Box 5, Folder 7, Complete Folder

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May 6, 1968
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Honorable H. Ralph Taylor
Assistant Secretai·y
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'o/.ashington, _. D. C . . 2041 0 .....•
Dear Secretary T aylor:
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Your letter of April 22 informing us of the proposed low-cost
housing experiment by HUD in pe 1·haps 20 cities having Model
Clties g r ants is m.o st intrig uing. We definitely want you to include
Atlanta on your list as one of the cities w illing to coope rate in the
deve lopment of innovative techniques , pa:rticularly in our extensive
M o del Cities area, in interest of generating increased levels and
reducing constr uction costs of dwelling units for low-inco m .e
On May 2 our Housing Resources Committee adopted a Resolution
1·ecommending early sel ection and deve lopment for low-income
housing, as s oon as possible, of approximately a. ten acre
po1·tion of the w or st residential section of ou1· Model Cities ..,
area, through "advance l and acquisition" procedure.
We have also been approached by an Engineer , reputable local
Contractor and Architect team which is anxious to obtain a site
in our Model Cities area for construction of several hundred units
of high density (4 0 units per acre ) low-income housing, using a
"patent applied for 11 concept of precast concrete general pur pos e
angle slabs that can be cast on-site and installed with a minhnum
of equipm.ent and using p rimarily untrained local labor.
The principal in this team, Mr. John :McNamara, Engineer of
Savannah, Georgia, I understand h a s a l ready contacted a couple
o! your people in Washington ab out hi s concept - Mr . Po1·ter Driscoll,

Secretary Taylor
Page T"vo
May 6, 1968 ..
Director, Architectural Division, FHA in HUD, and Mr. Deman,·
Assistant Commissioner for Technical Standards in HUD.
We hope that you will keep us advised of the progress of this housing
experiment and assure you of our desire to participate and willingness
to cooperate in this venture.
Sincerely yours,
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lvan Allen. Jr.
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. WASHINGTON, D. C. 20410
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APR 2 2 1968
I . .
Honorable Iva_~ Allen, Jr.
¥.ayor of Atlanta
Atlanta, Georgia 30303
Dear ·Mayor Allen:
I want to take this opportunity to i~orm you of what I believe is a
lllost exciting experiment in building new housing for low- and moderateincome families within the Inner-City. Within the ne:x-t several weeks,
a prime contractor, most likely a joint venture of several firms, will
be selected. by the Department of Housing and Urban Development. T'nis
prime contractor will be expected to supervise and manage a variety of
low-cost housing experiments in perhaps as many as 20 cities, most of
which now have Mod.el Cities grants. These experiments -will be carried
out only in cities which are -willing to cooperate in the development of
innovative techniques aimed at generating a higher level of housing construction for low-income families.
!l1he prime contractor will seek out, study and evaluate new design, construction and management techniques and systems, as well as materials
and components to be used in the e.A-periments. Based on analysis and.
after consultation with city officials and such interested private
groups as l~bor unions, neighborhood organizations, builders, architects,
sponsors and educators, the contractor wlll determine the kind_of housing
to be built in a specific neighborhood. T'ne goal of the overall experiment is to obtain more housing value for each dollar spent in the
development of good city housing for low-income families, and to identify
the obstacles to building such housing.
Where such housing is to be built within a designated model neighborhood,
the experiment "1ill be carried out in the context of the Model Cities
planning and program implementation process. In any case, it seems essential that the groups mentioned above be consulted if this bold experiment
is to work. Following the selection of the prime contractor, HUD 'Will
work wl th him to select cities which seem ,to have the capacity and willingness to carr y out an e:x-perimental project for low-income housing. The
Departinent will be committing not only substantial research funds in this
effort, but also t ens of millions of dollars o~ . program f'unds from several program soUTces.

With the :full cooperation of all who become involved in this experiment
to better the nation's housing, and to make government more responsive
to the most pressing housing needs, I believe that this can be a most .
significant step toward meeting the goal of a decent home in a suitable
living environment f'or every· American family.
Sincerely yours,

1 .
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H. Ralph Taylor
Assistant Secretary
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�May 9., 1968
Mr. M . B . Sa.ttei-field
Executiv Dir ctor
Atl nt Housing Authority
824 Hurt Building
Atlanta, Georgi· 30303
S tt:
1 note th t th R solution adopted by the Boa:rd of Aldermen
on May 6 pertaining to th Honor Farm No. 1 site authori~e
that it b taken into the Thomasville Urban Ren wa1 Proj ct
"to be dev loped primarily fol' hou lng £011 !am.Ute of low
mod r te incoine .
U.nd r thb criteria, it could cone iv bly b d v loped und J'
the v riout · specta o1 the 2Zl d (3) program and housing for
th eld rly only.
Enclo d l
eopy ol a Be olution dopt d by the Hou ing
B so-urc • Commltte on May 2, caUtn tor d v lopm nt of
a. sub tant l portion ot th dditional la d to b tak n into the
p't'oj ct for u1owest incom ho lna. 11
r onally · uppon thil vie and l'•q et
t in calUn £or
proposals from.
elopers for the rea that the Hou ing
Authodty . pc.cliy a. •ub bultial portion of th land to be
d veto
d for h u.ehlg for lowest
come tamilie•.
Ivan Allon. Jr.
Con.1ultant.1 /or .Jtulti-/amily .Jlou.1ing
Telephone 4 36 - 6 134
P o st Office Box 716 4
Atlanta , · Ge org ia 3030 9
TELEPHONE 422-4479
145 NO RT H
P . O . BOX 2068
M y 9 , 1 68
Honor ble Iv n Allen, Jr .
.M yor of A tlant
0 or ta
Dear Mayor Allen:
In b half of Mr . K hn and 11 who ar wor kin ' ith u ~ in the e atabli m nt of com•

,>r cilen &lv e br~ kthroJ~ in con 

.i truction co6t , I wbh to JCpr e$ our lnce re t ppr ec tloa fo r the ti me nd 'r;n r y you ave us tht• ft wrnoon. I r l h.e your v ry

c r o•d d rJChedule nd th e:.rit.l.:. · µro portion. o f yo1.1r d ily rtw pon ib llltle •
you kno~ . the f~deral peo ple ,
au cone rn ed citl~ n · , are a lmo i:.;t
dttsi-1erat l)' rur.touL to e a ? rlc ~ br kthrO!.l ' h mad , · o U, t tb · poor p~ople c n
d l nity of owne r ·l i p v.lthout il b ln
tot l ~ ub idy condition . To b:.ill
public hou in . for 17, CiOO p r unit l nu t tl e n Vf r. Th tJ an
r can only be found
in th at ~hlch madv /\m rica r at ln the !lr t place (r11gal ppr ch to Uf •s
many op;.,ortunltl~ ' for t w rd '.tp.
tad au c r n t d lre to ;,rove th pot ntl l of our con. tr11ctlon u
in. c urban ::: ettln • \,f~ -.,r vlous 1 tte r wa compr eben. ive tn th t reg r d . I m
v ry ur that the f cic ral p opl (beyond th r e l on l HUD office) 91ould b,.. ~ntbu alaaUc in their cooperation, and \t i• a conviction w ith m ' t h t Atlanta would aln
mu h from the fact of bdn th• pl c
·he r thi honelit and ood Am rlcan thing
tran ptr d . Th tlme c ri ltJ ls upon u as lt l upon ever yone. o that we cannot
atfora to let thi · umm r p & whlle only proc d-ir l f!atre; are car d for . \\ w re
not too l t in our orl inal:, pr entatlon. V. e cam ltl a v ral w
ago 1th a very
6 rl u · ..,ropo ition nd are ,; ttll aB sine ... r
r t hen .
e hav
ain, accept my · ratlt\ tor your · raclou . ho pit llty and 11,y pled
upport ln th d&)'li which fac U i> a.U.
lcbard L. Pull rton
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cc: Y sa.;r •
a im. 1louu • Scllartfenh r r,
r, Douala ,, urk•. Jone •
Rap • and Ga mon

AL••• d
PHONE 522- 446 3

From Malcolm D. Jone s,
Housing Coordinator
May 9, 1968
Mayor Ivan Allen, Jr.
In order to insure that a substantial portion
of the Honor Farm No. 1 site be developed
for housing for the lowest income families,
I recommend that the attache d l e tter be
signed and sent to the Housing Authority.
Proposed letter
FORM 2 5 -1 5
ATLANTA, GA. 30303
Tel. 522-4463 Area Code 404
May 9, 1968
R. EARL LANDERS, Administrative Assistant
MRS. ANN M. MOSES, Executive Secretary
DAN E. SWEAT, JR., Director of Governmental Liaison
Mr. M. B. Satterfield
Executive Director
At_lanta Housing Authority
824 Hurt Building
Atlanta, Georgia 30303
Dear Satt:
I note that the Resolution adopted by the Board of Aldermen
on May 6 p e rtaining to the Honor Farm No. 1 site authorizes
that it be taken into the Thomasville Urban Renewal Project
11 to be developed primarily for housing for families of low and
moderate income. 11
Under this criteria, it could conceiva bly b e d e v e loped under
the various aspects of the 221 d (3) program and housing for
the elderly only.
Enclosed is a copy of a Resolution adopted by the Housing
Resources Committee .,-on May 2, calling for d eve lopment of ·
a substantial portion of the additional land to be t aken into the
project for 11 lowest income housing. 11
I personally support this view and request that in calling for
proposals from developers for the area that the Housing
Authority specify a s ub stantia l portion of the l and to be
developed for hous_ing for lowes t income.families.
Sincerely 1
Ivan Allen, J r.
Enclosure .
P a g e 16
WASHINGTON , D . C . 2041 0
Hous ing As sis t ance Adm i n ist ra tion
pt for a leasing Erogr am 1 the locality must have a ·orkable
Pro r
for Community Improvement approved by the Secretary of HUD
and currently in eff ct. A Wor kable Progr am includes seven lemente
of accepted principles of good community development. These interact
to deal i t h th probl em of s l ums and bligb.t and help to establish
neighborhoods suitable for an adequate family life. (HUD publication
scribing or kable Program r quirements are av ilable . )
In the leasing program, the local governing body must approve . use of
the progz:am in th loca1ity. In other progr s., e ch project must be
approved by the governing body, which mus t also enter into a cooper tion
nt with th LHA . The
ree ent cover s such
tters as tax
exa ption., payment in 11 u oft es, and provision of the usual municipal
oervic ..

* *

May 2, 1968
· The regular montly meeting of the Housing Coordinating
Group and Housing Resources Committee Executive Group was held
in Committee 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.
Chairman Cecil h. Alexander presided.
Mr. Alexander opened the meeting by asking Mr. Archer Smith
to give the Committee a report on school construction. Mr. Smith
presented the following two proposals:
(1) Approach the State School 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 them over 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 School Board to enter into leases on a long term basis.
This local amendment would be the more solid way and the local
amendment 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 along with either method. Mr. Jones suggested that
the Committee authorize the Legal Panel to contact the School
Board and see which they would prefer and then pursue that course.
P. motion was made, seconded and adopted that the Legal Panel
be so authorized.
Mr. John Chapman appeared before the Committee to discuss
a proposal for building low-income housing. He said housing for
the lowest income families would probably need to be financed by
the Federal government; that housing for medium income families
could be financed through private corporations. He was suggesting
dwelling units with rent range ~of $70-$80-$90 for 1, 2 or 3
bedrooms respectively. He proposed forming a limited profit
corporation, the members of which would each 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
entirely, with no connection with Federal assisted programs.
He advised he would try to contact several private corporations
about putting up money at 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 re~eived from this idea.
Mr. Alexander commented on and referred to an article by
Vincent T. Burke, in the Los fl nge.les 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 without any assistance from Federal programs
or organizations. (Copy of the article is attached to the
file copy of these minutes.)
Mr. Persells reported to the Committee on the Honor Farm
No. 1 Site proposed concept. He presented a map showing
approximately 120 acres between the Federal Penitentiary and the
Thomasville Urba n Renewal Project that the Federal government
proposes to turn over to the City for urban improvement,
including housing. He explained that the portion of the property
to be developed for housing and related commercial could be
either turned over directly by HUD to developers, turned over
to the ~ity to put out for bids, or go to Atlanta Housing
Authority for development through process of Urba n Renewal.
/1 meeting of the Alderma nic Planning and Development Committee
is to be held to consider what should be done. Mr . Persells also
advised that a new park area is to be developed and an Elementary
School and a "Middle School" are to be constructed in the area.
The question was asked about how housing could be developed in
the shortest length of time. Mr . Persells responded we would
be unable to start building until a street and sewer system was
begun; that is the biggest delay. It was suggested that the land
could be sold to a developer and he could put in the stree t syst em
simultaneous with the housing d e velopme nt. Two choice s were
rec ommended:
(1) The City or d e velopers could go in and put in the
street and utilities at their expense o f about $270 ,000. 00 .
(2) Have streets put in by the Housing Author ity as an
Urban Redevelopment expense.
Mr. Persells explained that from;.d'financial standpoint and
time element, the most favorable sollution would be to have the
Housing Authority put in the street and sewer system at Urban
Redevelopment expense, because the schools would have to be built
any way, and the City would receive 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.
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
~a y to get clear title to the property would be condemnation
proceedings throu~h the Urban Renewa l process. The Land to be
developed for housing and related. co~mercial is to be offered
for sale on May 27, 1968, to developers, with proposals c~lled
Additi onal land, 17 single-family lots, is to be added to
the Thomasville Urban Renewal Site for sale, with ground
breaking between May 2 0-28. Appr oximately 50 acres of the 120
acre tr a ct o f land wc ~ lci be available for housing.
Mr . Archer Snith , ma de a moti on that a formal resolution
be drawn up that the Housinc Re sources Committee goes on record
as urging t h e support o f the New-Town-In -Town project concept
condit i oned up on n s ub s t ant i a l porti on of the project to be
developed for lowest-incoc e housing.
If this condition is not
met, then the Housi ng Res o urces Comn ittee goes on record as
opposed to the pr oject a s presently planned. Motion was seconded
and unanimously adopted , with instructions that copies go to the
Housing Authority, Ma yo r Ivan Allen, J r ., Members of the Board
of Aldermen and to Mr . Ba xter, o f HUD.
Mr . How land nnnounced that the CACUR non-profit housing
development corpora t ion has now selected five units f or rehabilitation u nder 221 (h) and expected to have them under way
Viithi n 60 days .
Mr. Alexande r then a sked Mr . Jones to explain a proposal
he had been working on f o r accelerated low-income housing development in the Model Cities ar ea.
Mr . Jones explained the concept a nd stated that a de vel opment
team was very anxious to get a tract of about 10 acres f-eir an
experimental housing dev elopment to start this summer. He
read a letter just received by the Mayor from Mr. H. Ra lph
Taylor, Assistant Secre t ary , HUD, propos ing a HUD sponsored
experiment a l housing pr o j e ct in Mode l Cities area in selected
cities to be carr ied o ut by a prime contractor to be selected
by HUD; and inquiring if P. tlanta desired to cooperate? Mr.
Jones expl ained tha t t his tied indirectly with the proposal
he has been working on; that b ec aus e of multiple ownerships,
it is virtunl ly icpossibl e f or private deve lopers to acquire
land in the ~odel Cities area for this purpose; that therefore
he has studied the ar ea and looked at certain sites, with
others·, including a representative of Model Cities, and has
selected two tentative sit es, having badly dilapidated housing
which will in al l probability be de~olished any way, and has
marked these on a map for consider a tion of the Model Cities staff.
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 suitable site be selected in the Model Cities
are~ for 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 Al dermen and HUD.
Mr. Persells stated that he concurred and that the Housing
Authority would go·1n · 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 Re newal Pr oject within the Model Cities area.
He requested support of t he HRC to the Planning and Development
Committee, the Mayor and Board of Al dermen 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. Alexander informed the Committ ee of ground-brea ki ng
on the first Turnkey Housing project in Atl anta on Hollywood
Road, N. W. at 2 :00 p.m. on May 9 , 1968. All wer e i nv i ted; that
May o r Ivan Allen , Jr., would offic ially break the ground for the
202-ttnit development. Copies o f the announcement, prepared
by the Housing Authority were d istributed.
It ½as announced that the report from the Ad Hoc Committee
on Low-income Housing Analysis will not be ready and that it
would be discussed at a later date.
Mr . Alexande r an nounced that a conference wi ll be held
May 29th at the Dink le r all day, consisting o f debates and
discussions on legal aspects, employment, workshops, etc., on
equal opportun it y in housing.
Mr . Alexander exp la ined briefly the progres s made on
Package Zoning.
Question ·was asked if a f o rmal resolution has been adopted
by the HRC Executive Committee on the proposed Package Zoning
Plan . The Committee was advised that such resolution had already
been adopted supporting this plan. Mr. ftlexander also stated it
is anticipated that the plan would receive the support of
numerous civic and business organizations and radio and television.
Mr. Alexander read a Press Release from HUD announcing
authorization of trailers (mobile homes) for temporary housing
in Urban nedevelopment pr~jects.
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,
Malcolm D. Jone
Housing Coorldina ·or
As s tated (with file copy only)
Housing Resources Executive Committee and
Low-income Housing Coordinating Group Meeting
flpril 11, 1968 ·
. The regular montly meeting of the Housing Resources Committee
and Low-income Housing Coordinating Group was held in Committee
Room 2, City Hall, at 10:00 a.m~ Thursday, P-pril 11, 1968.
Copies of invitational notices, agenda, list of those invited
and attending and reference documents are attached to the file copy
of these minutes.
The following Panels of the Housing Resources Committee were
not represented at the meeting: Legal, Public Housing, Social
Problems 3nd Public Information.
Chairman f.lexander Presided.
In opening the meeting Mr. Alexander referred to the objectives
of the late Dr. Martin Luther King, Jr., and complimented Dr. Benjamin
E . Mays, Co-Chairman of the Housing Resources Committee>on his
e u logy address at the funeral of Dr. King.
Mr. 1\lexander then expressed the appreciation of the Committee
for the support it is receiving in the Chamber of Commerce and called
upon Mr . Curtis Driskell of the Chamber's staff who read a Resolution
a dopted by the Board of Directors of the Chamber of Commerce l\pril
10, 1968 supporting proposed package zoning approa ch for obt aining
sites for low-income housing.
Mr . t lex ander then made referenc to a new assignment for the
La nd Comm it tee, as indicated on the a genda, and explained i nter p r e tat ion by the Director of Pl a nn i ng on u ti lization o f the Ci ty's
re c e n t l y a dop t ed La nd Use Pl a n, a s r elat e s t o Lo w- income housing .
He the n called upo n Mr . Jones to comment on the Comm i ttee' s
suppor t o n t wo r e ce n t zon i ng petitions .
Mr . Jones e xp l a ined that t he Exe cut i v e Comm i tt ee o n March
14, 1968 authorized tr.e Ho usi ng Res o ur c e s Comm i tte e to support
rezoning requests in c o nnecti o n appropriately planned development
projects which c o nforM to the 1983 Land e Use Map and that consequently
recent zoning petitions for a 15 acre tract on Jonesboro Road, S.E.
for a Turnkey project and f o r a 99 acre tract (East Lake Golf Course
No . 2) for a multiplicity of housing development types under
Turnkey and 221 d (3) had both been supported by this Committee in
letters to members of the Zoning Committee from Chairman Alexander
and stated that Mr. Plexander appeared personally in support of both
projects before the Zoning Committee at the Public Hearing! *hat
the former site is consistent with ·the Land Use Plan and the latter
is consistent with the Planning Director's interpretation of intended
�-2use of the Land Use Plan; that both sites already have the essential
Community Facilities or evidence that such will be provided simultaneously with the proposed development; and that both sites have been
approved by the Housing Authority and have tentative approval of
HUD; that action taken by the Zoning Committee was to Deny rezoning
of the former site and to Defer action on ~he latter site.
Mr. ~lexander proposed a meeting with representatives from the
School Board, Planning Department and otbers ~affected such as Planning
and Development Committee and Planning Board, Housing ~uthority and
Citizenry to consider ways and means for taking zon~ng out of politics.
Mr. P. lexander called for special report from the Legal Panel
on School Construction by Developers in low-income housing projects.
~s the Legal Pa nel was not represented at the meeting the report was
At this time the Chairman recognized and wel9omed Mr. Cary
Hooks, newly appointed Director of FHA for Georgia. Mr. Hooks.
responded with assurance of FH~ 's contined cooperation in the low-in
income housing program and gave a brief report on 221 d (3) projects
in Metropolit a n ft tlanta as follows:
J.;352 Units
11 Completed
13 Unde r Construction
5 Commi tme nts Is s ue d
1 Appl tion in process
.Applic at ion 1,043
7 Pre limi na
St age
He a lso c omme nt ed on pr ogress being made i n t he Appa laci a n
Progr am, wh i ch cover s the a rea Carrol ton- Rome-Dalton in Georg i a .
Also that progres s is being made on the Rockdale pr oject.
Mr . Alexander c ommented on l wo- income housing being developed·
in Gai nes vil le a nd suggested tha t we here in f. tlanta should give
e ncouragement a nd assist a nce if pos sible to Ga inesville a nd other
neighbori ng cities to d e ve lope low -income hous ing , wh i c h wou ld ha ve
a tendenc y to eas e the b ur d e n curre ntly be ing placed o n Atlanta.
Dr. Sidney L. Da vis, Cha i r man of the Housing f. ppea1s · eoard,
was called upon for c ommen t s. He e xplaine d t he urgent need for
some sources of assistance in dire hardship cases for bringing
dwelling units up to standards required b y the Housing Code; that
to date all efforts in this direction have been unsuccessful and
that the Housing Code Division has about 500 cases in this category~

