A-64822, DECEMBER 3, 1935, 15 COMP. GEN. 465

A-64822: Dec 3, 1935

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REAL PROPERTY - DISPOSITION OF FACTORY BUILDING - RESETTLEMENT ADMINISTRATION OBJECTION IS NOT REQUIRED TO THE SALE BY THE RESETTLEMENT ADMINISTRATION OF THE GOVERNMENT'S INTEREST IN A FACTORY TYPE BUILDING ERECTED WITH FEDERAL FUNDS WITHOUT AUTHORITY OF LAW ON A FEDERAL PROJECT. IF THE SALE WILL RESULT IN THE FURTHERANCE OF AN APPROVED PROJECT INVOLVING RURAL REHABILITATION OR RELIEF IN A STRICKEN AGRICULTURAL AREA. AS FOLLOWS: RECEIPT IS HEREWITH ACKNOWLEDGED OF YOUR OPINION NO. WEST VIRGINIA) WAS CONSTRUCTED UPON LANDS. THE TITLE TO WHICH IS VESTED IN THE UNITED STATES. THAT BUILDING WAS CONSTRUCTED ON LANDS THE TITLE TO WHICH IS VESTED IN THE UNITED STATES BY DEED EXECUTED FEBRUARY 5.

A-64822, DECEMBER 3, 1935, 15 COMP. GEN. 465

REAL PROPERTY - DISPOSITION OF FACTORY BUILDING - RESETTLEMENT ADMINISTRATION OBJECTION IS NOT REQUIRED TO THE SALE BY THE RESETTLEMENT ADMINISTRATION OF THE GOVERNMENT'S INTEREST IN A FACTORY TYPE BUILDING ERECTED WITH FEDERAL FUNDS WITHOUT AUTHORITY OF LAW ON A FEDERAL PROJECT, TO A NONSTOCK CORPORATION COMPOSED OF PERSONS WHO OCCUPY HOMES ON THE PROJECT, IF THE SALE WILL RESULT IN THE FURTHERANCE OF AN APPROVED PROJECT INVOLVING RURAL REHABILITATION OR RELIEF IN A STRICKEN AGRICULTURAL AREA, AND CAN BE EFFECTED AT A PRICE NOT LESS THAN THE REASONABLE VALUE OF THE GOVERNMENT'S INTEREST, BUT, IF THE PROPERTY CANNOT BE SO DISPOSED OF, PROCEDURE SHOULD BE IN ACCORDANCE WITH THE ACT OF AUGUST 27, 1935, 49 STAT. 885, PROVIDING FOR THE DISPOSITION OF SURPLUS REAL PROPERTY.

COMPTROLLER GENERAL MCCARL TO THE ADMINISTRATOR, RESETTLEMENT ADMINISTRATION, DECEMBER 3, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF OCTOBER 22, 1935, AS FOLLOWS:

RECEIPT IS HEREWITH ACKNOWLEDGED OF YOUR OPINION NO. A-64822 OF OCTOBER 10, 1935, IN WHICH YOU STATE THAT "IF THE BUILDING IN QUESTION (A FACTORY TYPE BUILDING ON THE PROJECT LOCATED NEAR REEDSVILLE, WEST VIRGINIA) WAS CONSTRUCTED UPON LANDS, THE TITLE TO WHICH IS VESTED IN THE UNITED STATES, IT WOULD SEEM THAT THE UNITED STATES HAS, AT LEAST, SOME INTEREST THEREIN" (PARENTHESIS OURS).

THAT BUILDING WAS CONSTRUCTED ON LANDS THE TITLE TO WHICH IS VESTED IN THE UNITED STATES BY DEED EXECUTED FEBRUARY 5, 1935, AND RECORDED MARCH 4, 1935.

IT IS PROPOSED TO SELL OR GRANT SUCH INTEREST AS THE UNITED STATES MAY HAVE IN THAT BUILDING TO A NONSTOCK CORPORATION ORGANIZED UNDER THE LAWS OF WEST VIRGINIA, WHOSE MEMBERS SHALL BE COMPOSED OF PERSONS WHO OCCUPY HOMES LOCATED ON THE PROJECT. PRIOR TO THAT TRANSFER THE APPROPRIATE ADMINISTRATIVE DETERMINATION WILL BE MADE THAT SUCH CORPORATION IS A BONA- FIDE GROUP AGENCY WITHIN THE MEANING OF EXECUTIVE ORDER NO. 7143 OF AUGUST 19, 1935, THAT THE SALE OR GRANT IS NECESSARY FOR THE ADMINISTRATION OF AN APPROVED PROJECT INVOLVING RURAL REHABILITATION OR RELIEF IN STRICKEN AGRICULTURAL AREAS AND SUCH OTHER ADMINISTRATIVE DETERMINATIONS AS ARE REQUIRED BY SAID EXECUTIVE ORDER. THE INSTRUMENT TRANSFERRING TITLE WILL CONTAIN SUCH CONDITIONS AS MAY BE REQUIRED BY THAT EXECUTIVE ORDER.

YOUR OPINION IS ACCORDINGLY REQUESTED AS TO WHETHER THE PROPOSED ACTION MAY BE PROPERLY TAKEN BY THIS ADMINISTRATION.

INASMUCH AS IMPORTANT ADMINISTRATIVE ACTION AWAITS YOUR OPINION, AN EARLY RESPONSE WOULD BE APPRECIATED.

AS YOU WERE ADVISED IN MY DECISION OF SEPTEMBER 11, 1935, THERE WAS NO AUTHORITY OF LAW FOR THE CONSTRUCTION OF THE FACTORY BUILDING IN QUESTION ON FEDERAL LANDS AND WITH THE USE OF FEDERAL FUNDS, AND THE LAND ON WHICH THE BUILDING WAS CONSTRUCTED WAS NOT ACQUIRED IN CARRYING OUT THE PROVISIONS OF THE ACT OF APRIL 8, 1935, BUT WAS TRANSFERRED TO YOUR ADMINISTRATION BY EXECUTIVE ORDER NO. 7041 OF MAY 15, 1935, AND YOU WERE ADVISED BY DECISION OF JUNE 3, 1935, A-61714, THAT LANDS SO ACQUIRED "MAY BE USED IN CONNECTION WITH RESETTLEMENT PROJECTS AUTHORIZED UNDER THE PROVISIONS OF" THE ACT OF APRIL 8, 1935.

IN VIEW OF ALL THE CIRCUMSTANCES APPEARING, IF THE PROPOSED SALE OF GOVERNMENT'S INTEREST IN THE PROPERTY TO THE CORPORATION REFERRED TO IN YOUR LETTER WILL RESULT IN THE PROPERTY BEING USED IN CONNECTION WITH AND IN FURTHERANCE OF AN APPROVED PROJECT INVOLVING RURAL REHABILITATION OR RELIEF IN A STRICKEN AGRICULTURAL AREA, AND THE SALE CAN BE EFFECTED AT A PRICE NOT LESS THAN THE REASONABLE VALUE OF THE GOVERNMENT'S INTEREST IN THE PROPERTY, THE PROCEEDS OF THE SALE TO BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, THIS OFFICE IS NOT REQUIRED TO OBJECT THERETO; BUT IF THE PROPERTY CANNOT BE SO DISPOSED OF, IT WOULD APPEAR TO BE FOR DISPOSITION IN ACCORDANCE WITH THE PROVISIONS OF THE ACT OF AUGUST 27, 1935 (49 STAT. 885).