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HOUSING RESOURCES COMMITTEE Atlant.;i, Georgia December 12, 1968 SECOND ANNUAL REPORT CONTE!'f'fS Accomplishments Implications of the 1968 Housing Act Future Direction Unfinished Business Reports of Committee Panels (Encl. 1) Summary of St~tus Report (Encl. 2) ACCOMPLISHMENTS November 15, 1968, marked the comp l etion of the first two years• activity of the Housing Resources Committee in its efforts to pr()!llote and 5Cceler~te the Low•income Housing ~rogr~m in Atlanta, The 5 year goal of 15,800 l ow and medium income housing units announced by the Mayor in his Housing Conference establishing the HRC on November 15, 1966 , is now in the pipe line, This figure was based on anticipated replacement needs caused by Governmental action during 1907•71 , and did not take into consideration normal growth, f ormation of new families and in-migration. 'Th e November 15 revision of the re port on status o f the low ~nd medium income housing progr~m shows: Comi9le ted Under Co ns truction In ?l~nning In Sight 3 ,217 u nits 6 ,278 units 7 1 337 units 16 ,832 units Total This slightly exceeds (by 32 units) the 5 yeaT goal of 1 6 ,800 units and is only 3~5 units short, in the first two c2tegories, of the anticipated need for 9 1 800 units during the first two years of the program. �2 It is anticipated that most of t he 7,337 units ln Pl anning will materializeo However, in the event that some may fall by the way side, there are an additional 6 ,215 units Be i ng Considered r which will more than compensate for any units now in the In Pla nning category wh ich may be l ost to the program. The Summary (Encl 2) shows that the "coals for all phases o f the 5 year program are being mets with the e x ception of Pub lic Ho us ing which is currently 4 , 100 units behindo 0 Th e Committee has c o nsi~tentl y endeavored to overc ome and minimize neigbborhco1 ob ject i o n 8 to l o w-incc~e housing, wh ich has been the grea test ~robleCT in get t ing appr ova l on site selections. The Co:nri1itte e has solicited and o bt8lined the support of the Chamber of Commerce :l-n seeking the coopera tion o f County Commi ssioners (particul:1::-:y Fulton) for establishing l ow income housing projects i n urin~orpcrated s~eas cf adj oining Countiesp where occ upants ~3 Y resid e in c lose p70~ i ~it y to sources o f industrial employment, Among ot h e x acco;nplishw..ents ~ t h,a .d ousing Resou r ces Committee: Ha s work e d closely with developers , builders, City Department3 and Communi ty grou ps in prorr.otion o f lc•_,i ~::;d medi'..1m i n :: ,:;:ne h o uG i :::1.:, and in coordination o f efforts in this field o Has been ins trumental in establishi ng the Great er Atlanta Hous ine Developrn~ nt Corporatio n t o assist l ocal n o n - profit housing corporations , t hus pr oviding seed money and o ther assistance (includ ing perh aps the b~nk ing of land for subsequent use at n o profit for l o w income housing developments ). Wa o a p~oneer in pro posi ng and getting approval at b oth the local and national level for use of prefabricated relocatabl e units 2 s temporary relocation housing. Was influential in promotion, at the Washington l eve l , of expanding the b se f or Federal Grants and direct Loansj now a u thor ized in t~e 1968 Ho u si ns Act, for assisting home owners in rehabilit atioil o 1 t teir dwel ling s to meet requirements of the Hous ing Co~e. Has urge d e3r _y ~d c ~ti cn by th0 City ci Mi niature Urban Renewal projects 9 th~ 143.215.248.55 ~ th~ Neig~bc~hcod Development Program, in blighted ~ e sidential pcukets 2 to rid the City of its worst slum area.so Ha s urged revision of some previouo co~vent io~al planning concepts in an effort to get ce~tain 2rea3 re~oned to permi t a more practical approach to i ~9rove~0 nt of such areas for residanti n l use o �3 Urged the dispersal of f uture Public Housing in relatively small developments on scattered sites. H~s b een instrumental in creation o f interest in the low ~ income hous ing pr ogr am b y non-profit organizations and the formation o f several s uch o rgan izations to p articipate in t he l ow-i nc ome hous:hg program . Was the c atalyst in getting neighborhood interes t rev ived for imp rovement o f Vine City thro ugh Urban Renew al . Pro~c