Evening star., 1946-12-31
Veterans Home
Plan Still Lacks
Finance Details
Association Seeks
To Develop 500-Acre
Tract Near District


A glowing picture of homes fol
veterans springing up all over q
b00-acre tract half a mile over the
District line was painted for re-
porters yesterday by District fire
captain.
Today, several overnmen
agencies had searched their files
without finding any of the COM
mitments the fire captain, Leo B
Wilson, said had been made, and
Capt. Wilson was ready to admit
the financing arrangements weren't
exactly settled yet.
Capt. Wilson told reporters at q
press conference yesterday that the
Veterans Mutual Housing Associa-
ton, which he heads, plans to
build $4,000 homes just off South
Capitol street in nearby Maryland
at an average cost of $4,000, by saw
ing developers, builders and sales
mems profits.
Capt. Wilson said his association
wanted to start with 225 share
holders to develop the first 40 acres
of a 500-acre tract, which ultimately
would house 1000 veterans and their
families. The share holders, he said,
would be veterans who would put
in $500 for a choice of home site
and share in any profits from
commercial Development of the land.
The share would not constitute a
down payment on home.
S1,O0O,000 for Site.
With the fire captain at the press
conference was Fulton r. Gordon,
who owns the 500-acre tract, for
which the association has agreed
to pay more than $1,000,000. The
press conference was held in the
Office of Leo M. Bernstein, the real
estate man whose office was agent
for the sale.
Capt. Wilson said 100000 would
be given to Mr. Gordon on the day
of settlement, January 26. The vet
erans' shares" Mr. Wilson ex-
planned, will pay the 100000.
Capt. Wilson said at the press
conference that the Reconstruction
Finance Corp. would finance a de-
velopment loan on the basis of Fed
eral Housing Administration ap-
praisal of the lots and would take
a chattel mortage on a loan for
bulldozers, trucks and similar equip
ment.
CA spokesman for the RFC told
The Star that neither Capt.
Wilson nor his association had
filed an application for loan
and that no commitment had
been made The RFC official
said the only record of Capt.
Wilson at the RFC was in the
examining division, where Capt.
Wilson was told the association
appeared to be non-proflt and
therefore would not be eligible
for a business loan.
(When The Star called Capt.
Wilson back, he said the only
commitment" he has from RFC
Is what RFC would require in the
way of information before max
ing a loan. AS for the question
of profits, Capt. Wilson said the
bylaws of the association had
been changed to provide for dis
posal of prof1ts)
$500 Leeway for Interest
The fire captain also told the press
conference that the FILA has given
an appraisal of 81 $50 on each of the
proposed lots. Since the lots, COM
plete with streets, sewers and water,
would cost $3.50, Capt. Wilson added,
the FHA appraisal gives leeway
of $500 which could be used to pay
interest on the construction loan.
CA spokesman for the District
Office, Federal Housing Admins
tration, said FILA had made no
promises or commitments in con-
nection with the project. The
construction branch of the Ma
tional Housing Agency said its
representatives had visited the
site in connection with giving
general advice to builders on
methods of getting into opera
ton, but had made no commit
ments and no mortgage insurance
application had been received.
con a call back, Capt. Wilson
said he had gotten an appraisal
of $3.50 from man in the ma
tional office whose name he
wasn't sure of but he didn't have
anything in writing. He said he
had an "oral contract.")
Commitment Reported.
Capt. Wilson also reported at
the press conference that he had
gotten a commitment from the
Perpetual Building Association
for construction loans.
Edward G. Baltz of Perpetual
told The Star that so far nothing
concrete had been presented to
Perpetual, that his organization
was interested in all projects, but
had made no commitments since
it had not yet seen the plans and
specifications.
(Called back, Capt. Wilson said
he had gotten assurance from
Mr.. Baltz that Perpetual would
finance construction if the Vet
Grams Administration approves.
(The Veterans Administration
told The Star it had not yet been
approached by Capt. Wilson or
his association)
At the press conference, Capt.
Wilson told reporters:
1.-The starting date is February l.
Well get the sawmin and woodmen
on the land Well start digging by
February Is. We will reach peak
production OF a home a day eight
months after we start"
(Called back after The Star
had checked with all the agencies
he mentioned, Capt. Wilson said
the terms of the contract with
Mr.. Gordon are based on procur-
ing an RFC loan. If no develop
ment loan from RFC is forth
coming. he said. the deal is void,