Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-02-22
Acquisition Methods Protested by Owners
continued Prom Flrst PAGE

GOutinucu FfOm ELrst Ehkc
raised its offer for the property
to S9.725.
The 62-year-old owner says
that when he protested that
this offer ignored the effect of
imitation on property values
and the worth Of improve
ments he had made. an RIA
negotiator replied:
You're just going TO have
to make up your mind that
you're going TO lose money on
this deal"
&. The owner rejected the
offer and the Government con-
.demned his home last summer.
He employed an appraiser,
who frequently works for the
RIA, to determine the fair
market value of his property.
The appraiser says it is worth
.$17,500; another appraiser says
1t is worth $4,000.
= "A Government historian
who wanted to live near his Of
flee in the Archives Building
paid $4,000 in 1851 for a two
story brick house not far from
the Mall.
i He has receipts, Cancelled
checks and expense records
demonstrating he spent more
than $4,000 remodeling 1t.
The RIA in November. 1857,
Offered him $17,500 for his
home.
I. After the historian pointed
out that he had invested more
than $4,000 in the property
within the previous five years,
the RIA raised its offer first to
$17,850 and finally to $18,350.
Each time it assured him that
the offer represented the fair
market value of his property.
He refused the offer and the
RIA took his home last June.
In doing so, it deposited
$16,500 and declared this was
just compensation.
The owner hired three we'll
known Washington appraisers,
one of whom regularly assesses
property for the RIA. This
appraiser says the property is
worth almost so per cent more
than the RIA said it was
worth. The other two declare
1t is worth so per cent more.
GA Government employee
purchased a house on Virginia
avenue S.W. for $15,870.23 late
In 1852.
Eventually she and her hus-
husband created an apartment
on the second floor, a studio
apartment in the attic and
transformed the first floor
where they live. Furnished,
the two apartments now pro-
duce a monthly rental of 1928.
The couple has receipts,
audited by a certified public
accountant, showing they spent
$28.87l,93 restoring the house.
After fruitless negotiations
between them and the RIA. the
Government condemned their
property last year. In doing
0, it said it was worth 1000. [
The couple asked an APP
= alser who also works for the
z LA to inspect their property.
says it is worth $4,000.
b . A man bought a two-story
%rlck row house on Virginia
avenue S,W. in November 1852
for $4,000. He paid $4,000 cash
and obtained a first trust :
mortgage of $1,000. /.
He says he is prepared to !
swear under oath that he made {
improvements on the house /
worth $500. He then rented
1t to an attorney who paid .
$85 monthly in rent.
The RIA in November 1857 ,
offered $4,000 for the property. ]
The owner complained that
this offer was $1,000 below {
what he paid for it and dis
regarded the value of improve
mentS. The RIA, however, in ;
sisted that $4,000 was just {
compensation.
When it condemned the s
property last year, it said that !
81 500 was just compensation '
for it
The Justice Department sub
Sequently invited the man to
negotiations in an effort to
settle the case out of court.
Both he and his lawyer say
that when negotiations began,
a Justice Department attorney
asked:
Now, just how much of your
investment are you willing to
lose in order to settle this
case?"
Both report the attorney
later asked if a settlement of
$l2,500 would be acceptable. {
Acquisition Procedure
The meaning of these cases !
and the RIA comment about q
them becomes more apparent e
with an understanding of how T
the Government acquires prop
erty needed for slum clearance. {
The RIA obtains at least two T
real estate appraiSals of each +
parcel of property it seeks.
These are made by qualified e
local appraisers working I'M j