Mr. T. M. JH exander, Sr., member of the Housing J\ppeals

Board, confirmed and expanded on Dr. Davis' comments. He pointed
out particularly the need for some City controls over µnscrupulous,
fly-by-night contractors who are not required by the City or
State to meet any performance qualifications and who constantly
victimize unfortunate low-income property owners.
Mayor Allen responded by stating that he has only recently
called upon the Better Business Bureau to be on the outlook for
this kind of so called Home Improvement Contractor and to expose
the unscrupulous ones.
Mayor Allen then made reference to the Civil Rights Act
recently approved by Cpngress and to his request to the City
Attorney for report on its implication to Atlanta. He suggested
that the Housing Resources Committee call upon the Board of
Aldermen for:
Establishment of a City-wide Relocation
Service in Atlanta;and
(2) Re-evaluation of Zoning for the entire City,
with view to providing, thru zoning, adequate space
for necessary housing. He also pointed out tha t
this may require some changes in the Land Use Plan.
Subsequently, motion was made by Mr . Winn, seconded by Dr.
Mays and adopted unanimously that the Housing Resources Committee
sup p o r t the program proposed by Ma yor P llen.
Mr . n lex a nder a nnounced that implementation of the Housing
Re sour ces Comm i t tee's a c t ion wo u ld be r efe rr ed to one o f the
Sta nding Pa ne l s o r that a n Ad Hoc Committee would be appoint ed
t o carr y it out.
Mr. P lexa nder t hen r e ferr e d b a c k t o comme nt made b y Dr .
Davis and Mr. T. M. Al e xa nd er , Sr . a nd announced that he wo uld
refer t o the Legal Panel t he ma tte r o f :
( 1)
Ext e nd ing the cove r age o f g ran t s f o r Cod e
En1orc e me nt in Hardship c as e s.
(2 ) fd o ption of Code Enf o rcement 8reas, which
we should try to get designated in Atlanta.
Dr. Mays said there should be a call made for Federal
legislation to make funds available to help code enforcement in
hardship cases.
Dr. Henderson commented on EOA Grants of up $2,000.00, but
which he concluded ~re apparently limited to rural areas.
�-4Mr. Alexander made a suggestion that Foundations in Atlanta
might provide some help and made inquiry if requirements for
selection of Code Enforcement areas had been simplified; apparently
they have not.
Mr. f lexander then announced a special meeting for Wednesday,
May 17 of principals concerned with view to determining legal
implications and ways of establishing some local Code Enforcement
areas whereby needy owners could qualify to receive Federal
grants and loans, now authorized for Urban Renewal areas only in

Mr. Williams. Howland reported that CACUR has experienced

considerable difficulty in locating suitable properties for
rehab i litation under Section 221 (h) particularly in respect
to the high prices being asked for existing properties in need of
major repairs and the schepticism of owners in disposing of their
properties to a non-profit corporation with expectation of buying
them back again after rehabilitation.
Mr. Plexander announced his intention of setting up a series
of Panel meetings to reorient members and establish more specific
assignments and objectives.
Announcement was made of the qousing Development Corporation
status, i.e., incorporation has taken place; office set aside for
i ts use in the Firs t Nat i onal Ba nk Building; funds have been made
a va ilable; admini strative support is to come from CAP initially;
now look f or a Director .
The meeting adjourned at 11~05 a.m.
Resolution by Chamber of Commerc e
Invitatio nal notices and lists of those invited and attending
(with file copy only )
The Atlanta Chamber of Commerce Board of Direcfors, through the work of the
Chamber's Housing ann Redevelopment Committee~ has supported vigorously from
the outset the efforts of the Mayor's Housing Resources Committee to relieve the
city's shortage of housing for low income families.
As a result of its investigation of this pr~blem, the Housing and Redevelopment
Committee delivered to this Board in August, 1967 a report entitled "The Low..:.Rent
Housing Gap in Atlanta," which ir.cluded specific information underlining the critical
nature of the housing need. This Board was informed by the report that the process
,of rezoning land suitable and feasible for multi-family, low-rent housing appears to
be the single most difficult obstacle in the task of' providing, during a five-year .
. period, some 16,800 units of the type housing required. The Bo·a rd also was made
aware that available vacant land is scarce within the City of Atlanta for any use, and
outlying areas have not seen fit to qualify for programs which allow construction of
federally-insured housing of the type which would help meet the current need.
A resolution by this Board in September, 1967 urged immediate steps by the
City of Atlanta Planning Department and the Board of Aldermen to adopt an updated
land use plan, from which a new zoning ordinance could be evolved. The resolution
further declared: " ... Any new zoning plan adopted by the City of Atlanta should make
provision for adequate land for m ulti-family housing and open up land for increased
density of housing in all quadrants of the city, in order to serve the best interests
of a changing and progressive City of Atlanta. 11 .
Since that time, diligent study has been given by the Atlanta Chamber of Commerce
to a proposed "package zoning plan, 11 the purpose of which would be to rezone simultaneously several s ites of l and thr oughout the city for development in public housing.
Be it resolved that the Atlanta Chamber of Commer ce Board of Directors reiterates its position in support of dispersing multi-fam ily housing to all quadrants of
the city.
And be it further resolved that the Atlanta Chamber of Commerce Board of Directors
supports the pr inciple of the package zoning proposal as an approach well worth considering toward the efforts to alleviate this serious problem in our community.
Adopted by the Board of Directors
Atlanta Chamber of Commerce
April 10, 1968
De ci sions · Necessc:1.ry to Develop New-Town-In- Town Proj e cts
Who will admi nister t 11e pro ject?
Di r e c t s ale by fIDD t o Developer .
-HUD t o City of Atlanta t o Devel oper •
HUD t o Atlanta Hous i ng Autho ri ty _to De v el op er .
.. .
Will dispos i tion b e f or 221 (D) ( J ) , 202 onl y ?
Who builds prima ry streets and uti lities ?
Devel oper .
Ci ty .
At l anta Housing Authority.
Wilen are street locati on.s to b e pinne d dov;n?
�Persons to be i nvol ved in these decisions ?
!" .,,
Members of the Planning 1.Development ComTTLi. tte~ and Board of Ald ermen .
Mayor Ivan Allen
Mr. John Edmunds
Mr. M. B, Satterfield
Mr. E win Stern
Mr. Fr\k Ethridge
. L--- g.

i .

Mr . Colli er Gl a ddin
Mr. Richard Case
Atlanta Housing Authority Board of Commissioners
. Mr , Ceci1 A1exander
Col . Malcolm J ones
v-- m.
Mro Dan Sweat
Mre Eda Baxter
�l. a . Dir ect Sal e By HUD To Devel opers
HUID states tha t they would expect t he City to pr ovide t he l and use plan )
assur ances a s t o public f a cil i t i e s , r eview t he developer s pr opos als,
HUD would need Bureau of Budget approval of the method of s ale and
would present the proposal to s ell to t he Bureau prior to making t he award.
Ea ch of t hese steps would cons ume a minimum of approximatel y 30 days or a
total of 60 days on t hi s s t a ge .
Under this method the Tuveloper would put i n the streets and uti liti es
and this cos t would be r efle cted in r ents or sal es pr ices.
No non- ca sh credit s i nvol ved.
Fed . Pen. to GSA to }TIJD i s based on certain ~nprovement s (fence s , etc. )
which only HUD can finance.
Can HUD acquire the
4 non-gov 1 t
owned parcels ?
Leave t hem out?
�l,a. Schedule
Direct Sale HUD to Developer
Land Us e Map
Disposition Plan
Relocation Plan
Acquisition Plan
Project Impr ovements Plan
Financing Plan
Submit to the Burea u of the Budge t
for prior approval
Appr oval
Sele ct developer (adverti se if necessary)
Submit t o the Bureau of the Budget for concurrenc e
Execute Contract
Approval of FHA or Mort gag or of re development
Start Engi neeri ng
Start Constr ucti on of Si te i mprovement s
Complete Si te I mprovements suffici ent t o begin
cons t ructi on of Housi ng
1, 1968
J, 1968
21, 1968
21, 1 968
21, 1968
21, 1 968
21, _1968
May 21, 1968
June 21, 1968
July 21, 1968
July 21, 1968
Au gust 21, 1968
September 1, 1968
J anuary 1, 1969
J anuary 1, 1 969
February 1, 1969
June 15, 1 969
Du t he i nteri m f rom July 21 t o J anuary 1, it will be necessary t o
acqu i re t he 4 pr i vatel y owned parcels , r el ocate t he~ one f amily and demoli s h
the str ucture .
�l. b. Sale from Government to City t o Developer
HU]) cl ear with Bureau of Budget for sale direct to City - approximately
30 days .
2. · City proc eeds with land use plan, decisions as to provision for streets Md
u til o, determine method of sale~
/ of
Method s al e as outlined by Asst. City Atty - Tom Choyce :
A re s olution must be passed by the Mayor and Board of Aldermen stating
t hat the real estate is no l onger useful and necessary to t he City and
ordering the real estate to be sold.
Forn1ality but must be done at
a regular Ald. meeting after a mee t i ng of P & D Com.

The Land Agent must cause a plat of the property to be made by a
regis t ered land surveyor .
~This mus t be done by any agent.
AHA woµ.ld
need about 20 day s prior to clos i ng ) o
The Land Agent must cause an appra isa l of the property to be made by
the Atlanta Real Estat e Board or a r eal estat e appraiser who is a
member of t he American Ins titut e of Real Est at e Apprai sers.
apprai sal must be pla ced in a s eal ed envelope and turned over to the
the Land Agent.
The pl at of the property along with t he l egal descript i on mus t be submitte d
to t he Purchasing Agen t, who must advertise f or bids to be submitte d
for t he purchase of t he proper t y .
All bids mus t be opened and read at the desi gnated time by t he Purchasing
Committee .
The Purchasing Committee must t abul ate t he bids and refer
t hem to an Aldermanic Committee.
The Connnittee must open the sealed appraisal a..n.d take the appraisal
into consideration in determinine whether or not any of the bids shall
b e recommended for acceptance .
This Corruni ttee must submit its
f inal
recommendation to the Mayor and Board of Aldermen for £.x:fud: determination.
· li.
Ci ty must find a way to purcha se the
them out.
non-gov' t owned parcels or l eave
�1. b.
Schedul e
HUD to City of Atlant a to Developer
Land Use Map
Dispos i t ion Plan
Acqui sition Plan (4 pr iva t el y owne d parc el s as
well as Federal Land)
Rel oca tion Plan
Pro j ect I mprovement s Plan
Financing Plan
Planning and Devel opment Committee to make
r ecommendati ons to t he Board of Aldermen in
j oi nt s ess ion with t he Finance Commi t tee
Alder manic Appr oval
Order Survey and Des cr i ption
Appra i sals Ord ered
Adver ti se
Receive Bids
Boa rd of Ald ermen Approve
Cont rac t
• Begin Constru ction of housing ·'<-
Ma,y 1, 1968
May 3, 1968
May 21, 1968
May 27, 1968
June 3, 1968
J une 3, 1961:l
J une 24, 1968
June 24, 1968
Augus t 24, 1968
September 16, 1968
Septe mber 26, 1968
J anuary 26, 1969
Ehgi neering
Let Si t e Improvements Contract
Compl ete S. I. s uff ici ent to
begi n Construction of housing
J une 3, 1968 -::-::-:~
July 21 , 1968
September 16, 1968 ""
November 1 , 1968
December 6, 1968
March 15, 1969~~

Thi s dat e woul d delay t he s t art of constructi on f rom J anuary 26, 1969, t o

15, 1969.
~:-:~ Engineering start after s el ection of Toveloper.
Engineering start before selection of .Devel oper .
�1. c . HUD to AHA to Developer
Atl anta Hou s ing Author ity l'rould us e the normal ur ban renewal procedure
t r,rough on and 'expe di t ed 11 b as i s . The sche dule i s estimate d on optimum
ti me i n t erval s a s a re t he other sche dules .
If the pr o j ect put s i n the b a si c str e ets and uti l ities , t hey woul d be
c onstruc ted at pro j ect c ost which c oul d be mor e t han offset by Noncas·h Gr ant-i n-Aid Cr edi ts.
The t wo maj or credits are for t wo s c-hool s : one a t $1 ,000 , 000 - 1 90%
eli gibl e and one at $2 , 000, 000 - 1 0 to 50% eligible.
4, S ome c ompar ati v ely s mall cre dits woul d b e el igible from park, bri dge ,
ramp and other ite ms probably in t he range of $50-1 00, 000,
�1. c · Sr.hedul e Thomasville Amendr~ent. R-22
HUD To AHA To Devel oper
This schedule is prc:pared b ased on the f o l l01-,ing assumptions :
L All decisions nec8 s sm·y for t11 e submissio n of the a pplic ation ( particu-l arly the ones applied to the me thod of disposition and s e que n ce i nstallation of
sit e i mprovements ) are maclc prior to May l, 1968 .
2. That the submission is to be ma de to the <Tune
· Committee .
3, 1968 Alcl.ermanic
3. That I-ru""D holds good on tl:.eir c to revi ew and appro ve the appli c ation in 30 days .
] _-~-
Part I - Part_II .ll!fplication
Land Use Map
Proj e ct Ar e a Data Report
Relocatio n Report
Ac quisiti on Plcm
Urba n Renewal Pla n
Proj ect I mprovements Plan
All other sectio ns of t he applic a tion Plan
Subrni t to Alci err,1an:i.c F i nanc e Committee
Public Heari ng
Alde r-,nank Approval
Comple t e Submi ssj_on
I I.
1, 1968
21 ,
May 27,
May 31,
J une 3,
<Tune 7,
Execu tfo n Acti vi.ties
Appro val
Executed Loan and Grant Cont ract
8, 1968~*-
itio n Activities
..J,,.,_ - r·-•
, . , . . . , _ . , , _ _ -,..,__
. . . _ . . _ , . _ . _ ,_ _ _ ...._,._
Adve rt:i.. se
Re c e i ve Bids
Identify n eveloper
Sign Contract
Be gin Constr-ucV.o·n of housing-l8 '"
J anu ary
27, 1969
J uly 29, 1968
Sept. 23,
Oc t. 21,
Oct . 31;
Apr il 2o, 1969
Mc1y 27, 1968
July 27,
Aug. 27,
Sept . 2'( ,
Feb. 27, 1969
Acquisiti_or.--Rc) 0cc::t j
Begin Acquisitio n
B-2g:i.n HcJ occ't:i_r:,n
Complot e Ac~uis ition
Com;Jlcte H2J.oc; :-- L,ion
CompJ.ctc D~~1lj_t J an
J uly 29, J 968
Jlug . 2(),
Se pt. . 30,
Sept. 30,
Oct .
l li _,
1~Tjme con t i n gent on HUD action.,.(_
I ,•:H(·Ti rne contingent on Devel opment FHA action and completion of ac cess str0e tso
Col. 1 contin gent on pre- adver tising.
( ;
,,, f ~
Le t Site I mprovements Cont:r·8c:t
Compl ete Site I mproveme nts
Su_ffic ien-l; for Constru.ct:ion
Complete Si t e I mprovement ,:;
May 27, 1968
July ·12, 1968
Nov .
Apr .
27, 1969
Oct . 21, 1968 Aug • 27, 1968
11, .1968 Oct. 15, 1968


26, 1969 Febo ·;t;1, 1969
Aug . 19, 1969 J une 27, 1969
Site I mpro vement s Desi gnat ed in Pl anning
Adve r tise after Loan and Grant
Site Impr ovements on basis of bid
Pre --Advertise .. Sj_te I mpr ovements on b asis of bid
Will Disposition be 221 (d )
(3), 202 , only?
221 ( d) ( 3) development would prevent any private development
being f i nanced by other FHA or conventional finance. This woul d
an extensive economic mix i n this new area. However ,
high; income fami l ies now occupy the Single Family Portion of the
Thomasville Project.
To split the area between t wo programs will require definite
boundaries for each, so that each can be appraised s epara tel y .
221 ( d ) ( 3) wo uld insure l ow and moder ate i ncome occupc;1nts .
221 ( d) (3) would r equire special appraisa l techniques (writedown of l and price ) .
Commercial areas must be des ignated r ega rdl ess of other
con sideration for appraisal pur pos es .
If public hou sing is invol ved (this is at the present ruled out ) ,
this boundary would have to be delinea t ed. ( Turn key or conventiona l ) .
Can the developer be . non-profit, limited dividend , Co -o p, or
other ; or will it be limited to one .
3. Who buil ds primary streets and utilities?
Fo r t he developer t o build streets and ut ilities would i ncrease
the cost per dwelli ng unit.
221 (d) ( 3) might affect the decisions .
Approx imately
months would be r equired for the City or Authority
t o buil d the primary street system sufficiently to provide access .
However , construction can begin prior to advertising sal e of l and.
A develo per could build the streets at his rate of need but probabl y

no more r apidly than t he City or the Authority . It would however ,
fo rce scheduling of co nstruction to be tied to str eet const ruc t ion
schedule ( acc ess) . This may not be pertinent.
Authority co nstructi on of the streets would cost the City
approximately 1/3.
Bridge credits would be aff ected.
Cost of streets and utilit i es estimated at$

