Evening star., 1949-03-19
Greenbe|t Citizens
Back liberaIized Law
For Sale Of Community

yesterday lndorSed legislation per-
mlttlng the Public Housing Ad-
mlnlstration to negotiate the
sale of that community and two
others like it with preference So
ing to co-operatives dominated
by veterans.
Town Manager Charles T.
Mcdonald told the House Bank
ing and Currency Committee that
citizens in the suburban reset
tlement project want the law lib
eralized so the PHA will not
have to sell the community to
private interests in competitive
bidding.
Similar views were expressed
by Representative Sasscer, Demo-
crat. of Maryland, in whose dis
trlct the community is situated.
He said it would be unconscion-
able" for the Government to sell
the developments to private COM
panies.
Existing law requires the PHA
to dispose of Greenbelt, a COM
munity in Wisconsin known as
Greendale, and one near Gin
clnnati known as Greenhllls. All
were built in the mid-193Os with
WPA labor.
Favorable Action Urged.
Senator Mccarthy, Republi-
can, of Wisconsin, who is spon-
soring similar legislation in the
Senate with Senator O'Conor,
Democrat. Of Maryland, urged
favorable action by the House
committee.
He and Commissioner John
Egan of PHA emphasized that
authority for negotiation, rather
than competitive bidding. would
materially speed disposition of
the Greendale project. They re-
ported that a veterans Coop
erative is prepared to purchase
that development at once with
financial help from Milwaukee
and the State of Wisconsin.
Plans for co-operatives in
Maryland and Ohio are not so
far advanced, witnesses said, but
one spokesmen said the Maryland
community is working on ar
rangements.
Lawrence Westbrook of the
Trans-American Development
Corp, said his firm had been re-
tanned by the Greenbelt Mutual
Home Ownership Corp, to make
plans for development. He said
1859 of 1900 families were rep
resented by the membership of
the latter organization.
All witnesses and several COM
mittee members emphasized that
there should be ample assurance
to non-veteran families now oc-
cupying houses in the three COM
munities that they would be pro-
tected against eviction. Prefer
ential consideration for veterans
was asked only in the purchase.
Provisions of House Bill.
AS. the House bill stands, the
PHA would give first preference
in negotiated sales to "co-opera-
tive or mutuel corporations or
other nonprofit organizations, in
Guiding veteran and nonveteran
members or where shares of
stock are held by veterans and
or veteran organizations. Sale
at fair market value" would be
required.
Chairman Spence of Kentucky.
and other committee members
brought out that the Government
now subsidies the communities
by annual payments for schools
and other activities. In the case
of Greenbelt, the sum during the
current year is $175,000.
Residents of the towns pay
rentals but no taxes. If and when
the property is sold, the Govern
ment subsidies will cease and the
residents will begin paying taxes
for community services.
The Greenbelt project is car
ried on Government books at
$17,903,O 900. Monroney, Democrat,
of Oklahoma, said this figure
would not represent the fair
market value, which would be
determined by appraisers for the
PHA.
Maxwell H. Elliott, commander
of American Legion Post 1T,
Fairfax, Va, said that while the
Government should lose no money
on the sales, it should not at
tempt to make a profit. He urged
passage of the bill with an
amendment to specify liberal
terms for co-operatives purchas-
ing them.