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HOUSING RESOURCES COMMITTEE Atlanta, Georgia December 12, 196§ SECOND ANNUAL REPORT CONTENTS Accomp l ishments Implications of the 1 968 Bousing Act Future Direction · Unf inished Business Reports of Committee Panels (Encl. 1) Summary o f Status Report (Encl. 2) ACCOMPLISHMENTS November 1 5, 1968, marked the compl etien of the first two yesrs• activity of the Housing Resources Committee in its efforts to premote and acce l e r ate the Low•income Housing ~rogr~m in Atlanta. The 5 y ear goa l o f 16 , 800 l ow and mediu m inc ome housing un it s announced b y t he Ma yor i n h i s Housing Conference esta b l ishing the HRC on November 15, 1966 , i s now in t he p i pe line. This figure was b ased on a ntic ipa t ed r epla cement needs caused by Governmental a ct i on during 1907• 71 , and d i d not take into considerat i on normal growth , format i o n of new f amilies and in- mi gr a tion. The November 15 revision o f the r e por t o n sta tus o f t he l ow ~nd medium income housing progr~m sho ws : Compl e ted Under Constructio n In ?lanning In .Sight 3 , 21 7 uni ts 6 , 273 uni t s 7,337 units 16 , 832 u nits Total This slightly exceeds ( by 32 units ) the 5 year goal of 16 ,000 units and is only 305 units short , in the first two ca t egories , of the anticipated need for 9 1 800 units during the first two years of the program. �2 It is anticipated that most of the 7,337 units In Planning wi ll materialize. However, in the event that some may fall b y the way side, there are an add i tional 6 ,215 units Being Considered, wh ich wi l l more than compensate for any units now i n the I n Planning categ o r y wh ich may b e lost t o the p rogram. The Summary (En cl. 2) s h ows that the ·goals for a l l phases of t h e 5 year p rogram are being met, with the except ion of Publ ic Hous i ng whic h is c u r r ent l y 4 , 100 units b eh i nd. The Commit tee ha s cons i~ te n t l y endeavored to overcome and mi n i mi ze neighbo r hood o bjections t o l o w- i ncome hous i ng, which has b een t he grea t es t p roblen in ge tti ng a pprov al on site selections. Th e Committ ee h as solici ted GJ nd o b t a ined t he supp ort o f the Chambe r o f Commerc e i n see r.d ug the coop e r at i on o f County Commi ss i o n ers ( partic ular l y Fult o n ) f o r es tabl ish i ng low income h o u s i n g pro jects i n u n i n c o rpo rated ar e a s o f a d j o i ning Counties, where o cc u pants oa y reside in clos e proximit y to sour ces o f i n dus t r i a l e mpl o yme nt o Among ot her accomp lishme nts , t he Hous i ng Resource::; Commit t ee: Ha s wor k ed c los el y with d eve lop ers, b u i lde rs , Ci ty Depar tme nt s and Communit y gro ups in p romo ti o n o f l o w and medi um income h ous i n ~ and i n coordi n atio n o f effo r ts i n t h is fi e ld . Ha s b een i nstrumenta l in estab lishi ng the Gr eater At l an t a Ho using Develo pment Co rpo ratio n t o a ss i s t l oc al n on-pro f i t h o u s ing corporatio ns , thus prov iding seed mo ney a nd o ther a ss istance ( including perha p s the banking of la n d f o r subsequent u se at n o profit for l ow income housing d e ve l o pments ). Was a pioneer in pro p osing and getti n g approval at b o th the l o cal and n3tio nal l evel for use of p refabricated reloc atable uni ts as temp orary relocation h o using . Was inf luentia l in promotion , a t the Washingt o n l eve l , of expanding the base f or Federal Gr~nts and direct Loans, n ow authorized in t he 19GB ~ o u sing P.ct , f or assisting home owners in rehabilitation o f their dwel ling s to meet req ui rements of the Housing Co e o Has urged ea r ly adopti on by the City o f min ia ture Urban Renewal pr o jectsg thr c ugh the Neighborhood Development Pr o gram, in blighted rer,ide nti al pockets , to rid the Ci ty of its worst s lum areaso Has urged revision o f some previous conventional planning concepts in an effort to get certain areas r e zoned to permit a more practical approach to improvement of such areas for residential use. �3 Urged the dispersal of futur0 Public Housing in relatively small developments on scattered sit0s. Has b e en instrumenta l in cr0ation of interest in the lowincome housing p rogram b y non-profit organizations and the formation o f several s u ch organizations to participate in the low-income housing program. Was the catalyst in getting