Box 5, Folder 9, Document 14

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Atlanta, Georgia
December 12, 1968



implications of the 1968 Housing Act
Future Direction :
Uniinished Business

Reports of Committee Panels (Encl, 1)
Summary of Status Report (Encl. 2)


November 15, 1968, marked the completien of the first two
years*® activity of the Housing Resources Committee in its efforts
to premote and accelerate the Loweincome Housing Program in

The 5 year goal of 15,800 low and medium income housing units
announced by the Mayor in his Housing Conference establishing the
HRC on November 15, 1966, is now in the pipe line, This figure
was based on anticipated replacement needs caused by Governmental
action during 1967~71, and did not take into consideration normal
growth, formation of new families and in-migration.

The Nevember 15 revision of the report on status of the low
and medium income housing program shows:

Convleted 3,217 units
Under Construction 6,278 units
In Planning 7,327 units
In Sight 10,832 units Total

This slightly exceeds (by 32 units) the 5 year goal of 16,800
units and is only 305 units short, in the first two categories, of
the anticipated need for 9,800 units during the first two years
of the progran,


It is anticipated that most of the 7,337 units in Planning
will materialize. However, in the event that some may fall by
the way side, there are an additional 6,215 units Being Considered,
which will more than compensate for any units now in the In
Planning category which may be lost to the program.

The Summary (Encl. 2) shows that the goals for all phases of
the 5 year program are being met, with the exception of Public
Housing which is currentiy 4,100 units behind.

The Committee has consistentiy endeavored to overcome and
minimize neighborhood chjections to low-income housing, which has
been the greatest problem in petting approval on site selections.

The Committee has solicited and obtained the support of the
Chamber of Commerce in secking the cooperation of County
Commissioners (particularly Fulton) for establishing low income
housing projects in unincorporated areas ef adjoining Counties,
where occupants may reside in close proximity to sources of
industriai employment,

Among other accomplishments, the Housing Resources Commitiee:

Has worked closely with developers, builders, City Departments
and Community groups in promotion of low and medium income housing
and in coordination of efforts in this field.

Has been instrumental in establishing the Greater Atlanta
Housing Development Corporation to assist local non-profit housing
corporations, thus providing seed money and other assistance
(including perhaps the banking cf land for subsequent use at no
profit for low income housing developments).

Was a pioneer in proposing and getting approval at both
the local and national level for use of prefabricated relocat-
able units as temporary relocation housing,

Was influential in promotion, at the Washington ievel,
oi expanding the base for Federal Grants and direct Loans, now
authorized in the 1863 Housing Act, for assisting home owners
in rehabilitation of their dwellings to meet requirements of
the Housing Code,

Has urged early adoption by the City of miniature Urban
Renewal projects, thrcugh the Neighborhood Development Program,
in blighted residential pockets, to rid the City of its worst
Sium areas.

das urged revision of some previcus conventional planning
concepts in an effort to get certain areas rezoned to permit a

more practical approach to improvement of such areas for residential


Urged the dispersal of future Public Housing in relatively
small developments on scattered sites,

Has been instrumental in creation of interest in the low-
ancome housing program by non-profit organizations and the
formation of several such organizations to participate in the
low-income housng program.

Was the catalyst in getting neighborhood interest revived
for improvement cf Vine City through Urban Renewal.

Prov.2ed and obtained concurrence of the Board of Education
for drafting legislation for consideration by the General
Assembly in its next session to authorize developers to build
schools simultaneous with development of housing projects,
except in Urban Renewal areas, for lease to the School Board
until it is in position to purchase the facilities.

Was active participant in Atlanta Conference on Equal
Opportunity in Housing.

Has worked with the Model Cities' staff in development of
its housing rehabilitation program and site selection for
experimental housing.

Has pointed out to City officials the necessity for, and
urged recognition of, the principle that site selection for
low-income housing should include a planning function and
responsibility, similar to location of schools, water purification
plants, sewerage disposal systems and other public works; that
it should not be left entirely up to land promoters and developers
to sclect sites and bear the burden of trying to get them suitably
zoned and approved.

After promoting and receiving support of thirty prominent
Business, Civic and Religious organizations and individuals, the
ARC held a speciai meeting on suguct 29 “1988, with tho Flanni7s

and Development Committee and the Zoning Committee of the Board of
Aidermen in which the following specific requests were made:

i. Asked the Mayor to appoint either an existing
committee or a new committee of the Board of
Aldermen to assume a responsibility in the ficlid
of low-income housine.

