Box 22, Folder 19, Document 17

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Program; Low Rent Public Housing

fat ire and Purpose:

This program provides loans or guarantees of loans to
local housing authorities to assist them in the developmen
of safe, decent and sanitary low-rent housing projects for
low-income families and others who cannot afford standard
private housing.


his program also provides annual contributions to local
ousing authorities to assist them in achieving and main-
aining the low-rent character of the projects.


chp’ ry

This program provides direct benefits for poverty-striken

This program also provides financial assistance to loc
housing authorities to assist them in meeting the special
nousing needs of the low-income elderly.

When providing accommodations designed specifically for
the elderly, higher than normal “Low-Rent Public Housing


Programs per room costg, limitations are permitted. An

additional contribution to the local housing authority
(up to $120 per dwelling unit per year) may be authorized.

Siris~d—~a Ss Seciat prograntof-essis tance seat the Don Rene
AlVTaretsi Zz S7

Tne applicant agency must be a local housing authority
established by the local government, under state enabling
legislation, to ve eligible. The formal application must

be approved by the local governing body. The Atlanta Housing
Authority operates the program for the City.

Although the program is generally limited to low-income
families, single persons are eligible for admission in tne
case of the elderly, handicapped, and those displaced by
urban renewal or other governmental action. ;

There are only five real factors determining eligibility
to live in Atlanta Public Housi

(1) The applicant must have en address in Metropolitan
Atlanta. This does not mean he must have residence ror
any length of time, but he must be living, upon application
somewhere in the area. ;

(2) The applicant may not have a net income (determine
from gross reported income, employer's records, and inciuding
certain deductions for children, health, and other factors)

nigner tnan the maximums established by the Housing Authority.

“nese are: for a family oO. 1 = -$3,0005. 2. = 93.5400; Si §5,.0005
+ = 53,6005 2 — 4 ,Q003 ee = wet 53005 { = ob +003 3 a Or,
G - GE 600; 160 or more - 5700, These new maximum income

ae ‘

aimits were set in DE 1965, and are the first increases
since the 1950's. Once eligibility has been Tound, Tamilies
may earn more than the maximum and continue occupancy up to
certain limits. These continued occupancy maximums are


Eligibility continued:

$3,750 for one person, rising at increments of about $300
per person, to a maximum of $5,875 for a family of 10 or
more. Every family moving into public housing must show
some source of income whether it be employment, welfare
or social security.

Families or 10 or more must receive a special waiver
he authority to be eligible. All oi cher families,
meeting other qualifications, are eligible.

(4) Families must pass a police check as to moral character.
While past convictions will not prohibit eligibility, being
presently wanted for a.crime will.
(5) Each family must demonstrate the physical and mental
capacity to care for themselves without placing a burden
upon the Housing Authority.
In addition, there are two further requirements for the
elderly: (a) a doctor's health certificate; (b) a sponsor
who can be called in case of death or illness. Finally,
Tirst priority in public housing goes to persons wno have
been displaced by government nousing. Although occupancy
is 99% full, space is held to a very small degree for such
persons. The Housing Authority will also house persons on
an emergency basis. 8 or 9 Cuban families are now being
so housed.
Rents are determinedilupon tne basis of income, source of
income, family size, standard deductions,-needs and ovher
variables including the number of children under school
age. The minimum rent is $20 and rent can be as hign as
$05 or more. For the elderly the average rent is $29.00,
wnile the minimum elderly rent in a nigh rise is $25.00.
Present Utilization:
8,784 units built, 1140 units in planning, 1200 units
reservation made but no planning as yet. Totai Trunds
received to date - $63,808,000.00 for 15 projects.
Name Units Fund Date Built Race
Techwood 604 2,619,000 19367 “W
Clark Howell 630 3,215,000 L940 W u
Capitol 815 3,634,000 1941 W (I)
Grady 616 2,490,000 1942 N
Carver 900 — 10,200,00 1953 N
Harris 510 6,397,000 1957 Ww (I)
Perry 1000 . 9,217,000 1955 N
Bowen 650 9,736,000 1964. N
University 675 eye O08 19440 N
John Hope 606 2,595,000 194.0 N
Egan 548 1,942,000 L9O4+ N
Herndon 520 1,883,000 1941 N
Graves * 210 25177,,000 1965 N
Childs * 250 2,780,000 1965

=t «2



Palmer * 250 2,400,000 1966


Units for the elderly only. There are 2,383 (including
those in Graves, Childs, and Palmer) elderly units scattered
througnout the projects. ‘


S otherwise noted, structures are 2 or 3 stories high
and do not have hall ways.


