Box 22, Folder 19, Document 7

http://allenarchive.iac.gatech.edu/originals/ahc_CAR_015_022_019_007.pdf

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Box 22, Folder 19, Document 7

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STATEMENT ON HOMEOWNERSIDP BY THE POOR
The Task Force is convinced that the encouragement of homeownership by those now living in slum areas would have great value.
It
is an idea solidly in the Americ0ll tradition, and well worth trying as a
pilot program.
Offering slum dwellers a chance to own a decent home of their
own might have a profound effect upon their attitudes toward society.
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stead of feeling like frustrated and helpless transients floating along
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in the poverty and filth of the slums, they could begin developing a stake
in their community and a chance for control over their own destiny.
It should be stressed, however, that if the program is to actually
reach the poor, substantial subsidies will be required.
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Based on an ex-
perience in Pittsburgh, the acquisitio~ and rehabilitation of a dwelling
cost $10,400 which required for all charges a monthly peyment of $lo6
or
an income of $5,000 -- even with 40 year, 3 percent financing .
The justification for housing subsidies for the poor is more
t han mor ally compelling .
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The federal government subsidi zes middle - income
home owners by $2 . 9 billion a year through tax deductions .
It subsidizes
the poo:r by only $820 milli on through public hous i ng, public assistance , and
t ax deductions.
Recommendations :
The Task For ce ther efor e r ecommends ~ t hat the f ollowing
criteria should apply:
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1.
The pilot program should seek to provide opportunities for
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all forms of ownership among sl~ dwellers:
single family ownership,
cooperative or condominimn ownership, or ownership by resident landlords
of multi-family dwellings·.
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2.
Subsidies in the form of low interest loans, rent sup-
plements, or "ownership supplements" should be provided to reach lowincome levels.
3. The program should provide opportunity for ownership
outside the slum, as well as in it.
4.
The program should be based on rehabilitation of the unit·
to standard condition, and prior to assumption of ownership by the slum
dweller.
5.
The program should be undertaken only where major efforts
are underway to upgrade the surrounding neighborhood.
6.
Organizational capacity should be provided to acquire and
r ehabilitate the property, prepare persons for ownershf p responsibility,
and provide continuing financial and other counseling.
7.
The program should provide agreement to buy back the
house during a limited period in case owners cannot manage the newly
assumed burdens.
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