B-149908, DECEMBER 12, 1962, 42 COMP. GEN. 304

B-149908, DECEMBER 12, 1962, 42 COMP. GEN. 304

DISTRICT OF COLUMBIA - REDEVELOPMENT PROJECTS LAND SALE - PROCEEDS DISPOSITION THE PROCEEDS REMAINING TO THE REDEVELOPMENT LAND AGENCY FROM THE SALE OF LAND ACQUIRED IN EXCHANGE UNDER 5 D.C. CODE 706 (A) FROM THE DEPARTMENT OF THE INTERIOR AFTER REPAYMENT OF A FUND ADVANCE FROM THE HOUSING AND HOME FINANCE AGENCY MADE PURSUANT TO 5 D.C. CODE 717A TO PURCHASE THE LAND EXCHANGED AND PAYMENT OF THE EXPENSES OF SALE AND THE OBLIGATIONS INCURRED UNDER THE SALES CONTRACT ARE NOT FOR DISPOSITION ACCORDING TO 5 D.C. CODE 17A (E), WHICH AUTHORIZES THE USE OF SALES PROCEEDS FOR REDEVELOPMENT PROJECTS, THE LAND SOLD NOT HAVING BEEN COVERED BY A PROJECT CONTRACT WITH HOUSING AND HOME FINANCE AGENCY, AND THE DISPOSITION OF THE PROCEEDS IS GOVERNED BY 5 D.C. CODE 715 (C), CONGRESS HAVING FAILED TO APPROPRIATE FUNDS FOR THE SPECIAL TRUST FUND CREATED BY THE SECTION, WHICH WAS TO BE SUBJECT TO ITS DIRECTIONS; THEREFORE, ALTHOUGH THE SALES PROCEEDS IN THE PROJECT TEMPORARY LOAN REPAYMENT FUND ARE NOT REQUIRED TO BE TRANSFERRED, THEY SHOULD BE MAINTAINED IN A RESERVE STATUS AND THE MATTER PRESENTED TO CONGRESS.

TO THE CHAIRMAN, DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY, DECEMBER 12, 1962:

BY LETTER OF SEPTEMBER 12, 1962, MR. PHIL A. DOYLE, EXECUTIVE DIRECTOR, REQUESTED OUR OPINION CONCERNING YOUR AGENCY'S AUTHORITY WITH RESPECT TO PROCEEDS FROM THE SALE OF CERTAIN PROJECT LAND IN SOUTHWEST REDEVELOPMENT PROJECT AREA B. THE PERTINENT FACTS IN THE MATTER MAY BE SUMMARIZED AS FOLLOWS:

THE BOUNDARIES AND APPROVED REDEVELOPMENT PLAN FOR PROJECT AREA B INCLUDE A SECTION OF LAND KNOWN AS THE RANDALL RECREATION CENTER, REFERRED TO AS NORTHERN RANDALL. ALL OPERATIONS OF THE REDEVELOPMENT LAND AGENCY INCLUDING PURCHASE OF THIS LAND, HAVE BEEN FINANCED WITH FUNDS MADE AVAILABLE UNDER TITLE I OF THE HOUSING ACT OF 1949, AS AMENDED, 42 U.S.C. 1451, ET SEQ., AS AUTHORIZED BY THE PROVISIONS OF 5 D.C. CODE 717A. ORDER TO REALIZE USE OF NORTHERN RANDALL AS RECREATION CENTER IT WAS NECESSARY TO TRANSFER IT TO THE DEPARTMENT OF THE INTERIOR. STATUTORY AUTHORITY EXISTS FOR MAKING SUCH TRANSFER FROM RLA TO THE DEPARTMENT OF THE INTERIOR ON A DONATION OR EXCHANGE BASIS (5 D.C. CODE 706 (A) ). HOWEVER, THE CONTRACT BETWEEN THE HOUSING AND HOME FINANCE AGENCY AND RLA, UNDER WHICH THE PROJECT IS FINANCED, PRECLUDED THE DISPOSAL OF PROJECT LAND WITHOUT APPROPRIATE CREDIT FOR AT LEAST ITS FAIR MARKET REUSE VALUE. THEREFORE, AND SINCE THE DEPARTMENT OF THE INTERIOR DID NOT HAVE FUNDS AVAILABLE FOR PURCHASE OF NORTHERN RANDALL, IT WAS NECESSARY TO DEVISE A MEANS FOR ACQUIRING FUNDS TO SATISFY THE HHFA CONTRACT CREDIT REQUIREMENT.

THE DEPARTMENT OF THE INTERIOR OWNED CERTAIN LAND WITHIN APPROVED PROJECT AREA B, REFERRED TO AS SOUTHERN RANDALL. ALTHOUGH THIS LAND WAS WITHIN PROJECT AREA B, IT WAS OMITTED FROM HHFA CONTRACT COVERING THE AREA, IN ORDER TO FREE IT FOR THE TRANSACTION HEREAFTER DESCRIBED.

THE DEPARTMENT OF THE INTERIOR IN 1956 TRANSFERRED SOUTHERN RANDALL TO RLA WITH THE UNDERSTANDING THAT AT AN APPROPRIATE TIME RLA WOULD TRANSFER NORTHERN RANDALL TO THE DEPARTMENT. RLA DESIGNATED SOUTHERN RANDALL, THE PROPERTY TRANSFERRED FROM INTERIOR, FOR COMMERCIAL USE AND SOLD IT FOR $452,717. OF THESE PROCEEDS, $139,823.22, AS THE FAIR MARKET REUSE VALUE OF NORTHERN RANDALL, WAS CREDITED AGAINST THE ADVANCES OBTAINED UNDER THE HHFA CONTRACT; AND NORTHERN RANDALL WAS DEEDED TO THE DEPARTMENT OF THE INTERIOR. RLA USED $7,190.11 OF THE PROCEEDS TO COVER THE EXPENSES OF SALE. THE BALANCE OF $305,703.67 HAS EARNED INTEREST OF $5,682.47 THROUGH JUNE 30, 1962, SO THAT RLA IS NOW HOLDING $311,386.14 PLUS INTEREST ACCRUED FROM JUNE 30. AGAINST THESE FUNDS, RLA HAS CONTRACTED FOR THE CONSTRUCTION OF STREETS BOUNDING THE LAND AREA SOLD AND FOR THE ERECTION OF A WROUGHT-IRON FENCE AT THE AMIDON SCHOOL IN SOUTHWEST PROJECT AREA C.

YOU PRESENT THE FOLLOWING QUESTION FOR OUR CONSIDERATION:

WAS THE AGENCY, ACTING UNDER THE PROCEDURE DISCUSSED ABOVE AND APPROVED BY THE PUBLIC BODIES INVOLVED, PRECLUDED BY THE PROVISIONS OF R.S. 3617 FROM DEPOSITING, IN THE PROJECT TEMPORARY LOAN REPAYMENT FUND FOR PROJECT AREA B (FUNDS ADVANCED BY THE URBAN RENEWAL ADMINISTRATION), AN AMOUNT EQUAL TO THE FAIR VALUE OF NORTHERN RANDALL, ACQUIRED WITH TITLE I FUNDS, FROM PROCEEDS OF THE SALE OF SOUTHERN RANDALL, WHICH WAS NOT ACQUIRED WITH TITLE I FUNDS?

IN ADDITION TO THE QUESTION THUS POSED, IT WOULD APPEAR NECESSARY TO CONSIDER THE AUTHORITIES RELATED TO DISPOSITION OF THE PROCEEDS FROM THE SALE OF SOUTHERN RANDALL NOT APPLIED AS A CREDIT FOR THE VALUE OF NORTHERN RANDALL.

SUBSECTIONS 5 (A) AND 7 (A) AND (B), OF THE DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1945, AS AMENDED, 5 D.C. CODE 704 (A); ID. 706 (A) AND (B), PROVIDE AS FOLLOWS, QUOTED FROM THE CODE:

SEC. 5-704. POWER TO ACQUIRE AND ASSEMBLE REAL PROPERTY.

(A) SUBJECT TO AND IN ACCORDANCE WITH THE PROCEDURES, CONDITIONS, AND OTHER PROVISIONS OF SECTIONS 5-701 TO 5-719, THE AGENCY IS HEREBY GRANTED THE POWER TO FURTHER THE REDEVELOPMENT OF BLIGHTED TERRITORY IN THE DISTRICT OF COLUMBIA AND THE PREVENTION, REDUCTION, OR ELIMINATION OF BLIGHTING FACTORS OR CAUSES OF BLIGHT AND FOR THAT PURPOSE TO ACQUIRE AND ASSEMBLE REAL PROPERTY BY PURCHASE, EXCHANGE, GIFT, DEDICATION, OR EMINENT DOMAIN, AND INCLUDING THE POWER TO RENT, MAINTAIN, MANAGE, OPERATE, REPAIR, CLEAR, TRANSFER, LEASE, AND SELL SUCH REAL PROPERTY, BUT EXCLUDING THE POWER TO BUILD NEW STRUCTURES THEREON (OTHER THAN THE IMPROVEMENTS MENTIONED IN SECTION 5-706 (I) OR THE POWER TO ENLARGE, EXTEND, OR MAKE MAJOR STRUCTURAL IMPROVEMENTS OF EXISTING BUILDINGS).

SEC. 5-706. TRANSFER, LEASE, OR SALE OF REAL PROPERTY IN PROJECT AREA FOR PUBLIC AND PRIVATE USE.

(A) AFTER ANY REAL PROPERTY IN THE PROJECT AREA SHALL HAVE BEEN ACQUIRED BY THE AGENCY, THE AGENCY SHALL HAVE THE POWER TO TRANSFER TO AND SHALL AT A PRACTICABLE TIME OR TIMES TRANSFER BY DEEDS TO THE UNITED STATES OR TO THE DISTRICT OF COLUMBIA, OR TO THE APPROPRIATE FEDERAL OR DISTRICT PUBLIC BODY, DEPARTMENT, OR AGENCY, THOSE PIECES OF REAL PROPERTY WHICH, IN ACCORDANCE WITH THE APPROVED PROJECT AREA REDEVELOPMENT PLAN, ARE TO BE DEVOTED TO PUBLIC USES (OTHER THAN PUBLIC HOUSING) FALLING WITHIN THE CONSTRUCTION OR ADMINISTRATIVE JURISDICTION OF FEDERAL OR DISTRICT AGENCIES, SUCH AS STREETS AND OTHER UTILITIES AND WORKS, FEDERAL AND DISTRICT PUBLIC BUILDINGS, PUBLIC RECREATIONAL SPACES, AND SCHOOLS. THE FEDERAL AGENCIES AND THE PUBLIC AGENCIES OF THE DISTRICT OF COLUMBIA ARE HEREBY EMPOWERED, RESPECTIVELY, TO ACQUIRE REAL PROPERTY FROM THE AGENCY FOR THE USES RESPECTIVELY SPECIFIED IN THE PROJECT AREA PLAN AND TO PAY FOR SAME OUT OF THEIR FUNDS DULY APPROPRIATED FOR SUCH ACQUISITION. EXCEPTING FOR SUCH PROPERTY AS MAY BE TRANSFERRED BY DEDICATION, GIFT, OR EXCHANGE, THE TRANSFEREE AGENCY SHALL PAY TO THE AGENCY SUCH SUM AS MAY BE AGREED UPON OR, IN THE ABSENCE OF AGREEMENT, AS MAY BE FIXED BY THE CHIEF JUDGE OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA.

(B) THE AGENCY, AFTER IT HAS ACQUIRED ANY OR ALL OF THE REAL PROPERTY IN THE PROJECT AREA, SHALL HAVE THE POWER TO LEASE OR SELL SO MUCH THEREOF AS IS NOT TO BE DEVOTED TO PUBLIC USE, AS AN ENTIRETY OR PARTS THEREOF SEPARATELY TO LESSEES OR PURCHASERS. SAID REAL PROPERTY MAY INCLUDE STREETS OR PARTS THEREOF WHICH IN ACCORDANCE WITH THE PLAN ARE TO BE CLOSED OR VACATED OR OTHER THAN PUBLICLY OWNED PROPERTIES; AND THE FEDERAL AND DISTRICT DEPARTMENTS AND AGENCIES ARE EMPOWERED TO TRANSFER SAID SPACES OR PROPERTIES TO THE AGENCY FOR SUCH SUMS OR OTHER CONSIDERATION AS MAY BE AGREED UPON.

THESE SECTIONS CLEARLY AUTHORIZE THE EXCHANGE WHICH WAS EFFECTED OF NORTHERN RANDALL FOR SOUTHERN RANDALL. AND IT IS EQUALLY CLEAR THAT RLA WAS AUTHORIZED TO SELL THE PROPERTY IT ACQUIRED IN EXCHANGE FOR THE PROPERTY IT RELEASED.

BUT WHAT ARE THE AUTHORITIES PERTAINING TO THE DISPOSITION OF SUCH SALES PROCEEDS? SUBSECTIONS 20 (A) AND 20 (E) OF THE REDEVELOPMENT ACT, AS AMENDED, 5 D.C. CODE 717A (A) AND 717A (E), PROVIDE THAT:

SEC. 5-717A. ACCEPTANCE OF FINANCIAL ASSISTANCE AUTHORIZED.

(A) AS AN ALTERNATIVE METHOD OF FINANCING ITS AUTHORIZED OPERATIONS AND FUNCTIONS UNDER THE PROVISIONS OF SECTIONS 5-701 TO 5-719 (IN ADDITION TO THAT PROVIDED IN SECTION 5-715), THE AGENCY IS HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT FINANCIAL ASSISTANCE FROM THE HOUSING AND HOME FINANCE ADMINISTRATOR (HEREAFTER IN THIS SECTION REFERRED TO AS THE ADMINISTRATOR), IN THE FORM OF ADVANCES OF FUNDS, LOANS, AND CAPITAL GRANTS PURSUANT TO TITLE I OF THE HOUSING ACT OF 1949, AS AMENDED, TO ASSIST THE AGENCY IN ACQUIRING REAL PROPERTY FOR REDEVELOPMENT OF PROJECT AREAS AND CARRYING OUT ANY FUNCTIONS AUTHORIZED UNDER SECTIONS 5-701 TO 5- 719 FOR WHICH ADVANCES OF FUNDS, LOANS, OR CAPITAL GRANTS MAY BE MADE TO A LOCAL PUBLIC AGENCY UNDER TITLE I OF THE HOUSING ACT OF 1949, AS AMENDED, AND THE AGENCY, SUBJECT TO THE APPROVAL OF THE DISTRICT COMMISSIONERS AND SUBJECT TO SUCH TERMS, COVENANTS, AND CONDITIONS AS MAY BE PRESCRIBED BY THE ADMINISTRATOR PURSUANT TO TITLE I OF THE HOUSING ACT OF 1949, AS AMENDED, MAY ENTER INTO SUCH CONTRACTS AND AGREEMENTS AS MAY BE NECESSARY, CONVENIENT, OR DESIRABLE FOR SUCH PURPOSES.

(E) ALL RECEIPTS OF THE AGENCY IN CONNECTION WITH ANY PROJECT OR PROJECTS FINANCED IN ACCORDANCE WITH THIS SECTION WITH ASSISTANCE UNDER TITLE I OF THE HOUSING ACT OF 1949, AS AMENDED, WHETHER IN THE FORM OF ADVANCES OF FUNDS, LOANS, OR CAPITAL GRANTS MADE BY THE ADMINISTRATOR TO THE AGENCY, OR IN THE FORM OF PROCEEDS, RENTALS, OR REVENUES DERIVED BY THE AGENCY FROM ANY SUCH PROJECT OR PROJECTS, SHALL BE DEPOSITED IN THE TREASURY OF THE UNITED STATES TO THE CREDIT OF A SPECIAL FUND OR FUNDS, AND ALL MONEYS IN SUCH SPECIAL FUND OR FUNDS ARE HEREBY MADE AVAILABLE FOR CARRYING OUT THE PURPOSES OF SECTIONS 5-701 TO 5-719 WITH RESPECT TO SUCH PROJECT OR PROJECTS, INCLUDING THE PAYMENT OF ANY ADVANCES OF FUNDS OR LOANS, TOGETHER WITH INTEREST THEREON, MADE BY THE ADMINISTRATOR OR BY PRIVATE SOURCES TO THE AGENCY. EXPENDITURES FROM SUCH FUND SHALL BE AUDITED, DISBURSED, AND ACCOUNTED FOR AS ARE OTHER FUNDS OF THE DISTRICT OF COLUMBIA.

SINCE THE PROPERTY WHICH WAS SOLD, SOUTHERN RANDALL, WAS NOT COVERED BY A PROJECT CONTRACT WITH HHFA, IT IS MANIFEST THAT THE AUTHORITY FOR THE DISPOSITION AND USES OF SALE PROCEEDS CONTAINED IN SUBSECTION 717A (E) ARE NOT FOR APPLICATION.

THE ONLY AUTHORITY COVERING THE GENERAL USES TO WHICH THE SOUTH RANDALL SALE PROCEEDS MAY BE APPLIED IS CONTAINED IN SUBSECTION 16 (B) OF THE REDEVELOPMENT ACT, 5 D.C. CODE 715 (B), AUTHORIZING ESTABLISHMENT OF AND APPROPRIATIONS FOR A SPECIAL TRUST FUND TO THE CREDIT OF WHICH ALL RLA RECEIPTS WERE TO BE DEPOSITED, THE FUND BEING MADE AVAILABLE TO RLA FOR PERFORMING ANY OF ITS AUTHORIZED FUNCTIONS. HOWEVER, SUBSECTION (C) OF SECTION 16, 5 D.C. CODE 715 (C), PROVIDES THAT:

(C) AS OF THE LAST DAY OF THE TENTH FISCAL YEAR BEGINNING AFTER APPROVAL OF SECTIONS 5-701 TO 5-719, OR AS OF SUCH LATER DATE AS MAY BE FIXED BY THE CONGRESS, THERE SHALL BE TRANSFERRED AND CREDITED TO MISCELLANEOUS RECEIPTS OF THE UNITED STATES THE BALANCE IN THE SAID SPECIAL TRUST FUND AFTER DEDUCTING (A) SUCH AMOUNT AS MAY BE NECESSARY FOR THE COMPLETION OF ANY APPROVED PROJECT THE ACQUISITION OF WHICH HAS BEEN BEGUN AND (B) SUCH AMOUNT FOR OPERATING EXPENSES OF THE AGENCY FOR ONE YEAR AS MAY BE APPROVED BY THE DISTRICT COMMISSIONERS. IF THE BALANCE SO TRANSFERRED AND CREDITED BE INSUFFICIENT TO REIMBURSE THE UNITED STARES FOR APPROPRIATIONS MADE PURSUANT TO PARAGRAPH (B) OF THIS SECTION, THEN AN AMOUNT EQUAL TO 50 PERCENTUM OF THE DEFICIT SHALL BE PAYABLE TO THE UNITED STATES FROM REVENUES OF THE DISTRICT OF COLUMBIA IN INSTALLMENTS OF EQUAL AMOUNT FOR EACH OF TEN YEARS. THE DISTRICT COMMISSIONERS SHALL INCLUDE IN THEIR ANNUAL ESTIMATES OF APPROPRIATIONS ITEMS FOR THE PAYMENT OF SUCH INSTALLMENTS. THE AFORESAID DEFICIT SHALL BE DETERMINED BY DEDUCTING FROM THE TOTAL OF SAID APPROPRIATIONS AN AMOUNT EQUAL TO (A) THE FUND TRANSFERRED AND CREDITED TO MISCELLANEOUS RECEIPTS OF THE UNITED STATES, (B) THE COST TO THE AGENCY OF THE REAL PROPERTY OWNED BY IT ON SAID DATE, AND (C) THE RESERVE FOR COMPLETION OF APPROVED PROJECTS. ALL SUBSEQUENT PROCEEDS, REVENUES, AND RENTALS FROM SAID REAL PROPERTY SHALL BE CREDITED TO THE SAID SPECIAL TRUST FUND, TO BE DISPOSED OF AS THE CONGRESS MAY DIRECT.

NO MONEYS WERE EVER APPROPRIATED FOR THE SPECIAL TRUST FUND AND IT WAS NEVER ESTABLISHED ON THE BOOKS OF THE TREASURY, ALL RLA ACTIVITIES HAVING BEEN FINANCED IN CONJUNCTION WITH ASSISTANCE FROM HHFA UNDER TITLE I OF THE HOUSING ACT OF 1949, AS AMENDED, SUPRA. NEVERTHELESS, IN THE ABSENCE OF ANY OTHER PROVISION CONTROLLING THE DISPOSITION OF RLA RECEIPTS UNRELATED TO CONTRACTS WITH HHFA, THE ONLY AUTHORIZED DISPOSITION OF SUCH FUNDS APART FROM COVERING THEM INTO THE TREASURY AS MISCELLANEOUS RECEIPTS WOULD BE TO DEPOSIT THEM IN THE TREASURY TO THE CREDIT OF THE SPECIAL TRUST FUND WHICH WOULD HAVE TO BE ESTABLISHED. AND IN VIEW OF THE LAST SENTENCE QUOTED ABOVE, ANY EXPENDITURE OF SUCH CREDITS AT THIS DATE WOULD REQUIRE SPECIFIC CONGRESSIONAL SANCTION.

