Box 5, Folder 16, Document 39

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Box 5, Folder 16, Document 39

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¥04£4A4b #§@2#$,!Q(J 4 ;g;_
September 12, 1967
The Executive Group of the Housing Hesources Committee met at 10: 00 a.m.,
September 12, 1967, in Cormu.ttee Room f2, City Hall. The following members
were present:
Mr. Cecil A. Alexander, Chairman, Housing Resources Committee
Dr. Benjamin E. Mays, Co-Chairman, Housin1 Reso·....rccs Committee
Mr. Archer D. Smith, representing Mr~ Charles L. Weltner, Acting Chairman,
Legal Panel
Yir. Henry L. PJ.lls, representing Mr. Le e Bur 6 e, Chairman, Finance and
Non-Profit Funds Panel
Hr. John Wilson, member, Finance and Non-Profit Funds Panel
Mr. Charles F. Palmer, representing Mr. Clarence D. Coleman, Chairman,
Public Housing Panel
Mr. F. c. Terrell, representing Mr. Wallace L. Lee, member, Land Acquisition
Dr. 'Vivian Henderson, Acting Chairman, Land Acquisition Panel
Mr. J. A. Alston, member, Land Acquisition Panel
Mr~ Stewart Wight, member, Land Acquisition Panel
~an Williams. Jackson, Chairman, Social Problems Panel
Mr. Edward S, Simon, Vice-Chairman, Business Participation Panel
Mr. Dale Clark, Chairman, Public Information Panel
Mr. Malcolm D. Jones, Director
Also present at the meeting were:
Mr. William S. Holland, Executive Director, CACUR
Mr. Lester A. Persells, Associate Executive Director, Housing Authority
Mr. Alexander opened the meeting with comments pertaining to the program and
then cailed on Nr. Jones to present the current status report of the program.
Mr. Jones stated. that his office was in the process of retyping the low..
income housing inventory report but had only the summary ready for this meeting
(Item 2 on the agenda and document 2 in the folder which had been presented
to Executive Group members) . He explained that included in the inventory
are apartment units bei~ developed under conventional financing which do not
cost more than $10,000 per unit to construct, $12,000 for each side of a du~lex
and $1S,OOO for a single family house. He explained that the last page of the
summary contains notes, ro me of which are especially significant •. He explained
that Item A of the notes gives a comparison of the status of the program on
August Jl, as compared with the previous report of June 28 and stated that on
the whole we have lost ground in this program since the previous report two
months ago.
He then called attention to the extract from the CIP report pertaining
to low-income housing requirements (Item 3 on the agenda and in the folder).
He also pointed out that we are not rec1.lly building low-cost housins in public
housing but low-income housing .
He also explained Item 4(a) on the agenda and the corresponclin:; document
in the folder passed out to Committee members, pertainj_ng to availahle land
sui tabl)r zoned for the low-income housing program.
At this point Mr. Alexander explained that Mr. Jones' office was understaffed to hancUe the statistical data required by the CIP and proposed that
from here on out when someone GOes to the Building Department for a pennit
we should try to r-;et the Per1rdt Desk to list what the rent on the units will
be and number of bedrooms per unit; thc>.t there is no way we can require this
legally; and that another thing that we need to clo is to <1lso go back to the
developers now in the program and get more specific information on their plans.
He proposed for this purpose that the City provide a Clerk to the Committee
for not less than 3 months. He stated that he felt the structures bein5 built
are reasonably r,ood and that his feelin: :s are that a great deal more interes t
should be put in the lowest rental-purchase ranges ; that we can get more in
that price range from the prefabricated housing; th2.t the carrying charges on
these per month is important and we should find out what it is; that to meet
the really tough part of the program going to the City for additional
help. He also asked for comments f rom members of the Committee.
Mr. Clark said he would sup::_Jort askin.:; f or more help; that he also saw
a news report for housinr, that would rent for 1~50 to fi>70 per month, under the
Farmers Association program; that it is in DeKalb County, and is called City
Mr. Alexander stated that is a good start to ~et low.cost housing in the
Another member stated that the Farmers Association pro,~ram is also a
part of the FHA program.
Mr. Palmer inquired as to the definition of low-cost housing?
Mr . Jones replied that it is essentially a matter of interpretation,
Mr. Alexander stated that is was from $0 to ~55 per month,
Mr. Palmer commented 11 And they want low-income housine built under private
Mr. Alexander replied it is thought of now primarily as a Turnkey
Mr. Jones added "And even Rent Supplement11 •
Mr. Alexander again proposed askin~ the City f or a Clerk and developing
a form for the Building Department to get filled out at the t ime permits are
obtained and. c tated that we will have to talk to Mr. Hoff ord about that.
A motion was made that the matter be left in
seconded it. The matter was drop'.:Jed there.
Jones' hands, ¥ir. Yates
Mr. Alexander then explained that the roll of this Committee in
matters is not an open ru1d shut case as to how to make 1~ecormnendations to
the Boo.rd of Aldermen; that we have been taking this on as a extracurricular
roll to a ;,sist the developers in this progr am; t hat this has been done in
several instances, but no members of this Committee have been asked to eo
around lookin£s at these sites to r e commend those which we consider r easonable,
Mr. -Jones explained thnt this is what he and Mr. Gates have been attem0tint;
to do; that they have been out with the s-,Jonsors and actually looked at most
of the aites and have only listed ancl encouraa;ed thos e which they felt were
pr actical and desirable, t hat in a several instances they have di scoura~ed
sponsors fr om submittinc: s ites which they f elt were i mpracticable or unsuitable .
Hr. Alexander continued that his f eel inc i s that we should t ry t o aid and
assist the builders in this progr am but that we have no power to chan;:;e what
is going on and that we are hnvin s our pro_)osals turned down one by one f or
various reasons. He stated that t he approach which he f elt we should truce i s
to i ssue a gener al s tatement about t he housing progr am, i t s needs, and t he
