Evening star., 1954-04-01
Leuse-Purchuse
Continued From First Page

could underwrite the conStruc-
ton of new, critically needed
Federal buildings and pay for
them in rent in Is to 25 years.
For the first time, the Govern
ment would have a Federal
housing administration plan of
it's own.
Authority to purchase prop
erty through long-term leases
was first requested of Congress
in 1851.
"The novel proposal was one
of many legislative recommended
tions which GSA lays before
Congress every year for improve
ment in Government housekeep-
ing.
Various. similar bills were
thereafter introduced in wide
spread recognition of the pro-
posal's obvious merit as sure
fire means of economically cop
ing with acute. harassing and pc
rennial space problems which
have grown up in the absence
of Federal construction pro-
gram.
= '"The last such program was
undertaken prior to World War
II, and it's counterpart today
would require sizeable appropri-
ations. Their size may be meas
ured against the fact that the
cost of all eligible public build
ing construction projects outside
the District of Columbia is esti-
mated in excess of 1925 billion.
I'm spite of the number of
lease-purchase bills, there has
been increasing agreement on
the provisions essential to meet
the needs of GSA and the Post
Office Department, originally
treated in separate bills.
due to broad nonpartisan
support of leaSe-purchase legis-
lation, further affirmative action
is likely shortly in Congress.
Provides New Methods.
"Basically, 1ease-purchase leg
islation would add a third
method to the two traditional
means by which the Federal
Government has satisfied it's re-
quirements in building space.
The first. of course, is by con-
struction.
THE second is by rentals un-
der leases written for not more
than one year in the District of
Columbia and not more than
five years elsewhere.
LeaSe-purchaSe agreements
would be written for longer
terms, and the payments would
amortize the construction costs.
Title would come to the Govern
ment at the end of the payment
period. In the meantime, the
would remain on local
tax rolls.
"As the original advocate,
GSA has pointed out to inter-
eSted Congressional committees
the legislation's many ad-
vantages-for the Government,
for the construction industry,
for investors, and for local COM
munities.
Will Use Powers Sparingly.
While the legislation is so
written that existing buildings
could be acquired in the same
manner, GSA has advised Con-
gress that it would use the
authority sparingly for this pur-
pose. There are examples, of
course. where long, uninterrupted
Government tenancy has paid in
rent two or three times the
original building cost.
For the Government the
main advantage would lie in the
authority to satisfy critical,
continuing space needs without
large initial outlays of capital
for construction. The buildings
would be designed, of course, for
Government use.
Builders and investors, at the
same time, would find in the re-
sulting agreements attractive
opportunities for safe investment
in public construction. In addi-
ton to reasonable intervals, up
to 25 years, to adjust tax bases,
communities would have inviting
chances to replace outmoded,
small and congested post Offices
and convert blighted areas into
new Federal centers with private
funds"