A hign-rise with hall ways.

It is interesting to note that in 1941 about 550 units c
2 million dollars; today 2 million will not build naif t
many units.

This means that tne project is predominantly wnite with a

small amount of integration. When (I) is not shown it
indicates the project is 100% of the indicated race.


Program: Low Rent Public Housing, "Turnkey" Metnod

Nature and Purpose:


his is a new technique for the provision of public nousing
which permits a private developer or builder to deal with
local housing authority in essentially the same way

as he is accustomed to deal with his private clients. Under
this system, called the "turnkey" approach, a developer
who has @ site or an option, or can obtain one, may approach
the Atlanta Housing Authority with -a proposal to buzid in
accordance with plans and specifications prepared by his

own architect and to a standard of good design, quali y an
workmanship. In tne event that the developer's propo
acceptable to tne Housing Authority, the parties will
into a contract under wich the Housing Authority agre
purchase the completed building. This contract will
backed by the Housing Assistance Administration's f
assistance commitment to tne Housing Authority, and
enable the developer to secure commerical construct
Tinancing in his usual way.


It is anticipated that the developer will be working witn
architects, contractors and subcontractors of his own
choice and will bring to the Housing Authority the benefits
of his experience and know-how in producing the desired
nousing and related facilities and amenities.

The housing should. be suitable, well-designed, and well-
constructed, able to stand hard wear for at least 40 years,
be designed for economical administration and maintenance,
be produced in the most efficient and economical manner,
and be located in neighborhoods that will provide a health=
ful ana deeent environment and on sites acceptable to th
Housing Authority and HAA for low-rent housing. It will be
necessary for the developer and the Housing Authority to
iscuss in general terms the types and sizes (number of
bedrooms) of the housing and facilities to be developed.
The developer should consult with the Housing Authority

‘from time to time during the course of his planning to insure
the acceptance of his plans when they are developed.

In order to promote smaller publicly-owned developments,
especially to enable low-income Tramilies to live in tne
same environment with families or individuals of hnigner
income and possibly under arrangements wnheredy tne tenants
and the property are not specifically identified as being
public or private. For these reasons develope rs are
encouraged to propose sites considered’ to be too large I
exclusively public housing to-.plan combined private-publ
developments which will benefit both the low-income ten
subsidized by the HAA through the Housing Authority an
tenants of the developer who may be low, middle, or hi
income, depending on financing and economic reasibilit
Such a combination could also include cooperative or
condominium housing.




_\ -

Private developers who have sites or options on sites
should contact the Atlanta Housing Authority.

Present Utilization:

None. This should be an excellent means through which
to construct in a snorter length of time the 1,200 units
for which the Atlanta Housing Authority presently has

@ reservation.

Program: FHA 221 Mortgage Insurance for Low and Moderate
Priced Homes. .

Nature and Purvose:

A program of mortgage insurance to assist private indus
Tor the construction or rehabilitation of individual s
nousing, and for the purchase and repair of new or exi
multi-family units (up to 4-family units) that are to

sold or rented to low-income families.

The program provides housing for families displaced by

urban renewal or over government action. Also for families
with low or moderate incomes and elderly or handicapped persons
HA does not grant mortgage insurance directly to the
ontractor. Instead upon approach by 4@ contractor, and
ollowing approval as to property standards, location, need,
etc., the FHA issues a committment to the contractor to

issue 221 mortgage insurance to the buyers of the homes once
they are built. The contractor then finances his operations
as normal on the private market.

be OQ a

2el mortgage insurance is also available for non-new construction
when an individual is buying a house and rehabilitating it to
live in. The same eligibilities and down payments apply.
Normally, the FHA mortgage insurance will be for ali costs.
However, if construction has started on the house berore .
the 221 insurance was received, the mortgage insured cannot
be for more than 90% of value. Additionally, if the borrow
is not to be an owner-occupier (for example, @ person renting
housing or multi-family units), .or if he is refinancing the
property, the mortgage cannot be more than 85% of the amount
insurable for an owner-occupier, or 85% of the property value,
whichever is less.