neighborhood interest revived for improvement of Vine Ci ty through Urban Renewal. Pror --::Jed and obt @ined conc u rrence o f the Board of Education for dra f ting l e~islation f or consideration b y the General Assembly in i ts nex t session to a u t h orize developers to build schools simultaneous with d evelop me n t of housing p rojects, excep t i n Ur b a n Renewal a reas, f or lease to the School Soard until i t is i n p osition to purchase the faci l ities. Was act i ve par t i c ipant i n Atla nta Conference on Equa l Opportunity in Hous i ngo Has wor k e d wit h the Model Cities' staff in development of its housing rehab ilitation p rogram a nd site selection for experimental hou sing. Has p ointed o u t to Ci ty o f fi cials the necessity f or, and urged recognit ion of, the p rinci p le t hat site selection for low-income housing should include a p l anning function and res p onsib ili ty , s imil ar t o l ocation o f schools, water p urificat i o n plants, sewera8e dispos al systems a n d other pub l ic work s; that i t s h o uld no t b e left entire ly up to l a nd promoter s a n d d e velo per s t o s elec t sites and bear the burden of try i n g t o g et t hem s ui t a b ly zoned and appro ved . After p romo ting ~nd rece iv i ng s uppor t of t hir ty p romi nent Busine ss , Civic 3nd Religio u s o rganizati o n s a nd i n d i v id ual s, the HRC held a specia l meetin g o n ;,.~ guct :: , -] -~ B, wi th t'."lo :r12 or:.:·-3 and Development Commit t ee· a n d the Zoni n g Comm i ttee o f t h e Board o f Aldermen in which the foll ow ine spec ific req uests were made : 1. Asked the Mayo r t o a ppo i n t eit h e r a n ex ist i n g committee or a new c o mmittee o f the Bo ard o f Aldermen to assume a respo nsibility in t h e field o f l ow-income housing. 2. Revision o f the Bui ld ing Codes f or the City o f Atlanta, particularly to ~ll ow e xperimental housing to be built in the Model Cities area . �3. Revisio n of the Ordinance g o verning nonconf o rming use o f l end to allow structural changes in improvin~ dwelling units to meet requirements of the Housing Code. 4. Accelerate the urban renewal p rogram p articu l arly in the Nash-Bans, Vine City and other areas outside the Model Cities 5. Au t h orize the P. t mta !.- lousing Authority to ?eq u es t 2 , 000 a d di tion a l units o f p ublic h ousing . 6. Adop ti o n o f 2 revised district zoning map b ased on the new Land Use map , t o inc l ude adequate areas xoir __ow-income housine. Res ults: a. A resol u tion was adop ted on September I G, 1968, chargin~ t he Plan n ing and Develop ment Co mmittee of the Board of Alderme n with res p onsibil ity f or ass~s t ing the Housing Resources Comm i ttee in meeting r e q u irements o f t he Low•income Housing Program. b . v: ne City and Ea s t Atlant a have been inc l uded in the Neighborhood Dev e l o p ment Pr oe;r~m f or planning in 1969 . / / c. The Bo a r d of Ald ermen a ut horized on Sep tember 15 , request b y t he Sousing a u t hor ity t o the Federal Gove rnment f or an alloc atio n o f an addi tiona l 2 , 000 unit s o f Publ ic Hous i n g ; a n d t he r e q uest h as b e en s ubmi t t e d to Ho u sing Assist a nce Agenc y o f HUD . d . Al t houeh s pec i fi c a c t i o n on t he othe r three i t ems h as t hus far b e en inconc l usive , t he need f o r these Glements ha s been rec o gnized a nd emphasized a nd indirec t fa vorable effects have been encouragi n ~ , Thr o ugho ut t he pr o gram t he ~me ha s end e 2.v ored t o work f o r c los e contact and under s tanding with the Federal a g enc ies , l oc al groups and City D6-p a r tments in p romotion o f t he Lo w-i nc ome Hou sing Program and received fr o m them a remar k able degree of c ooperatio n and assist~nce , which is very much appreciated . On De cember 9 , 1 968 , award was made by the Housing Authority to National Homes Corp , o f LaFayetta , Xndiana , f o r devel o pment of the 96 ~ere Federal surplus land oite , a a part of the Thomasville Urban Renew al p roject . This award was b~sed on a design competition among 5 p rominent developers and wi ll include 600 units of low and medium income housing , 2 schools , parks, commercial develo p ment to serve the inmedi~te neighborhood and oth0r facilities. �5 IMPLICATIONS OF THE 1968 HOUSING ACT The National Housing Act passed b y the Congress on August 1, 1968 , renffirms the national goal in the 1949 Housing Act, o f "a decent home and a s uitable living environment for every American family". Px'ivate i ndustry has been cha l lenged to provide six mil l ion addi ti ona l housing units during the next ten years for low and modera te i ncome f ami lies. The 196 8 legislation provides the t oo ls and incentives and success ·in meeting the national o bj ect ive will large l y de pend on: l. 2. 