When shoul d street l ocations be pi nned down ( invol ves s avi ngs of
appr oximately 1-3½ months )?
I f street is pinned down before adverti sing property:
Would restri ct the design of the devel opment pl an .
( 2) Would define schoo l and park s i tes so that costs and
credits could be f irm.
( 3)
Would sa ve approximat el y 1-3½ months.
After streets are pinned down after advertising and decision on
developer :
(1 )
Would gi ve freedom to t he development pl an .
( 2)
Cost and credits woul d not be quite as firm .
( 3)
Would del ay from 1-3½ months before construction could be
started (would thi s be actual or would the architects use
up the time anyway ) ?
April 19, 1968
Re Honor Fa rm No. 1 (Federal Pen Site)
In meeting yesterday with Hou s ing Autho r i t y representatives, t he f ollo wing
salient points were brought out:
Price of the portions to be developed f or housin g and rel a ted comme rcia l
will r e quire pri o r dete r min at ion as t o n a ture o f development , i. e ., t h r ou g h t h e
Housing Authority as Urban Renewal or by developers direct without the Urban
Renewal procedure .
Mr. Persell s stated h e would p r e fer it n ot be un der Urba n Renewal.
Mr. Pers ells felt th a t after an Urb a n Renewal project reaches t h e
Ex ecu t ion s t a ge, d ev e lopment th ere a fte r coul d be as quic k th rou g h t he Ho us in g
Au t ho rity as direct t h r ou gh p riv ate e n terpri s e , b u t h e woul d no t predict how
lon g i t woul d take t o rea ch th e Exe cu t ion sta ge .
Mr . Pers ell s s t a ted that Mr . Ed Baxter a pparently f eel s th at no ne of
t h e l and s houl d be de v e lop ed as Pu blic Housing a n d t hat i n las t meetin g t he
Ma yor a pp eared to conc u r .
( I ass ume t h at this doe s not prec l u de Tu r nk e y
d ev e lopm e nt o f at l east a po rtio n o f th e area ) .
I f eel that pro s pec t i ve
de v e lo pers s houl d be e n c ou raged t o b uild a s ubsta n tial n umber o f u nit s s o t hat
they could i niti a lly o r s ub sequently b e s old to the o cc up a n ts a nd t h at developmen t u n de r both Turnkey a nd 221 d ( 3 ) s hould be a dvoc ated.
It was broug h t ou t by Mr. Opp en s h aw that if develo pme n t i s no t under
Urba n Renewa l, credi t s fo r the El e me nt ary a nd J unior Hi g h Sc hool s wo ul d not be
a v ail abl e a nd t hat credit s f o r the se t wo fa cilities would be s ufficient to
balance o ff the entire local
share o f the cost o f an Urban Renewal project.
�It also developed, however, that the Junior High School-Community Center
would be a general community facility serving that whole general area of
the city and not limited to the proposed development area.
Since the Junior High-Community Center represents 24 acres out of
the entire Federal Pen Site to be dedicated, that in view of the difficulty
the City is having getting low-income housing sites, particularly for Public
Housing, and the f ac t that the School Department can get si t es anywhere t hey
a re needed, t ha t the overall n ee ds of the City would b e bet ter s e r v e d if this
entire 24 acre portion, which includes some of the best land, would be developed
for low-income housing.
That the housing and related commercial portions of the area be
developed by priva t e enterprise direct, without going through the Urban
Re n e wa l
proc ess o
Th a t th e curren t ly d esign a t e d Junio r High School a nd Communi t y
Neighborhood Center s ite be a l s o developed f or low-income hou s ing.
Th at a mul t i pl e typ e hou s in g dev e lo p me n t be e ncou rag e d us i ng both
Tu r nk e y a n d 221 d proc e ss e s , wit h a s u b s tantial
p o rtio n of t he un it s de si gn ed
s o t h a t they could eventually be sold to the occupant s
Respectfully s u bmi tted ,
Housi n g
�April 22, 1968
Memorandwn To:
Mayor Allen
Dan E. Sweat, Jr. I;: a.,..___
Director of Governmental Liaison
Attached are two memorandwns dated April 18 and April 19 respectively,
prepared by Malcolm Jones, re the Honor Farm No. l site and containing
some specific recommendations for getting housing development started
there soon.
Collier, 1alcolm and I have discussed the at t ached and I believe
are in general agreement except possibly Malcolm's recommendation
the 24 acre portion of the site, currently desi gnated for a Junior Hi gh
School-Communit y Center development, be converted to additional low-income
It appears too early yet to mal<:e such determination.
The urgency f or starting development on the
single-family lots
is to meet Federal insistance for ground breaking in May on at least a
token development for low-income housing.
( would pl ace Atlanta
first on actual utilization of Federal dedicated sites for low-income
housing) .
The concensus of opinion now seems to be to assume that development
will not be thru the Urban R~newal process.
If you concur in this at
this t i.Iiie, the following steps should be taken immediately to get the
ball rolling:
A~k the Housing Authority to get a stor y or advertisement in
the newspapers not later than April 28, alerting interested developers
�Page 2
Memorandum To: Mayor Allen
April 22, 1968
that proposals will be called for soon and as close to May 1, 1968 as
possible, for submittal within 30 days.
Request the Housing Authority to prepax·e package invitations,
containing essential material, to interes t ed developers as soon as
possible (with target date of May 1) for ~ubmittal of proposals
within 30 days; for starting construction within 6 months after the
award; and for completing construction within 2 years from starting date.
Plan for review of proposals and selection of developer within
days after submittal of proposals.
Memos dated April 18 and April 19
April 18, 1968
Malcolm Jones
Re Honor Fann No. 1 (Federal Pen Site)
Several days ago Collier Gladin sugge ste d that I t ry to get private
developers interested in this site; and r-ecently Dan Sweat asked me to
work with Collier Gladin and Howard Oppenshaw in trying to expedite
development of the housing portion of this site.
On April 10 I had a scheduled conference with a prospective developer
for this site.
Mr. Howard Oppenshaw of the Housing Authority and
Mr. Dick Case of HUD participated in the conference.
Subsequently I have
discussed the matter with Collier Gladin and others interested in this
Title to the property is now in General Services Administration.
T()pographic map (2' interval) of the area has been prepared and is in
hands of the Housing Authority.
The State Highway Department has
furnished the center-line for the Expressway and i s working on slope
boundary lines.
However, the State Highway Department cannot accurately
define and confirm the Expressway boundaries until aft er it holds a
Public Hearing several weeks hence.
A small contiguous triangle shaped tract, acquisition of which is
considered desirable for inclusion in the overall project, is owned by
private interests.
It could be acquired separately- by the Housing Authority
and its acquisition should~ delay development of t he land to be dedicated
by the Federal Government.
Mr. Oppenshaw is now working on a tightly timed development schedule
single --fa~ily lots in a portion of t he area adjacent to the existing
Thomasville Urban Renewal Project.
This should continue and this portion
should be handled separately from the remainder of the housing portion
of the Federal Pen siteo
�Page 2
April 18, 1968
Mr. Case of HUD proposes that GSA deed the Highway, School and Parks
portions of the site directly to these respective Departmentsfor planning
and development, but that the Housing portion (including small commercial
site to serve the project) be deeded to the Housing At1thority; for subsequent
processing and development under Urban Renewal.
However, he concedes that
these sites could be deeded by GSA to the City of Atlanta or direct to a
selected developer, as is now contemplated for the other portions of the
All agree that the eventual award of the hollsing portion to a developer
should be based on some fonn of competitive process.
It also appears that
the most feasible competitive procedure would be t hrll design proposals by
-£w -';J1Jumt..
prospective developers, for multiple type~housing.
We all also agree that such proposals could be called for by either
the City or the Housing Authority, without waiting for the title to first
pass from GSA.
It is my opinion, which is also shared by others, that the quickest
development can be accomplished thru private developers direct, with-out
the land being deeded first to the Housing Authority and then going thru
the Urban Renewal process.
At least two of the prospective developers
much prefer it this way and in fact have reque ste d it be done this way,
if possible.
Interfaith has specifically asked that the Mayor write
directly to HUD in Washington requesting this procedure.
Any financial advantage that might be derive d in development of streets
and installation of utilities by the Housing Authority thru the Urban
Renewal process, should be off set by the time saved a.rid anticipated
relatively low land cost of the project, if done by the developer, in
conjunction with the housing development.
If necessary, the Housing Authority might be compensated for its
administrative services on this project,by adding the expense involved,
which should be only nominal, to the cost of the land to the developer.
April 18., 1968
Mr . Oppenshaw proposes to wor k up cr i teria to be furnished prospective
developers uniformly in a package for t heir gui dance in preparing and
submitting proposals on the housing portions of the site (other than the
single-frunily lots).
The pro spective developers ar e anxious to know what the land will
cost them.
They should know this in or der to plan int elligently.
Mr . Gladin, Mr. Oppenshaw and I are in agreement t hat:
As soon as Mr. Oppenshaw can package t he development criteria
so t hat all interested developers may get the same mat erial and information
as t o requirement s (which he is attempting to do by May 1) such can then
be put out t o developers for submittal of proposal s within 30 days.
(b )
within a
Selection of the successful developer could then be determined
day per iod thereafter.
Additional final development details could be worked out with
the successful developer, after the award has been made.
The City should reserve the right t o determine traffic circulation
wit hi n t he project site.
Mr. Oppenshaw continue his tight schedul e now in progress for
development of the
single family lots, t hrough t he Housing Authority.
HUD be requested to determine as soon as possible and inform the
City what the cost of the land will be.
3. Mr. Oppenshaw to pull to-gether as soon as possible (with target
date of May 1) uniform development criteria (including cost of land and .r<J95~,e.J
approximate number of units by respective types desired for the remaining
housing sites t o be f urnished interested devel opers.
The Housing Authority to call as soon as pos sible (target date
/c:-w-,~», ..
May 1) for mul t i ple type ~hous ~ng developrnent proposals, for submittal in
30 days (target date June 1) .
Page 4
April 18, 1968
5. Prospective developers to be infonned that the Planning Department
reserves the· right to work out with the successful developer, traffic
circulation plans within the sites, satisfactory t o t he City.
60 Selection of successful bidder to be de t er.mined within 15 days
after submittal of proposals.
7. HUD
in Washington be requested by letter from Mayor Allen t0
ask GSA t o deliver title to the portion of the tract (other than the
single family lots) to be developed for Housing (and related connnercial) ·
direct to the successful developer to b e deten,d.ned jointly by the CityHousing Authority.
Successful developer be required to start physical development
of these housing sites (break ground within six (6) months from date of
delivery to him. of title to the land.
Successful developer be required to agree to complete development
within two (2) years from starting (breaking gr ound) date.
Respectfully submitted,
/?.;)~JJ/ ~ ~
Mal~~ Housing Coordinator
�April 29, 1968
Mr . Leon J . Noga, Dil'ettotPublic Systems Laboratory
Washington ScienQe Center
Litton Systems , .lnc .
Applied Science Division
7300 Pearl Stli'eet
Bethesda , Maryland 20014
Subjecte Cooperation during performance of HUD Experimental
Housing Re eareh and Development. Program
Dear Mr. Nog :
In i-eply to youi- 1 tt ~ of April 19 to M yo1" Ivan Allen, I am
enclo ing 1i t of key citlmen and contact pe on in th are
of housing research nd development.
I would :t commend that any initi cont ct by your office be
with Mir. Johnny C. John on, Db· etor- of Mod .1 Citle Program;
535 Hill SU>eet, Atl ..ta (t l phon 524-,8876);· nd Mi-. M lcolm
Jon , Hou ing Cool'din tor, Ollie of th Mayo11." , City of Atlanta.
They will b · gl d to
i t you in addition contaci or th
provision of any
eai-ch mater · 1 you mlght wish.
Slncei-ely you.wa,
Dan Swat
DS :fy
Mr . Cecil A . Alexandew, Chairman
Housing Resoui-ces Committee
Finch. Alexandel",, B rnes, Rothschild 8t Paschal
10th Floosr • Standard Federal BuilHing
44 Broad Street, N . W.
Atlal'lta; Georgia 30303
Mr . Arch i' D. Smith, III, Attol'ney
Hannon and Thack ton
1944 National Bank of Georgia Building
Atl t , Georgl
Dl' . Edwin Ha'l'rieon, Pre ident
Georgi Instltu: of Technology
225 North Av nue , N. W ..
Atla.nt , Georgia 30313
Mr •. Moreland Smlth, Director
Urban Pl nning Project
South rn Regional Council,, Inc.
5 Forsyth Street. N.. W .
Atlant , Georgia 30303
Mr. Robert C. Wa
Mo.-ton Road t St t&brid
Alphar it , G otgl
Mw. L e Burge, Pr ld nt
B t U Ci- dit Comp ·~
P,, 0 . Box 4081
Atlanta. Geor a 30302
Mr. A. B. Pad tt, Tru t Office~
T~u t Company ol G orgi
P. 0 . Box 4418
.AUu ,, Geor
Mr. Harollton Do la•,,
N donal B · , of Ci ors
~- J
WU• , P
Hol' •WUecm Com
16 P
r St


ef.d n.t
• W.
30 l
�Mr . Edwin L . Sterne, Chairman
Atlanta Housing Authodty
639 Trust Company of Georgia Building
Atlanta; Georgia 30303
M.r . Clarence D . Coleman
Regional Director
National Urban League
136 Mattietta Street, N. W .
Atlanta , Geo11gla 30303
Mr . Charles F . Palrnez, i President
Pabne~; lnc .
Palmer Building
41 Marietta Stre t
Atlanta, Georg· 30303
Mr. Jim E . Land
Chief Enginee~ fo.- Georgia
Southern Bell T !ephone and Telegraph Company
805 P ac;htree Str t, N . E .
Atlant , Georgia 30308
Dr. Vivian H nd 't on, President
Cl l'k College
240 Che tnut Sti- et, S . W.,
Atlanta, Georg 30314
Mt . Duane B ek, Ex <:utive Director
Commu:nlty CouncU o1 the Atlanta Ar a, Inc.
100 Olenu Building
Atlant ,, Oeot
D an ~Ul m

r ckaon

School of Socl l Wo k
Atl nta Univ
223 Ch stnut Str t S. W.
Atlant , Geor t 30314
Mr, Willie.m. C. B rtholo
Chal1'nlatl and P aid nt
AU.n Br
P. 0, Box 14064
Atl nta., G o
M:r. Da.1 Cla
Di.. tol' of Public A
· I'
w a .. Tv
lSSl Brlarc:1Ut
Atl ta, Geor
�Mr. Ray M oore
News Directo~
1601 West Peachtre Str·e et, N . E .
Atlanta, Georgia 30309
Col . Malcolm D . Jone
Housing Coo:rdinatoiO£!ie e o! the Mayo:i,
1204 City HaU
Atlanta, Geol'gia 30303
Mr. W . W . Gat~e
Housing Resources Committee
.1Z04 City Hall
Atl nta,, Cieorgia 30303
Mi- . Georg W. K nn dy, Chah::man
Hou ing -.»,d Red velopm nt Committe
Cb.amber of Commerce
1300 Commorce Building
Atlant • Georgl 30301
Mr •. Johnny C . JQhneon, Dit ctor
Mod 1 Citie Progr m
565 HiU Str et , Geor
a 3031Z
April 22, 1968
ATLANTA, GA. 30303
Tel. 522-4463 Area Cod e 404
R. EARL LANDERS, Admini strative Assist ant
MRS. ANN M. MOSES, Executive Secret ary
DAN E. SWEAT, JR., Director of Governmental Liaison
To: Col. Malcolm Jones
From: Dan Sweat
Could .you f urnish m e with a list of the k e y citiz e ns a nd people
which i s r e quest e d i n this l e tte r fro m Litton Sy s t e ms, Inc.
I b e liev e I would want the m to start with you and try to keep
this in the area of our Housin g Reso.u rce s Committee .
DS :fy
(301) 652-6616
April 19, 1968
Honorable Ivan Allen, Jr .
Mayor of the City of Atlanta
At l anta , Geor gia
Subject :
Co- opera t i on during per formance of HUD Exper imental
Hous ing Resear ch and Development Progr am
Dear Mayor Allen:
On March 14, 1968 the Depar tment of Housing and Ur ban Deve lopme nt
solic ited pr opos a l s f or Concept Des i gn a nd Exec ution of a n " In Ci ty"
Experimen tal Hous i ng Re s earch and Deve lopment Program. It i s planned
that the e f f ort wi l l be concentrated in a l arge number of Model Cities .
By May 1, 1968 it is expected that a Contractor will be selected
who will be expected to accomplish an intensive analysis in depth of
the Model Cities by June 15, 1968, prior to the actual development of
experimental housing programs.
In a prior letter to you dated 12-14-67, Litton advised you of its
desire to participate in Model Cities efforts. As further expression
of interest, Litton Industries has assembled what it considers to be an
outstanding team of planners, architects, builders, etc., to perform on
this complex system job.
The purpose of this letter is to solicit your support in establishing contacts with key citizens in your cityo A letter from you defining
principal contacts is deeply appreciated.
Very truly yours,
Public Systems Laboratory
Washington Science Center
�October 17, 1967
Hr . Ce ci l A. Al exander, Chairman
Housine Resources Cormni t .ee
Finch, Alexander, Dar nes , Rothschild, and Paschal , Ar chi t e cts
10th Floor Standar d Federal Buildi ng
44 Br oad Str eet, N. W.
Atlanta, Geor gi a
Dr. Sanfor d S. Atuood, Co- Chai r man
Housing Re s our ce s Commi ttee
President, Emor y Uni versi ty
Atl anta, Georgia
Dr. Benj ami n E. Mays, Co- Chairman
Housine Res our ce s Commi t tee
Presi dent Emeritus, Morehouse College
3316 Pamli co D-r . S. W.
Atl anta , Georgi a
Mr. Charles L. Weltner, Attor ney
The First National Bank , Suit e 2943
2 Peachtree Street
Atl anta , Georgia
Mr . Donald Hollowell, Regional Dire ctor
Equal Empl oyment Opportunity Commission
1776 Peachtree Street, N. W.
Atlanta , Georgia
Honorable Luther Alverson, JudGe
Fulton County Superior Court
13.6 Pryor Street, s. W.
Atl anta, Georgia
v' l·'J-. Archer D. Smith III, Attorney
Harmon and Thackston
1944 National Bank of Geore;ia Bl dg .
Atlanta, Georgia
Hr . Norman L. Underwood, Attorney
Sanders, Hester and Holley
1001 Commerce Building
Atlanta, Georgia
�Page THO
Dr. Edwin Harrison, President
Geor gia Institute of Technology
225 North Avenue , N. W.
Atlanta, Georgia
Hr . Herman J. Russell, Contractor
504 Fair Street, S. W.
Atlanta, 3eorgia
v lfr . Moreland Smith, Director
Vice-Chai rman
Urban Planning Project
Southern Regional Council, Inc.
5 Forsy th Street, N. W.
Atlanta, Georgia
Rev. John A. I'f.iddleton, President
Horris Bror,m College
673 Hunter Street, i . W.
Atlanta, Georgi a
Mr. Henry F. Alexander , Builder
2Ld9 r"'ernleaf Court, N. W.
Atlanta, Geor i ia

Mr. J ames Noore , President

Atlanta Labor Council
15 Peachtree Street, N. E.
Room 208
Atlanta, Ge orgia
V M,. Re-id C. Wtil~ •I L '.-1
/ti'lr.,,,. 1~
R~a. ~ o--i rle.,e- trHW, "-
~ ;:=-..o R, ' I A Iµ->t1 l'eAJ 4- ' ~
Dean Harding B. Youne
Atlanta University
223 Chestnut Street, S. W.
Atlanta, Ge orgia
.,.-, Mt-·., Lee Burce , ~eS'ide nt
E$t ail Credi t Company
P. 0. Box 4081
Atlanta, Georgia

t"lr. Butler T. Hender@on

lfor@house College
22'; Chestnut Street, s. W.
Atlanta, 3eorgia
�Page Thr ee
· FilJAHCE AND NON - P:?.OFIT FUNDS ( continued )
Y1r. Vi lls B. Lane, Jr., President
The Citiz ens and South ern National Bank
o. Box 4899
Mr. Joseph Earle Birnie, President
The .rational Bank of Georgia
Peachtree at Five Points
Atl anta , Geor gia
Mr. August us H. Sterne, President
The Trust Company of Geor gia
36 Edgewoo d Avenue, N. E.
Atlanta, Georgia
V1r . Gordon Jones, President
The Fulton Hational Bank
P. O. Box l.IJ8 7
Atl anta, Georgia
Mr. A. B. Padge tt, Trust Off icer
Trust Company of Georgia
P. O. Box 4418
Atlanta, Georgia
Nr. Hamilton Douglas, Jr. , Attorney
National Bank of Georgi a Building
Atlanta, Georgia
Rev. William Hol mes Borders, Pastor
1-Theat Street Baptist Church
1426 Mozley Drive , S. W.
Atlanta, Georgia
Presi dent
v' Mr .
J ohn Wilson, President
Horne-Wilson Company
163 Peters Street , S. W.
Atlanta, Georgia
Mr. Albert Love
Exe cutive Vice President
The McCall Corporation
P.O. Box 1000
Doraville, Georgia
Mr. Scott Houston, Jr., Executive Director
Wesley ~,foods Apartments
P. O. Box 15468
Atlanta, Georgia
Vi ce- Chairman
�Pace Four
./Mr. Edwin L. Sterne, Chairman
Housing .Authority of the City of .Atlanta
639 Trust Company of Geor gia Building
Atianta, Ge or~ia
Dr . Al bert Manley., President
Spel man College
350 Leonard Street, S. W.
Atlanta, Ge orgi a
Hr . Leon2.rd Re i nch, President
Cox Broa.dcas ting Company
1601 West Peachtree St reet , N. E.
Atl:mta, Geor;:;i a
Hr. Clarence D. Coleman, Regional Director
Nati onal Urban Lea13ue
136 Mariett a Street, N. W., Suite 242
Atla.nta, Ge orgia
V Hr . Charles F. Pa~ner, President
Palmer , I nc. , PaL~er Building
41 Marietta Street
Atlanta, Georgi a
Hr . 1 lallace L. Lee, President
Atlanta Gas Light Company
P. O. Box 4569
Atlanta, Georgia
Mr . Clayton R. Yates , President
Yates - Milton Stores
228 Auburn Avenue, N. E.
Atlanta, Georgia

Mr. Jim E. Land

Chief Engineer for Georgia
Southern Bell Telephone & Tel egraph Company
805 Peachtree Street, N. E.
Atlanta, Georgia
Dr. Vi vian Henderson, President
Cl:·..rk College
2LO Chestnut Street, s. W.
Atlanta, Georeia
Acting Chairman
�LAND .ACQUISIT I O~,J ( continued )
Nr. J . A. Alston, Pres i dent
E2:1~1ire 1:1e3.~ Estate Board
Alston Realty Co.
195 A Auburn Ave. N. E •
.'\ anta., GeorE;ia
!-i:'. SteH,:1r -l: ~-Ji;:;ht
1-J::_ght, Couch ·..c Hard
15 Pea chtree Bl dg. , Room 822
Atlanta, Geor~ia
Hr. :ma.i1e Beck, Executive ill.rector
Con,--r11.:..n:. tf Co-:..:.r1c::.l o!: the Atlanta Area., Inc.
1000 C·::'..enn,G
Atlanta, Georgia
Mrs. Sujette Crar~c, Social Dir e ctor
Neir;hborhooc;. Se:-vices., E.O.A., Inc.
101 Hci-iettc:. Str "et
Atlanta, GGorgia
Dr. Tobe Jcl,nson
Professor of Political Science
Morehouse Collage
223 Cnestr:ut Street, S. W.
Atlanta, Georgia
v" Dea.ri "W illian S. Jack son
School of Social Hark
Atlanta Univers.:..ty
223 Chestnut Street, s. W.
Atlanta, Geor~ia
l·lr. Erwin Stevens, Chairman
Cit:.zens Central Advisory Comi-nittee, E.O.A.
799 Parsons Street, S. 1:I.
Atlantc1., Georgia
r~. Le1-;is CcrJ-::er, Attorney
20115 1-lanchester, N. E.
Atlanta, Geo1·gia
�Page Si..'C
Chai rman
Hr. Vir1:;il Mil ton
3626 Tu.'Cedo Road, N. H.
Atlanta, Georzia
t-:r. Eduard L. Simon, Au.di tor
Vi ce-Chairman
Atlanta Life Insurance Company
lh8 Auburn Avenue , N. E.
Atlanta, Georgia
Harl ee Branch , President
Sou· : n Company
3390 Peac}·1trei::
lfu; neo/
C. ).rthur J erJ-::ins
Director, I~d~3tri al ?celations
Lockheed Con:?<'u1Y
I-!arietta, Gc or~i a
Er. :toll;:;.:1d Lax;:ell, Pre sident
Davison 1 s I;-epartment Store s
100 Pe acht r e e Street, X. TT.
Atl anta, Georgia
'f\l m , C. .8 c; Y 1), o/.e.rv, "'1
ct,. ll'fflew\ 'l ~~ , iJ tm-f
/l:7' ,~""le.. 1;1-., ~
-' l.,,)L~C
P...•.?,0~<;,~ / t o (
lJ·i.'v.ct·i..; . .1.IJ.,
A-fl.u.1.c..,cw:t . .i~3J~
lk . Jarr.~s L . T01-msend
Tov;nsend a nd Associates
101h !·Icaley BldG .
Atl anta, Gcor~ia
v' Er . Dale Cl r1!'k
Dir e c tor of Public Affairs
1551 Bri arcliff Road , N. E.
Atlanta, Geor~ia
..,_... I~r • .lc.y 1-:oore

