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HOUSING RESOURCES COMMITTEE
August 14, 1968
Low-income HouSing Programs
Applicable to Unincorporated Areas of Neighboring Counties
Under the National Housing Act, Cities and Counties can participate
in all of the Special Housing Programs providing that they have
satisfortorily complied with Government regulations and have an approved
Workable Program.
The following Cities have complied in all respects and their Workable
Programs are presently effective: |
Atlanta
College Park
Decatur
Marietta
Other Cities and Counties in the Metropolitan area have either
permitted their Workable Program to expire or nave: never PapEsE eS a
Workable Program for approval.
RENT SUPPLEMENT PROGRAM - Separate and distinct from the Federal aid
programs administered through local housing authorities, -but serving the
Same income group, is the rent supplement program, which ‘was established
by the Housing Act of 1965 and administered by FHA.
Under the rent supplement program, a qualified:tenant pays 25 percent
of monthly income toward rent. His rent supplement, provided by the Federal
Government, is the difference between the 25 percent and the full market
rent for the dwelling unit he occupies.
To qualify for rent: supplement help a tenant must:.
1. Have an income within prescribed limits (no more than
would be allowed for public housing tenancy in the same
geographic area).
2. Have no more assets, aside from income, than $2,000
($5,000: for the elderly).
3. Be one of the following:
62 years of age or older
Physically handicapped
Be displaced from home by government action
Living in substandard housing
A victim of natural disaster to the home in which
he is or was living
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Sponsors or owners of rent supplement projects must be one of the
following:
1. A nonprofit organization (labor, fraternal, church, or
other group).
2. <A limited dividend corporation (realtors, builders, developers,
etc.).
3. A cooperative housing corporation.
Arrangements for rent supplement payments are made under contract
between the Department of Housing and Urban Development and the housing
owner.
Housing under the rent supplement program is financed with mortgages
insured under HUD programs at the market rate of interest. The housing,
of whatever type, is built, owned, and managed by private industry.
Must either have a Workable Program in effect or must have approval
of City or County Officials having jurisdiction.
FHA - SECTION 221 (h) - Rehabilitation and resale of existing homes
(detached, semi-detached or row houses). Workable Program not required.
These projects must be in groups of not less than five units. The
program is administered directly by FHA. The local special representative
is Mr. Kenneth L. Finn, FHA State Office, 230 Peachtree St., N.W., 3rd
Floor, Atlanta, Georgia, Telephone 526-6594,
LEASING PROGRAM - Communities that wishto use housing subsidies to
house low-income families through LHA's must meet certain statutory
conditions and administrative requirements. The following are the most
important:
The locality must have, or must establish, a Local
Housing Authority (LHA)
Except for the Leasing Program, the locality must have a
Workable Program for Community Improvement approved by
the Secretary of HUD and currently in effect.
(A Workable Program includes seven elements of accepted
principles of good community development. These interact
to deal with the problem of slums and blight and help to
establish stable neighborhoods suitable for an adequate
family life. HUD publications describing Workable
Program requirements are available.)
In the Leasing Program, the local governing body must
approve use of the program in the locality. (In other
programs, each project must be approved by the governing
body, which must also enter into a cooperation agreement
with the LHA. The agreement covers Such matters as tax
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exemption, payments in lieu of taxes, and provision
of the usual municipal services.)
Low-rent programs are Subject to Title VI of the Civil
Rights Act of 1964 prohibiting discrimination.
PUBLIC HOUSING - (Turnkey or Conventional - May be constructed and
operated by the Atlanta Housing Authority in unincorporated areas of
neighboring counties, which do not have certified Workable Programs,
within 10 miles distance of the City Limits of Atlanta. Concurrence of
County Commissioners is required and they must agree that necessary
community facilities will be provided the projects.
Public Housing (including Turnkey) may consist of a variety of types
of structures, i.e., high rise multi-family, garden type apartments,
duplexes and Single-family houses, or any conbination of these in the
Same or separte developments. There is a very strong desire on the part
of many low-income families for single-family houses. Many famalies
of course are not financially able to purchase even the lowest cost
(221 d (2)) houses. Such can be developed however as Public Housing
(including Turnkey) and later sold to the occupants, as they become
financially able to qualify. The Federal Government is currently
encouraging this type of development under Public Housing.
221 d (2) SINGLE-FAMILY SALES HOUSING - This FHA insured mortgage
program can be placed almost anywhere, where appropriate zoning exists
and is not restricted to locations .which have Workable Programs. FHA
insured mortgages (30-40 years) may be obtained at approximately 100%
of appraisal. The down payment is only $200 for those who hold certificates
as displaced by governmental action and slightly more ($350 to $400)for
anyone who qualifies financially and has a good credit record. The maximum
FHA insured mortgages on these houses in the Atlanta Metropolitan area
has been $12,500, but has recently been increased under the Housing Act
of 1968 to $15,000. This should cause a very much needed boost in this
program.
FARMERS HOME ADMINISTRATION - An Atlanta family, or one residing in
neighboring rural areas, may be able to build a home in a rural area under
this program, which is limited to only low and moderate income families,
which cannot qualify for conventional loans through local lending
institutions.
There is no statutory limitation on size or cost of the homes to be
built. However from a practical standpoint such homes do not usually exceed
about 1400 sq. ft. of living space and maximum mortgages are about $14,000.
Home are generally within the $10,000-$12,000 range. There is no design
criteria specified. Interest is 5% straight; 33 year mortgage, which may
be as high as 100% of appraised fair value. Loans are insured by the
Farmers Home Administration, There is no down payment required. However
purchaser must pay for title certificate and recording fees. Mortgage
limitations are based on family income, with maximum income considered
$7,000. Payments are on an annual basis, although mortgagors with income
of less than about $5,000 per year are required to make monthly payments.
The Farmers Home Administration is Willing to accept applications from
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Atlanta residents who qualify and wish to build a low-cost home in a
rural area.
State Director of this program is Mr. S. L. VanLandingham, Peachtree-
Seventh Building. Details pertaining to this program are contained in
Pamphlet PA-476, Rural Housing Loans, U.S. Department of Agriculture,
Farmers Home Administration.
CONVENTIONAL FINANCING - In addition to the above Federal assisted
programs, apartment developments under conventional financing, with no
Federal assistance, are of course feasible and are taking place constantly
where land prices are favorable, necessary utilities exist and where
appropriate zoning and required permits can be obtained. In fact to date,
Since Atlanta's accelerated Low-income Housing Program was initiated,
November 15, 1966, 50% more units have actually been constructed in
Atlanta, under Conventional financing, than under all of the Federal
assisted programs combined. These however generally serve the moderate
income families ($5,000 - $8,000 income) and are not available to the
lowest income families ($3,000 or below). This latter requirement can
currently be met only through Public Housing; whereas, the Federal
assisted programs generally serve requirements of families in the inter-
mediate $3,000 - $5,000 bracket.