DISTRICT OFFICIALS last week denied a request from Donnelly Associates Limited Partnership for a permit to tear down the two oldest structures in Foggy Bottom.

The buildings, two town houses at 2521 and 2523 K St. NW, are known as the Cooper Houses and have a history of working-class owners and tenants typical of Foggy Bottom. They were built in 1843 and 1868.

The D.C. Historic Preservation Review Board designated the houses historic landmarks last year on a request from the D.C. Preservation League. Under D.C. preservation law, landmark buildings may not be altered or demolished without special permission from the preservation review board or an official representing the mayor.

At a hearing before the mayor's agent in the case, Artis G. Hampshire, chief of compliance in the Office of Consumer and Regulatory Affairs, the owners argued that denial of the requested demolition permits would result in unreasonable economic hardship.

The D.C. Preservation League said, however, that there were numerous profitable uses for the houses, including using them as single-family dwellings.

Donnelly Associates said the company had not yet decided whether to appeal the decision.

AMERICAN FEDERAL Savings & Loan Association of Lynchburg, Va., has reported to federal regulators a condominium sales deal between three key executives and Smith Mountain Lake developer David S. Wilson.

Paul G. Allemeier, the savings and loan's president, said in a written statement Monday that American Federal personnel discovered the transaction about three months ago while reviewing loan documents.

The S&L notified the Federal Home Loan Bank about the first week of June, and the regulatory agency has taken no action, he said.

Doug Green, a spokesman for the Federal Home Loan Bank Board in Washington, said he cannot discuss individual financial institutions. But he said the bank board has reporting requirements for transactions that appear to present a conflict of interest.

The Roanoke Times & World-News reported last Saturday that three American Federal executives -- former president Jack Cosby, Joseph Kesterson and John Pillow -- earned nearly $15,000 by trading an expensive Bernard's Landing condominium back and forth with Wilson while the institution was lending Wilson money.

American Federal has lent Wilson more than $10 million for his Smith Mountain Lake projects since 1983.

Allemeier, who has been president of American Federal since June, declined to comment on whether the transaction was proper. He said he was unsure whether bank board regulations required that the transaction be reported to the regulatory agency, but he believed it advisable to do so.

Cosby and Kesterson are no longer with the S&L. Cosby retired, and Kesterson, a former vice president and loan officer, resigned to take another job, according to Chairman C. Burton Gerhardt.

Allemeier declined to say whether Cosby and Kesterson were asked to leave.

Kesterson has said his departure was unrelated to the land deals, and he said the transaction did not influence American Federal's loan policy toward Wilson.

Pillow, who remains at the S&L, has declined to comment on the matter, and efforts to contact Cosby have been unsuccessful.

Wilson, the lake's largest developer, abruptly shut down the 72-acre Bernard's Landing on July 22 and halted services at two other lake developments.

Contractors' legal claims against Wilson have reached more than $300,000, the Roanoke newspaper said.

IN THE BUSINESS . . . Name changes: The Washington Board of Realtors is about to become the Washington, D.C., Association of Realtors. WBR Executive Vice President David E. Strachan said that the term "association" generally is applied to statewide organizations, while "board" refers to local ones, and the Washington group is more properly regarded as a state-level organization. With the new name, if you omit the D.C., the group's new initials will be WAR, which the group's counsel, Abraham J. Greenstein, notes dryly, "may be appropriate given the seemingly continual cross-fire in which the organization has found itself lately." At the same time, just to make sure you won't be able to keep things straight, the Virginia Real Estate Commission, the state's regulatory agency, has been renamed the Virginia Real Estate Board. This shouldn't be confused -- but probably will be -- with the local boards of Realtors or with the statewide Virginia Association of Realtors, which are private . . . Winchester Homes Inc. has announced the formation of a commercial division to operate in the Washington-Baltimore market. It will be called Winchester Commercial. Winchester is a subsidiary of Weyerhaeuser Co. . . . Electronic Realty Associates has started Mortgage Watch, a biweekly survey of mortgage rates in 12 major cities, including Washington. Data will be compiled on the 5th and 20th of each month. For Aug. 5, the average rate here for a 30-year, fixed-rate loan with a 90 percent loan-to-value ratio was 12 percent and 3 1/2 points . . . Despite the specter of tax reform, sales of public real estate securities hit record levels in the second quarter of the year, according to the Questor Strategic Real Estate Letter. Sales of limited-partnership interests topped $2 billion, while real estate investment trusts exceeded $350 million. The total for the year likely will reach $9.5 billion, the San Francisco-based newsletter reported . . . Metropolitan Partnership Ltd. has broken ground for Tysons International Plaza in Tysons Corner, twin 10-story towers that will total 408,000 square feet . . . Long & Foster Realtors notes that it now has more than 3,000 sales associates. It's the first firm in the area to amass a sales force that large, it says.

PERSONNEL FILE . . . Ryan Homes has promoted John O'Neill to director of marketing services/operations, and has named Marie Dunn marketing services manager for the Virginia region . . . Weissberg Corp. has named R. Lide Glenn president of the company. He comes to Weissberg from Polinger Co. The company also has named Marc J. Needleman vice president-finance . . . Philip D. Morse has been promoted to vice president in the Washington office of Abacus Real Estate Finance Group . . . Eric Allen has been named assistant vice president at Cushman & Wakefield . . . Andrew I. Greenspan has been named vice president, director of marketing, at Realty Service Co.

ON THE MOVE . . . Cadillac Fairview Urban Development Inc. has acquired the 40,682-square-foot site at the northwest corner of 13th and K streets NW from Rouse & Associates. Cadillac Fairview plans a 12-story, 400,000-square-foot building on the site, to be known as One Franklin Square . . . Mulligan/Griffin and Associates Inc. has bought a 41.5-acre parcel just off I-270 in Montgomery County. The firm plans seven buildings, ranging from two to seven stories and 60,000 to 270,000 square feet at the project, which will be known as Decoverly.