Redevelopment Board Okays Medical School Power Plant

Harvard obtained approval yesterday for one-half of its Medical School area construction plan, the $56-million power plant, but the other half--an adjoining $50 million housing project for the area's residents--remains stalled because of a lack of funds.

The Boston Redevelopment Authority board chairmen authorized a permit for the power plant's construction by a 4-1 vote at yesterday's weekly board meeting.

Now only a court suit planned by Boston Edison, the company that currently supplies the Medical School area with electricity, can block the plant's completion by 1977-78.

But the planned Mission Park Housing Project received a setback this week as the Massachusetts Housing Finance Agency's executive director recommended to that agency's board that the project not receive a requested $40-million loan at this time.

William J. White, executive director of the housing agency, explained yesterday that because of a weak bond market the agency is unable to float enough bonds successfully to close the loans on all of its projects, including the Mission Park project.

White said Harvard asked him to recommend to his board that the Mission Park project be placed at the top of its priority list for currently available funds.

Not Highest Priority

But he said he could not give the project highest priority because the agency must provide funds for other projects that may never be built without immediate loans.

"Harvard was bullshit" about his decision to recommend that the Mission Park project not receive available funds, White said.

But before the housing agency board makes its final decision on allocations next Wednesday, White said, he hopes to provide an alternative source of funds for the Mission Park project, possibly "from a lender or an insurance company."

Donald C. Moulton, assistant vice president for community affairs, said yesterday there is still "a very good likelihood" that the housing agency's board will decide to give Mission Park the funds it needs out of its current assets.