Evening star., 1952-07-17
10 Hold
Final Hearing on
VA Housing
Home Prices Jumped
After Approisuts,
Committee Finds

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A special House committee will
nold one more hearing this week.
to continue its probe into activities
of the Veterans Administrations
area housing Office.
with emphasis on price increases
the VA officials allowed.
A lengthy session yesterday
brought out that the VA officials
often jumped the price Of houses,
after panels of appraisers. made
up OF local real estate men, had
set what they considered reason
able prices. The date of the next
hearing has not been set yet.
Real estate men questioned
about their thoughts on this VA
practice were William w. NOLAN,
927 Fifteenth street NV; Peter j.
Hagan, 1906 Rhode Island avenue
NE. and James A. Carroll, Shore
ham Building. The three are.
among those who do appraisal
work for the VA on free basis.
Not Advised of Changes.
Mr.. NOLAN said he had not been
advised of the changes made In,
his appraisals of home values. Hell
added that he had learned of some
OF them. however.
He said the changes apparently,
followed a builder going to the VA
and putting up loud squawk. Hel
added, "Idon't have any reason to|
oelieVe there was collusion. only
errors"
Chairman league, of Texas
asked Mr.. Nolan for suggestions
as to how the appraisal work of,
the VA could be improved.
Mr.. Nolan said the fees should
De raised first of all. He said that
at SIS an appraisal, a man must
cover lot of ground to make a
days wages. He said the VA
officials should have the power to
change the appraisers report
Within limits and under certain
conditions.
Couldn't Get Proper Staff. |
Mr.. NOLAN pointed out that,
during the past few years when
numbers of houses were being
purchased by veterans, the VA
didn't have the proper staff and
couldn't get a proper staff. This
LED to part of the trouble, hej
added.
Builders who didn't know any,
thing about building were hiringl
job superintendents who didn'tl
know anything about construc-
tlon." Mr.. Nolan said.
In addition, he continued. thu
veteran had poor attitude in
expecting that everything be done,
Tor him as it was in the Army.
The committee attempted to,
show a close relationship between
Joseph Kinsky. a real estate
broker with offices at 1910 ver-
mont avenue NV, and Morgan
B. Callahan. VA regional loan
guarantee officer.
Admits Friendship.
Mr.. Callahan admitted he was
friendly with Mr.. Kinsky, but he
pointed out that, as a native and
D man who has been in the real
estate business himself. he has
hundreds of friends in Washing-;
ton.
We know that" Mr.. Teaguet
SAID. But we find Mr.. Kinsky'
using your appraisers for ap-'
Of houses he was buying;
There was enough there that we
'elt we should look into It,"
Mr.. Callahan declared that his
affairs had been combed thorough
y by the committee and that he
S clear.
THAT is true" Mr.. league said.
You are all right as far as that
S concerned. Your financial deal
ngs are as clean as anybody's on
Earth can be. But what about the
Mr.. Callahan said his interest
always had been for the veterans
md the Government. Oliver
staff counsel, broke in
With:
The records show that prices
we're raised on Mr.. Kihsky's pro-
oerties with little or no iustifi-,
'ation. He was able to come in
IND get personal treatment at a
line when you were rushed. He
rot service in a day when other
'eople were waiting three to four
weeks"
Kinsky Defends Actions.
Mr.. Kinsky answered questions
IN some Of about 20 transactions
he committee had studied He
defended his actions and profits.
One case, for instance, involved
mouse in Cheverly, Md. This
'articular house was appraised at
1880 by Mr.. Carroll. Later the
ppraisal was changed by Stephen
'arker. former VA chief appraiser
0 $l9.950, and Mr.. Kinsky sold
ne house at a profit of some
$500.
Mr.. Carroll told the COMMITTEES
e felt his appraisal was a true
alue Of the house. He said that
ecause of the site, it might have
ost more to build than the builder
xpected but the costs did NOT
how in the value.
Mr.. Barker defended his change
the appraisal, saying the event.
al buyer got house at a rea.
'nable cost.
After the final committee ses-
on later this week, the staff will
egin work on a report and rec
lamentations for changes in the
gislation governing the VA hous-
70 program.