shorta~e of l and that is now suitabl y zoned and t o work toward gettin:s a
rezoning of the entire City , with due consi derat ion f or low-income housing
needs; t hat as for working wit h the developer s we should be governed by what
we see i s a ccept able to the Board of Alder men and the Building De~artment i n·
granting permits; and f ur ther to come to some conclusi on about t he probl ems.
He s t at ed t hat we shoul d also hel p the developers arr ange meetings with the
Aldermen, Departments involved and anyone 1>1ho 1-1ants t o talk to t hem about
deficiencies in Communit y Facil ities r el ated t o t he housing program, which in
some instances have been l oeimatc , such as parks, transportation, traffic,
schools etc . He further stated. that at t he same time the ur,'sency of this
program has seemed to es cape s ome ?eopl e; that one thi ng whi ch we also need is
to emphasize the requirement f or additional l ow-income housing in the neighboring
cities and countios and make it clear tha.t we are not trying to create a haven
here in Atlanta for the whole country to come to and move in on this program;
that this may happen, but we should t ry t o avail' it. He st ated that the CIP
requirement is for replacement of houses and apartments that are unfit for
human habitation • . He then called upon Mr . Jones for comments .
Mr. Jones stated he feels tha t it wo do not take a position to actively
sup:iort the cJ.evelopers who have proposed good projects and which ap~ear~ reasonable,
he di d not know who would; that he was personally inclined to feel that we can do
a service if we asa Committee take a -·JOsition on such proj ects; that he docs not
think however that many ar ens will be built in the City which already have
a surplus of cormnunity facilities; that he has hopec:_ that we can supµly
facilities such as parks, nchools, pl aygrounds etc. simultaneous with the development
of the housing proj e cts, by r elying on other Agencies and other Department s;
that those details should be chocked into carefully and coorc;ination made to
provide these services as adequately as we ca1~. He said that he felt personally
that a statement from the Housing rtesources Committee on each of the projects
proposed f or low-income housing would be helpful to the Planning Boa;.~d and. the
Zoning Committee when they make their decisions. He pointed out difficulties
which we have had in gettine sites approved up to that point and e:;~)lained
that he and Hr. Gates (the Committee Consultant) have attempted to look at
each proposed site but have been unable to follow through on aJJ. details such
as checking on the adequacy of community facilities etc.; that in several
instances he and Hr. Gates have discourn:~ed sponsors for this reason or that;
such as ground too rough, facilities not available etc. and that as a result,
sever al of the sites originally proposed have nevP.r come up for rezonin~. He
further stated tha,t he was inclined to feel that on those pronosals for Turnkey
development that it would even be 1-roll for the Planning Board and the Zoning
Committee -to know whether or not the Housing Authority considered the sites
as favorable ~.nd suitable.
One member commented that perhaps the whole City needs to be rezoned.
Mr. Alexander replied it seemed to him that we must create additional
land through purchases for the ci ty-·wide a pproach; that when the individual
developer canes along, there should be a body looking to tho interest of the
whole city and it ap;:>eared to him that these things have thus far been
considered only by the Board of Aldermen; that he wonders whether this is
doing the program the best service? He stated that consulting with the
Planning Board is also very 1~uch in order, presumably.
In referring to Item 4(a) on the agenda and the corresponding marked
docU17lcnt in the fol der, Dr. Henderson inquired if this material is whc>.t his
Committee had asked for?
Mr. Jones s t at ed that this is l1hat the Planning Department pr ovided in
r e:Jponse to his
a zoning ma:9 of
nnd a report of
by Land Lot and
p.'.lilel's request; thnt when ue got it, it crone in t wo f orms:
the City with va cant land areas superimposed on it in orange;
total land in tho various zoning cat aeories and vacant land
Dis trict.
Mr. Jones furth0r explained that the Planning fupartment is now making
a co~prehensive Land-Use s tudy to go before the Board of Aldermen with s ome
proposed chti.Il~es in the overall land-use of the City; that he felt the bes t
thi n3 this Committee could do now is to cct its r e commendations presented to
tho Planning and Development Committee; that we have a Joint Meeting scheduled
for the 29th of Sept ember .
Mr. Alexander then told Dr. Henderson that he s hould meet with Mr. Jones
to go over the mat erial provided by the Planning Department, but that i n trying
to resolve this thing we are s till short on l and and thos e two should cane
up with a proposal , say in Sept ember, as to the number of a cres needed and its
dis tribution.
Dr . Henderson asked approximately how many a cres does tha t involve?
Mr . Jones replied that the maximum 0.ensity authorized f or garden type
.::partments is 16 units per acre, but that the Housing Authority has been trying
to hold that down to about 12 units per acre.
Mr. Pcrsells stated that was correct; that 3, h, Qlld 5 bedroom units, which
t he Housing Authority particularly ne eds, results in reduction of the density
below 16 units per a cre.
Mr. Jones explained we had one project which has been approved by FHA at
16 units per acre , but it is in an Urban Renewal project; that we had a developer
recently dro~ a project becnusc he had bought the land expecting to develope it
at the authorized density of 16 units per acre and that in preliminary
clis cussions, F"rlA suggested 10 uni ts per acre.
Mr. Alexander stated that it is open to deb~te about how many total acres
would be required.; that our exp8rience to date indicates that no more than
1/3 of the land appropriately zoned actually gets into the low-income housing
program, due to turndovms by HUD, FHA, nei ghborhoods etc.; that to date only
about 1/3 of the land zoned has found its way into this program.
Mr. Alexander stated that there ap:1ears to be a need to r ezone the City
at large; that there wer e 51 zoning petitions on the agenda recently for one ·::ing of the Planning Board.
Mr . Jones expl ained that the current z oning was especially planned f or