Te~·rs Director

'.TSJ- T'l
1601 ".-!est Peachtr ee St reet, N. E.
Atl anta , Geor;;>.
Lr, J:'_,'<: Wo8d
HeHs Director, WAOIC
110 ~deeHood Avenue , N. E.
At lant a , Georeia
Vice -Cha irman
�Page Seven
ROOM 1204., CITY R4.LL
-""'Malcolm Do Jones 1 Director
V H. Wo Gates, Consultant
Sl;.;;,ron er~11fo.,..'1 5
Con1ultant1 /or ..Atulti-/amily JlouAing
TELEPHONE 872-6089
April 25, 1968
P. 0. BOX 7164
TELEPHONE 422-4479
P. 0. BOX 2068
The Honorable Ivan Allen, Jr. , Mayor
The City of Atlanta
Clty Hall
Atl nta, Georgia
D u r Mayor Allen:
For everal weeks I have been in conferences with the very excellent staff of your Hous ing Res ources Committee and of the Hous lng
Authority with reference to a m jor innova tion we a re undertaking
for the provision of low cost housing in urban a r as . Please accept
my sincere expression of gratitude for thelr courtesies and their
very as hite attention to the matters brought before them .
I am worklng ln behalf of a well ca italized g rou p ·whlcb controls
the ~tents by which a major breakthrough ln construction costs can
b achieved. To over lmpllfy, it is our intention to not m rely "prefabrlc te" but t o actua lly manufacture housing wilts and deliver them
to th e s it a lmost intact . The t,Jatents have to do wlth a method of
preforming fibre lass so that the necetJsary s tructural charact rlstlce can be built lnto the bulldlng components on a m as~ production
ba s t • The automobll indu ·try is turning out much mor complicated prod'1ct th n the housing induMtry at enormously lower costs.
Machine work and mass t1roductlon tecbnlque are th obviou nsw r.
Our ls not uniqu t.n thls re ard, but the group I r present
doeliS control rlgld patent and unusual billtie in the necessary ft lds
s o that -we re ur that w can move forw rd.
I am writlng now with reference to th "Honor Farm" land th t is
currently under con ider tlon by your ofrlce • Obviously th re ls an
ov rwhelmlng need for low co t housing to be bullt ln Atl nta. You
ll b v faced this issue squarely and I am conftd nt that adequate
solutions to the many ~roblem
Ul quickly be found.
�April 25 , 1968
Mr . Edward H . Baxter
Regional Administrator
Departm.ent of Housing and
Urban Development
645 Peachtree-Sev nth Building
Atlanta, Georgia 30323
Dear Mr. Baxter:
With this letter I transmit an explanation of the need to convert
open-space p rk l nd in the Thomasville Urb n Renewal Project,
GA R-22 , to single family use.
Enclosed re original and two copies of the docementation
required by P ge 7 of Chapter 5 of th 11 0pen ..$pace Land
Program Guide. 11
l wUl appr ci te you giving urgent considetation to this ction
so that we may me t the May 20 target d te for: beginning
construction of the fir t unit on the Fed r 1 Pd on urplus
prop rty.
Sincer ly your ,
lv n All n, Jr.
Enclo ur s
�Mayor Ivan Allen, Jr. - 2 - April 25, 1968
Bec ause of the in novative cha r a cter of our operation. we are desirous
of proving our case in an urban etting as contrasted with the usual
s ubdivision effort .
To accomplish a cost reduction in a rural area is
not ae significant as to accomplish the same savings in the heart of a
city like Atl a nta . These are dnys of careful experimentation in everything having to do with human relation -• and we mean to perform a
s ignificant social service in the process of making the revolutionary
changes tn construction techniques that will mass produce the dwelling
m s ur _ t h t r aiul tion s r e q u ir e a co m pe titive setting tor the d lsposi -.
but, by the same token, the F d eral Government . as ;you know. i s almos t desperately anxlou1:, to s ee
tion of th F g r l p n\t nu t y land ,
cost savings accomplished that will make it possible for low and middle
income people to afford new homes without the onus of ma sive financial
ub idy. This we propose to do and for this reason we earnestly requ st
the privilege of using the Honor Farm land in the massive experiment
for which we are now tooling up.
~e are lookin& at various factory sites for rent inside the Atlanta clty
limits and , naturally, are anxious that the land we will u e for the
actual subdivision will be ln close proximity. The nature of the manufacturing process will not require a great many already trained people.
This works another advantage for the urban setting . 'We will be able to
glve un s killed workers the modest training n cessary to manufactur
and fabricate the components . As we see it then, our program for us ing
the Honor Farm Land will provide three immediate benefits. First. lt
will enlarge the housing inventory at very rea .:.· onable cost to the tenant
and to "whatever agency is charged with subsidizing the tenant rent or
µurchas . Second, it will provide employment for
ignificant numb r
of eemi-~killed and un skilled people in Atlanta . Third. the experimentation will natur Uy have geogr 1Jhic significance s o that my favorlt city
can be known as having continued in its cours e of leadership with r ard
to national urban problems.
¼e are already lnto the basic s ite desigi,J, 111 propose single famUy and
multi-f mily detached unlt in addition to a modest highrlse for the
eld rly and whatever shoppini center would be feasible. We will utlllz
our fttreglass materials and techniques in all of the con truction in
whatever degree the
rticula.r s tructure makes possible.
�Mayo r Ivan Allen, Jr . - 3 - April 25, l968
\t\lth such a program, the first question is al ways 1 'wh n? " . The
machinery with which we will rnanuft-.cture our -,rototype m odels
is a lready asse1nbled md win be sbl p ed to Atlanta as soon as we
hove the factory s ite ready. The la r ger machinery will be µurchased and brought into operation as needed . We a re counting our
time in weeks and will produce upwa r · E, of five hundred housing
units during our t esting.
Vie will an~lously a -wait the outcome of Tuesday' s meeting, and wUl
consider lt a µr lvllege to ork with your people in the service of
the citizens of Atlanta .
Richard L. Fullerton
cc: ~r. Dan Sweat
Dtrector of Government Liaison
City of Atlanta
Mr. Cecll Al xa.nder, Chairman
Hou ing .Res ources Committee
C lty of Atlant
S nator P ul Douala , Ch rlm n
resldent ' e on Urb n P roble ms
Wa shington, D. C .
Mr. VvUUam O. Burke. Director
Indu try Dlvls ion
Georgl D epartm nt of Indu try and T r d
Mr. Georg T. Scharffenberger, t'r e ldent
Clty Inves ttna Company
N w York C lty
Mr. D vld E . K hn
New York C ity
il 18, l

• C
ts for
but th t the Hous
portion (includin
ed d to the
nt un r ' rb
t lO
r• a
1 now con
' O.
o vor. h
'Wal .
ded b7 , A to the City
d de
cbool nd
otiv Dep·,r
l c
tl.r tot
th project) b
d th Hl htJ
t O A
. _ lated for th
ta or direct to
ot er portions of the

t th ev tu. l
d n
t !
, nou ing.
t such propooal could
~o Authority,.
called for by ithor
ting for the title to first
O A.
al o
h red by otb rs, that th
pll ed thru. pri
aettaad f'iret to the Mo11 irin:

s ibl •

tly to HUD in
At li
Inter! 1th h
11t ority '1nd then oing t.hru
t tli'o ot the p:rou ecti ve d!
spocil'ic lly
a hington request ·
toge tb t
skc.d t,
t-"tho Mayor
d cot
ight be dori ved in d v lo ,
project , if
v loper, 1n
o p na t d f or it
sin Auth rity
hOU in
saved and antic1pot d
off s t by the t
thiD proc dur •
tall ion or utiliti a by th!) Hou in Authority thru t
qu eke t
loper dir ct, with-out
nd in tact have requested
1.1ch pr f r it thi
th t
It ppear

4 w-/~ ~
opinion, vhich i
cu.welo1 er
would be thru deGign propo~ 1 by
elo re . for
City or
housing portion to
pe i ti

w rd o

cot o t
xp nse invol
1 d t o the
Aprll 18,
to ork u crit ri t
on th
ly lo
to pl
n a 15
oy get the
lop r
...,11e nat ri 1
to do by • ay 1)
· ttal of propo al
l ction oft e &ucce .f·l
inal elev. lo~.
continu hi
lo . nt of' the l~ sit1fl ... f
date of •
velopmcnt cr1 _ri
bo f ur
ye ( t r
hed int,
A w-1n
t d
1) .
rousing Authority,
oo . as .o"' ibl
r- d inform the
oon s po siblo ( ·ith target
cost of 1 "ld end ~u11'W1ed
(inclu n
p ct1 e t r.i,>a
ir d for tho r<'.3 a1nlng
... tcd dovelop .. z·s .
uthority to call aa

ugh th
in progre~~ for
·11 be .
l ~d
to pull to- eether
l) unifon1
117 lots, tb
ppen~. a
r- · ne traffic circ· 1- tion
ti ~ t achedulv no
r que
d .•

, Oo n h
rve th rinht to do
hou.l q r
.3 .
be dete~ i i1ad
t details could be ·orked out ,1th
rd h
uc o cvn th .n
lthin JO days .
v loper cou1 · the
nd in..fom.otion
··iou th 1 e fter .
d 1 lomll
intolli.go. tly.
en·hrw can p ckoge the doveloprnont criteria
( hich ho i...
p,1t out to d
l riJ -will
nt th,. t :
o that ell
(oth r than the
erudou• to kno ~-lu,t, tl
• ladin,,
( )
o t th , •
cir cuid nee
furni h d pros. etiv;
oon a pos iblo (t rgot date
nt propo,, l
or s b, itt l in
pril 18 • 1968
v lo
to b
d th t th
, l~nning:
r1 ht tow rk ou.t with the
liVJ r y to
15 doys
d by letter fro Mnyor Al l n to
v lo d for Housin
lo r to
lop r be r
ed itbin
( d rel ted co .
ed Jointly y tho City-
ut ority.
r to b
ul bi
to th porti n of the tract (other th n the
ily lo ) to
et to t
loper, traffic
ti! ctory to tho City.
hin ton
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1$ i
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d to start ph
(b~ k g. ound within aix (6)
ical d V\llop. .ent
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R sp t fully ubmit ted,
I ou
April 19, 1968
o. 1 (r dor l P n
Ro Honor f~rm
lo me ting y
t rdey with Hu ing Authori y repr o nt tiv
, the following
lint points w 1:-0 b~ught out:
of th
prior d t rtnin tion
will r qui~
Hou ing Authority e
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t la at
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r could b
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ntly f
th t non of
Public Hou ing nd hat in l
that thi
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not p
ting th
Tumk y
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ncour g d to build
thy could initi
ly or ub
nt und r both Tut:nk•y

en wal, c
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nd 221 d {3)
h ou by
nt rprie , but h would not pr diet how
di~ ct through priv t
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Mz. Pr ell atat d hot Hr. Ed
fr it not b
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dev lop d for hou ing and

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uld not be
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ov rall n d of th

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Hou in9 , and th
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City t
nity Cantor
nity facility o rving th t whol
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of th
uld be batter
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t l nd, would b dev lop
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d aign d

all - correspondence to:

TELEPHONE 892-8722
Box 7988 • Atlanta,

April 19th, 1968.
Mr. Lester Perse11s,
Housing Authority of the City of Atlanta,
824 Hurt Building,
Atlanta, Georgia 30303.
Dear Mr. Perse11s:
We understand that you will have renewal land for sale in the Thomasville
Federal Penitentary area for multi-family housing.
Please let us express our interest and intention of submitting a bid for
either the 221(d)(3) F.H.A. Program or the Turnkey H.A.A. Piogram.
Will you please provide to us a prospectus and the necessary bid documents
for all sites that will be available for multi-family housing.
Very truly yours,
Francis B. Sheetz, Jr., A.I.A.
copy to:
Gilbert Boggs .,.,,Malcolm Jones v
Er nest Tharpe
James F. Kirkpatrick
f bs/gk
April 17, 1968
Mr. Cecil Alexander
Housing Resources Committee
City Hall
Atlanta, Georgia
Dear Mr. Alexander:
I am writing in response to your requ est for an evaluation of the
presentation made to the Construction and Design Subcommittee of the
Housing Resources Committee by Mr. McNamara on Tuesday, March 26. You
will recall tha-'c this was a presentation of a new concept for the fabrication of residential units.
This concept involved p:uring on site, by use of vacuum forms, concrete elements of a standardized nature which would become elements of
multi-family residential buildings. The standardized elements could be
varied from job to job and from unit to unit in such a way as to make them
adaptable to the needs of various sites and architectural plans.
It is my opinion, as Chainnan of the Construct ion and Design Subcommittee, and that of those with whom I have talked who were present at this
slide presentation, that the conc·ept is a good one but that it is at this
point in time only a conc ept and not a proven plan. It is my opinion that
Mr. McNamar a should find a developer who is willing to develop this idea on
an actual building project involving a number of multi-family units . If
such a developer can be f ound, this may well be an excellent concept to
utilize in the model city program as it does r epresent one innovation i n
the field of attempting to provide low income housing . The model city
program should be considered because of a n ecessity for r equiring a reasonable sized t ra ct of land in order to build enough units to analyze the
validity of Mr . McNamara 1 s proposed technique. It i s, after all, an experimental project and one which is yet to be proven in the field.
There are many possible applications of pre-fabricated elements within
these units which should be explored, but which may be restricted at this
time by va_rious codes. If max_·. :Jm saving is to be attained in this kind of
project, the use of prefabricated fixtures and materials ~ust be allowed
subject to carefully drawn requirements.
�Mr. Cecil Alexander
page 2.
In summary, it is our belief that this is a good concept but that it
is only a concept at this time and that it does require actual· construction
of a number of units in order to properly evaluate the technique on any
objective basis.
Sincerely yours,
Edwin D. Harrison
Colonel Malcolm Jones/
Mr. Moreland Smith
Mr. Bob Winn

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ROOM 640, 806 15TH ST. N. W., WASHINGTON, D. C. 20005
CU- 8 - 68
Contact : Walt e r Rybeck
Phone: 202/382-20 68
September 1, 1968
Publi c a nd pr iva te. hous ing have fail ed by a la rge marg in to mee t th e ne eds
of large poor fa mil ies , a ccord ing t o a stud y pr e pa r ed for the Natip nal Commission
on Urban Probl ems and re l eased today .
"The fin din g o f a shortage of some 71,000 dwe lling units aff e cting almost
70 pe rc e nt of t he l a r ge poor f a mili e s in s eve n major citi e s is not just a nother
sta t isti c , " sa id Commis s ion Chairman Paul H. Dougla s .
"The numbe r of children
a ff e ct e d by t h is gap in these citi e s a lon e i s comput e d to be appro ximatel y on e th i rd of a mi ll io n."
( Se e p. 19 .)
The s even c iti e s s t ud i ed we r e Wa shington , Phila de lphia, New Orl eans, St.
Lo uis, Ri chmond , De nver a nd Sa n Fra ncisco. They ~ r e sel e ct ed becau se , in thes e
places, detailed in come data by famil y size could be correlated with available
housing su pp l y i nf orma tion, Walter Smart, Walt er Rybe ck and Howard E. Shuma n of
the Commis s i on sta ff pre pare d the report , "THE LARGE POOR FAMILY--A HOUSING GAP."
The s hor t age of 71,000 unit s was figur ed after including as availabl e for
o cc upan cy 12, 000 units which th e s eve n citi es indica t ed we r e merely plann ed , Wh en
on l y the cur r e nt ava ila bl e i nve ntory is counted, the shorta ge is more tha n 83,000
units a nd a ff e ct s 80 pe rc e nt of th e large poor familie s . Poor f a mi li e s a r e defined
in t h e stud y a s thos e who with 25 pe rcent of famil y income cannot a fford de ce nt
private hous ing. The i nve nt ory available to th em i s ne ce ssaril y the housin g suppli ed
under vari ou s s ub s id y progra ms .
Wha t is th e gap ? The stud y (1) finds th e m1n1mum income required to a fford
sta ndard or de cen t hous ing in each cit y as de t e rmin ed by the local r edev e lopment
a ge nc y , ( 2 ) ca lcula t es th e numbe r of large f a milie s be low that income l eve l, and
(3) t otals th e numbe r of exi s ting and plann ed standard housing unit s suita bl e for
large fa milies und e r a ll housin g pro g rams. In e s senc e , the gap is th e diff e r e nc e
be t ween ( 2) a nd (3), be t ween need and suppl y.
I n the s e ve n ci t i e s (s ee Table 3 , p . 15) there we re 103,464 lar ge famili e s with
i nsuf ficie nt i ncome t o a fford standard housin g . Available and planned housing left
a ga p of 71 , 162 --a sho r ta ge a ff e cting 68 , 8 pe rc e nt of these families.
The f ive- a nd si x -member f a mili e s numbered 63,728 . The gap in thei r ca s e was
40 , 0 26 units - -a shortage affe cting 62.8 percent of these families.
The seve n - a nd e i ght-membe r families numbe red 26,225. The gap in their case
was 19 ,2 37 uni t s--a shor ta ge a f f e cting 73.4 pe rcent of the se famili e s,
The n ine - a nd ten-member families number ed 9,55 8 . The gap in their case was
8,148 units- - a s hortage a f f e ct i ng 85. 2 perce nt of these families.
The very lar ge fam i li e s of 11 or more members numbered 3,953. The gap in
their case was 3 , 75 1 units--a shortage affecting 94.9 percent of them,
As family s i ze increases, the number of families goes down sharply, the size
of the gap ri s e s si gnificantl y, and the number of children affected by each unit of
hou s ing shortage i ncreases . The report further shows the high percentage of nonwhi t es aff ec t ed b y th e l a r ge poor famil y housing gap (pp. 17-18).
The a u t hors c it e a number of legislative and administrative factors that have
tended t o dis cour age the building _o f subsidized housing suitable for large
famili e s, (S e e pp. 21-28.)
Mr. Dougla s said , "I was very pleased to find provisions in the new Housing
and Urban Devel o pme nt Ac t of 1968 which, in part, move in the direction of easing
some of the ho us ing pr oblems faced by large poor families,"
No t e to Cor re s po nden t s :
The au t hors will hold a press conference on the report
(for Sunday release) at 10 a,m , Friday, August 30, in
Room 10211 , tenth floor, of the New Executive Office
Buil ding, 17th & H Streets, N.W. Advance co pies
ava ilable on r equest .
1. The Commission hearings cover all topics assigned to th e Commission and
many related cu rrent issues. The compl e te se t of five volumes has been at th e
printers for many months but onl y tµose liste d are available at this time.
2. Ba ckground studies und er take n by the Commission staff and consultants, in
preparation for the Commission's report to the Presid e nt and to Congress, result ed
in several dozen research papers, many of which it was f e lt would be of public
interest. Research reports that are published do not nece ssarily carry th e
endorsement of the Commission,
3. The Commission 's own r e port , carrying out the Congressional and White House
mandates, will be the final category of publication.
Order Form and Summary of Publications to Date
Requests are being handled without charge.
Single copies only, please. Bulk orders cannot be fill e d be cause of limit ed
supplies. (Exception: reprints of Resea rch Report No. 1 have bee n made
available by th e Jo int Economic Committ ee of Congress .)
The Hearings are also available for purchase from "Superintendent of Documents,
Government Printing Office, Washington, D.C. 20402."
To avoid errors and hasten mailing, check publication you wish to receive and
PRINT CLEARLY in the address blank.
New Haven , Boston, Pittsburgh. Major topics-- urban r enewal, rehabilitation,
housing codes, fin a ncing and insuring in blighted areas, propert y taxation,
land values, Ind exed , 361 pp. (Our supply almost e xhausted , )
HEARINGS, Vol. 2. Los Angeles, San Francisco, Major topics--land-us e
regulation, building codes and technology, urban desi gn, governing metropolitan
areas , housing l ow-income famili e s. Inde xed, 493 pp.
HEARINGS, Vol 3. Denver, Atlanta, Houston, Fort Worth-Arlington-Dallas, Miami.
Major topics--metropolitan housing patterns, public housing, new housing
subsidi es, zoni ng , building and housing codes, urban finance, government
consolidation. Indexed, 386 pp.
Research Report No. 1, IMPACT OF THE PROPERTY TA X, by Dick Netzer. Measures
the ta x burden on housing, examines intrametropolitan tax differentials that
stimulat e exclusionary practices and unsound development; scores faulty
assessment practices; proposes reforms and alternatives; 62 pp.
American Societ y of Planning Officials. Finds land-use controls often exclude
low-income minority families from certain urban areas; claims zoning ma y exert
less inf lue nce on development ra.tterns than utility extensions, land speculation,
highwa y locations; includes views of 28 experts; 80 pp.
OUTLOOK--1960 TO 19 85, by Patricia Leavey Hodge and Philip M. Hauser. Projects
urban expansion wi th biggest growth in suburban rings; further racial concentration of whites in suburbs and nonwhites in central cities; marked increase in
growth of yo un g labor force (ages 15-44); 90 pp. (Commission supply exhausted,
Praeger, 111 4th Ave., N.Y., N.Y., reprinting for sale. Government may reprint,)
Research Report No. 4, THE LARGE POOR FAMILY--A HOUSING GAP, by Walter Smart,
Wal ter Rybeck, Howard E. Shuman. Stud y of seven cities (Washington, Philadelphia,
New Orleans, St. Louis, Richmond, Denver, San Francisco) finds poor families of
five or more persons neglected in public programs; measures shortage; cites
re strictions inhibiting supply of larger dwelling units; 28 pp.
�.. . ...


