The National Bank of Washington has foreclosed on the mortgage on a Southwest Washington condominium owned by Woodrow Boggs Jr., a close adviser to D.C. City Council member Charlene Drew Jarvis, and is attempting to evict him, according to bank officials and court records.
Boggs and the bank have been involved in a periodic dispute during the past three years over what the bank said was Boggs' failure to make timely payments on a $37,108 loan he obtained in 1982, according to court records.
In October 1983, the bank foreclosed on Boggs' mortgage on the same condominium after he fell behind on his loan payments. However, in December of that year the bank abandoned its efforts to seize the condominium after Boggs sued to block the foreclosure and Jarvis expressed concern over Boggs' financial situation to National Bank of Washington Chairman Luther H. Hodges Jr.
Hodges said this week that his conversation with Jarvis, head of the Housing and Economic Development Committee, which oversees banking in the District, had nothing to do with the bank's decision to halt the 1983 foreclosure proceedings.
Boggs could not be reached for comment yesterday. Jarvis declined through a spokeswoman to discuss the foreclosure other than to say that her conversation with Hodges had previously been reported.
Boggs, a frequent social companion of Jarvis, is at the center of a controversy over the handling and accounting of thousands of dollars of contributions to Jarvis' 1982 mayoral campaign and her 1984 council reelection campaign -- both of which were managed by Boggs.
The D.C. Office of Campaign Finance issued an audit last week recommending that Jarvis' 1984 reelection campaign committee be fined $9,500 -- the maximun civil penalty -- for violations of the city's campaign finance law.
The Washington Post reported last week that Jarvis had directed representatives of five major bank holding companies to meet with Boggs to discuss how to win council approval to open or acquire banks in the District, although Boggs had no official connection with the City Council.
Citicorp, the New York banking giant, subsequently revealed that a Citicorp vice president in charge of the bank's lobbying of the D.C. government had authorized the payment of $28,200 in bank funds to Boggs.
D.C. police are investigating Boggs' possible misuse of 1984 campaign funds, according to a police source, and the U.S. attorney's office is considering investigating the banking matters.
The dispute over Boggs' condominium loan payments came to a head last October when National Bank of Washington purchased Boggs' condominium, Unit B415 of the Riverside Condominiums at 1435 Fourth St. SW, for $40,000 at a foreclosure sale. A source familiar with the loan transaction said the latest foreclosure action began after Boggs again fell behind on his loan payments.
The bank would like to sell the unit to recover its funds, but Boggs has refused to move, the source said. On March 17, the bank began eviction proceedings in the Landlord and Tenant Office of D.C. Superior Court, and a hearing on the bank's request is scheduled for June 23.
In his suit to block the 1983 foreclosure, Boggs alleged that he had worked out an arrangement with the bank in which the bank would not pursue the foreclosure if he made a $1,200 loan payment and paid $460 in back condominium fees. Boggs said he made both payments.
Hodges of National Bank of Washington said this week that in 1983 Boggs "was maintaining to bank officials that he was getting the impression from me that I had told him not to worry about his loan."
Hodges said he had never given any such assurance to Boggs and that as bank chairman he does not interfere in the bank's efforts to collect on outstanding loans.
In an interview Tuesday, Hodges said that he encountered Jarvis at a social gathering in 1983 while the foreclosure proceedings were under way. "I think she made a comment that she was surprised," Hodges said Tuesday. "She was under the impression that all this had been taken care of."
"She didn't do anything wrong" in discussing the foreclosure with him, Hodges said in a subsequent interview yesterday. Hodges said that Jarvis expressed disappointment that Boggs was having financial difficulties but did not try to influence the bank's decision.
On Nov. 29, 1983, a Superior Court judge granted Boggs' request for a temporary restraining order blocking the foreclosure sale. However, when Boggs failed to post a $20,000 bond required by the judge, the order was lifted at the bank's request on Dec. 1, 1983.
On Dec. 9, according to the court file, the case was settled without any further action.
At the 1983 foreclosure, the condominium was purchased by David Dale, president of Triangle Communications Associates Inc. Dale said in an interview yesterday that bank officials asked him to abandon his purchase of the property because of Boggs' lawsuit. "I did it as a favor to the bank, and that's the last I heard of it," said Dale, who added that he is a bank customer.