B-152603, DECEMBER 5, 1963, 43 COMP. GEN. 485

B-152603, DECEMBER 5, 1963, 43 COMP. GEN. 485

CONGRESS - BUILDING PROGRAMS - ACQUISITION OF REAL PROPERTY - REIMBURSEMENT THE ACQUISITION BY THE HOUSE OFFICE BUILDING COMMISSION OF REAL PROPERTY OWNED BY THE DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY BY TRANSFER TO THE ARCHITECT OF THE CAPITOL IS WITHIN THE AUTHORITY OF SECTION 1202 (A) OF THE ADDITIONAL HOUSE OFFICE BUILDING ACT OF 1955 (40 U.S.C. 175 NOTE), PROVIDING FOR THE TRANSFER OF REAL PROPERTY OWNED BY THE UNITED STATES IN THE VICINITY OF THE CAPITOL GROUNDS WITHOUT REIMBURSEMENT OR TRANSFER OF FUNDS, THE SQUARE OF LAND INVOLVED FALLING WITHIN THE TERM "REAL PROPERTY OWNED BY THE UNITED STATES" AS USED IN THE 1955 ACT, THE LAND AGENCY BEING VIEWED AS A FEDERAL AGENCY, EVEN THOUGH ACQUIRING PROPERTY IN ITS OWN NAME, THE ACT OF MARCH 1, 1929, AUTHORIZING THE AGENCY TO CONDEMN PROPERTY IN ACCORDANCE WITH THE PROCEEDINGS GOVERNING THE ACQUISITION OF LAND IN THE DISTRICT OF COLUMBIA FOR USE BY THE FEDERAL GOVERNMENT; HOWEVER, AS A RESULT OF THE TRANSFER, IT WILL BE NECESSARY TO REPLACE THE FUNDS OBTAINED PURSUANT TO A LOAN AND GRANT CONTRACT BETWEEN THE LAND AGENCY AND THE HOUSING AND HOME FINANCE AGENCY FOR THE ORIGINAL ACQUISITION OF THE PROPERTY.

TO THE ARCHITECT OF THE CAPITOL, DECEMBER 5, 1963:

BY LETTER OF SEPTEMBER 30, 1963, WITH ENCLOSURES, YOU REQUESTED OUR OPINION REGARDING THE MATTER OF THE HOUSE OFFICE BUILDING COMMISSION DESIRING TO ACQUIRE, THROUGH TRANSFER WITHOUT REIMBURSEMENT OR TRANSFER OF FUNDS, PROPERTY DESCRIBED AS SQUARE 639, WHICH IS NOW OWNED BY THE DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY.

SECTION 1202 (A) OF THE ADDITIONAL HOUSE OFFICE BUILDING ACT OF 1955, APPROVED APRIL 22, 1955, CHAPTER XII A, 69 STAT. 41, 40 U.S.C. 175 NOTE, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

SEC. 1202. (A) THE ARCHITECT OF THE CAPITOL IS AUTHORIZED TO ACQUIRE ON BEHALF OF THE UNITED STATES BY PURCHASE, CONDEMNATION, TRANSFER, OR OTHERWISE, SUCH PUBLICLY OR PRIVATELY OWNED REAL PROPERTY IN THE DISTRICT OF COLUMBIA (INCLUDING STREETS, AVENUES, ROADS, HIGHWAYS, ALLEYS, OR PARTS THEREOF) LOCATED SOUTH OF INDEPENDENCE AVENUE IN THE VICINITY OF THE UNITED STATES CAPITOL GROUNDS AS MAY BE APPROVED BY THE HOUSE OFFICE BUILDING COMMISSION FOR THE PURPOSES OF SECTION 1201 OF THIS CHAPTER OR FOR ADDITIONS TO THE UNITED STATES CAPITOL GROUNDS. * * * ANY REAL PROPERTY OWNED BY THE UNITED STATES AND LOCATED SOUTH OF INDEPENDENCE AVENUE IN THE VICINITY OF THE CAPITOL GROUNDS SHALL UPON REQUEST OF THE ARCHITECT OF THE CAPITOL, MADE WITH THE APPROVAL OF THE HOUSE OFFICE BUILDING COMMISSION, BE TRANSFERRED TO THE JURISDICTION AND CONTROL OF THE ARCHITECT OF THE CAPITOL WITHOUT REIMBURSEMENT OR TRANSFER OF FUNDS. * *

THE QUESTION PRESENTED FOR OUR CONSIDERATION IS WHETHER SQUARE 639, WHICH IS OWNED BY THE DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY (HEREINAFTER CALLED THE AGENCY), IS REAL PROPERTY OWNED BY THE UNITED STATES AND SUBJECT TO TRANSFER BY THE AGENCY TO THE ARCHITECT OF THE CAPITOL WITHOUT REIMBURSEMENT PURSUANT TO THE PROVISIONS OF SECTION 1202 (A), OF THE ADDITIONAL HOUSE OFFICE BUILDING ACT OF 1955, QUOTED ABOVE.