AUGUST 2, 1968
. ....


ATLANTA. GA. 30303
Tel. 522-4463 Area Code 404
Housing Resources Committee
Housing Coordinator
I am appearing before you as Chairman of the Housing Resources
Comrni ttee of the City _o f Atlanta.
charged by
In November 1966, we were
the Mayor to assist by all means possible the con-
struction of 16,800 units of low and moderate income housing
These units were to serve as relocation for persons to
be moved by urban renewal, new roads, schools, and other government action.
As of May 15 we stood as follows:
Units completed
Under construction
In planning
'rotal in sight
Of this 16,800,
9,576 were to be public housing -- 3,906 of these
are in some stage of completion, 658 have been leased, and 372 are
being negotiated.
This means that 4-,64-0 more units are needed by
In the F.H.A. programs . for low to moderate incomes, we are running
ahead by 3,165 units.
It is then in the area of public housing,
the most needed and the most difficult to find land for, that we
-need help.
-2In addition to the replacEment housing we need, the total requirement for low and moderate units as compiled by the City
Planning Department is 31,400.
Thus even if we complete the
16,800 units, we are still 14,600 units short of our total needs.
It is no news to you that this program is controversial.
and black, rich and poor, people in government and out, good guys
and bad guys, say either, "we need it, but put it somewhere else."
or "don't put anymore of it anywhere."
And our proposals are
themselves controversial, open to misinterpretation and exploitation.
But this Committee feels that our requests are justified in terms
of the successful completion of this program--and we did not join
this committee to fail.
The question has been raised concerning the inability of the people
of Atlanta to stand the tax burden of carrying out the program.
should not be forgotten that over 7,000 of these units will, in
fact, be tax producing and will present no additional burden on
Atlanta's taxpayers.
in lieu of taxes.
Even Public Housing makes payment to the Cit y
All pay, even if at a reduced rate.
It is well
known that slums absorb an inordinate amount of taxes in the extra
police protection, fire protection and sanitary services.
When we
eliminate sl ums we als o eliminate considera ble p r ofitl ess d rain of
tax dollars.
The Housing program will p res umably put over
$170,000 , 000.00 in construction costs into Atlan-ta's economy during
construction; jobs will be created during construction and long
after in man~gement and maintenance.
We submit that the net effect
on the City will be incieased ta x yield and substantial improvement
in the overall economy.
The point was also made that if we enforce the laws against ove rcrowding, the people would have no place to go but Fulton and
�; ~
DeKalb County.
We approve of the enforcement of the law, but .
challenge the assumption of knowing where the displaced would
If history.repeats, they will stay as close by as possible
-and "block bust" adjoini.n g neighborhoods,: unless . a definite
program is set up to relocate them.
One of the T.V. stations warned us that you would want several
que.s .tions answered today.
They are good questions--we believe
we have. good answers •
Why don't we look for sites already zoned for apartments'?
We have--the developers have--the areas now zoned
for apartments of all kinds amount to 455 acres and of this
more than three-fourths have been tried and found wanting.
Zoning isn't the only criteria.
The site selected must be
priced right, it must satisfy H.U.D., the Atlanta -Housing
Authority, F.H.A., schools must be available, utilities
must be in, terrain must be feasible and so on.
What is to prevent prices on rezoned land from'?
The more land available, the lower the prices should
Is the housing being built being used by displaced Atlanta
people or is it making Atlanta a dumping ground for the poor'?
We acknowledge this possibility and have taken the
following steps:
1.We recommended to the Atlanta Housing Authority and they have
required one year· residency ror acceptance in public housing.
-4--- .
Recent figures, however, show that the people who want
public housing are our own Atlantans.
From November 1, 1967 to June 30, 1968, the Atlanta Housing
Authority received 2,903 applications.
Of these only 141
were from persons in Atlanta less than six months, whose applications
were rejected.
2. Ttu.~· Comml ttee has brought into being a metropolitan
oriented non-profit fund for promoting projects thro_u ghout
the metropolitan area
. 3.
This committee has encouraged the creation of the Inter-
Faith Housing Group, a non-profit group of churches seeking
to build housing throughout the area.
We have supported and encouraged such organizations as
SWAP which have encouraged the stabilization of neighborhoods
in transition.
We have encouraged the construction of upper income hou·s ing
in the central city and the preservation of existing neighborhoods.
We are mcving to organize a state-wide low cost housing group.
Yet it would seem that your fears aqd ours are not valid.
First of all
as noted above, the Atlanta Housing Authority figures indicate that
there is only a small influx of poor seeking housing.
Secondly, we
cite the following figure from Sales Management- a. publication that
many businesses and planning bodies rely on.
Their figures indicate that low income families are on the decline
in the City limits of Atlanta and higher income on the rise.
3,000 or less
3,000 or less
10,000 or more
10,000 or more
The poor families dropped 2.8% and the $10,000.00 or better increased 4%.
The Atlanta Constitution, in discuss ing a similar effect in the
metropolitan area says,"Last year's increase of some 13,500 in
number of households here also may have influenced the unusual
trends, particularly if most of them represent migrants moving
into relatively well paid jobs heI'e."
We do not know what part housing plays in attra cting poor people
to Atlanta, but we are convinced that °jobs, schools, community
services, and the racial relations here, as contrasted with the
rural areas, attract far more than housing.
If we want to stop the poor who do· come to Atlanta we should also
stop the Fo~ward Atlanta program, the efforts of the local businessmen to find jobs for the hard-core unemployed,the Community Chest and
�-6-· .
let race relations deteriorate.
In short, stop every effort of
these last years that is making Atlanta great in our own eyes
and across the nation.
One thing we do need to do is to move on rapidly with the NASHP.ANS and other urban renewal projects.
The problem with this
pr_ogram is not that we . are building too much housi_ng ( the need is
there with or without clearance projects)
but that we are lagging
in our slum clearance efforts.
We are vigorously opposed to any slowing down of this program while
such places as Vine City, Lightnin', Plunkett Town, Summerhill,
Mechanicsville, and severe overcrowding even in the better areas
In order to help this program and,wc believe, benefit the entire
city, we are asking the Mayor and Board of Aldermen to take the
following actions.
We request the Mayor to appoint either an existing committee
or a new committee to assume the reponsibility for the housing
program in the Board.
We do not believe you are "the bad guys"--we want and need your
assistance .
Revise the Building Code for the City of Atlanta at least to
allow experimental housing to be built in the Model Cities
It has been made clear to us that such action is needed if
Atlanta is to qualify in the Model Cities experimental housing pr_ograms .
Revise the ordinance governing non-conforming use of land
to allow structural repairs to dwelling units.
We understand that .t he Planning Commission has this under
We urge haste
in this matter to allow the
enforcement of the .Housing Code in areas of non-conforming
Accelerate the urban renewal program particularly in the
NASH-BANS, Vine City area, and others outside of the Model
Cities area which is moving.
As long as the horrible conditions in some of these areas
exists, we are asking for trouble--we are inhumane and we
are not a great city.
Authorize the Atlanta Housing Authority to ask for 2,000
additional units of public hou~ing. _
The present allocations are used up and developers are being
turned away.
As stated above, 4,640 additional unit s are needed to complete
the program .
-8- .
We recommend that a substantial part of this housing should
be built by the Authority itself so that it can select sites.
Finally, we request that a revised District Zoning Map be
This map should be based on the new land use map of
the city after careful review of that map.
As a part of this ~ap, we ask that sufficient land be zoned to·
more than meet the requirements of this program both in low
cost single family 9-wellings and in multi-family units.
We further suggest that the District Zoning Map be updated on
a periodic basis, say every four years.
The last rezoning of the City was done in 1954.
As you gentlemen
well know, the map is now seriously inadequate and the City is
constantly being rezoned by individuals seeking changes.
method keeps the City in constant turmoil (one group has even
opened a liquor ·store to raise money to fight rezoning.)
method undermines property values in adjacent areas and causes
people to oppose all zoning because there is not certainty
changes will not continue.
You gentlemen and the Planning
Department should, we believe, control zoning by positive action
rather than react to individual requests .
Furthermore, our Workable Program requires that the Zoning Map
be updated periodically.
The scattering of relatively small sites throughout the City will
prevent large concentrations of public housing with all its attendant problems .
It will further allow people to live near their work.
The vast pile~up of people transferring buses in .the center of Atlanta is clear indication that many _live miles from their jobs in the
northeast and northwest.
Not only would housing close to jobs aid .
the employee and employer, it also would cut down appreciably on
We are not proposing specific areas at this time.
These should be
carefully selected by the Planning Department, the Aldermen, the
Housing Authority, and, we hope, the Housing Resources Committee.
assume that the total changes would be spread before the public in open
We do not believe that it is feasible as has been suggested that,
before any more housing is built, those s ect i ons of the city wher e hous ing doe s not exist must be brought up to all other areas .
The land
at the nec es sary price is just not available .
Furt hermore, we have indi cat i ons t hat efforts will be made to use this
rezoning t o "get even" with one part of t he c i t y or a nother.
Gentlemen, we developed this program because we do acknowledge that,
due to the location of open, le ss expensive land, the developers have
. sort out areas to the West, East, Southeast and Southwest.
We ask
this rezoning, a difficult task for you, because we believe that it
is right, that it is ·healthy for the City, and it is a real effort
not to strain the resources of a particular area of the City.
we do not believe for a moment that we can equalize low income
housing or any other city function throughout the city.
This is,
however a sincere effort to alleviate but not ~mmediately cure an
- - ) ' inbalance.
We urge you to proceed.
These, then are our requests:
A committee of the Aldermen concerned with housing.
Revised Building Code.
Revised Non-Conforming Use Ordinance.
Stepped-up urban renewal.
2,000 more public housing units.
Updated District Zoning Map including areas for low income
Gentlemen, we are in the middle of a new revolution that makes the
old industrial revolution look like a footnote in history.
American immigrants, are moving from the rural areas into our urban
They come at a time when we are beset wi th problems.
The poor and uneducated people already in our cities are ill-equipped
to compete.
We have built a totally artificial culture.
chop down logs and build himself a cabin.
and knowledge to trade for this house.
it will not_ go away.
No longer can a man
He must have the skills
We created this society and
It I s like this--either we house our poor or
we have within our midsts, if not in this generation, then certainly
in the next, an alienated people ready to grasp by force what we
would not provide when there was yet time •

,,£.'~-.. .--'· ,.:t. ;e,:

,,. /
~ ( ~~¼'""--Cec.:i:l A. Alexander, Chairman
Housing Resources Commit~ee
/ '.
/ /
April 22, 1968
T EL EPHONE saS- 5591
Mayor Ivan Allen, Jr.
City Hall
Atlanta, Georgia 30303
Dear Ivan:
After our discussion last week at lunch, I met with Mr. Satterfield, Executive Director of the Atlanta Housing Authority, and Les
Persells, his assistant, and discussed the whole matter with them at
leng th .
While I am sure you recognize that there are some delays which
are beyond our control , nevertheless, I would like f or the Housing
Author ity to do everything possible not only to avoi d de lays on i ts
own account but t o keep afte r t he ot he rs with whom we have t o deal ,
such as t he Fe deral Government , arch itects , City Plann i ng Department,
etc., t o try t o move things a long as speedily a s poss i ble.
With t his in mind Mr . Satterfield te lls me t h i s morni ng that
he has employed Co l . Jame s B. Mi ller, . a retir e d Army Colon el , as
Production Coordinator f or the Housing Authority. His duties will
be specifically to try t o cut red tape, break log jams and move things
along both within and without the Housing Authority.
I hope, t oo, that Col . Miller will make periodic reports, copies
of which will be sent to you and others interested, so that we may
see and keep up with any lags in these matters.
Wi th kindes t regards, I am
cc: Mr. Cecil Alexander
cc: Mr . M. Bo Satterfield
Edwin L. Sterne
�... : ~ ~-.
-· ..
Room 1204, City Hall
ATLANTA, GA. 30303
Tel. 522-44 63 Area Code 404
April 29, 1968
CECIL A. ALE XANDER, Ch ai rm an
Housing Resources Committee
Housing Coordinator
Alderman G. :Cverett Millican
Alderman Rodney 11. Cook
Nr. Dan E. S1-r eat, Jr.
Mr. Jim Crawford
Mr. Collier B. Gladin
Mr. Lester A. Persells
Mr. Edwin L. Sterne
Mr. Cary S. tiooks
Dr. John H. Letson
Mr. A. B. Padgett
Mr. Jim Parham
Mr. Johnny C. Johnson
Mr. George H. Kennedy
Mr. James B. Pilcher
Dr. Sidney L. Davis
The next meeting of this Coordinating Group, for the purpose of getting
together, comparing notes a nd exchanging ideas in interest of expediting t he
Low- income Housing Program through effective coordina tion, will be held Thursday,
May 2, at 10:00 a.m., in Committee Room 2, City Hall.
This will be another joint meeting with t he Exe cutive Group of the Housing
Resources Committee.
The s everal previous mee tin2s of t ris group have been ver y stimulating and
helpful to the Low-income ::rousing Pro6 r am.
We are now working on a plan for making more land available for loH-income
housing , whi ch we propose to explain at thi s meeting and for whi ch we ne ed and
solicit your supp or t.
Mr. Cecil A. Alexander , Chairman, Housing Res ources Committee , and I hope
t hat you will be able to attend t hi s meeting, as your participation is very
hel pful in furthering t he progress of t he Low-income :qousin3 Program.
A return addressed pos tal card is enclosed for your convenience in informing
us whether you pl an to attend t he Hay 2 meeting.
Sincerel y ,
73.a~e-r-f~ --.,U/.)..-J
Mal colm D.· ; ~
Housing Coordinator
Postal Card
ATLANTA, GA. 30303
Tel. 522 -4463 Area Code 404
Room 1204, City Hall
April 29, 1968
Housing Reso urces Committ ee
Housing Coordinator
Dear Housing Resources Committee Member:
The reglL.lar monthly meeting of the Exe cutive Group of the Housing Re sources
Cownittee for Hay 1968 will be held as scheduled, Thursday, Hay 2, at _l0:00 a.m.,
in Committee Room 2, City Hall.
This will be another joint meeting with t he Coordination Group composed of
Heads of Departments and Agencies whose activities relate to Low-income Housing.
We are working on a plan for making more land available for 1011-income
housing , which we propose to explain at this meeting and· which will need your
Please consider t he f un ctions of your pai.'1.el and be prepared t o offer
spe cific proposals f or making concrete contr ibutions to the progr am .
Chairman Alexander proposes scheduling a special re-ori entation meeting
soon with t he compl ete membershi p of each Panel of t he HR C.
We hope t hat you will be able to attend t his meeting .
date on your cal endar.
Please r e s erve the
A return addres s ed postal card is enclosed for your convenience in advising
us whether you wi ll be able t o attend t he 1'".:ay 2 meeting .
. . ~~


