Greenbelt News Review

FHA Stymies Johnson-Crooks Deal;

High Taxes Here Given As Reason

By Russell Greenbaum

Negotiations with the Johnson-Crooks Company, the West Coast builders who have been planning to develop most of Greenbelt's vacant land, were suddenly terminated last week during the final stages when the Federal Housing Administration refused to underwrite mortgages on the type of homes the building firm was planning to construct. This action was reported to the Greenbelt Veteran Housing Corporation board of directors by Director Elliot Bukzin on Friday, September 24.

Bukzin, recently appointed to the board, is president of the Greenbelt Land Improvement Corporation (GLIC), which is the GVHC subsidiary that controls the vacant land and has been conducting the negotiations with Johnson-Crooks. He revealed to the board that the FHA mortgage approval was the last important hurdle to be overcome prior to concluding the contract. FHA, however, felt that Greenbelt's taxes were too high and that the Johnson-Crooks homes would therefore not be salable.

Both Johnson and Crooks had come to Washington prepared to close the deal but were stymied because of FHA's refusal to make firm commitments on their homes. Without FHA approval, no deal was possible, and all negotiations ended. Two FHA representatives who personally visited Greenbelt last week felt that the town had definite possibilities as a growing community, but it was pointed out that in only one other comparable nearby area (Falls Church, Va.) are the taxes higher than Greenbelt.

Mayor Frank Lastner, who is also a GVHC director, told the board that he was already preparing a recommendation to the city council that taxes be reduced next year. He was not ready to reveal further details but asserted that he would urge strongly that such reductions be made.

GVHC and GLIC directors were scheduled to meet with FHA this week primarily concerning mortgage approval of the Ridgewood Cooperative Homes, but it was also hoped to obtain some softening of FHA's attitude with regard to the approval of future building projects that might be planned.