Bed a nd obtained conc ur rence of the Boa rd of Ed ucation for drafting legis latio n for consideration by the Genera l Assembly in its next s ession to authorize deve l o pers to bui l d sc h ool s simultaneous with d eve l opment of housing p rojects, excep t i n Urban Renew8 1 areas , f o r lease t o the School S oa rd until it is in position t o purchase the faci l ities . Was active p articipant in At l ant a Conference on Equa l Op p ort uni ty in Hous ing . Has work ed with the Model Ci ties ' staff in development o f its h o using r e hBbilitati o n p r ogram and site selec tion for experimental hou sing. Has pointed o u t to City o fficials the necessity f or, and urged rec ognition of, the p rinciple that site selection for l ow-income h o us i ng should inc l ude a p l anni n g functi o n and responsibi l ity , simil a r t o l ocation o f schoo ls , water p urificatio n pla nts , seweraee d i spos al systems a n d othe r pub l ic wor k s; that i t s h o uld not b e lef t en t i re l y up to la n d p romoters a n d develo pe rs to s elec t s i t e s and be a r the b urd en o f trying to get them s ui t abl y z oned a nd approved . Af te r p romot ing a nd r e ceiv i ng s uppor t of t hirty p rominent Bus iness, Civic a n d Relieious organ izations a n d indiv i d u els, t h e HRC held a special mee t i n g o n ;,,uguc t z, -1 968 , wi t h t'.:lo :Fl an::-_~-:; and Development Co mm i t t ee a nd the Zoni n g Co mmittee o f t h e Bo a r d o f Aldermen in which the foll ow ing specific reques ts were made : 1. Asked t h e Ma yor t o a ppo i n t eit h er a n ex ist i n g committee or a n e w committee o f the Bo a rd o f Aldermen to assume a res p onsibility i n the field of l ow-income housing . 2. Re vision of the Building Codes f or the City o f Atlanta , pgrticularly to al l ow e xperiment al housing to be built in the Model Cities area. �4 3. 4. R0v ision of the Ordi mrnce governing nonconf orm i ng us0 o f lend to allow structural chang0s in improving dwelling unit s to meet requirement s o f the Hous i n g Code. Accelerate the urban re newa l program particu l srly :tn the Hclsh-Bans, Vine Ci ty and o ther areas ou tsid e the Model Cities areSt . 5. Auth orize the P.t:!mta dousilng Author ilty to request 2 , 000 ad di tional units o f public h o using . 6. Ado~ ti o n o f a revised distr:ct zoning ma p ba sed on the new Land Use map , t o include adequate areas :fo r __ ow-income housine; . R.es ul ts: a . A resol u tio n wa s adop ted on September 1 6 , 1968 , charginff the Plan n ing and Devel o pment Committee of the Board o f Aldermen with responsH:i1i ty for a ss· s ti n g the Housing Res o urces Committ ee i n meeting requirements of the Low-income Housing Pro g ram . b, Vi ne City and E nt Atl nta have been i ncluded in the r~eighborhood Develo pment h ogram f or pla nning in 19169 . / / c. The Board of Alderme n author ized on September 16 , request by the S ousing Authority to the Federa l Gov0rnment f or an alloc ation of an @dditiona l 2 , 000 units of Public Housing ; and the r equest has been submitted to Housing Assistance Agency o f HUD . d . ~lthou~h s pecific action on the other three items has thus far been inconclusive , the need f or these clements h~s been recognized and emphasiz ed a nd indirect fa vorable effects have been enc ouragine . Throughout the p rogram the ~me ha s ende2.vored to work f or c loE c cont2ct and underst andi n e with the Federa l Agencies , loca l groups aind City D6 partm.ents in p romotion o f t he Low-incor:ie Housing Program and received fr om them a rema r k able degree o f cooperation and assist~nce , which is very much apprecia t ed . On December 9 , 19GC , a ward was made by the Housing Authority to Ha tional Elooes Corp , of LaJlayetta , Indiana , for development of the 96 ~ere Federal surplus land site , aa part of the ~homasville Urban Renewal p roject. Th is award was b~sed on a design competition among 5 prominent developers and will include 600 units of low and medium income housing , 2 schools , parks , commercial develop• ment to oerve the inmedi~te neighborhood and other facilities . �5 IMPLICATIONS OF THE 1968 HOUSING ACT The Nationa l Housing Act passed b y the Congress on Au gust 1, 1 968 , reaffirms the national goal in the 194 9 Housing Act, of "a decent hor.ie and a suitabl e living environment for every American family". P~ivate industry has been cha l lenged to provide six million additional housing units during the next ten years for low and moderate income fami l ies. The 196 8 legislation provides the tools and incentives and success ·in meeting the national obj ective wil l l arge ly de p end on: 1. 