Normally, the maximum mortgage term is 30 years. However,

it can be increased to 40 years when:

(a) in the case of a displaced family, the FHA determines
the mortgagor cannot make the required payments on
& shorter-term mortgage,

(bo) in the case of other mortgagors, the mortgagor is
wner-occupant and the FHA determines he can't me
the necessary payments in 4& snorter-term en oe ke
provided the house was approved by FHA or VA bero:
and inspected during, construction.

Normally, builders have sold homes at a price allowing
for the maximum mortgage to cover the purchase pric
Therefore, the average purchase price would normally
be the maximum mortgage to cover the purchase price.

Therefore, - the average purchase price would normally be
the maximum mortgage plus $200 for certified buyers or

plus 3% for others.


L .

In Atlanta the maximum mortgage has risen as the nati
maximum has risen. However, as the maximum mortgage in

Nature and Purpose continued:

1958 was $11,000 and today it is $12,500, the average
purchase price can be said to have been from about

$11, 200 = oie, 700 for certified buyers and from about
$11,330 to $12,850 for other buyers.

It should be noted that mortgages on the multi-family

rental housing or homes rented under this program are all

at the established FHA interest rate ( 5 3/4%) and that

on this housing there are no income limitations on occupants
&s tava). on the below- “market interest rate nousing under


riority is given to families who are qualified on cre

Pp J45 4
£ GLv,
family-related by blood, and certified by the U.R.A. 4s being
displaced by governmental action. These persons can pay 4
minimum $200 down payment. Other persons who are nov ramil

but are over 62 years of age or physically handicapped car
if otherwise qualified, qualify for the minimum $200 down
payment, or $400 for a two-family dwelling, $600 for vores
$800 for four. All other persons, if they are families or
over 62 or handicapped are eligible for 221 home mortgage
insurance but only for single family units, but they must

pay down 3% of the total aquisition cost of tne home --
which would be about $375.00 today as the maximum mortgage |
insurable in Atlanta under 221 is $12,500. Non-certified
families are allowed to purchase 221 housing because,
although the program is intended for displaced persons, the
FHA desires to see all units, constructed with FHA encourage-
ment under 221, purchased.

Present Utilization:

From 1935 through 1965, 3,831 home mortgages have been

issued under this program at a value of $37,991,450. In
1965, 252 home mortgages were insured for construction under
221 at a value of $2,565,900 (these figures included in 1935-
65 total above). Tn 1965, 69 home mortgages were proposed
for construction, but as of January 1966, not constructed,
for-a total of $769,000 (not included in 1936-65 total above).
These totals include 221 new sales housing, homes bought and
rehabilitated under 221, and homes bough and rehabilivated
by & non-occupant under 221. These figures are for the
standard Metropolitan Atlanta area. There hés nov been any
market-rate 221 mortgage insurance for multi-family _ Housing
(up to 4-family units) in Atlanta as of January, 1966.


Program: FHA 221(d)(3) Mortgage Insurance At Below

Market Rate Interest For Rental and Cooperative
Housing For Families of Low and Moderate Income

Nature and Purpose:

There are a number of families wnose incomes are too nign
for public housing, but not high enough to compete for
adequate housing in the private market. Some of these
families have been forced into the market because of urban
renewal or-.other governmental action.

To help these families obtain housing at prices they can
afford, the Federal Housing Administration insures morvgzages
on special terms under the provisions of Section 221(d)(3)
of the National Housing Act.

To keep the rents within the means of the people for whom
the nousing is intended, the Act authorizes a mortgage
interest rate below the current market rate on FHA- insured

Priorities for occupancy are given to families displaced by
governmental action. Other families whose incomes are within
the limits established by FHA also can qualify for occupancy,
as can single elderly or handicapped persons. ;

Proposed new construction, and existing properties re
rehabilitation, with five or more units may be eligib
mortgage insurance.

