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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 Corr.mittee 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. Chairc3 u Cecil n. Alexznder presided. Mr. Alexander opec ?1 the nceting by asking Mr. Archer Smith to give the Committee a report on school construction. Mr. Smith presented the following two proposals: (1) Approach the Sta te Sc hool 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 then o er 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 Sc hool Board to enter into leases on a long term basis. This loc a l ~~end~ent would be the more solid way and the local a~endment 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 a long with either method. Mr . Jones suggested that the Committee authorize the Legal Panel to contact the School Bo ard and see which they would prefer a nd then pursue that course. A motion was made , seconded a nd adopted that the Legal Panel be so authorized. Mr. John Ch~p~an appe~red before the Committee to discuss a proposal for buildinr. l ow-income housing. He said housing for the lowest inco~e families would pro~ably need to be financed by the Federal govern~ent; that housing for medium income families could be financed through private corporations. He was suggesting dwelling units with rent ra nge~of $70-$80-$90 for 1, 2 or 3 bedrooms respectively. He proposed forming a limited profit corporation, the mer.!bers of which would eac h 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 adv~sed he would try to contact several private corporations about putting up money a t 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 received from this idea. Mr. Alexander con mented on and referred to an article by Vincent T. Burke, in the Los n ngeles 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 witho ut ~ny a ssistance from Federal programs or organi~a tior.s. (Cc r y o f the article is attached to the file copy of the~e ~i nutes.) Mr. Pers e l ls re p0r tec.i t o the Con:::1i ttee on the Honor Farm No. 1 Site proposed con ce pt . He presented a map showing approximately 120 acres bet ween the Federal Penitentiary and the Thomasville Ur b a n Re nc~ a l Project t ha t the Federal government proposes to tur n over t o t~e City f o r urban improvement, including hous ing . He expln i ned tha t the portion of the property to be developed f o r hous il-:g and rela ted cmnmercial could be either turned over directly oy HUD to developers, turned over to the City to put ou for bids, or go to Atlanta Housing Authority for develop~ ent through process of Ur ban Renewal. fl meeting of the Al d erma nic P l2 n ning and Development Committee is to be held to cons id er wh a t should b e done. Mr. Persells also advised that a n ew p~ r k ar e a i s to be develope d and an El e mentary School and a " Middle School" ar e to be constructed in the area. The question wa s a sked a b out how housing could be developed in the shortest le ngth of time. Mr. Persells responded we would b e una ble to st ar t b uilding unt i l a stre et and sewer system was b e g un; t hat i s the biggest d ela y. I t wa s sugge sted that the l a nd could be s old t o a developer a nd h e could put in the stree t system simult aneous wi t h t he h o us i ng d e v e lopme nt. Tw o cho i c es we r e recommend e d : (1) The Ci t y o r d e velopers could g o in a nd p ut in the street and ut i lities at their e xpe ns e o f about $270 ,000. 00 . (2 ) Have streets put in b y the Housin g Autho r ity as an Urban RedevelopEent expense. Mr . Pars ells expl~inod that fro~~fi n a ncial sta nd poi nt and time eleme nt , the il03w f avorable sollution would be to have the Housing Authori . y put i n the street Gnd sewer system at Urban Redevelopment expeLse , b e c a use the schools would have to be built any way, and the City ~ould receiv e 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. �r 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 way to get clear title to the property would be condemnation proceedings through the Urban Re newal process. The Land to be developed for housing and related commercial is to be offered for sale on May 27, 1968, to developers, with proposals called for. Additional land, 17 single-family lots, is to be added to the Thomasville Urban Renewal Site for sale, with ground breaking between May 20-28. Approximately 50 acres of the 120 acre tract of land would be available for housing. Mr. Archer Smith, made a motion that a formal resolution be drawn up that the Housing Resources Committee goes on record as urging the support of the New-Town-In-Town project concept conditioned upon a substantial portion of the project to be developed for lowest-income housing. If this condition is not met, then the Housing Resour ces Committee goes on record as opposed to the project as presently planned. Motion was seconded and unanimously adopted, with instructions that copies go to the Housing Authority, Mayr Ivan Al len, Jr., Members of the Board of Aldermen and to Mr. Baxter, of HUD . Mr . Howland announced that the CACUR non-profit housing development corporation has now selected five units for rehabilitation under 221 (h) and expected to have them under way within 60 days. Mr . Alexander then a s ked Mr . Jones to explain a proposal he had been working on for accelerated low-income housing development in the Model Cities area. Mr. Jones explained the concept and stated that a development team was very anxious to get a tract of about 10 acres f ..cfr an experimental housing development to stzrrt this summer. He read a letter just received by the Mayor from Mr. H. Ra lph Taylor, Assistant Secretary, HUD, proposing a HUD sponsored experimental · housing project in Model Cities area in selected cities to be carried out by a pri~e contractor to be selected by HUD; and inquiring if P.tla nta desired to cooperate? Mr. Jones eKplained that this tied ind irec tly with the proposal he has been working on; that because of multiple ownerships, it is virtually impossible for private dev elopers to acquire land in the Mode l Cities area for this purpose; that therefore he has studied the area and looked at certain sites, with others~ including a representative of Model Cities, and has selected two tentative sites, having badly dilapidated housing which will in all probability be demolished any way, and has marked these on a map for consideration of the Model Cities staff. �I 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 su i table site be selected in the Model Cities area f or 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 Aldermen and HUD. Mr. Persells stated that he concurred and that the Housing Authority would go·in·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 Renewa l Project within the Model Cities area. He requested support of the HRC to the Planning and Development Committee, the Mayor and Board of Aldermen 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. P:lexander informed the Committee of g r ound-breaking on the first Turnke y Housing project in Atlanta on Hollywood Road, N.W. at 2 :00 p.m. on May 9 , 1968. All were invited ; that Mayo r Ivan Allen , Jr., would o ffi c ially break the ground for the 202-ttnit development. Copies o f the announcement , prepared by the . Housing Authori t y were distributed. It was announced that the report fr om the Ad Hoc Committee on Low-inc ome Housing Analysis will not be ready and that it would be discussed at a later da~e. Mr . Plexander announced that a confe r ence will be held May 29th at the Dinkler all day , consisting o f debates and discussions on legal aspects, employment, workshops, etc., on equal opportunity in housing. Mr . Alex a nd e r explaine d brie f ly the p r o g r e ss mad e on Pa ckage Zoning . Question. ·wa s a s k ed if a formal resolution has been adopt e d b y t he HRC Ex e cutive Committee on the p r opos ed Packa ge Zon i ng Pl an . The Commi t tee wa s advised tha t such res olut i on h ad a l read y bee n a dopt e d s upp ort i ng t h is p l a n. Mr . ftlexa nd er a l s o stated it i s ant ic ipa t ed t ha t t he plan wo uld receive t he supp o r t o f numerous civic and business o rganizations and radi o and television. Mr. Alexand er rea d a Press Re l ease fr om HUD atinounc ing authoriza tion of t rai l ers (mobi l e homes ) for temporary housing in Urban Uedevelopment prmjects . �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, ~y~:,~r0v'v1-ij-~~ · w~ Malcolm D. Jone Housing Coorldina ·or Encls: As stated (with file copy o nly) • �