3. 4. 5. 6. Sponsor interest . Av 2ilability of land at a reasona b le price. The mortgage money mar ket . Municipal coo peration Fundi nE by the Congress in 1968 . Bui lding coda and zoning restrict i ons. Sec ti on 238: The 1968 Rousing Act established a new Special Ri s k Ins ura nce Fund wh ich permits the Federa l Housing Administrati on t o assume higher mortgage insurance ris ks in connection with b o th location and credit cha r acteristics that were unacce p ta bl e under the mut u al mortgage sec ti ons of the Act. This should widen b ot h the housing and the mortgage sect i o ns . o f the Act. This shou ld wide n b oth the housing and the mort ga ge mark et. Secti on 237 : Provides, on an experimental basis, FHA mortgage i nsuranc e to f inance homeownership f o r certain lower income families who cannot q u a lify under normal standards because of their pas t credit records , but who can me e t mortgage payments with appr o priate budget and financi al counseling . ,, Section 23 6 : Under this rental housing p rogram the tenant o r c ooperator will pay at least 25 pe r centum o f his family income towards the market rent or the ba sic rent , whichever is greater . The basic r cmta l is d etermined o n the basis of o perating the p ro·ec t with p ayments to principal and interest on a leve l annuity plan a t l percent intere st . NUD pays the mortgagee the difference between the amount collect ed from the occ upa nt and a fair market monthly rental determined on the basis of operating the p roj0ct with pa yraents o f pri nci pal , interest and mortgage insurance premium required on a level annuity mortgage at the market interest rate. There will be no subsidy f or the modera te income tenants . Maximum mortgage amounts 100% of FHA cost to nonprofit and 90% for p ro fit motivated sponsors. 40 year term. Limited to families whose incomes are not in excess of 135% of initial admission levels of public housing. �6 The above i s on l y a part ial outl i ne o f Section 236 . The regulations cover a wide segment o f r e ntal housing financing and the mortgage insurance terms are liberial. The Act authoriz ed $ 7 5 , 000 , 000 to July l , 1969 , but o nly $25 , 000 , 000 has bee n funded . These funds will likely be all oc ated very rapidly t o pr o p os ed re nta l and c ooperative p ro jects. There is no requ irement for a Workable Pr ogr am . \ \ \ Section 23 5: Thismc tion places heavy e mphasis on home o wners h ip and pr ovides t hat if the purchaser of a new home or a living units :in a condomimium will p ay at l east 20% o f the famil y's inc ome , HUD will pay the balance of the montbly mortgage payments~ A tw o fami l y dwelling may als o be purchased , if owner occupies omunit. Mortgages are limi t ed t o $15,000 and $17 , 000 f o r large families . Fami ly i ncome limited to 135% o f p u blic h o usi ng entrance levels . 30 ye ar mortgage term. No Work able Pr ogram i s required . Sub sidies vary with the inc ome of the purchaser and the cash investment in the h ousing unit will range f rom a minimum of $ 2 00 t o 3% o f FHA ' s ,a st imate of cost . Section 235 of the Ho u sing Act is very comprehensive and the present funding o f $ 2 5 , 0 00 , 0 0 0 will be used up rapidly. J" 1 Comments : /U l of the l egislatio n mentio ned ab ove appl ies to b oth pr o p os ed cons truction and major r ehabilita tion and prov ides wide opportunity for nonprofit organ·zations to o perate in a numb er of fi e lds . I t is also attra ct ive to pr ofit Xt p ermits the issuance of mo rtgage insurance mo tivat e d f irms . in urban , sub urban , core and rur al are as and better distribu tion of low i ncome hous i ng in a l l a r e as where the need can be e sta bl ished u nde r t he ne w Ac t . I t g ives t h e s p onsor a cho i c e o f constru ction or reha b ilitati n g single f a mi l y h o mes , tow n hou s e s , ap~rtme n ts, condomi mi ums and cooperat i ves . It pr o vides fo r a ccumu lat ion o f e q uity b y the b uye r through