A mortgage insured under Section 221(da may carry 4

market interest rate (at the present ee not more than

5% percent), or a below-market rate.

Under these provisions, the interest rate during construction
may be as high as the established FHA maximum interest rate
at the time of construction. Upon final endorsement or the
loan, the interest rate will be lowered to 3 percent. FHA

waives the mortgage insurance premium of 4 percent for projects

with this low interest rate.

For.public agencies, cooperatives (including investor-sponsored),
and non-profit sponsors, mortgages on new CONS OTS LON may

not exceed the replacement cost of the project; on renabilitation
projects, the estimated cost of rehabilitation plus the value

of the project before rehabilitation; or if refinancing is
involved, the estimated cost of rehabilitation plus the amount
required to refinance the out-standing indebtedness. For
limited-distribution mortgagors, mortgages may not exceed

90 percent of these amounts.

The mortgage on any project is further limited by such actors
a3 family income limits established by the FHA, and debt
service considerations.

Nature and Purpose continued

The maximum mortgage term is 40 years or three quarters of
the FHA estimate of the remaining economic life of the
property, whichever is less. The maximum mortgage amount

is $12,500,000. The mortgage on any project is Limited

by construction costs and median income figures established
by FHA for the area, Information regarding these limitations
Tor a particular area may be obtained from the local FHA

insuring office.

advances are to be insured during construction two percent
of the original principal amount of the mortgage will be
required as working capital. This fund must be deposited
with the mortgagee by the mortgagor and must come from
sources other than mortgage proceeds.

Public and private limited distribution projects: If

Private nonprofit projects: An allowance of two percent
to make the project operational, in lieu of working capital,
may be included in the mortgage.

With respect to rent, carrying charges, and occuvancy
requirements, FHA controls wiil be maintained until

the insured mortgage is paid in full. To prevent early
refinancing and release of FHA controls, full or partial
pre-payment of the insured mortgage without approval of

the FHA Commissioner is prohibited, except that limited
distribution mortgagors may pay in full after 20 years

from the date of final endorsement witnout such approval.
All housing financed under the program must operate in
accordance with regulations as to rentals, charges, metnods
of operation and occupancy requirements set forth by the FHA.

Occupancy is limited to families and to elderly or nandicapped
individuals of low and moderate income, with preference

peing given to displacees..

Projects may be sold only with the prior approval of FHA and
subject to prescribed conditions.


Projects may be developed by public agencies (except local
housing authorities that obtain their funds exclusively for
public housing from the Federal Government) or by co-operatives
(including investor-sponsored), private nonprofit corporations
or associations, or limited distribution corporations, or

other mortgagors approved by the FHA Commissioner.

A nonprofit mortgagor is a corporat jon or association
organized for purposes other than the making of profit Tor
itself or persons identified with it and round by FHA to be
in no manner controlled by or under the direction of person
or firms seeking to derive profit from it.

Page 3.

distribution mortgagor organized to build or reh abeh pave
a project and sell it, immediately upon ee ere to 4
private nonprofit organization at the certified cost of
the project.
A public mortgagor is a Federal instrumentality, a State or
its political subdivision, or an instrumentality of a State

or of its political subdivision, which certifies that it

is not receiving financial assistance exclusively for public.
housing from the Federal Government and which is acceptable
to the FHA.

A limited distribution mortgagor is a corporation restricted
as to distribution of ga by the laws of the State of

its incorporation (or by FHA) - or a trust, partnership,
association, individual, or other entity restricted by law

or by the FHA as to distributions of income - formed
exclusively for the purpose of providing housing and regulated
as to rents, charges, rate of return, and operating metnods

in a manner satisfactory to the FHA.

A cooperative mortgagor is a nonprofit cooperative ownership
housing corporation approved by FHA Permanent occupancy is
restricted to the members, and eiteibtitty and transfers of
membership are subject to FHA controls.

An investor-sponsor mortgagor is a special type of limited
distribution mortgagor organized to build or rehabilitate

@ project and transfer it to a cooperative. If the project

is not sold to a cooperative within two years after completion,
the investor sponsor will operate it as a limited distriboution

corporation, for the purposes authorized.