THE DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1945, 60 STAT. 790, D.C. CODE, SECTIONS 5-701 TO 5-719, ESTABLISHED THE AGENCY AS A BODY CORPORATE OF PERPETUAL DURATION TO ACHIEVE THE DECLARED POLICY OF THE UNITED STATES, THE ELIMINATION OF BLIGHTED AREAS IN THE DISTRICT OF COLUMBIA. IN THE JUDGMENT OF THE CONGRESS IT WAS NECESSARY TO ACQUIRE PROPERTY IN THE DISTRICT OF COLUMBIA TO EFFECTUATE THAT POLICY AND, THE ACT GRANTS THE AGENCY POWER TO ACQUIRE PROPERTY BY PURCHASE, EXCHANGE, GIFT, DEDICATION OR EMINENT DOMAIN. THE PROPERTY THUS ACQUIRED IS TO BE TAKEN IN THE NAME OF THE AGENCY; HOWEVER, THE ACT PROVIDES THAT CONDEMNATION PROCEEDINGS OF THE AGENCY TO ACQUIRE PROPERTY SHALL BE CONDUCTED IN ACCORDANCE WITH THE ACT OF MARCH 1, 1929, CH. 416, 45 STAT. 1415, AS AMENDED, WHICH GOVERNS CONDEMNATION PROCEEDINGS TO ACQUIRE LAND IN THE DISTRICT OF COLUMBIA FOR USE BY THE FEDERAL GOVERNMENT.

IN 40 COMP. GEN. 605, 606, WE STATED, IN EFFECT, THAT BUT FOR SECTION 13 OF THE DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1945, 5 D.C. CODE 713 (WHICH PROVIDES THAT NO PROPERTY ACQUIRED BY THE AGENCY SHALL BE EXEMPT FROM TAXATION BY REASON OF SUCH ACQUISITION), THE AGENCY, WHETHER IT BE CONSIDERED A FEDERAL OR DISTRICT OF COLUMBIA AGENCY, WOULD BE ENTITLED TO TAX EXEMPTION UNDER SUBSECTIONS OF 801A (A) AND (B) OF TITLE 47 OF THE D.C. CODE FOR PROPERTY HELD BY IT. THOSE SUBSECTIONS PROVIDE THAT PROPERTY BELONGING TO THE UNITED STATES AND THE DISTRICT OF COLUMBIA SHALL BE EXEMPT FROM TAXATION IN THE DISTRICT OF COLUMBIA. THE AGENCY "IN SPITE OF ITS NAME AND LIMITED AREA OF OPERATION" HAS JUDICIALLY BEEN HELD TO BE A FEDERAL AGENCY AS DISTINGUISHED FROM A DISTRICT OF COLUMBIA AGENCY FOR PURPOSES OF THE FEDERAL TORT CLAIMS ACT, 28 U.S.C. 2671, ET SEQ., GODDARD V. DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY, 287 F.2D 343 (1961). WE SEE NO REASON WHY A SIMILAR VIEW OF THE AGENCY'S STATUS SHOULD NOT BE ADOPTED IN THE PRESENT CONTEXT. THEREFORE, IT IS OUR VIEW THAT SQUARE 639 FALLS WITHIN THE TERM "REAL PROPERTY OWNED BY THE UNITED STATES" AS USED IN THE ADDITIONAL HOUSE OFFICE BUILDING ACT OF 1955.

IT IS NOTED THAT THE GENERAL COUNSEL OF THE AGENCY IN A MEMORANDUM DATED DECEMBER 7, 1956, TO THE THEN EXECUTIVE DIRECTOR OF THE AGENCY STATED, IN EFFECT, THAT IN HIS OPINION EVEN THOUGH TECHNICALLY THE AGENCY MUST ACQUIRE TITLE TO PROPERTY IN ITS OWN NAME, NEVERTHELESS SUCH PROPERTY IS CONSIDERED TO BE OWNED BY THE UNITED STATES WITHIN THE MEANING OF THE ADDITIONAL HOUSE OFFICE BUILDING ACT OF 1955.

IN VIEW OF THE FOREGOING, WE ARE OF THE OPINION THAT SECTION 1202 (A) OF THE CITED ACT REQUIRES THAT SQUARE 639 SHALL, UPON THE REQUEST OF THE ARCHITECT OF THE CAPITOL MADE WITH THE APPROVAL OF THE HOUSE OFFICE BUILDING COMMISSION, BE TRANSFERRED BY THE DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY TO THE JURISDICTION AND CONTROL OF THE ARCHITECT WITHOUT REIMBURSEMENT OR TRANSFER OF FUNDS.

IT IS NOTED THAT SQUARE 639 WAS ACQUIRED BY THE AGENCY IN CONNECTION WITH THE SOUTHWEST URBAN RENEWAL PROJECT C. THE AGENCY OBTAINED FUNDS TO FINANCE THE ACQUISITION OF PROPERTY IN PROJECT AREA C FROM THE HOUSING AND HOME FINANCE AGENCY (HHFA) PURSUANT TO A LOAN AND GRANT CONTRACT BETWEEN THE AGENCY AND HHFA. SINCE THE ACQUISITION OF SQUARE 639 BY THE ARCHITECT OF THE CAPITOL IN THE AFOREMENTIONED MANNER WILL INCREASE THE NET PROJECT COST, IT APPARENTLY WILL BE NECESSARY TO AMEND THE AGENCY'S CONTRACT WITH HHFA TO OBTAIN ADDITIONAL FUNDS FROM HHFA.

A COPY OF THIS LETTER IS BEING SENT TO THE CHAIRMAN OF THE DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY.