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B-193347 1 (1978-12-21)

handle is hein.gao/gaobacubx0001 and id is 1 raw text is: bd1L 6 k r I %1t ~ 's-I- '1 ** W~S$ ~ cf - at -II 07 It' 6~ UNITED STATES GENERAL ACCOUNTING OFFICE. WASHINGTON, D.C. 20548 IN REPLY OFFICE Or GENEnAL COJNSELAIAETtB-193347 Dpcoember 21, 1978 The i onrabe7 N en, tesPJ1Inr/arl o '4m The Honorable Newtonii 1 Steers, Jr. evr $tmeo House of RepresentatIves Dear Mr. Steera; lL 'Vtiuo 4 This is in response to Your request for ansistance from this Office/ in reviewing an opinion of the Director, Department of Housing and Com--/ munity Development, District of Columbia, that he lacks authority to compromise and settle a claim of approximately $28,000, asserted by your constituent, Mr. Richard Colburn, for additional expenses lie incurred in site preparation of a piece of property leased to him by the aforementioned Department. You explain that Mr. Colburn entered into a 99-year leane on the property with the District of Columbia Redcvelopment Land Agency (RLA), a subordinate agency of the Department of Housing and Community Develop- ment (Department). In June 1977 Mr, Colburn's contruction contractor started excavating for the foundation of a new building and discovered parts of an old foundation, The discovery of the old foundation required a costly redesign of the planned construction, Prior to the discovery, Mr. Colburn was unaware of the foundation. However a search of the RLA files indicated that the existence of the foundation had been known to that agency for at least 10 years. Notwithatanding the existence of this information in its files, RLA failed to disclose it to Mr. Colburn when it provided him other information, describing the site, upon which he relied to make his selection, Mr. Colburn contends that RLA had an obligation to disclose the existence of this old foundation to him and its failure to do so should make it liable for the addtional construe- tion expenses caused thereby. The Department has steadfastly maintained that it is unable to grant Mr. Colburn the remedy he seeks. Accordingly you have requested this Office to advise you whether the Department is correct in its opin- ion. A review of internal RLA coimmunications indicates that it does not dispute the fact that it had infcrmation concerning the old foundation in its files that it did not disclose to Mr. Colburn. However, RLA does not concede that It was obliged to disclose such data. Rather, the RLA appears to rely on the terms and conditions of the agreement it executed with Mr. Colburn, which contained disclaimer clauses regarding the con- dition of the property. $03087 I- I ..L. I~ * ~ LA I. )? - 4 a, ,I wllo AV, k

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