~ -'-<-.t.~
Mal colm I!• Jones
Housing Coordinator
Encl :
Postal Card
�. t.
,. •
• ',I~ - .. _
Public Law 90-448, approved August 1, 1968
Housing goal - d~clant irJn of r,':ilicy
The ConGress affirms in '.he 19~8 Act the national goal of "a decent home
and a suitable living environment for every American family" (as stated
in the Housing Ac t of 1949). It states further that the highest priority
should be given t o m".:! eting the housing needs of those families for which
the national goal has not become a reality, and that there should be
the fullest prRct i.cable util i zation, in administration of Federal housing
programs, of the resour c es and capabilities of private enterprise and
self-help techniques.
OpFort uni ties for ':.r;:1Lnine and employment for lower income persons
The Secretary () f Housing and Urban Devel opment is d Lrecte d , in
administeri ng housinr; pro 6 rarns for low-jnco:ne fa:n.llJes, t o requ ire 1,
that opportunities for training and employment arisin~ in
connection with the planning, construction, rehabilitation,
and ope ra t ion of housing under the programs be given to
lower income persons residing in the area of -the housing;
that to the gre atest extent feasible contracts for work
pursuant t o t he housing programs shall, where appropriate, be
awarded to bu s i ness concerns locat ed in or owned in subs t a!1tinl part b y persons r e l ng -Ln the area of t he housing.
Improved des ign i n Gcv ~r nrne nt hou s i ng programs
The Congr e s:, ::om:712 nd s t h e Depar t me nt of ffUD for its recent efforts t o
improve arc h.l t e c t ural st qno ards , but dec lar e s that in the adminis t ratio n
of housin g programs wh ~c ~ a ssi s t in the prov isio n of housing f or low
e.nd mode r a t e l nco me fa mLlies , emphasis shall be gi ven to encouragi ng
good de s ig'1 a s an r!ssent i al component of the housing.
Impro vement c,f pr ogr a11 aoml.n: r;tra t l on
The Secret a r ~' is dire cted t o make a re por t t o t he Banking and Currency
Cammi tte e s e ar l i i n cal end ar ,y e ar s 1969 and 197') id en tifying spe c i fic
areas of progr a1n admi.n l stra 1, 1<1! 1 and manageme nt wh i ch requ ire i mpr ovement.
The reports s ha ll describe ac t ions t aken and pr oposed to ~ake improvements
and recommend le gis lat ion ne eded to accomp lish the i mprovements .
-- ~ 1
for lower incone familie s
sec. 23 of the !fa Lional Jlous inc; Act) is authorized to
provide Federal assistance to homeowner:::;hip uy lower income families
(including membership in a cooperative). Under the new program, the
Secretary of HUD may enter into contracts to make periodic payments
to lenders who make FHA-insured home mortgage loans to these families.
The payments will be in an amount necessary to make up the difference
between ?.O percent of the family's monthly income and the required
monthly payment under the mortgage for principal, interest, taxes,
insurance, and mortgage insur~nce premium. In no case, hrniever, can
the payment on a mortgage exceed the difference between the required
pay1nent und er the mortgage for principal, interest, and mortgage
insurance premi~~ and the payment that would be required for principal
and interest if the mortgage bore an interest rate of 1 percent. The
amount of the payment on each mortgage will vary according to the
income of the homeowner. The family's income is required to be recertified at least every 2 years and appropriate adjustments made in the
assistance payment to reflect any changes.
A new program
The assistance payment is available for a purchaser having an income,
at the time of his initial occupancy, not in excess of 135 percent of
the maximum income limits that can be established in the area for
initial occupancy in public housing. However, up to 20 percent of the
funds authorized in appropriation acts for the program can be used to
assist families with incomes above these limits but which are not in
excess of 90 percent of the income limits for occupancy in a section
22l(d)(J) below-market interest rate housing project.
In calculating the income of the homemmer for the purpose of determining
eligibility as well as the amount on which the 20 percent computation will
be made, there will be deducted $JOO for ea~h minor child who is a
member of the homemmer' s immediate family and living with him. Also,
income of minors will not be included in the homeowner's income for this
The amount of a home mortga ge can not exceed $15,ooo ($17,500 in high
cost areas). These limits are increased to $17,500 ($20,000 in high
cost areas for families with five or more members. The same limits
apply to cooperative and condominium units.
The minimum downpayment is $200 for families with incomes up to 135
percent of the maximum income limits that can be established in the area
for initial oc cupancy in public housing and 3 percent in other cases .
- 1
A homeowner is to be given the opportunity, to the maximum extent
feasible, to contribute the value of his labor as equity in the
The Secretary is authorized to provide budget, debt management, and
related counseling services to homeowners who purchrtse homes under
the new section 2J5 program.
The housin~, with a few limited exceptions, must be new or substantially rehabilitrtted housing, except that up to 25 percent of the
amount of contracts authorized to be mrtde before July 1, 1969 can
apply to existing housin~, with this percentage decreasing to 15 percent the following year, and 10 percent the third year.
The aggregate amount of contracts to make payments Crtn not exceed
amounts approved in appropriation Acts. The payments pursuant to the
contracts can not exceed $75 million per annum prior to ~uly 1, 1969.
This amount is increased by $100 million on July 1, 1969, and by
$125 million on July 1, 1970. A reasonable portion of the contract
authority is to be transferred from time to time to the Secretary of
Airiculture for use in rural a~eas and small towns.
In addition to thP. foregoing provisions, a mortgage executed by a
nonprofit or~rtnization or a public body or agency can he insured where
it fin°mces the ourcha~e (and rehabilitation if necessary) of housing
in viable, or potentially viable, areas for resale to lower income
families. The housing must include at least four or more one-family
dwellings (or two-family dwellings, one unit of which is to be occupied
by the owner), or at least four or more one-family units in a condominium
project, in the cases where rehabilitation is involved. The individual
mortgages given to finance the resale of the housing to lower income
families will also be insured by FHA ~nd assistance payments made on
behalf of the ourch~sers.
221 (h) Program
The 221 (h) program is changed to allow the Secretary to reduce the
interest rate on a home purchaser's mortgage under the program to as
low as 1 percent where the purchaser's income justifies, with periodic
adjustments between 1 and J percent to reflect changes in the homeowner's
incoMe. Under this program nonprofit mortgagors purch~se and rehabilitate housing with FHA insured mortgaies and resell it to low-income
The limit on the aggregate amount of mortgages th~t can be insured and
out~tanding at any one time under the program is increased fro!\\ $20 million to $50 million.
New F1-IA crcdi t assistancl:! for homeowncrshi .
A mort.r,ar,e insurance is at:thorized und e r a new Sec.
237 of the
~ational Housing Act ) for families of low and mocierat,e income wro,
through the incentive of homeownership and counselinf rtSsistance,
appear to be able to achieve homeownershir hut who, for rPrtson s of
credit history, i rre r:u lar income rat terns caus·e d ty seasonal employment, or other factors, are unable to meet the credit requirements
g~nerally applicable for the purchase of a home under the rer,ular
FHA mortgage insu~ance program.
A mortgage must meet the basic re~uirements under one of the various
FHA home mortgage rrograms. The credit and income requireme nts of
the particular rrogram do not apply, howe ve r, anc the r:rincipal ohligation of the mortga - e can not exceed £15,000 (117,500 in high-cost area~).
However, if the limit on th e amount of a mortgaEe is lower under a particular rr?gram, the lower limit is appl;cable.
The monthly paymentf, combined with local real estate taxes on the
property, will not excee d 25 rercent of the home r,t'rchaser' s income,
computed over the previous year or the rrevioi:s J years, whichever is
higher. The interest rates and mortgage insurance premiums are the
same as under the progra_n:i involved for other mortgagors.
The Secretary of HUD is autl·.oriz e d to r rovide debt management
related counseling services to mortgagors whose mortr,age s are
under these ne w ·more liberal rrovisions. He can also provide
ing to otherwise eligible families who lack a downpayment on
in order to help them to save money for a downrayme nt.
inst ·r c d
counsela home
The rtggregate balance of mortgages insured under these new provisions
can not exceed at any one time $200 million.
Mortp,a~e ~nsurance for housing in declin "ng areas
Mortgage insurance is authorized, under any of F'PA' c mortgage insl'rance
programs, f0r the pt.:rch::ise, repair, rehabilitR.tion, or con ::;truction of
housing loca ted in olde r, de clining t!r t an areas with out r egard to the
normal reauireinents of th e particular prop.ram if FHA finds that (1) the
area is r e asona bly via ble, giving consid er ation to t. he need for providing adequa t:,r hot· sing for families of low and moderate income s in the
area, and (2) the property is an accer tabl e risk in vie,, of this consideration.
Special Risk Insu ranee fund
Srecial Risk Insurance F\.:nd is established which is not intended
to be act11ariall v sot.nd and 0t;t of which claims wi ll be paid on mortg.qp,es
insrred under th~ several new special mortgage inst; rance rrcr,rams for
housing for low or moderate income families. A .!) 5 million ad va nc P from
the general insurance fund is authorized to init i ate the new Srecial
Risk Fund. Appropriations are a11thorized to cover any lo;;ses sustained
by the new fund.
r new
Condominium anrl cooI?erative owr,ers hip for low and moderate inc ome families
Rental housin8 projects financed with below-market interest rate
FHA 22l(d)(3) mortga8es are permitted to be converted to cooperative or
condominium ownership.
A low or moderate income purchaser can purchase an individual family unit
and an undivided interest in the common areas and facilities of a project
at a price not in excess of the appraised value of the property and with
a mortgage bearing the below-market interest rate then in effect. At
least a 3 percent doi.mpayment will be required, which can be applied in
whole or in part toward closing costs.
A cooperative, with me1i1bership open only to low and moderate income
familie s mee ting income limits prescribed for 221 (d)(3 ) below-market
interest rate projects , can purchase a 221 (d)(3 ) project for an amount
not exceeding the appraised value of the property for continued use as
a cooperative. The insured mortgage can bear the below-market interest
rate in effect at the time the commitment to insure the mortgage is issued.
Assistance to nonprofit sponsors of low and moderate income housing
The Secretary of HUD is authorized to provide technical assistance with
respect to the construction, rehabilitation, and operation of low and
moderate income. housing to nonprofit organizations o The Secretary can
also make SO-percent, interest-free loans to nonprofit sponsors of such
. housing to cover certain preconstruction costs under Federally-assisted
programs .
The LJw and Moderate Income Sponsor Fund is established for the purpose
of making the loans with an authorization for appropriations of $7.5
million for fiscal year 1969 and $10 million for fiscal year 1970. The Fund
will be a revolving fund and repayments of loans will be deposited in the
National Homeowner s hip Foundation
The National Home o,mer s hi p Founda tion i s crea t ed to carry out a continuing
program of encourag ing private and public organizations to provide
increased homeownership and housing opportunities i n urban and rural areas
for lower income families.
The Foundat ion i s aut horiz ed to make gr ants and loans (not otherwi se
available f rom Fe der a l s ources ) t o s uc h organizati ons to help defray
organizational and administrat:i_ve expenses , necessar y precons truction
costs, and the cost of couns elling or similar services to lower income
families for whom housing is being provided . The Foundation can also
provide t echnical ass istance to the organiz a tions .
Appropr iat ions up to $10 million are authoriz ed.
a l so use donat ed funds .
The Founda tion can
The Foundation is to be admb.istered by an 18-member Board of Dir(!ctors.
Fifteen members are to be appolnted by the President. The Secretary of
HUD, the Secretary of ftgriculture and the Director of OEO are the other
three members. The bo0rd will appoint an executiYe director as its
executive officer.
N~w techr1olo;3i~s - housine; for lower incorn~ fami 1 Les
The Sccr2t9.ry of illJD ls directed l;o lnstitute a progrcirn under whi~h
q rnlified publl~ and pr i vs te organizations wlll suhrni t plans for the .
~evelcprn-=nt of h0uslng fo r lower Jncone families, using new and ~dvan~~d
~ e ~h ~oloGl cs , on Fed2ral land whl~h has been made a vail~,]~ for that
puc-p•JS-= , er 0 n .Jth-=l· l:md ,..,hi2 h i.s suitabJe.
The Secretary will approve up to 5 plans which are sutmlt~ed t o hi.m
under the program. He wi.11 consider (A.rnong other t.hings) the potential
of th·= techrioloGY e mplo;i,ed and the atllity of t:ie organiz'3.t.icn rnb::iittini;
th::! plan to produce a t leas t l,OO,) dwel.llng u;1its a ;year ilizing t:.:iat..
'i 'he ;;;ecrc l.ary .l s dire i::: t ed t0 seek r, o 8.<~hie·-12 t;h e ::or,si·ructi. on of 9.:, least
1 1 )00 dw2lling u1ii!:.s a ye9.r over a 5-.:,·ear p e riod fur e9c!'l l f th~ ·.-erious
typ 2s 0 f L:!chnolo.;ies propo se d -fr, t.he plans appro·-1ed. H:.:: ii=; re·-_.ulr~d
~o r2p0r1; _A.t -t: hc e "!.rllest practicable dRte with respect tc the proj~cts
~saisted, toJet hcr with his r e commendations.
Mortr3a£;e8 t he projects are authcrlzed to b e insured unde r t ~e
FJA expe rime n tal housing program.
Sf-,udy of .i nsurani:::e pro~;ect ion for homeowne rs
T':le Secret.'3.ry uf 111JD, in c ooperation Ki t h the prt vate insura nce industry,
i s e.ut hori zed t.o d e velop a plan for establish ing ar1 in surance program
to ?neble h ume uwners t c me et their monthly ~ort gag2 payra2nts in ti me s of
p ':'rsonal ~cono:nic 8dve r s Lty. The Secre tary is r e ·~u ired ~o r eport h l c:
act ion s 9.nd r.ecommc~,1dA.ti ons within 6 mc·nt.hs follow ing enact:ne.ri t of the
N9.tional Advi. c .>r ~- Sc ~::n i!? s ion on :Sow-In·:o:n'2 Hou s i_ng
A Nat i onal Adv i s orJ -.::ummi ::. st on on Low-Income Hous int;; ts <::sta bl l s hed to
c,r.dert.Akc-; fl. c ornprehe :1s ive s tudy and inve stigate the resou:!":ct.::G BJ 1G.
cApabi li ti es Ln t h e publ: c ancl pri. vRt. e se-~t.o~s of ~.he c :: , · i-·11y ·.,~1-c h , w.;y
b ,~ u sec. ~.o f1~1 ru1 more complete ly !:.:ie cb,1<"•~tives of Vv: nati 0nGl gt;al
of "a d e :~en t h,)rne nnd a Ll u itable livine; e nvironment for ever~· American
·.rh-2 .:;0mrnls s i o.'. 1 ~s d l r2c t e d t o f:ubm i t Lo th-2 fr·2 sidc n:·. A:1d the .:one;r ~ss a.11
i 11t'=rir:: r c?or~. ·.., ~ ~h r es~cc t t o i ':. s f.indi r:..g:c:: anc r <:?ccrrnc:idat ~on s no t
~.ha::-i .Jul y 1, 196'.: , ru:d. fl fi rep ort no t ~Ater l hA.n J :.ily 1, 1970.
TITLE II - llliN'l'/\ L l!OllSING FOR LOWE!/. UICOHF. li'f,JIILIE::3
A new program of Federal assistance to renLal and coopcrativL: hou s ing for
lower income families fa authorized by addin~ a new section 236 to the
National .Housing Act. The assis t ance is in the form of periodic payments
to the mortragee financing the housing Lo reduce the mort~agor's interest
costs on a market r a te FIUt-insured project morte;at;e.
The interest reducti.o n payinents uill reclm;e payments on thr.; project
mortgage from tlwt rcquireu for principal, inter~st, and mortgage in_surance
premium on a markeL rate mortgage t o that required J~ur principal an:::l.
interest on a mortgac e bear i ng an interest r a Le of :~ per cent.
The interest r educ tion payments will r edu ce renta l s t o .a basic chare;e, and
a tenant or c ooper a tiv(.; member wi l l e i.ther p.'.lf the basic ch:,.rge or such
greater amount as reprec enLs 25 percent of his income, but not in excess
of the charges which would be necessary without any inte res t reduction
payments. Income~; ot' tenants will be r eexamined at l eas t every 2 years
for the purpose of adjusting rentals. Rental char ges collP. cted by the
project owner in excess of the ba sic c har ges are to be returned to the
Secretary for deposit in a r evolving fund for the purpose of maki ng other
interest reduction payments .
Tenants of these projects who pay less than the fair market rental charge
for their units will generally have to have inc omes, at t he time of the
initial rent-up of the p1·oj ects, not in exc ess of 135 pe rcent of the
maximum income limits tha t can be es t ablished in t he area f or initia l
occupancy in public housing dwellings . Howe ver, up to 20 percent of the
contract funds authoriz e d in appropriation a cts may be made available for
projects in which some or all c.,f the unit s w:Ll l be occupied, at the time
of the initial r ent-up, by tenants whose incomes exc ee d the above limit
but do not ex ceed 90 percent of t he inc ome limi ts for occupancy of
section 221 (d) (J 2 be l ow-m.:i.rket i nteres t rat e r enta l housing .
In de ter mini ng i nc ome .for the pur pos e of eligibility as we ll as Lhe amount
of rent to be pa id a $J OO deduc tion i s per mi U ed for eac h minor person in
the family and any income of s uch minor is not counted .
To qualify for mortga ~e insuranc e unner t he new progr am, a mortcaeor mus t
be a nonpr of i t organi za t ion, a c ooperati ve, or a l imi t ed di vi de nd entity
of the type s permitt ed under th e FHA se c t ion 221 (d )(J ) r ent a l hous ing
progr am . The ::i.or t eage l iJnitati on::; 'trith r esp ect to maxirrn un mor Lga ge amount
are the s ame as for mort.gaees ins w·ect W1d<~r t he (d )(J ) proc;r .::un . Interes t
reducti on payments can als o be made with res pe ct to State- a i ded rental
housinr; pro j ec t ::; appr oved for r ecei ving the benefiLs of tl1l:! program prior
to compl e t ion of c ons t ruc t ion or r ehabill t a t i on of t!1c proj ects .