2. Revision of the Building Codes for the City of
Atlanta, particularly to allow experimental
housing to be built in the Model Cities area.

3. Revision of the Ordinance governing non-
conforming use of land to allow structural
changes in improving dwelling units to meet
requirements of the Housing Cede,

4, &ceeelerate the urban renewal program
particularly in the Nash-Bans, Vine City
and other areas outside the Model Cities

5. Authorize the Atlmta Housing Authority to
request 2,000 additional units of public


- Adoption of a revised district zoning map
based on the new Land Use map, to include
adequate areas for low-income housing,



a. A resoiution was adosted on September 16, 1968, charging
the Planning and Development Committee of the Board of Aldermen
izth responsility for assisting the Housing Resources Committec
in meeting requirements of the Loweincome Housing Program.

b. Vine City and East Atlanta have been included in the
Neighborhood Development Program for planning in 1969,

ce. The Board of Aldermen authorized on September is,
request by the Housing Authority to the Federal Government for an
allocation of an additional 2,000 units of Public Housing; and
the request has been submitted to Housing Assistance Agency of

d. Although specific action on the other three items has
thus far been inconclusive, the need for these clements has been
recognized and emphasized and indirect favorable effects have
been encouraging,

Throughout the program the HRC has endeavored to work for
close contact and understanding with the Federal Agencies, local
groups and City Departments in promotion of the Low-income Housing
Program and received from them a remarkable degree of cooperation
and assistance, which is very much appreciated,

On December 9, 1968, award was made by the Housing Authority
to National Homes Corp, of LaFayetta, Indiana, for development of
the 296 acre Federal surplus land site, as part of the Thomasville
Urban Renewal project, This award was based on a design competition
among &S prominent developers and will include GOO units of low
and medium income housing, 2 schools, parks, commercial develop=
ment to serve the immediate neighborhood and other facilities.


The National Housing Act passed by the Congress on August
1, 1968, reaffirms the national goal in the 1949 Housing Act, of
"a decent home and a suitable living environment for every
American family".

Private industry has been challenged to provide six
million additional housing units during the next ten years for
low and moderate income families. The 1968 legislation provides
the tocis and incentives and success ‘in meeting the national
objective will largely depend on:

Sponsor interest.

Availability of land at a reasonable price.
The mortgage money market,

Municipal cooperation

Funding by the Congress in 1969,

Building code and zoning restrictions.

O) cr pm 8) DD

Section 238: The 1968 Housing Act established a new Special
Risk Insurance Fund which permits the Federal Housing
Administration to assume higher mortgage insurance risks in
connection with beth location and credit characteristics that
were unacceptable under the mutual mortgage sections cf the
Act. This should widen both the housing and the mortgage sections.
of the Act. This should widen both the housing and the mortgage

Section 237: Provides, on an experimental basis, FHA
mortgage insurance to finance homeownership for certain lower
income families who cannot qualify under normal standards because
of their past credit records, but who can meet mortgage
payments with appropriate budget and financial counseling.

section 236: Under this rental housing program the tenant
or cooperator will pay at least 25 per centum of his family
income towards the market rent or the basic rent, whichever
is greater. The basic rental is determined on the basis of
operating the project with payments to principal and interest
on a level annuity plan at 1 percent interest. HUD pays the
mortgagee the difference between the amount collected from the
occupant and a fair market monthly rental determined on the basis
of operating the project with payments of principal, interest
and mortgage insurance premium required on a level annuity
mortgage at the market interest rate. There will be no subsidy
for the moderate income tenants. Maximum mortgage amounts -
190% of FHA cost to nonprofit and 20% for profit motivated
sponsors. 40 year term. Limited to families whose incomes are
not in excess of 135% of initial admission levels of public

The above is only a partial outline of Section 23¢.
The regulations cover a wide segment of rental housing financing
and the mortgage insurance terms are liberial. The Act
authorized $75,000,006 to July 1, 1969, but only $25,909,009
has been funded. These funds will likely be allocated very
rapidly to proposed rental and cooperative projects. There
is no requirement for a Workable Frogran,.

section 235: Thissection places heavy emphasis on home
ownership and vrovides that if the purchaser of a new home or
a living units in a condomimium will pay at least 20% of the
family's income, HUD will pay the balance of the monthly
mortgage payments, A two family dwelling may also be purchased,
if owner occupies omunit. Mortgages are limited to $15,900
and $17,900 for large families. Family income limited to 135%
of public housing entrance levels. 30 year mortgage term,
No Workable Program is required.

