The D.C. Department of Transportation has told the federal government that it no longer is interested in a tract of surplus property at Second and Q Sts. SW as the site for a new Metrobus garage.

Sale of the eight-acre tract was held up through much of last year as the Smithsonian Institution battled with the city for the rights to the property. But the Office of Management and Budget turned down the attempt by the Smithsonian to acquire the land free. That decision, earlier this year, allowed the General Services Administration to go back to the city to see if it still had an interest.

Dale Hawkins, director of GSA's Eastern States Real Property office, said the city apparently "lost interest, so we're working toward a sale in late August."

Another federal property in the District headed for sale is Square 532 at Third and D Sts. NW -- a tract owned by the Federal Home Loan Bank Board and once the proposed site of its new headquarters building. The sale of this land was tied up by court actions until March 31, when a judge threw out the attempt by a bidder to claim the property. At that time, GSA officials said they would have the land for sale by the end of April, but now it appears that the Bank Board doesn't want GSA involved.

"We're seriously considering their request," Hawkins said, indicating that information is being collected to guide GSA Administrator Gerald P. Carmen in making a decision as to whether the Bank Board should be given the temporary authority to conduct its own sale.

If the board gets the authority, it would have to follow standard bidding procedures.