Contrac L::; l'u1· u.::;:..;j3 Lance pay111enLs an! .:rn Lhori ze (t, cutJjcc L trJ a pproval in
appropriation ac L:.;, Lu the :cmonnt. of !C'/S mill i on ann1w. lly prior to ,July 1,
1969. 'l'his 2.mounL i:.; incr8t.. ::i l.' U by i100 mil.Lion oa ,July l, J 9G') , and by
$125 million on ,Jul;yr l , J.9}0 . A reas onable portion of this authority is
tu be trarn.i.l'e rred to t he Se cretary of Ag riculture .for u::;e in rural areas
and small totl'ns.
A pro ject, 1' i.nanc(~rl 1.111dc!r the rlL'\·J progr~im c~..r1 i i:1c lude such nondwelling
facilities as the Secretary deems aduqua te ::rnd appr·opria te to serve the
occupants of the pr ojed, and the surronndi11i:; neighborhoou, as long as
the pro,jcct is preJomln.:rntly res-Lcle n !.:io. l and any nonJtwllinr; facilities
contribute to the economic fea::;ibility ol' the pr oj e c t. Where a project
is designed primarily for occupancy Ly the elderly or handicapped it c;:i,n
include rela ted fncilities f(,r their use, :.r..ich a::; dining·, work, recreation,
and health facilit.i. es .
With appro 11al of the 3 21~re Lary of mm a mortgagor ca,,--i sell the individual
dwelling units Lo lowe r incoJr,;:) p1i.rchm3ers and these p t.Lrcha::;8rs .:ire elig ible
for assisto.nce payments w1der the provisions of th0 ne:w homeownership
A cooperative or private nonprofit corporation or acsociat.ion can purchase
a proj ect from a limited dividend mortgagor and finance the purchase wi th
a mortcag8 _insured under the program.
· Projects for low and moderate income families financed under the below
marked 221 (J) (j) progr3Jn can be transferred, prior Lo fina l endorsement
for FH/1. insurance, to the new rental housing interest. reduction program.
Projects for the elrl.erly or ha ndicapped approved for direct loans can
be refina nced unde r the new intere st re duction pro~ram at any time up to,
or a reasonnble time after, proj ec t comple tion.
Rent supplr.ment payme nts may be pr ovide d for tenants in projects financed
under the new program, but no mor e t han 20 p erc ent of the units in any
one proj ec t can r eceive r unt s uppleme nt assistance.
Rent snpplcm<J nts
The authority for r ent supplement c ontracts (sub ject to approval in
appropriation a cts) is increased by $1.iO million on July 1, 1969, and by
$100 million on July 1, 1970.
State-aide d projects are maue el:Lc.Llilc for rent, supplements if the projects
are approved for thiG benefit prior to comple tion of cons tr uc tion or
In determining the income of any tenant for the purposes of the rent
supplemr.nL program, $JOO may l.Je deducted for each mi nor person who is a
member of the immediate family of the tenant and li vinr, with t he tenant,
and the earnini:;s of any suc h minor person s hall not be included in the
income of the tenant.
Low-rent public housinE;
Authority for annual contributions to low-rent public housing is increased
by $100 million on enactment of the law, and by $150 million on July 1,
1969, and July 1, 1970.
The Secretary of HUD is authorized to make grants t o local housing
authorities to assist in financing t enant services for tenants of public
housing. Appropria ti ons f or the grant s are author i ze d up to $15 million
for fiscal year 1969, and $JO million for fisc a l 1970 .
Preference is to be given to programs providing for maximum tenant participation in the development and operation of tenant services. Tenant
services include: counseling on household management, housekeeping,
budgeting, money management, child care, and similar matters; advice as
to r esources for job training and placement, educa t i on, welfare, health,
and other community services; services which are directly r e l ated to
meeting t enant needs and providing a wholesome living envir onment; and
referral to appropriate agencies when necessary for the provision of such
Public hous ing ass i s tance i s permitted for Indian f amilies who live on
or adjacent to their farmland.
High-rise public housing projects for families with children are prohibited
except where the Secretary of HUD determines that there is no practical
alternative .
The Secr et ary i s prohibited f r om prescribing limitat i ons on the t ypes or
categories of struc tures or dwe l ling uni t s (other t han those provided i n
the law ) whi ch ca.n be l eased under t he publi c hous ing, sec tion 23 leasing
An additional annua l s ubsidy of $120 i s author i zed f or public housing
units occupied by large fami l ies or fami l ies with very low incomes .
w eal housing authorities are permi t ted t o p urch~se structures lease d under
the Section 23 program for the purpose of reselling the strlict'J.I'e to the
t enants , or t o a group of tenants occupying units aggr ega t i ng in value at
least 80 percent of t he structure ' s value. The purchase can be on s uch
terms and condit i ons as may be ne cessary t o enabl e the t enants involved
to make their purc hases without undue financial hardship.
Perfecting and liberalizing changes arP. made in a number of existing
FHA mortgagP. insurance programs. In addition:
FHA is authorized to insure loans to homeowners to finance the purchase of fee simple
title to property on which their homes are located where the
homeowner has only a lease.hold interest in the land;
insure 90 percent supplemental loans to finance improvements and
additions to FHA multifamily projects (including nursing homes
and group practice facilities);
insure supplementary rehabilitation loans to housing cooperatives
which purchased war housing covered by an uninsured mortgage;
permit the cost of nursing home equipment to be included in an
insured nursing home mort~age; and
insure ·mortgages on new seasonal homes,
The Title I home improvement loan insurance program is changed by -
raising the limit on the amount of a loan from $3,500 to
raising the maximum maturity from 5 years and 32 days to
? years and 32 days, and
incre~sine the maximum financing charge to $5.50 discount
per $100 of the first $2,500 plus $4.50 in excess of $2,500
(now $5 and $4, respectively). ·
Mortiages financing the purchase of housing rehabilitated by local pub1ic
agencies in urban renewal areas is authorized to be insured by FHA under
the existing 220 and 221 (d) (3) pro grams as well as under th e new section
2J6 progr~m providing for interest reduction payments,
The maximum mortgage amount under section 203 (1) for homes in outlying,
semirural and rural are~s is increased from $~~00- to $1),500.
r, -
l il A;iA, !"['l: !·:~: 1.. ·,11
r·1 r:x ,;: r·H,
'.·! '·I,' i~!")t,F-'1 : i rT" LA 1: ]) 111: 1!\U: };:'. f;r r
(n ;:e\-.' ~~011,;ra:n iti ~s Act o :' 1 ') ( ;0 11 )
Title IV, the 11 Ifot-l Comrm,r!ities Act of 1968 11 , rrovices additional FPdP.ral
assist;:ince to new cornmt.; ni ties.
It . is designed t,o Ccnlist new so1 :rces of
private capital in t he ir develorment.
The Secretary of HUD is authorized to guarantee obligations issued un
the bond market by private developers to help finance the land acquisi~
tion and land development cdsts of new communities.
The obli1:ations f'. t.: arant e ed for a n~w c omtnun-i.. ty may not exc e·ed the lesser
of (a) Go r c rcent, n C \he Socn, tary's estimate of t,he ·1al: :e o.t' ·.he prorerty ur,on completion o ~· t he lanr. development, or ( h ) t hP s t.:m of "(5 rercent oi' t.b c Sc cr0. ta r y' s estimc3Le o f th8 ·, ale e of the land h 0 for e development plt.:s ) 0 r e rcent of his estim.:1te of the act uc1l co s t 0 1· the land
development, or (c) ~:·so mi1 lion.
The a ?cr c gnte amount of outstandinB principal obli ~ations that may he
gcarant c ed is limit e d to ~ 250 mi llion.
To be eligible f or a f.Uarantee or commitme nt to guarant e e t,he Secretary
must det e rmine that 1.
t,he r, ropo se d new cornmi;ni.ty will be economic a lly i'e a s iblc and
wjll contrihut.e to the orderly de velopment of the areci of
which i t is a part;
th e re is a practicab le plan fo r financin g the n1:=w c or.uurnity
and for mark e tinr the land which r e presents an accepta ble
fin .:r ncial risk to th r. l' n ited State s;
th e re is a sound int e rn a l deve l opme nt plan for t r e new
comm•;ni t y t-:h ich has r c ce i ve d all rent.: ire d St.J. '·,e or local
f:;OV c rn m0 n t a r::r ro vals, ;md i_s acceptabl e to th e Secre tary
as cont r ibLtin g to r;oo d livin g condition s in t he are a and
incl11dinr; a r,ropE: r balance of hoi: sirp: f or famili e s o f low
and moderate income> ; and
th 0 int 0 rn ~1 de ve lo p me nt r lan i s c onsic t e nt ~i t h c o~rrehensive
pl:mrinp; .::'or th P. are a wh j ch mee ts c rit nria c s tab l ished by
th e Se c re t.ary.
The Se cret ary is au t h ori ze d i. o es tahlish a r c vol vin r f und t'or !.he w aranty
f !'Of'. ram wf-: i. ch will ·r e comp ri sr: d o f (1 ) r e c P.i p t,s :'rom r'c-e s an d charr,e s , (2)
othe r r P. ce i p ts, and (3) s L: ch sLi ms , a1 1th ori zed to he appr opriatP d, as ma~·
be r equ i re d.
The Secretary is al~,o alithoriz r-d t.o rnrikr. s1 1 prlcrTH!nLa.ry r.rant.~, t,r;
SLaLc anLi l e-cal rd,ljc bodies anc:I c1.. ·C'nc i c s for 1-:atr·r nnd r, (Jv1r, r
facili tics anc! ortin srace assisted l:y f'. ran ts Under the l1 01 1SllW ;ind
Urban Development Act o C 1965 or th e Gons olidat.e ci Varrn0rs' f1 nme
Administr:.ition Act, and the l!oijsing Act of l <)(,l. The S8crc1..'.lr;r r-,11d
determine~ that tr.e surrlementary 1:rants are desir.:i.ble t'or ca.rryin~~
out a new commun"i ty lopment ~-roj f·r. t, and th;1L .1. s1:l",t'trmtL1l n1 ,rr.l 1er
of housinf'. i.;11it.s for low and 1::ociPral.P. inr.orr:P. p·rsot!S is to r mar:e
availahlr: t.hroi.;;,:h :.h<: r r nj~r.t..
The suppltir;;r.; nl. :11':1 r.,i·arit cannot. · 20 rcrcent of t.} ~1' r.u~; t, 01· t.bc
t'acil Hy and th -~ Lot:11 Federal 1;rant i~,; limi tC: d to 8::, f •f:rr:cn_t of
fncili t.y coi,t. Arprorri.:1tions t'or s1:pple1n1:nt,3.ry r:rants a,8 .11 · thorizrid
up to ~,5 million for fiscal year 196) , and up to :: 2~ mi , lion for l'iscal
year 19'(0.
Netghb..:irh noc~ Dev~: Jupr:1eni, Pro 0r9.m.~
The Secrcl.2.ry of Elm 1 : _; authurlzed. to provide financi e.l<-~) for
n~lghborhood develop:n2rit programs, ~1 ne,.,r n.pproneh to urorn1 !-=n~ ·, ra] wh ich
wlll faciJ l tat c more rapid reha.1:iili tat ion 1:md 1·ec'l:::v·. .:lopm:.!nt of blighl~(:a
areas on an 'iffect:v~ sc ale, A neighborh-ood dP.'1elopm1_>!1t program ·.:::on::.: i.sts
of urban renewa l project 1mdertakings 8..'1d activl1..i~ s i f! on~ or more ;,µ·ban
rene,.;al n.r ·=as that are planned and carried out on th1: of a:!1. rn.1i:iJ
increments. Financing is based on the amount of l 0ari and grcmt funds
needed to carry out -:h e acti vir.i es pla..1w~d dul'.'ing a l ?-mcnt .h p e :!'lod ln of the urban re!J~ ',181 are es -:.:on l.~ ai!len in 8. CO!Il::11l'1i ty Is r.,rOGt'3.l'i, Ir
funds ar2 avaiJabl~ and a communi tJ" ' f prog:.:-a.m is<=1bl2 to the ,3e.:::retar.:,·,
a co:urnnnltJ can receive fina;.1cial assistance based on its need for t;ub:.iequent annual incr,~me nt s of thc.: ;,roc;rom.
The Redevelcprn~nt Land Acency of t-,h8 DL~t:-ri.ct o f' C·.; l •1 !nh ·;_,: is b iv~ n
author lty t o p lan ru1d unde rt ak e ne Lr;hborhoocl develcpm2·,.t progrsms.
r~ ~reas 2 in m1t.borizatlon of grants
'rhe authoriz e.t: i on f o r urban r2 t1ewal gr:mts Ls i nr~t·-~a:·'--'d 1Jy ~1.!~ 1JillL:m
on July J., 1969. In oddi tlon , the authorizat ion for v.rb en ren~,val grants
for proj ects in model c iti es area: Ls lnc r ~ased 1y ~33 0 mi.llion.
( 16rants
The limit on the a 100unt of a relv=i1; il"LtEi.t.i u ll c;rA ,:-. tu ~.:i. lo•.,·-i. r:c c.,10~
homeowne r ls ir.c r eas c n from :~1, ~,,J0 tv $ 3, 000 and the g ra:11~ Ls made
available f or r ·.=h t etion of :i:12c.l property tn ':lddi.tion Lo the d·..,re J.ling
Rehabilitation ~rant s are authori zed to b e mad e to low-:L ncomP. ho;:ne owners
for repa lr s and improveme nts of d\1e llings out s i c1..~ urban r>2rlc ·.-1al end code
enforceme nt areas 1.
where t h e dwe ] lings are .Lr;i areas certif i ed. by t he l ocal go,.rcrnlng
body as contaj a s llb r,t a n LiaJ. numbe r o f s t.ruc t ur~s i n !1eed
of l on ,
if the locality has in effect a workable program for community
improvement, and
the area is definitely planned for rehabilitation or code
enforcement within a reasonable time, and the repairs to be
assisted are consistent with the plan for rehabilitation or
code enforcement.
mm is also authorized to make rehab ill tat ion grants to
low-income homeowners whose property has been determined, after an·
inspection pursuant to an approved statewide property i nsurance plan, to
be uninsurable because of physi cal hazards. The erant may be made only
to rehabilitate the property to the extent that the Secretar.y determines
necessary to make it meet reasonable underwriting standards imposed by
the statewide plan,
The Secretary of
Rehabilitation loans
'rhe rehabilitation loan program has been broadened in the same manner as
the rehabilitation grant program with respect to properties located outside
urban renewal and code enforcem:nt areas and those found to be uninsurable.
The amount authorized t o be appropriated for each fiscal year is increased
from $100 million to ~150 million ru1d the program is extended to June 30,
1973 (in lieu of the previous expiration date of October 1, 1969).
Eligibility for residential rehabilitati on loans is limited to persons
whose annual income is within the locally applicable income limits
for the section 221 (d) (3) below-market interest rate program.
Limit on LPA rehabilitation in urban renewal areas
The previous limits on the acquisition and rehabilitation of residential
properties by local rene wal agencies are r e moved.
Under prior law, an
LPA could acqu:!.re and rehabilitate for demonstration purpos es no more than
100 units or 5 perc ent of the total residential units in en urban renewal
area, whichever is lesser.
Dis osition of ro ert, for low and moderate income housintL_
Land in an urban renewal area is authorized to be leased i n addition to
being sold as previously provided) for low or moderate income housing at
a price consistent with the use for that purpose. A builder is permitted
to purchase the land at the write-down price for low or moderate income
sales housing. Under this provision land can also be made available at
the write-down price for housing assisted under the 221(h) program, and
the new interest reduction payment programs authorized by the Act for
homeownership and multifamily housing.
Grants for low and moderate income housi ng in open land projects
Grants are authorized for open land urban renewal projects where the land
is to be disposed of for low and moderate incomP. housing. Previously,
open land projects were not eligible for grants. The grant may be for
two-thirds of the differenc e between the proceeds from any land dicpoaed
of at its value for low or moderate income housing and the proceeds which
would have been realized if the land had been disposed of at its fair
value without regard to its special use.
Demolition grants - rat harborar:es
The Demolition Grant Program is expanded to permit grants for the
demolition of structures which are rat harborages or potential rat
Use of air rights sites for educational facilities
Air-rights urban renewal projects, and the construction of necessary
foundations and platforms in any type project, are authorized for the
development of educational facilities. As in the case of industrial
development, an air-rights project and the construction of foundations
and platforms would only be available for educational facilities if
the area is unsuitable for low or moderate income housing purposes.
Low and moderate income housing in residential urban renewal areas
A majority of the total number of housing units in a community's
residential urban renewal projects which receive Federal recognition
after August 1, 1968 must be for low and moderate income families
or individuals, with at least 2~ of such total for low income
· families or individuals. The Secretary may waive the 20i requirement
to the extent that the units are not needed in the community.
Workable program requirements in case of Indian tribes
An additional period of time, until January 1, 1970, is provided for Indian
tribes, bands, or nations to adopt and carry out minimum standards housing
codes for workable program certification.
Interim assistance for blighted areas
The Secretary of HUD is authorized to contract to make grants aggregating
up to $15 million a year to cities or counties to assist them in taking
interim steps to alleviate harmful conditions in slum or blighted areas
of communities which are planned for substantial clearance, rehabilitation,
or federally assisted code enforcement in the near future, but which need
~ome immediate public action until permanent action can be taken .
The Secretary is required to encourage employment of unemployed or
under-employed residents of an assisted area in carrying out the activities
to be assisted.
Grants may not exceed two-thirds of the cost of planning and carrying out
an interim assistance program, except that three-fourths grants can be
made to any community with a population of 50,000 or less.
A community has to have an approved workable program for community
improvement to qualify for assistance, and relocation assistance and
payments will be available.
�.,___ -
Rcl.oca Lio11 l'a-: r1 1t : t1l.:,
~--Relocation adJu0LT!li;11L
pay1w::nL:, m· c) bn1.:.id0ncd to JJCrmit. p.::iy rr1ent.,:::; of up to
$)00 per J8:.J.l ', !\J!.' .-L / - J c:::i r r1:::'l'~.(ld . ::ur:ll p::.y11tt.mL~: ! be en heretofore
limited to :.J. rnaxjJn11m of $S\..HI pa~_,a:;le OVL!l' a ;; rnonLh period .
A new pRyment is a nt hori_:,ecJ for a dinpl.:lced owner-occupcmt ul' residential
property t o cnahlc !Ji.ill Lo p urr.has c c.1 r e placement d1,elline . Tlte payment,
which cmmo t exceed ~~1_' _,000 , le l,hc• dil' e bet.,_·men tlte avcr:i.gc price
for- an adequa t e replaceme n t homt.i und the ucquis i tion price of hi::; former
Tl'l'Jl~ VI - ln-1. 01\N PLi\NN:rNG AND FAC ILITif;_;
Comp:?:"ehe ns i ve pla!m.r nc
The section 701 planning as:::;istance e:rant proc ram ls exter1sivo ly revised.
The Secretary oJ' HUD i s ,not-·authorized to make _comprehensive plannine:
grants to State pl:rnning agencies for ass i stance to 11 distr ict 11 planning
agonc ie::; for rU1·al and other nonmetropoliLan areaG. Consultation with the
Secre t ary of Ag r iculture i s required pr ior t o approval of a n;y district
planning grants. The Secretary of Agriculture and, when appropriate,
the Secretary of Conunerce may provide technical ass i ::;tanc e in connection
with the establishment of districts a nJ the carrying out of planning by
them. Such Jistrict planning may not b e aimed at assistins businesses
to reloca te .from one a rea to another.
Other new provision::; authorize direct planning grarrts t o Indian trib a l
planning counc ils or other bodies for planning on Indian res ervations;
to re g iona l and district councils of governmen t as we ll as those organized
on a metropolitan ba n i ::; ; to reg ional commiss ions and economic development
distric ts established unJe r tho Public Works and Economic Development Act
of 1965; t o cities, without regard to popul:.J.tion, within metropolitllll areas
for plarming which is part of' metropolita n planni..11.g ; and t o official
Goverrunent pl<-1.nninr: a ge ncies for nreas where rapid urbo.niz.:i.tion is expected
as a result of a new c oJ11JT11111i ty- cie ve Lopmc nt a s sisted under title JV of
this act. The Secretory i s r cqnir e d to ·cons ul t i,J ith the Secr e tary of
Cormnerco Lefore rr1c1 king any pl3I111in;_~ gnmt which includes any part of an
economic d~velopment d i strict .
The definition of c ~mprAhensive pl~nning is broadened to include
planning for the provision of governme nt,3 l servlces and for the rievelooment ,3nrl utilization of human and natural resources. The inclusion
of· a housing element is required a~ part of the pr eplration of comprehensive lani use plans. The USP. o f private consultants, their
profe s si0na] sArv i c~s are appropriate by the assisted governments,
is added to the stated purposes of the program.
The authorlzation of apnropriations for grants is increased by P35 mil~
lion for fis~.:ll y~1r 19t;9 (includ\.ng t 20 million ea r m::irked for district
planning) ancl by :$125 million (induding plO million for district planning) beginnin ~ fiscal YA~r 1970. It is also provided th.qt an additional
$10 million of s P. ct\. on ?Ol apor or r i~tions i s to be avail able fo r study ,
fes e a r ch ani de~onstr~tion proje~ts.
Planned areawirle rlevPlopm~nt
Supplemontary grants (rt es i gnP.d to Anc0'1r; areawide planning) are autl1orized for F'P.der.11ly-assisted projects in ;ill multi j 11risdictional
areas (not just metropolitan ar~a~ as previou ~ly provided )su~h as the
rural pl;mninp; distri c ts proposeri to ~e assisted with co·TJprehensive
planninR grants unde r t he comorehensive plRnnin g provisions of the
law. UnUBed authorizations for appropriations for supplementary grants
for fiscal year 19~7 3nd 1968 are made available through fiscal year 1970.
Advance Acqui sition of l and
The adv::ince acquisti on of bnd progr.:im is extensively revised. Among
the more signific::int ch::inges is a broadenin g of the definiti on o f eligible
land from land "pl::inned to ~e utilized in connec t ion with the future
construction of oublic works and facilities" to "land planned to be
utilized in the future for public purposes". Grants can also be made
for the imputed interest cost when a public body does not use borrowed
funds to acqui~e the land. Authority is given the Secretary to extend
the requirement that the land must be used for its proposed purpose
within five years if he de ems a longer period necessary due to unusual
circumstancPs ~nd so advises the B~nking and Cur~ency Committees of the
Congress. It is also provided that assistance under this program will
·not render a project ineligible for othPr Federal assistance programs
and th at the cost of land acquired with assistance under this prograM
will not be an ineligible project cost in such other programs.
Water and s ewer f ac i lit i es progr am
The interim planning requirements under the basic water an~ s ewer facilities grant pro ~ram is extended to Octobe r 1, 19~9. It is also provided that in admini s t e ring the program, to the greatest extent practicable, new job O:.lportunities shall be provided for unemployed or
underemployed persons.
Authorizati ons -- water and sewer, neighorhood f acilities, and advanc e
acq~~ ~~ t _
~o!1 _of lanrl prog!_cl!11S .
The author i7.ation fo r appropri ations for the s e three pr o:rams is ext ended
to permit the appropr i ation , fo r fi s cal ye ar 1970, of any fu nds autho r i zed
but not appropr i ated p r ior to th at time . Also, an additional $150 million
fo r f i sc al ye ar 19h9 an1 $115 milli on for fis ca l y ear 1970 are autho r i zed
to be anor opr i a t ed fo r the wa t er and s Pwer faciliti es grant pr ogram.
Open space l and program
The contract authoriza t ion o f $310 mil l ion for grants under th e open
space land nrogram ls changed to a lJ lO mi l l i on au thori zat i on o f appropriations prior to July 1, 1969, wi t h $150 millio~ in add i tional appro. priations authorized for fiscal year 1970 . The l imit on the amount of
the fun1s that can be used for s t udies and ~ublishing of information
is increased from $50, 000 to $1?.5,000 per year.
FPa:.ih .i. liLy ::, Lurlic s - p 11h.lic i-rork;:; pl.r. nninc :t< !'ro.ncr :,
It is ·m:.ide clear th:'lt the Secret::iry of HUD has au th0ri ty t0 m;ike ;iclvanr:es
for feasibility stur:lies unrier the oubl ic works pl;rnning .:i-iv;inces progr;:im.
Authoriza tlon
The autl1~ri7.,:ition o ~ appropri;itionf; for gr;ints ;,nri 0ther ::issi.c:-t.;rnce to
· urb::in mass transportation is inr:re:ised by $190 mil lion ror fiscal ye;ir
1970. The a'.llount of funrls which c 'rn be used . for res~;:ireh, riev ~lopment,
and demonstration projects is increased hy ~IS mill i on, c0i'!lTTl 0 nc
July 1, 1968, -'l !lri t.hP. st;itutory limit on the fun-1s av:1i1;1ble fo'!" this
purpose is n ~moved, cor.imencing July 1, 191S9.
Emergency rir orr am extended
The emergency ma s s transportation c apital grant program expir~ti 1n d::it~
is extended from ~ovember 1, 19~8 to July 1, 1970.
Defi nition
The definition of "mas s transportation" in the Urhan Mas s Transnortation
Act of 194+ is amended t o allow g r e;i ter flexibility 1.nd oon0rtunity for
aoplication of n~w concepts ::ind systems.
Non f e deral of ne t projec t cos ·t
Not more thnn half of the non-federal sh~r or the n~t proj r rt ros t of
a mass trRns por tation nro j ect is oermitte d to ~e paid fro~ priv ~t e
sourc es , e xcept in cer t a in c as e s of rle:non s tralf:id fL=; cal in;-1h i Lity . A'1y
oublic or r riv a t e tr.:rn s i.t sy st em f'unrl. s provi ciPci for l !,P. rn, n- t;"l"! ler;il
sh; mu s t 1-ie sol e ly fro"! unr:list.rihute d c ~sh surplu ~Ps, r w)l ::i c P11ent or
de'1reci:ition funds or r <"?se rve s av.:1 il a ble i n c1sh, o r new ca ptia1.
The existing Ft::ldcral Na tiona l l"iort.ra8e Associa t ion (1'1Il'iA) i s directed t o
be par titi one d i nto t wo i, cpa ratc corporations . One wi ll b ~] a Governme nt
spons ored privat e c orpor ation, to b e lrnmm a:.; tile Fe dera l. !la t i.cno.l Mortr.a '.:i:e
Association (FNHA ), to ope rat e t h0 :,c~c ondary mortr..:i.r,e marke t. oywr:Li,l ons .
