Box 5, Folder 9, Document 41

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The Greater Atlanta Housing Development Corporation is a non-profit, tax-exempt
organization, whose primary objective is to assist non-profit sponsors and private
developers, as well, in carrying out programs to serve the housing needs of Atlanta's
low-income and moderate-income families.

The corporation was established under the auspices of the Atlanta Chamber of
Commerce in June, 1968, with financial support from the Chamber ($10, 000) for the
initial funding of the corporation's operations. In close cooperation with the Chamber
were Central Atlanta Progress, Inc., key persons of the Mayor's Housing Resources
Committee, and others.

It was the intent of the Chamber's Board of Directors, in establishing the corporation,
to seek a broad base of leadership and financial involvement from throughout the Atlanta
business community. Toward this end, a number of the city's leading business citizens
have been invited to participate in the funding of the corporation, and there has been grati-

fying response,

The Greater Atlanta Housing Development Corporation will aid sponsors of housing
programs in several ways: Interpretation and explanation of programs available under
current housing legislation; advisory help and coordination of the development functions,
such as assistance in selecting an architect, attorney, engineer, contractor, developer
and financial institution for construction loans -- seeking, in each case, those experienced
in the type project selected; and helping to arrange and negotiate ''seed money" loans for
expenses for such services above set out which are incurred before mortgage proceeds
become available.

These services are being provided through the corporation's Executive Director, who
is highly knowledgeable in housing finance, project development and management, judgment
of the feasibility of projects, technical aspects of Federal Housing Administration procedures,
and communication with the business community and neighborhood groups.

Arrangement and negotiation of short-term "seed money" loans will result in a
reduction of the sponsor's risk and thereby stimulate the construction of sales and rental
housing for lower income families and promote rehabilitation of substandard housing.

(One prime source of seed money, or "front end" loans, is to be Atlanta Civic Enterprises,
Inc, , an organization of ten larger businesses which have created a pool of resources to
help solve the local need for housing. Atlanta Civic Enterprises, Inc., is in agreement
with the method of approach being undertaken by the corporation. )

The loan fund administered by Atlanta Civic Enterprises fills this need for seed money,
which can be loaned at less than the market rate of interest -- with some type of security -~
and will be generally supplemented to some extent by the non-profit sponsor. It will bea
revolving fund, as funds disbursed for the permanent loan are used to repay the seed money,
or front end, loans.

Housing Development Corporation - 2

Cost of operations will initially be provided from the funding support of the Atlanta
Chamber of Commerce and members of the Atlanta business community. However, the
corporation is anticipated to become self-sustaining from the fees or other charges for
the technical services rendered. Such charges, as a part of the project cost, would be
paid from the proceeds of permanent loans.

Already, in some FHA projects which have the 100 per cent loan provision, a
consultant fee is allowed for inclusion in the cost and payable when mortgage money
is available. The Greater Atlanta Housing Development Corporation ostensibly would
qualify for such fees in many instances.

The housing legislation passed by Congress permits non-profit organizations, such
as churches, civic organizations, unions and others, to sponsor projects of building or
rehabilitating housing for low to moderate income families, with loans up to 100 per cent
of the costs at interest rates, in some cases, as low as 1 per cent.

Despite 100 per cent financing, the initial costs of architect fees, attorney fees,

engineering studies, FHA fees, land options and other costs must be paid before mortgage
proceeds become available. These front end expenditures can amount to as much as 4
per cent of the total project cost but are reimbursable when mortgage money becomes
available. Lack of funds to meet these expenses often seriously delays or completely
rules out projects by non-profit sponsors.

Executive Director of the non-profit corporation is Mr. Robert Watkins, formerly
owner of Industrial Service Company and with a background in the construction business,
Offices of the corporation are located at 2742 First National Bank Building, adjacent to
the offices of Central Atlanta Progress, Inc., which is providing secretarial help as well
as office space for the new corporation,

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