Box 5, Folder 8, Document 22

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August 16, 1968

Mr. Frank Carter

Pope, Carter & Co.

John Hancock Building
230 Houston Street
Atlanta, Georgia 30303

Dear Mr. Carter:

Pursuant to our recent telephone conversation and instructions
from Mayor Allen, enclosed is a brief outline of Federal Assisted
programs which are approriate for development of low-income housing
in unincorporated areas of Counties adjacent to the City of Atlanta.

Certain Federal programs, for example, the FHA insured mortgage
221 d (3) program which has been the work horse of Federally assisted
low-income housing through private enterprise, are not legally
eligible for commitment in unincorporated areas of adjacent Counties,
because they do not have Workabhe Progrmm. DeKalb previously
had a Workable Progra} but let it lapse. As a result of this
Federal Policy, a number of substantial Federal assisted low-income
housing projects have been lost, which could have materially
benefited the City of Atlanta and the Metropolitan area.

Under Federal regulations Public Housing (including Turnkey
development and the Leasing Program) may be constructed and operated
though entities within 10 miles of the City Limits of Atlanta, if
not within the jurisdiction of another Housing Authority. lUssentially
this means eee, Fulton, DeKalb and Cobb Counties and possibly
Gwinnett, Douglas, Henry and Rockdale Counties.

The County Commissioners are required to give their consent
to Public Housing (including Turnkey) programs within their
jurisdiction and must also agred@ to provide the necessary services
to serve the project. Public Housing (including Turnkey) does not
pay tages, but makes payments in lieu of taxes, which are usually
in excess of taxes collected on the site before development.

As you specifically requested, enclosed also is a copy of
Cooperation Agreement between the local Housing Authority and the
City of Atlanta and Fulton County. Such cooperation agreements,
jenn tw do not now exist between the Housing Authority and other

Mr. Frank Carter August 16, 1968
Page 2

Mr, M. B. Satterfield, Executive Director of the Housing
Authority of the City of Atlanta, has suggested that perhaps
you or some of your Committee members may want to talk to the
Housing Authority Attorney as to some of the legal aspects
involved, Their Attorney is Mr. John Igzard, of King & Spalding,
Room 434, Trust Company of Georgia Building, Telephone JA-5-0484.

The Housing Act of 1968, recently adopted by Congress and
Signed into law, contains a number of changes in Federal housing
progrems, We do not have full details and implementing instructions
on these yet. Such changes are therefore not included in the
attached summary outline. However, it looks as though some of
the new programs may now cause the phasing out during the next
couple of years, of s@veral of the currently existing programs,
including 221 d (3) and 221 h (purchase, rehabilitation and resale).

Local nonprofit organizations are playing an important role
in Atlanta in development and rehabilitation of low-income housing.
One of these groups which appears to hold promise for substantial
work in this field is a recently formed nonprofit housing develop-
ment corporation known as Interfaith, Inc., whose activities are
not confined to the City Limits of Atlanta, but are Metropolitan
in scope. The President is John Steinichen, III. A bulletinr
pertaining to the organization is attached,

We in the Housing Resources Committee feel that, where
circumstances permit, single-family occupancy, particularly home
ownership, promotes @much more stablizing influence than multi-
ae apartments, particularly for families of relatively low


In order to keep the price down within the capacity of many
families to purchase and at the same time obtain reasonable increase
in density over the current normal single~family City of Atlanta
R-5 zoning, a minimum size lot of 5,000 sq. ft. with a minimum
frontage of 50 2t. is considered desirable and I believe adequate
for low-income families. This would in effect permit a 50%
increase in density over the current R-5 zoning and a reduction
. a per single-family lot of 33 1/3% from the current
R-5 zoning.

Recently, consideralbe interest has been show in developing
sites under the single-family concept for Public Housing under the
Turnkey program, as well as for sale under the FHA 221 d (2)
insured mortgage program, both of which are feasible and are
strongly advocated by the Housing Resources Committee.

Mr. Frank Carter
August 16, 1968
Page 3

If I can be of @urther assistance to you in this very
worthy and hopeful effort, please call on me.


Malcolm D. Jones
Housing Coordinator


cc: Mayor Ivan Allien, Jr.
Mr. Cecil A. Alexander
Mr. Dan E. Sweat, Jr.

Encle: Brief of Pertinent Federal Assisted Programs
Copy of Cooperation Agreement (with original only)
Bulletin pertaining to Interfaith, Inc.

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