Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-05-21
Double Rent' Refund
In 2Weeks Pledged
Home Buyers
In S.W. Aided
By RIA Action


Three months rent paid by
owner-occupants Of about 40
dwelling units in Southwest
Washington will be refunded
within two weeks, the Redevel-
opment Land Agency ruled today.
In announcing the solution to
the double rent" liability in a
five-block area taken over jan
uary IL by RIA, the agency said
the amount to be refunded would
be about $4,000 to $4,000.
The RIA board today APP
proved a recommendation by
Malcolm A. Burrows, the agency's
acting director, that rent paid
from January II to April ii by
persons who had lived in homes
they formerly owned be waived.
The action was taken because
of the hardship involved in con-
nection with Southwest residents
who were required to pay rent
and at the same time had to
keep up mortgage payments on
the homes, pending final settle
ment Of the sale to RIA.
Tenants Status Unchanged
The RIA said no rent would
be- waived for those who had
been renting properties in the
five-block area before the RIA
took over. RIA officials pointed
out that in those cases there
actually had been no change in
status for the tenants. Where
they had previously been pay
ing rent to private landlords,
they now are merely continuing
to pay rent to RIA for the same
services.
The RIA board emphasized
that owner-occupants still must
pay rent dating from April IL
the date Of possession" by the
and agency.
Mr.. Burrows said his staff
will Immediately begin working
on a statement of policy" con-
corning methods for handling
future cases so that q similar
situation could be averted.
On January IL, RIA took title
Through Federal court action to
five blocks of Southwest prop
lerty-all i've to be the sites Of
future Federal Government
buildings. Involved were about
243 dwelling units.
Burden ON Buyers
Under terms Of q regulation
issued last September by the
Housing and Home Finance
Agency. officials said. they were
forced to begin charging rents
from all occupants as Of the
day title passed-January IL.
There were only isolated prob
lens, according to officials, in
the cases Of families who had
been renting previously. Instead
Of paying rent to a private
landloard, they paid RIA. In the
case Of owner-occupants, how
ever. families were expected to
lpay RIA rents while retaining
their liability to meet mortgage
payments.
1 Actually, RIA posted funds
with the court on January IL to
cover acquisition of the proper
ties. If the property owners had
been able to withdraw this money
from the court. they would have
been able to pay OF mortgages.
But title searches and other legal
preparations were not finished
to the point that money could
be withdrawn.
In previous RIA acquisitions
of property, the problem was
minimized by the fact that only
q small number Of owner-occu-
lpied homes was taken. In this
instance. between rs and 80 per
cent Of the properties were
owner-occupied.
In addition, HHFA regulations
requiring rent collection imme-
diately after possession Of title
were not as stringent as now.
Swift Action Is Factor
Further complicating the prob
lem was the speed with which
the RIA moved in this particu-
lar case. At the urging of Gov.
eminent Services Administra-
tiop, which wanted to get started
as soon as possible on Govern
ment building in the area, RIA
moved swiftly. In previous
cases. the land agency had been
able to negotiate privately with
owners before filing condemna-
ton proceedings.
In the Area B section Of
Southwest Redevelopment. for
example, RIA was able to buy SO
per cent Of the property begin
ming condemnation proceedings.
Thus far. officials said, about
half the rent potential" since
January IL has been collected.
This would mean that more
than half the rent actually due
had been collected, since some
OF the families have already