WITH RESPECT TO SO MUCH OF THE SOUTHERN RANDALL SALE PROCEEDS AS HAVE BEEN OR WILL BE USED FOR THE CONSTRUCTION OF STREETS, DIRECTLY RELATED TO THE PROPERTY SOLD, THERE DOES NOT APPEAR TO BE REQUIRED ANY FURTHER CONGRESSIONAL AUTHORIZATION FOR SUCH USE, IN VIEW OF THE PROVISIONS OF SUBSECTION 7 (H) OF THE REDEVELOPMENT ACT, AS AMENDED, 5 D.C. CODE 706 (H), AUTHORIZING RLA TO OBLIGATE ITSELF FOR THE COST OF PROVIDING STREETS, SIDEWALKS, GRADING AND OTHER NECESSARY SURFACE OR SUBSURFACE FACILITIES, IN ORDER TO FACILITATE THE LEASE OR SALE OF PROJECT PROPERTY. AND WE WOULD NOT OBJECT TO THE USE OF THAT PORTION OF THE SALES PROCEEDS APPLIED TO THE EXPENSES OF SALE. HOWEVER, WE FIND NO AUTHORITY FOR THE DISBURSEMENT OR APPLICATION OF ANY OF THE REMAINING PORTION OF THE PROCEEDS DERIVED FROM THE SALE OF SOUTHERN RANDALL. YOU CONTEND GENERALLY THAT THE BROAD POWERS GRANTED THE AGENCY IN THE VARIOUS SECTIONS OF THE ACT, AS AMENDED, CONSTITUTE SUFFICIENT AUTHORITY FOR THE TRANSACTIONS IN QUESTION. WHILE WE APPRECIATE THE EXTENT OF THESE POWERS AND HAVE RECOGNIZED THEM IN CONNECTION WITH OUR CONCLUSIONS REGARDING THAT PORTION OF THE TRANSACTIONS RELATING TO THE EXPENSES OF SALE AND PROVISION FOR STREETS AND SIDEWALKS, WE CANNOT IGNORE THE SPECIFIC LIMITATIONS CURRENTLY IN FORCE.

ACCORDINGLY, THE QUESTION PRESENTED IS ANSWERED IN THE NEGATIVE, AND THERE IS NO AUTHORITY FOR APPLYING THE PROCEEDS FROM THE SALE OF SOUTHERN RANDALL TO ANY PURPOSE OTHER THAN THE EXPENSES OF THE SALE AND THE PROVISION OF STREETS AND SIDEWALKS NECESSARY TO FULFILL THE AGENCY'S CONTRACT OF SALE OBLIGATIONS WITH RESPECT TO THE PROPERTY SOLD.

THE CONCLUSION REACHED HEREIN WOULD ORDINARILY NECESSITATE A TRANSFER TO THE TREASURY FOR CREDIT TO A SPECIAL TRUST FUND OR AS MISCELLANEOUS RECEIPTS OF AN AMOUNT FROM THE TEMPORARY LOAN REPAYMENT FUND EQUIVALENT TO THE PROCEEDS OF THE SALE OF SOUTHERN RANDALL DEPOSITED THEREIN LESS SUCH SUMS AS ARE NECESSARY TO COVER THE EXPENSES OF SALE AND CONTRACT OBLIGATIONS TO THE PURCHASER OF SOUTHERN RANDALL. HOWEVER, IN LIGHT OF THE UNUSUAL CIRCUMSTANCES INVOLVED AND SINCE NO USEFUL PURPOSE WOULD BE SERVED BY SUCH TRANSFER IN THE EVENT THE TRANSACTIONS ARE APPROVED BY THE CONGRESS, WE WILL NOT REQUIRE A TRANSFER OF FUNDS, PROVIDED THAT SO MUCH OF THE FUND AS WOULD OTHERWISE BE REQUIRED TO BE TRANSFERRED IS MAINTAINED IN A RESERVED STATUS UNAVAILABLE FOR EXPENDITURE AND THE MATTER IS PRESENTED TO THE CONGRESS FOR APPROVAL. IF THE MATTER IS NOT SO PRESENTED OR THE CONGRESS TAKES NO ACTION IN ITS NEXT SESSION TO EXPRESS APPROVAL OF THE TRANSACTION, APPROPRIATE FUND ADJUSTMENTS WILL BE REQUIRED.

COPIES OF THIS DECISION ARE BEING FURNISHED TO THE HOUSING AND HOME FINANCE ADMINISTRATOR AND THE COMMISSIONERS OF THE DISTRICT OF COLUMBIA.