex-
tent that the law permits" He OUT
lined these policies as follows:
l. veterans, servicemen and their
families receive top preference" to
all vacancies as they occur.
2. All bidders have been notified
that amy purchaser would be re-
qulred to continue this top prefer
ence for at least four years"
The veterans preference policy
required of purchasers" he said.
lis in line with and a continu.
ance of the occupancy policy al.
ready applied by DIG in it's own
management of the property" He
said that as of the beginning of
last month, veterans and service
men constituted 87.5 per cent of
the occupants at darlington. 625
per cent at Mclean Gardens, 40 per
cent at Naylor Gardens and 48 per
cent at George Washington Carver
Hall and Lucy Diggs Slowe Hall
combined.
Will Sell in Sections.
Mr.. Klutznick indicated that
DHC would be willing to sell lOO-
unit sections of the 3,5OO-unit Fair.
lington project in nearby Virginia.
Under the present law, he said.
negotiations as to price and terms
for sale of sections could not 20
ahead until after the project was
readvertised and competitive bids
considered. He pointed out that
DHC now has under consideration"
the proposal of the Veterans Co.
operative Housing Association to
purchase a section of Fairlington.
Mr.. Klutznick pointed out that if
the present law is not changed.
DHC would prefer to dispose of
the property at the best price OBJ
talnable, as the law requires, but
subject to conditions that would as
sure continued availability of the
housing for veterans at reasonable
rents"