The othe r wi ll r ema in in the Government a nd conti nue to ope1\1.te t he
opecia l assio t a nc e funct i ons for s pecial Fe de r a lly - aided hons ing programs,
and the manageme nt a nd l i qui da tin~; f unc U one of the old FNMA. TllP 112H
cor porat i on wi ll b e known a s t he Governme nt Nat :Lonal Mort c;ago A:J;:;ocfo.t ion
(GHMA ) .
FNMA i s authoriz ed to issn8 and s e ll securities l..i.::.tckod by a por tion of
i t s mortgage p 0rtfolio , with GNM.J\ ~u.'.lran t ce pa;y11tenL on s uc h securitie s.
GNMA can also euarantee s imilar securi t i es i ssued by o ther pr i vate issuers
·where they are uacke tl by FIIJ\, VA, and some Farme rs Home Administration
mortgages or loans.
The spcci.:i.l assit,tance authorl7. a Lion of FU.MA. (no.-1 GNHA ) i s increa:..:ed by
$500 million on July 1, 1969.
The provisions of thi:.; title will become effective after a date, no more
than 120 days following its enactment, established by tlte Secretary of
HUD. The Secretary ho.s established this date as September 1, 1?68 .
Provisions are madu uit h respect to tlie capital stock of F1'111A and its
board of directors Juring a transitional period. The transiLiono.l period
will end when 1/ 3 o.f Lhe FI,JMA r, omm,·,n ::; t ock is owned h•r pers ons or orc;aniza tions in tile rnorti_:.:i.;:e l endin~; , home builu:Lnr; , r eal r.stn Le or related
businesses , but not sooner than May 1, 1:)70, nor .la ter than M.:.i.y 1, 1973.
The ITU1jor i ty of FNMA' s board of di rec t or::; ar c. to b e; appointcrJ. by the
Secretary of HUD durini; t he trans i t ional period. 'I'lic President of FNMA
during this period will be appointed Ly the Prc::iident of the United States
and confirme d by the Sen:i.te. One of t he ~ecretary ' s o.ppoinkes to the
Boa.rd will be the President.
After the trans itiona l period FNMA wi ll be governed by a 15- memuer board
of directors, five of whom will be appointe d by the Pres i dent of the United
The new FNMA will be sub,ject to the general regula tory control of the
Secretar y of HUD, who also mus t approve the issuance of all stocks and
other obligati ons by FNMA and may r equire it to alloca te a r eas onable
portion of its mortgae;e purchases to mortgages i n low and moder ate inc ome
housing .
A nati ona l housjJ1g partners hip i s · to be cr eat ed f or the purpose of securing
the partic ip3.tion of private i nves t or s in progr c:ww and projects to provj de
hous ing for l ow and moderate i nc ome families .
Ini , a f eder .:i.lly char ter ed, priva t el y f unded corpora tion will be
organize d under the Db trict of Columtia Dusiness Corpor~tt i ou Act . The
corpora tion in turn will organize t he Nat i ona l partners hip under t he D.C.
Unif orm Limi t e d Par t ner ship Ar:t .
The corporat.i.on will serve as t he ccncral partner anrl manDr, acent of
the Na t iono.l partnc1·chip and each of its stockl1olders can be limited
partner s. It will provi de the staff .:i.nd expertise f or t lie Partnerchip in
orc;ani zing and plannint.; project undcrtakinc;s i n which Lile p::ir L11crship
has an interest, and r eceive a fee for such s crv:ices .
Both the corporation .:md the Na tional par~,nership are authorized to
engage in a uroad range of' ac tivities appropria t c to tl ie provision of
housing and relate d facilities primarily for low or moderate income
families , with or without the use of Federo.l programs, ancl m.:iy enter int o
and participate in al l forms of -partnerships and associations. The National
partnershi p is expected to form pa rtnership ventures with local investors
for the purpose of building low and moderate income housing projects
throughout the nation. Normally, it will be a limited partner in such
undertakings, with an interest of not more than 25% of the aggregate
initial equity investment for the project.
The President will appoint t,he incorporators of the corporation and 3 of
the 15 members of the board of di r ectors. The incorporators will serve
as the initial board of directors and arrange for the initial off ering
of shares of stock in the corporation and interests in the National
The President is authorized to create additional partnerships when he
determines it to be in t he nati onal inter est.
National banks are authorized to invest in a corporation and other
entities formed under this title.
Housing for low and moderate income per s ons and f amili es
The Secre t ary of Agr i culture is aut horized to pr ovide direct and insured
loans for housing in rural areas to low and moderate income persons and
families and to provide renta l or cooper ative housing for such per s ons
where assistance is not available under the new interest redu8tion programs
authoriz ed by t he l aw. The interest rate on the loans can be at a r ate
set by the Secr etary after considering the c ost of money to the Treasury
and the payment ability of the appl icants , but not l ess than 1 percent
per annum. An int erest supplement necessary to market the insured loans
will be paid from, and reimbursed hy annual appropriations to, the Rural
Housing Insurance Fund.
Housing fo r rural t r a inees
The Secret ary of Agriculture is authorized t o provide f i nancial and
technical a ssistance to t he provision of hous i ng and r el a t ed facilit ies
in rural areas f or rural trainees (and their famil i es ) enrolled i n
Federally assisted t r aining cours es to improve their employment capability.
Advances for land purchase f or t he housing will be repayable within 33
years and bear inter est at a r ate (not l ess than 1 percent ) determined by
the Secretary of the Treasury t aking into considerat i on the current
average market yie ld on outs t anding Federal obligations . Other advances
would be nonrepayable, or repayable with or without interest, depending
on t he applicant ' s payment ability, from pro j ect net income and any other
available sources .
Mutua l and self-help housing
A new program of grant s and l oans is aut horized t o provide assistance in
rural areas and small t owns to needy low-income individuals and t heir
fami lies f or mutual or self-help housing. Gr ants can be made to public
or private nonprofit organizations to pay part or all of the costs of
developing compreh nai ve programs of t echnical and supervisory assistance
to aid individuals and their families in carrying out rrrutual or self-help
_housing efforts.
loans can be made on such terms and conditions and rn such amounts as the
Sacl!etary of Agriculture deems necessary, to needy low-income individuals
participating in programs of mutual or self-help housing approved by him,
for .the acquisition and development of land and for the purchase of
building materials as may be necessary, for the construction of dwellings.
Loa.ns will bear interest at not .more than J percent per annum, and be
repayable withrn 33 years.
A eel.f-help housing land development fund is authorized to provide a source
of short-term loans to public or private nonprofit organizations to buy and
develop building sites to be sold to families, nonprofit organizations,_
and cooperatives eligible for assistance under the new interest reduction
progrmna for housing for lower income families.
_T itle XI enacts the "Urban Property Protection and Rernsurance Act of 1968."
Under this Act the Secretary of HI.JD is authorized to provide private
.insurers with reinsurance against losses resulting from riots or civil
disorders. The sale of reinsurance is limited to those insurers that
cooperate with State insurance authorities in developin~ statewide plans
to assure fair access to insurance requirements, called FAIR plans.
Reinsurance may only be provided in States which have such plans.
FAIB plans may vary among the States, but all plans must satisfy minimum
statutory criteria. The principal requirement is that no risk can te
written at the surcharged rate or denied covera~e unless there has teen
an inspection of the property and a determi nation made that it does not
meet reasonable underwriting standards at the applicable premium.
Additional requirements relate to the procedures to be followed with
respect to inspections, the provision of reasonable notice to property
owners of cancellation or nonrenewal of policies, and the formation of
an all-industry facility which will place the insurance in the r egu lar
market. S1; ch •'AIR Plans are to be administered under the supervi sion
of the State insurance auth ority. As a condition for providing reinsurance
in a State, the Secretary can require additional programs to make property
insurance available without regard to environmental hazards.
Reinsurance is offere d in standards lines of property insurance coverage
and can be pr ovid ed ·immediately followin g enactment by means of a binder
agreement, which expires aft er 90 days unl es s sooner replaced by a
reinsurance contract.
Premium rates and the terms and conditions of reinsurance contracts are
to be uniform throughout the country. The premiums for the fi rst year
must provide sufficient income to cover a level of riot losses in excess
of the amount of insured riot losses in 1967.
A .~,p ir: 1'(!:Jt·~n· t: Lo a:-st, rr.r. .J. nnrtiori of t,hr. :u . :-.t•,s rr :in::i : rr·d r;; Lhf:
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A :·i:-:tio ,1al Inst:rar 1c'" Tlcv<! : orr.1ent,
a~· thori /. cd. Trc a . 1~ry Lo1-ro1-1.irir:s
for r r:: ~rl~'\,rCd lo ss es, lir.ii to
Congress rnay at i t/·,c-rizc 't;r j oint
r\ nr! is crca'.:.f'cl 1,c c :,n·y r,1 t, tl if! rroi·r;-1.r.,:
arc ,11 .t.hc,r L ~<;c] t o ;·;ri ~:c r,1.. n-.C? r. V '.'l J cla7rrr·
,,, 2 1J0 miJ.lion or ~- \.Cl: f 1, rj,J-rsr S\ ;,,S ,, :-; i.hc
rcsclu tion.
'he Secrl' t a ry i:; re~uirec to r,1ake a study conce rnirw thr: ;:i,:Ail::i.tilit:/
o!.' rrorc:r1',y ir.s1 ·rance i.11 1. rtan area~ and t c, f;1_:bm:it th r: r e s1 -l f.s to the
President and U1r, Con£;r ess no lat e r t,har. 1 ye ar after t.hf; en,1ct1r.ent
of the lr1w. li e js also actl~orized t:o co:1duct othr:r !':ti.dies r,Prtinent
t.o his reir.s , ra11cc, anci statewi~e rlan responsi h .li ti 8s .
A 11-mcmhe r advisory t .03: ·d is to be aproini.,f?O l-y t, l\e ::ecrr t.::r·y ·, ,i tl\ nrt,
less tl,an i'oL;r n.cmh:n ; to r·,~1,resf:nt t,he 5 nrt,rar:c f; industry ar ·c: not. le~ . s
tran ~·01 :r t;o rc:p r csen t th.' St ;,t.e in[;vr~mcf" a1 .t~1o rit,ies.
The District of Columbia Insurance Placement Act establishes programs to
assure the availability of basic property insurar1ce protection against
fire and other perils for residential and business properties in the
District of Columb..i.a. Such programs are subject to the :=mpervision and
regulation of the Commissioner of the District of Columbia.
Within JO day::; after enactment all license d insurers in the District who
write basic property insuranc e are required to establish an Industry
Placement Fa cility which is to adminis-ter a program to provide for the
equitable distribution of responsibility for insuring qualified property
for which insurance cannot be obtained through the normal ins~rance
Rules and regulations are to be adopted by the Facility to assure all
property owners fair access to insurance requirements. Suc h rules and
regulations, which must be approved by the Commissioner, arc requ:i_red
to be consistent with the -state-wide plan requirements of the Urban
Property Protection and Reinsurance Act of 1968 (Title XI, Supra).
The Commissioner is a uthorized to establish a joint unde rwriting association
to provide for the reinsurin[; of basic prop:!rty insurance without regard
to environmental ha zard, if he finds that such a pror ram is necessary to
carry out the purposes of the Act.
The Com.miss ioncr is authorized to a::;sess each insurance company authorized
to do business in tltc District an amount su.fficienl, to satisfy the state
sharing requireme11t for Federal reinsurance under the Urban Propert.y
Protection and Reinsurance Act. Such assessments would be based on a
company's proportionate share of premiums earned on reinsured lines during
the preceding year. In the event of such assessments, the companies will
increase their premiums by an amount sufficient to recover the a::;sessment
within not more than a J year period.
Title XIII enacts the "National Flood Insurance Act of 19613 11 • Under this
Act, the Secret9-ry of HUD is authorized to estaulish and carFJ out a national
flood insuranc,::! progra,11 to enable persons to purchase insurance against
losses resulting from physical damage to or loss of real property or
personal property arising from any flood occurring in the United States.
He is directed to encourage and arrange for maximum participation in the
program by insurance companies and other insurers, and by related agents,
brokers and organizations .
The Act provides for the operation of the flood insurance progr~n .J.~ a
joint venture between the Federal Government and the private insurance
industry (with the industry participating on a risk-sharing ba::.;is).
However, as an alternative, the Secretary may, if necessary, operate
the program without the companies participating on other than a fiscal
agency basis.
The Secretary is authorized to borrow up to $250 million from the Treasury
to carry out the ins urance program. A National Flood Insurance Fund is
established for makinc payments authorized by the bill, including premium
equalization payments and reinsurance for losses in excess of losses
assumed by insura~c~ company pools form~d to provide flood ins urance .
Coverage will be available initially for one to four family dwellinr;s and
small business establishments but is to be extended to additional types
and classes of property as found f easiule by the Secretary. In the case
of dwellings, the insurance limit, where the rate is less than the full
risk rate, will be $17,500 for any s i ngle dwe lling and $JO,ODO for a
twc to .fo'. H' family structure, plus $,S,000 per dwelling for contents. Small
business properties can be insured for up to a total of $30 , 000 for the
structure and $5 , 000 for the contents of each individual busine::,s. These
limits may be doubled upon the payment of full premium rates for t!te
coverage in excess of such limits by the insured proper ty mmer.
The Secretary is directed to develop cri tcria designed to enc ouracc tlie
adoption of State and local measures to constrict · the devclopmc.mL of land
which is expose d to· flood dam.:1r;e, s uide development of proposed construction
away from locations threatened by flood hazard3, assist in reducing d&~age
caused by .floods, and otherwise improve land management arnl use of floodprone areas.
After June JO, 1970, no new flood insurance coverage can be provided in
aey area unless an appropriate public body has adopted permanent land UBe
and control measures which the Secretary finds are conBistent with the
criteria he has prescribed for land management and UBe in flood prone areas.
The Secretary is directed to appoint a flood insurance advisory connnittee.
The face amount of flood insurance coverage outstanding and in force at
$2.5 billion.
any one time is limited to
The Flood Insurance Program will go into effect 120 days following the
date of enactment unless the Secretary prescribes a later effective date,
not to exceed 180 days from the date of enactment.
The Secre:ary of HUD is authorized to undertake studies for the purpose
of determining the extent to which insurance protection against earthquakes
or other natural disaster perils, other than flood is not available and '
the feasibility of such insurance protection bein~ made available. '
The "Interstate Land Sales Full Disclosure Act" enacted by Title XIV
makes it unlawful for any developer to sell or lease, by the u~e of the
mail or by any means in interstate commerce, any lot in any subdivi sion
(defined 86 one with 50 or more lots for sale 88 part of a common
promotional plan) unless
there has been filed with Secretary of HUD
listing certain required information about
land, the state of its title, its physical
of roads and utiliti es , and other matters;
a statement of record
the ownership of the
nature, the availab ility
a printe d property report, containing pertinent extracts from the
statement of record, is furnished to the purchaser in advance of the
signing of an agreement for purchase or lease.
These requirement s do not apply to any subdivi sion where the property is
clear of all liens and if every purchaser has personally inspected the
lot which he purchased, as evidenced by a written affi rmation by the
Any contract for the purchase or lease of a lot covered by this Act is
voidable at the option of the purchas r if be was not furnished with
a property report ·at least 48 hours in advance of his signing the contract.
If the property report was received by the purchaser less than 48 hours
in advance of his signing the contract, it is voidable for a period of
48 hours after the signing .unless he stipulates in writing that he has
read the report and inspected the lot before he signed the contract •
Hillful viol.:it:i.on of these requirements is su1;jcct to criminal penalties of
imprisonment for not more than 5, or a fine of not more than
$5,000, or both. Broader civil remedies than heretofore available are
also provided. A suit for damages may be brought in any State or
Federal court for the district in which the defendent may be found or in
which the transaction took place. The Secretary is authorized to seek
an injunction against any developer he can show is violating or about
to violate the law.
In carrying out his responsibilities under this legislat-Lon, the
Secretary is required to cooperate with State authorities charged with .
the responsibility of regulating the sale of lots in subdivisions.
This Act does not become effective untll 270 days after enactment.
This title establishes a new FHA program ( section 242 of the National
Housing Act) under which the Secretary of HUD will insure mortgages covering
new or rehabilitated hospitals (including initial equipment). The mortgage
may not exceed $25 million or 90 percent of replacement cost and the
hospital must be owned and operated by one or more nonprofit organizations.
Reaffirmation of national goal
The Congress finds that the supply of the Nation's housing is not increasing
rapidly enough to meet the national housing goal and reaffirms this goal.
It determines that it can be substantially achieved within the next decade
by the construction or r ehabilitation of twenty-six million housing units,
six million of these for low and moderate income families.
Report outlining plan
Not later than January 15, 1969, the President is required to make a
report to the Congress setting f orth a plan to be carried out over the
next ten years for the elimination of all substandard housing and the
realization of the national housing goal. The report shall, in addition,
contain a projection of the residential mortgage market needs and
prospects during the coming year, including an estimate of the requirements with respect to the ava ilability, need and flow of mortgage funds ,
together with recormnendations for encouraging the availability of funds.
Periodic reports
1.5, . 1970, and on each succeeding year through 1979, the President
is required to submit to the Congress a report of results achieved in the
provision of hous ing, and r ecormnendations for legislation or additional ve ac tion tha t may be needed to achieve the objectives of
the President's plan.
On January
'\ _
.Q_onnnission on Mortga13e Interest Rates
Funds appropriated and available for studies of hoUBing markets and credit
under laws previously enacted in 19LB and 1956 are made available for
expenses of the Corrnnission on MortcaBe Interest Rates to study mortgage
interest rates. This Commission was established by Public law 90-JOl.
Model cities
The authorization for supplemental grants for model cities is increased
by $1 billion for fiscal year 1970, and an additional $12 million is
authorized for fiscal year 1969 for grants for planning model cities
programs. Amounts authorized but not appropriated are made available for
appropriation for any succeeding f i scal year commencing prior to July 1, 1970.
•Urban renewal demons tration grant program
Urban renewal demonstration grants are authorized to be made to nonprofit
organizations. Under prior law these grants were available only for
public bodies.
The l:illlit on the amount of urban renewal demonstrati on grants i s increased
from two-thirds of the cost of the undertakings to 90 percent of the cost.
The amount of funds available for these grants is increased from $10
million to $20 milli on.
r..l'§at i on ror urban lnfol"Ti\ation and t echnic al Msist ance lervice
Thea.ithor ization for grants to State s to assi s t in the pr ovis ion of
urban in fomation and tP.chnical assistance i s increased by $5 million
tor fi s cal y ear 1969, and by $15 million for fisc al year 1970. Amounts
author i~od for the se gr~nts but not appropriat ed are author i zed to be
appr opr iat ed fo r any succeeding fi.scal year commencing pr ior to July 1, 1970.
Advance~ in t e chnology in housing and urban deve lopment
Such 8Wl1S as may be
mencing wi t h fi s cal
que s and m~thods of
and rehabilitation ,
authorh.ed for such
necessary are authori zed t o be appropr iated comye ar 1969, fo r s t udies of new and improved t echni~
appl yin g advance s i n ~echnoloa to horlsin c construction
and to urban devolopment. Fbur-year contrac t s are
Btu.dies rat her than 2-year cont ract &r as heretofore
Collne;e housin&
The colle e housini direct . l oan program i s expanded t o add a new profP'e.M t o provide financial aBsist ane by means of annual debt service
grmnts. Tb now grant program i s t o he need t o reduce t he borro~er•s
annual debt service payments on pr i vat e market l oan5 t o the average,
annual debt service that woul d h~ve ooen required if the loan
based on the rate charge~ on loans unner the direct loan program. Annual
grants can be marlA over rt fixed period up to 40 years. The total amount
or annual grant contracts is subject to approval in appropriation acts.
The total ~nount cannot exceed $10 million, with this limit increased
by $10 million on July 1, 1969.
The loan and new grant program are made available for the purchase of
existing propP-rties which are in need of little or no_rehabilitation.
Federal-State traininr prn rrams
The Federal-State training program is 'croadened to permit grants to
States for th e train i ng of ffiibprofe~sional (heretofore limit ed to
professional) persons who will be employed in the field of hot,sing
as well as communit y develor ment. The trainees may be trained for
employment by _private nonprofit organizations which have responsibility
for h0t:sins and comrm.:n:i.ty development rrograms, in addition to public
organizations. Guam, Air,eri can Samoa, and the Tr: st Te rritory of the
Pacific Islands are made eligible for f,rants under the program.
Additional Assistant Secretary ol' Housing and l rban Development
·An additional Assistant Secretary of Housing and Urban Development
is authorized.
Self-help Studies
Grants are authorized to be made t.:nder the low-income housing de :r onstration program for studies of self-he lp in the construction, r ehab ilitation,
and maintenance of hocsing for low-income persons and families and the
methods of se l ec tin F, , involving, and directing them in self-help activiti es .
Tbe Secretary of HUD is required to r eport to C~neress within one year
on the results of any scch studies.
Saving& nnd loan as socj ations
Federal sa vings and l oan as sociations are autrorized to raise carital
in the form oi savings deposits or oth er accounts (in addition to shares)
and to borrow and isst;e bonds or other obligations.
Their lending and ~nve s tment powers are liberalized and br oadened by
authori~ine them to invest in 1. time deposits, certificate s or accounts in banks insured by
the FDIC;
2. unsecured loan s r.o l. exceeding f5, 000 to finance the cons t nction
of new structure s relating to resid ential use (vacation homes);
J. mobile home financin g ;
h. loans not exceetjing ~s,ooo for th e equipping of homes;
S. loans gu aranteed by AID on housine projects locate d in
developing co untries outside o f Latin American; and
/). lc:,a !l~: Lo i•'eci e l';J lly s Ll r e rvi S C'd 1'i nai 'r, i;.i 1 in ~, t. i. tl J t 101 ,:; or
tr·ok-~1· ~ or [:1-; aler~; rq :i s tt~r,·d ,1i Lh Lhe SEC, i '. ' Ll 1E: l oa ns
arc secured ·l:y loa ns, ol ,lit'.atiuns or invcst.m 0. nk-; iri which
the fode1·al a:;soc i:ition ha s c: tatu tory a11 tr.ority to inv~s L d ir ~c
reocral Porne Loan 71 a nk Act
Federal home loan banks are authorized to invf:st in ho1 ·sinr: rro _je ct
loans huarante ed 1,nut~r Lhe Foreign Assistance Act or 19(;1.
Section 2L of the . [,'edc r a l f-icservc act is cl to allt~1cy,~-~~--,; s>,n._:',.lru~tion loans by nat1onal banks 1:r to J rn ont,h.- 1n lr.rwth ·,,se:r1 C"Ji.:0fy r':!--1'.--1111 t.eci
to 211 rr.onths) as an exce ption to t he limitation on r ~al cs t at.e loai1s .
National f.ai1ks are pc: rmi tt c d to continue to ru r chase part.ici ra t ions in
existirw mort~'.agcs, .:md it is mat:c c l ear t hat loans by nat i. onal h;mks
are not to he consid e r e d as re a l e s tate loans wh ~r c the bnnk looks primarily for rerayrnent ol; t of secc rit y othi:-?r than r e al e state.
public items show