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MINUTES HOUSING RESOURCES EXECUTIVE COMMITTEE AND LOW-INCOME HOUSING COORDINATING GROUP MEETING May 2, 1968 · The regular montly meeting of the Housing Coordinating Group and Housing Resources Committee Executive Group was held in Committee Room 2, City Hall, May 2, 1968, at 10:00 a.m. Copies of the invitational notices, agenda, record of those attending and reference documents are attached to the file copy of these minutes. Chairman Cecil h. Alexander presided. Mr. Alexander opened the meeting by asking Mr. Archer Smith to give the Committee a report on school construction. Mr. Smith presented the following two proposals: (1) Approach the State School Building Authority about them leasing school buildings and then sub-leasing them to the City. The State could lease the premises from the developer for 30/40 years and turn them over to the City of Atlanta on a sub-lease basis. It would take a political decision by the State to re-vamp procedures to allow this. One advantage to this proposal would be that it would apply to all school systems if they so desire. (This was considered perhaps the simplest course of action.) (2) Have a local constitutional amendment passed allowing the City School Board to enter into leases on a long term basis. This local amendment would be the more solid way and the local amendment would be easier to pass. Mr. Alexander asked if the School Board had been approached to see which course of action they would prefer? Mr. Smith stated that they had not, officially, but the School Board would probably go along with either method. Mr. Jones suggested that the Committee authorize the Legal Panel to contact the School Board and see which they would prefer and then pursue that course. P. motion was made, seconded and adopted that the Legal Panel be so authorized. Mr. John Chapman appeared before the Committee to discuss a proposal for building low-income housing. He said housing for the lowest income families would probably need to be financed by the Federal government; that housing for medium income families could be financed through private corporations. He was suggesting dwelling units with rent range ~of $70-$80-$90 for 1, 2 or 3 bedrooms respectively. He proposed forming a limited profit corporation, the members of which would each put up a certain amount of front money, with the intent of building developments which would produce 4-5% profit, instead of the customery 1415% profit. He proposed using private conventional financing �2 entirely, with no connection with Federal assisted programs. He advised he would try to contact several private corporations about putting up money at a reasonable rate of interest and that if he got enough response from private corporations that this could be done, he would inform the Committee of the reaction he re~eived from this idea. Mr. Alexander commented on and referred to an article by Vincent T. Burke, in the Los fl nge.les Times, March 18, 1968, relating how certain Negro families in Washington had been assisted by a tiny non-profit "Home Buyers" group in obtaining home ownership without any assistance from Federal programs or organizations. (Copy of the article is attached to the file copy of these minutes.) Mr. Persells reported to the Committee on the Honor Farm No. 1 Site proposed concept. He presented a map showing approximately 120 acres between the Federal Penitentiary and the Thomasville Urba n Renewal Project that the Federal government proposes to turn over to the City for urban improvement, including housing. He explained that the portion of the property to be developed for housing and related commercial could be either turned over directly by HUD to developers, turned over to the ~ity to put out for bids, or go to Atlanta Housing Authority for development through process of Urba n Renewal. /1 meeting of the Alderma nic Planning and Development Committee is to be held to consider what should be done. Mr . Persells also advised that a new park area is to be developed and an Elementary School and a "Middle School" are to be constructed in the area. The question was asked about how housing could be developed in the shortest length of time. Mr . Persells responded we would be unable to start building until a street and sewer system was begun; that is the biggest delay. It was suggested that the land could be sold to a developer and he could put in the stree t syst em simultaneous with the housing d e velopme nt. Two choice s were rec ommended: (1) The City or d e velopers could go in and put in the street and utilities at their expense o f about $270 ,000. 