It was in 1978 that R’ Zushe Rivkin , a Chossid from Kfar Chabad , came up with the idea.When his brother R’ Chaim went to New-York, R’ Zuche asked him to present the Rebbe MHM with the suggestion to build the Rebbe a home in Kfar Chabad.
During a private audience with the Rebbe , R’ Chaim said that his brother wants to build a house for the Rebbe in Kfar Chabad. The Rebbe gazed at him and replied, “HE WANTS TO BUILD A HOUSE FOR ME ?….A PALACE !!!!”
Then the Rebbe added, “But not for now. Wait to build.”