2. 3. 4. 5. 6. Sponsor inter est. Avai l a b ility of l and at a reasonab le price. The mor tgage money marke t. Mu nic ipal cooperat i on Fundin~ by the Cong ress in 1969 . Bui ld ing cod e and zoning r e str ict i ons. Sec ti on 2 38: The 1 968 h o using Act established a new Special Ris k I nsurance Fund wh ic h per mits the Fede ra l Housing Administra tion to assume higher mort g age insurance risks in connection with both locat i on a nd credit cha r acteristics that were un a cce p tab le under the mut ual mortgage sections o f t he Act. Th i s should wi den both t he hous i ng and the mort g age sect i o ns . o f the Act. This shou l d widen b oth the housing and the mort g age . market. Sec tion 237 : Pr o vides , on an expe rime n tal b a s i s, FHA mo rtgage i nsur a nc e t o fina nce home ownersh i p f o r c e rt ain l owe r income families wh o ca nnot q ualify u n der normal st2 nd a r ds because o f t heir past c redit rec ords , but who ca n meet mor t gage payment s with appro priate budget and financial c o u nsel ing . Sec tion 236 : Under this rental ho using program t he tenant or cooperator will pay at le~st 25 per cent u m o f his family inc ome towards th0 market rent or the bas i c rent , whic hever is greater . The basic rental is determined on the basis of operating the project with payments to pri ncipal and interest ,, on a level annuity plan at l percent intere st . HUD pays the mortgagee the difference bet ween the amount collec ted from the occupant and a fair mar1.rnt monthly rental determined on the basis of operating the project with payraents of principal , interest and mortgage insur2nc0 premium required on a level annuity mortgage at the market interest rate. There will be no subsidy f or the moderate incorae tenants . Maximum mortgage amounts 100% of FHA cost to nonprofit and 9:0% for profit 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 o nly a partial o utli n e o f Sec tion 236 . The regulations cover a wide segment of rental housing financing and the mo rtgage insuranc e terms are liberial , The Ac t authoriz ed $75 , 000 , 000 t o July 1 ~ 1 969 1 but o nly $25 j OOO , OOO has been funded . These funds will likely be all oc ated very rapidly t o pr o p o sed rental and c ooperative pr o jects ~ The re is n o requirement for a Workable P~ o gram , '- ' Section 235 : This ~ction places heavy emphasis o n home o wnersh ip and provides that if the purchaser of a new h o me o r a living units fu a c o nd omimium will p ay at lea s t 20¾ o f the family ' s income , HUD will pay the balance of the montbly mortgage p aymentsa A two fami l y dwe ll ing may als o be purchased , if owner o ccu pies omunit . Mo rtgages are limited t o $15 , 000 and $17 , 000 for large families . Family inc ome limited to 135% o f public h o using 0ntrance levels . 3 0 year mortgage term . No Workable Pr o gram is required . Subsidies vary with the income of the purchaser and the cash investment in the housing unit will range fr o m a minimum of $ 200 t o 3% of FHJ\'s estimate of cost . Section 235 of the Housing Act is very c omprehensive and the present funding of $ 25 ,000 , 000 will be used up rapidly. Comments : JUI of the legislation menti o ned above ap pl ies to b oth proposed construction and major rehabilitation and provides wid e o pp ort unit y for non profit organizations to o perate in a numbe r of field s. I t is also attractive to pr ofit motivated f irms. I t p ermits the i ss uanc e of mortga~e insurance in urban , suburban, core and rura l areas and b etter distrib u tion of low inc ome h ousin~ in a l l areas where the need can be established unde r the new Act . Xt gives the sponsor a choice of construction or rehabi lit ating sing le f a mily homes , town hous e s, ap~rtments, condomimiums 3nd cooperatives . It pr ovides f or accumulation of equity by the buyer thr ough credit i o r his ow n labor . It also pr o vides employmrcmt a n d contract