Subsides vary with the income of the purchaser and the
cash investment in the housing unit will range from a minimum
of $209 to 3% cf FHA's estimate of ccst.

Section 235 of the Housing Act is very comprehensive and
the present funding of $25,000,000 will be used up rapidly.

Comments: All of the legislation mentioned above applies
to both proposed construction and major rehabilitation and
provides wide opportunity for nonprofit organizations to

operate in a number of ficlds. It is also attractive to profit
motivated firms. It permits the issuance of mortgage insurance
in urban, suburban, core and rural areas and better distribution
of low income housing in all areas where the need can be
established under the new Act.

It gives the sponsor a choice of construction or rehabilitat-
ing single family homes, town houses, apartments, condomimiums
and cooperatives. It provides for accumulation of equity by the
buyer through credit for his own labor. It also provides
employment and contract opportunities for lower income families
and business concerns in the construction area to the extent
feasible. Occupant training will be provided where needed in
financing and other ficids,.

There are many changes and additions to the Housing Act
that have not been covered in the brief outline above. Other
sections apply to Urban Renewal, Public Housing, Housing for the
Elderly, Nursing Homes, Nonprofit Hospitals, Flood Insurance,
Financing, etc.




As Chairman of the Housing Resources Committee, I make
following recommendations for the future course of action
the housing program in Atlanta. We request that the Mayor
Board of Aldermen give consideration to these proposals
advise us accordingly, in a revised statement of mission
the Committee:




ALL bodies concerned with housing reviaw
the present and continuing needs for low
income housing.

Eliminate existing siums and provide housing
as needed in the area for those who wish tc
remain there,

Place housing near jobs and public facilities
in the City of Atlanta and throughout the
metropolitan area,

Continue efforts to promote innovative
low-income housing construction in Atlanta.

Continue to aid efforts to eliminate social
problems connected with housing.

Further involve the business community in
the housing program.

fissist nonprofit groups and developers in
their efforts to obtain land and construct

Promote and expalin the new general housing
act and the fair housing act.

Consider national and local legislation useful
to the housing program.

Assist in the stabLissatioa of existing
neighborhoods and encourage the construction
of middle and upper income residential
developments in the City of ftlanta.

Attempt to involve persons in the slums
in the business side of demolition,
rehabilitation or erecting new units,

Continue efforts to sell the need for low
income housing to the people of metropolitan


It is also suggested that consideration be given to
placing the functions of the Housing Resources Committee with
the Citizens Advisory Committee for Urban Renewal or as a
part of an activated Urban Coalition,


There are many unfinished phases of the initial program
which need the continuing existance of o citizens' group to
help with the completion of the program. Some of them are:

i. Compiction of projects now in planning.

4. Legislation pending that will allow the city
to Lease schools to be built by developers
Simultaneously with housing projects, except
in urban renewal areas.


Investigation of problems relating to code
restrictions on innovative buiiding.

4, ihetivation of Board for the Greater Atlanta
Housing Development Corporation.

5. Obtaining of additional sites in areas where
low income housing is needed.

It should be borne in mind, that while this program is
apparently in good shape, that many of the projects still need
shepherding. There are many forces trying to biock housing in
Atlanta and any faltering in continuing efforts might well
decimate the final accomplishment of the erection of the 16,800

I wish to close by thanking Col. Jones, William Gates of
our staff, the members of our committee who worked dilligently
during the past two years and such members as Archer Smith, Lee
Burge, Clarence Coleman, Charles Palmer, Robert Winn and Dale
Ciarlk immedietely come to mind among many others, This has
truly been a working Committee. We aiso thank the Atlanta
Housing Authority, the Planning Department, the Building
Department, Public Works Department, members of the Board of
Aldermen, Mayor Ailen and the members of the Press, Radic and
TV Organizations. Wot to be forgotten are the developers and
et. groups whe have in the last et made the program


aaenegle® oe a f = Cf ' —Lhigdirte 7, he

Cecil A, Alexander
Enclis: 1, Reports of Committee Panels


2. summary of Status Report

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