00 . (2) Have streets put in by the Housing Author ity as an Urban Redevelopment expense. Mr. Persells explained that from;.d'financial standpoint and time element, the most favorable sollution would be to have the Housing Authority put in the street and sewer system at Urban Redevelopment expense, because the schools would have to be built any way, and the City would receive credit for the schools which would more than pay for the expense of putting streets and sewers in and that they could be put in while the developers were getting their plans approved by the Federal government. �3 Mr. Persells advised that topographical maps and surveys had already been made. He also reported that there was a small triangle of land the Federal government doesn't own; stated there were some title difficulties and the only sure way and quickest ~a y to get clear title to the property would be condemnation proceedings throu~h the Urban Renewa l process. The Land to be developed for housing and related. co~mercial is to be offered for sale on May 27, 1968, to developers, with proposals c~lled for. Additi onal land, 17 single-family lots, is to be added to the Thomasville Urban Renewal Site for sale, with ground breaking between May 2 0-28. Appr oximately 50 acres of the 120 acre tr a ct o f land wc ~ lci be available for housing. Mr . Archer Snith , ma de a moti on that a formal resolution be drawn up that the Housinc Re sources Committee goes on record as urging t h e support o f the New-Town-In -Town project concept condit i oned up on n s ub s t ant i a l porti on of the project to be developed for lowest-incoc e housing. If this condition is not met, then the Housi ng Res o urces Comn ittee goes on record as opposed to the pr oject a s presently planned. Motion was seconded and unanimously adopted , with instructions that copies go to the Housing Authority, Ma yo r Ivan Allen, J r ., Members of the Board of Aldermen and to Mr . Ba xter, o f HUD. Mr . How land nnnounced that the CACUR non-profit housing development corpora t ion has now selected five units f or rehabilitation u nder 221 (h) and expected to have them under way Viithi n 60 days . Mr. Alexande r then a sked Mr . Jones to explain a proposal he had been working on f o r accelerated low-income housing development in the Model Cities ar ea. Mr . Jones explained the concept a nd stated that a de vel opment team was very anxious to get a tract of about 10 acres f-eir an experimental housing dev elopment to start this summer. He read a letter just received by the Mayor from Mr. H. Ra lph Taylor, Assistant Secre t ary , HUD, propos ing a HUD sponsored experiment a l housing pr o j e ct in Mode l Cities area in selected cities to be carr ied o ut by a prime contractor to be selected by HUD; and inquiring if P. tlanta desired to cooperate? Mr. Jones expl ained tha t t his tied indirectly with the proposal he has been working on; that b ec aus e of multiple ownerships, it is virtunl ly icpossibl e f or private deve lopers to acquire land in the ~odel Cities area for this purpose; that therefore he has studied the ar ea and looked at certain sites, with others·, including a representative of Model Cities, and has _ selected two tentative sit es, having badly dilapidated housing which will in al l probability be de~olished any way, and has marked these on a map for consider a tion of the Model Cities staff. �4 Mr. Jones proposed "advanced land acquisition" to be requested in the Model Cities area on such a site to be sleeted so they would get started on construction of approximately a 10 acre site as soon as possible. A_ motion was made, seconded and adopted that the Housing Resources Committee recommends that a suitable site be selected in the Model Cities are~ for accelerated development of low-income housing (preferably under the experimental housing concept) and that application be made to HUD for ·authority to acquire the . site under the "advance land acquisition" procedures; that copies be provided the Planning and Development Commmittee, Mayor and Board of Al dermen and HUD. Mr. Persells stated that he concurred and that the Housing Authority would go·1n · soon with a request that the entire Model Cities area be placed under a GNRP so that this could be done as part of an Urban Re newal Pr oject within the Model Cities area. He requested support of t he HRC to the Planning and Development Committee, the Mayor and Board of Al dermen and to HUD on that proposal so that the "advance land acquisition" could be legally implemented. The Committee agreed to support the GNRP proposal for this purpose. Mr. Alexander informed the Committ ee of ground-brea ki ng on the first Turnkey Housing project in Atl anta on Hollywood Road, N. W. at 2 :00 p.m. on May 9 , 1968. All wer e i nv i ted; that May o r Ivan Allen , Jr., would offic ially break the ground for the 202-ttnit development. Copies o f the announcement, prepared by the Housing Authority were d istributed. It ½as announced that the report from the Ad Hoc Committee on Low-income Housing Analysis will not be ready and that it would be discussed at a later date. Mr . Alexande r an nounced that a conference wi ll be held May 29th at the Dink le r all day, consisting o f debates and discussions on legal aspects, employment, workshops, etc., on equal opportun it y in housing. Mr . Alexander exp la ined briefly the progres s made on Package Zoning. Question ·was asked if a f o rmal resolution has been adopted by the HRC Executive Committee on the proposed Package Zoning Plan . The Committee was advised that such resolution had already been adopted supporting this plan. Mr. ftlexander also stated it is anticipated that the plan would receive the support of numerous civic and business organizations and radio and television. Mr. Alexander read a Press Release from HUD announcing authorization of trailers (mobile homes) for temporary housing in Urban nedevelopment pr~jects. �5 Mr . Alexander also commented on the necessity for positive action soon for improvement in the NASH-BANS area, through Urban Renewal or otherwise. The meeting adjourned at 12:00 noon. Respectfully submitted, .Py~_,'J-0v4~a--vW/~ Malcolm D. Jone . Housing Coorldina ·or Encls: As s tated (with file copy only) �