opportunities f or l ower income families and business c oncerns in the co nstructio n area to the exten t feasible. Occupa nt training will be pr ov.tied where nee ded in financing and ot her fields . There nre many ch~nges and additions to the Housing Act that have no t been covered in the brief o u t line above . Other sections apply to Urban Renewal , Public Housing, Housing for the Elderly, Nuroing Homes , Nonprofit Hos pital s, Flood Insurance, Financing, etc . THE IMPJ\CT OF THIS B ILL ON HOUSING SHOULD BE TREMENDOUS. THE TOOLS ARE nvAILABLE AS NEVER BEFORE . �7 FUTURE DIRECT ION tho f or and and f or J'.s Chairtaan o f the Ho us ing Res ources Committ0e, I ma k e following rec o~mendations for the futur e course o f action the housing proeram in At lanta . We request tha t the May o r Bo ard of Aldermen g·ve c o nsideration to these pro pos ~ls advis 0 us according l y, in a revisod statem0nt o f mission th0 Committee : 1. ~11 o d · 0s concerned wit h hous ing reviaw the p resent and continuing needs f or l o w income h ousing. 2. E l iminate ex i st ing s l ums and pr o vide h ous ing a s nGeded i n t he area f or those who wish t o . ema .:.n t here . 3. Pl ac e housing near j ob s and p ub l ic fa ci lities in the Ci ty of Atlanta and thro u ~hou t the me tr o p o litan are8 . 4. Cont inue efforts ~o p romote innovative low - income housing construct i o n in Atla nta. 5. Continue t o aid e ff orts to elimi nate socia l pr o blems connec ted with housing. 6. Fur t~or involve the busine ss community in the hous i n~ p rogram . 7. Assist nonprofit groups and developers in their efforts to o btain land and c onstruct housing . c. Promo te and expalin the new general h ousing act and the fair housing act . Z1 • Consider national and l ocal leeislatio n useful to the housine pr ograra . i I \ _; / I I { I , ~ ' i ' J I 10 . ~ssist in the 9 tabi~iaatioa of existing neighborhoods nnd encourage the construction of middle and u pper income residential developments in the City of ftlanta . 11 . ftttempt to involve persons in tho slums in the business side of demolition , rehabi l it~tion or orGcting new units . 12. Continue efforts to sell the need for low income housine to the people of metropolitan ~tlnntn . �8 It is nlso suggested that consideration be given to plncing the functions of the Housing Resources Committee with the Citizens Advisory Committee for Urbnn Renewal or ns a part of ~n activated Urban Coalition. UNFIN.1SHED BUSINESS There are many unfinished phases of the initial program which need the continu i ng existance of n citizens• group to help with the completion of the program. Some of them are: 1. Completion of projects now in planning. 2. Legislation pendi ng t ha t will allow the city to l ease schools to be built by developers simultaneously with housing projects, except in urban renew~l areas. 3. Investigation of problems relatin8 to code restrictions on innovative building. 4. ~ctivation of Board for the Greater htlanta Housing Development Corporation. 5. Obtaining of additional sites in areas where l ow income housing is needed. It should be borne in mind, that while this program is ~pparently in good sha pe , that many of the projects still need shepherding. There are many forces trying to bloc k housing in Atlanta and any faltering in continuing efforts might well decimate the final a ccomplishment of the erection of the 16,800 units. I wish to close by thanking Col. Jones, William Gates of our staff, the raembers of our cor:imi ttee who worked eilligently during t he past two yesrs ~ nd such members as Archer Smith , Lee Burge , Cl 3re nc e Coleman, Cha r les Palmer , Robe rt Winn snd D~le Cla r 1 immediately come to mind ar:1ong many otbe•e. This has truly been a work ing Commit tee . We also thank the Atlanta Housing Authority , the Pl anning Department , the Building Department, Public Works Department , members of the Board of Ald0rr:1en , Ma yor Al len and the members of t he Press , Radio and TV Organizat ions . Not to be forgott e n are the developers and nonprofit groups who have in the last analysis made the program possible. ·; / · . , -· _.. -·+- ::::'-::<J ~ : .· _( ,__ L{e,,,-.z; t'(, 7.:.· 'C..,.. Cecil A. Alexander Chairman Encls: 1. Repor ts of Committee Panels 2 . Sumr:1ary of Status Report �