To live in these low rent projects, families must be making
less than $5,250 per year. It should be noted that these

-income limitations do not apply to regular 221 housing.

This is a maximum income limitation which varies by ramil
Size. There is no absolute minimum but 4&4 minimum net income
after taxes and obligations, which varies by the type or
apartment involved and the types of obligations outstanding,
is required.


riorities are given to families certified by U.R.A.
isplaced by government action. For individuals to a
ligible, they also must have sufficient financial capacity
and be blood-related (except for persons over 62 or the
handicapped). There are no minimum income limits, but eacn
family must pass a credit check to show they can arrord th

@ 2 By

A total of 16 projects, providing 2,071 units have been
built, are under construction, or in planning in Metropolitan
Atlanta. Those projects, status and rental ranges and

income limitations follow:


Wheat Street Gardens

323 Irwin Street, N.E.
Sponsor: Church Homes, Inc. ( Private, nonprofit)
280 units - $2,975,000 65
Rental Housing
income Limits: 2 persons -
3&4 -
5 & 6 -
All 2 bedroom apartments, unfurnished, light, gas and
telephone additional.
Rents: Upstairs - $69.50 month
Downstaris - [72.50 month

len Temple Apartments #1

ll Allen Temple Court, N.W.

Sponsor: Allen Temple Church ( Private, nonprofit)
150 units (10 buildings, 15 units each), financing not
yet closed - Opened December, 1965.

Rental Housing
Income Limits: e

rsons $5,250
¢ 4 6,650
6 7,150
7 or more 8,500

2 and 3 bedroom apartments, unfurnished. Light, gas and
telephone additional.
Rents: 2 bedroom on terrace $62.00 month

2 bedroom lst and 2nd fl. 65.00

3 bedroom on terrace 72.50

3 bedroom’ 1st and 2nd fl. 75.00

Rastwyck Village

2892 Eastwyck Circle, Decatur

Sponsor: FCH Company, Inc. (Foundation for Cooperative
Housing, Stanford, Conn.) (Private, nonprofit)
6 sections, 441 units - $5,373,400 - Opened 1905

Cooperative Housing : :
Income Limits; person $4, 650 (must be over 62 years)

& 4
& O

Hastwyck Village continued

Furnished apartments. Water,sewerageand garbage are
$3.70 additional.


bedroom $53.00 mont

~ 4 ia a

bedroom _69.00 month
bedroom, 1s baths, basement - $79.00 month
bedroom ti <0O

. Tx 12 ati aan de BL

bedroom, 1s baths, basement o4 .00
bedrooms, 13 baths, basement 94.00


‘Under Construction

Allen Temple Apartments # 2

ii Allen Temple Court, N.W. .
Sponsor: Allen Temple Church (Private, nonprofit)
225 units, completion early 1967 © os
Rental Housing

Income Limits: Same as Allen Temple “Apartments # 1
Rents: Same as Allen Temple Apartments # 1

Cambridge Square

3061 Oakdale Road, Doraville, Georgia

Sponsor: FCH Company, Inc. ( Private, nonprofit)
134 units - completion March 1967

124 units - completion September, 1967
Cooperative Housing

Income Limits: 1 person $4,350 (must be over 62 years)
2 5,250
3& 4 6,200
5 & 6. 7,150
7 or more 8,050

Unfurnished apartments. Water, sewerage and garbage are an
additional $3.70 charge

1 bedroom $58.00
2 bedroom 69.00
2 bedroom, 14 bath, basement 79.00
3 bedroom 79.00
3 bedroom, 13 bath, basement 86.00
4 bedroom, 1s bath, basement 97.00


In Planning or discussion:

Wheat Street Gardens (addition)

323 Irwin Street, N.E.

Sponsor: Church Homes, Inc. (Private, nonprofit) 2
240 units in planning, construction to start spring 1907
(will probably be mostly 3 bedroom apartments)

Rental housing.

In Planning or discussion - continued

College Plaza
97 units in planning, commitment issued (but, because
rent values were too low, might be reconsidered), no
construction plans yet.

Ballard Heights

84 units in planning, no formal application yet

200 units in planning, no formal application yet
Park West

96 units in planning, no formal application yet

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