John B. Payne, 84, a retired chief of the internal audit division of the Federal Housing Administration, died Wednesday at Prince George's General Hospital in Cheverly. He had undergone surgery for a vascular condition.

Mr. Payne was born in Dayton, Va. He moved to Washington in 1913 and began his career with the federal government with the reclamation service of the Department of Agriculture. During World War I, he was a lieutenant in the Army and saw service in France.

After a period of study at the agricultural institution at the University of Beaune in France, he returned here and resumed his work with the Agriculture Department.

From 1920 to 1923, he worked for the old Bureau of Internal Revenue and then joined the Brookings Institution, where he was a consultant on governmental affairs for the next four years.

In 1927 he returned to the government in the old Bureau of Efficiency. From 1933 to 1944 he was comptroller of the Agriculture adjustment Administration and treasurer of the Commodity Credit Corp. From 1944 to 1946 he was comptroller of the U.S. Commerical Company.

From 1946 to 1948 Mr. Payne was on loan to the United Nations as a division cheif and comptroller to set up the orgnization's accounting system. He then returned to Washington and to the U.S. Commerical Company and the Reclamation Finance Corp.

From 1950 until his retirment in 1965 Mr. Payne was chief of the internal audit division of the Fha.

Mr. Payne earned a business degree from Southerneastern University and bachelor's and master's degrees from George Washington University. He became a certified public accountant in 1922.

He was a treasurer of the town of Cottage City, Md., and an election judge there and in Colmar Manor, Md. He taught adult classes at St. Paul's Presbyterian Church in Cottage City and was active in the YMCA. He also taught accounting courses at Southeastern and American universities and at the Graduate School of the Agriculture Department.

Survivors include his wife, Ruth M. Payne, whom he married in 1922, of Cheverly, where the family lives; two daughters, Dorothy Buckholtz of Avondale; Md., and Lucille Reamy of Cheverly; four brothers, Howard, of Mount Rainier, Harold, of Wilmington, Del., Frank, of Atlanta, and William, of Henderson, N.C.; five grand-children, and three great-grandchildren.

The family suggests that expressions of sympathy be in the form of contributions of sympathy be in the form of contributions to the Memorial Fund of Cheverly United Methodist Church.