cred it f o r his ow n lab or. I t also p rov id e s empl oymen t a n d contract opportuni t ies f o r lower inc ome fa mi l i es and bus iness co nc erns in t he constru ction area t o the extent f ea s ibl e . Occupant tra in i ng wi ll be p rom e d where n e e d e d i n f i nanc ing and ot her fields . There are many chang es and additi o ns t o the Ho using Act tha t have n ot been cov ered in the brief o utline abov e . Other sec t ions apply to Urban Renewal , Public Housing , Hou sing for the E l d e r ly , Nuro ing Homes , Nonpr o fi t Hos pi t al s, Flood I nsura n ce , Financing , etc . THE IMPl\CT OF THl1S BILL ON HOUSING SHOULD BE TREMENDOUS . THE TOOLS ARE ~VAIL.ABLE AS NEVER BEFORE. �7 FUTURE DIRECT I ON the for and and for ~s Chairman of the Hous i ng Resources Committeei I ma ke following recommendations for the future cou rse of action the housing program in Atlanta, We request that the May o r Bo ard o f aldermen give consideration to these proposals adv ise us accord i ngly, in a revis ed statement of mission the Committee: 1. All b o dies concerned with housing revi~w the prese nt and continuing needs for low income h ousi ng . 2. E liminate existing s l ums and provide housing a s nGeded in the area f or those who wish to remain there. 3. Pl ace housing near j o b s and public facilities i n the City of Atlanta and throughout the metropolitan area . 4. Conti n ue efforts pr omote innovative low-income housing cons truc tion in Atla n ta. 5. Contin ue to aid efforts to eliminate social pr o blems connected with housing. 6. Furta~r invo lve the busine ss community in \ I I \ ,o the housin8 pr o gram . j I I I , 7. Assist nonprofit groups and developers in their efforts to obtain land and c o nstruct housing. 8. Pr omot0 and expalin the new general h ous ing act and the fair housing act . -· Consider national and local leeislation useful to the housinB program . I ~ • .I Ci , I I 10 . Assist in the ~tab1li&at1oa of existing neighborhoods and e ncour~ge the construction of middle ~nd upper income residential devel o pments in the City of l:tlanta. 11 . httempt to involve persons in the slums in the business side of demolition , r ehabilit~ tion or erecting new units . 12 . Continue efforts to sell the need for low income housing to the people of metropolitan Atlantn. �8 It is nlso sugges t ed that consid era tion be given to pl ncing the functions o f the ~iousing Re sources Committee with the Citizens Advisory Commi ttee f or Vrbnn Renewal o r ns n p nrt of ~n activated Urba n Coalition. UNFI N.ISHED BUS I NESS There are many u nfinished phases of the initial program which need t he continui ng existance of c ci t izens ' group t o help with t he completion of the program . Some of them are : 1. Comp let · on of projects now in planning. 2. Le g·s latio n pendi ng th2t will allow the city to lea s e sc hoo l G to be built by developers simulta neous_y wi th housing projects, except in urban renewal areas . 3. Xnves t i gation of pr obleras relatin8 to c o de restrictions on innovative bu ilding . 4. Activation o f Board for the Greater Atlanta Hous ing De v el opme nt Cor p oration . 5. Ob taining of additional sites in areas where low income housing i s needed. It s hould be b orne in ni nd 1 that whi le this program is apparen•tly in g ood shape, that many of the p ro jects still ne ed s hepherding . There are many force s trying to bl oc k housing in ~tlanta and any faltering in continuing efforts might well decimate thG final a ccoaplishment of the erection of the 16,300 units . I wish to cl os e by thanking Col. J ones, William Ggtes of o ur staff, the r.iern.bers of our car.mi ttee who worked dillig0ntly during t he past two years a nd such m0mbe rs as Archer Smith, Lee Buree , Cl arence Colema n, Char __es P3lme r, Robert Wi nn ~nd D~le Clar?.1: immediately c01:1e to r.1ind anong many otbors. This has tru ly been a wor k ing Committe0 . We also thank the Atlanta Housing Authority , the ?l anning De partment , the Building Department , Public Wor l s Dep2rtment , members of the Board of Aldergen , Mayor Allen and the members o f the Press , Radio and TV Organizations . Hot to be forgotten are the developers and nonprofit groups who have in the last analysis made the program ·,, possible. --f- ,-, , _,; . '- ... -· I ·- Cecil A. Alexander Chairman Encls: l . Reports of Committee Panels 2 . SumLlary of Status Report �