}ndus1;,ry; that many areas were original ly planned but never used as industrial,

1-;:C.- .ich development will not occur in the f orsecable futur e , and that the same
c_pplies to much of the land now zoned residential ( singl e family development)
t-:hereas tho immediate need of the City now i s for low-income multi-family
Mr. Persells e.xpl ained that the Housing Authority has gone back over the
l anu to cons:i.der addit i onal parcels 1vhich could be used f or the low-income housing
c~tegoriJ where chrin gcs seem to be reasonabl e .

Mr. Alexander stat ed the builders have claimed that FHA procadurea were
hol them up , that Atlanta is one of the City's in which FHA now clcims that
it can process an application in l ess than 2 weeks; that this i s a change in
nttitude , but the 221 d ( 3) proeram does not come within the direct line of
FHA 1 s principal insuring policy.
Mr . Alexa,~der asked Mr . Clark if the report prepared by Mr. Gat es on the
accelerated procedure for multi-family processing by F1IA could be carried to
the press (Item 6 on the agenda, with co-::iics in the folders ) Mr . Clark indicated
that it would probably be better for this tY}Je of announcement to be made by
the local FHA office rather than f r om this Committee.
Mr. Alexander then referred to Item 7 on the agenda pertaining to the
proposal in the Rent Supplement program to require nonprofit sponsors to put
up 5% equity (in effect a donation); that the reason the attempt to put this
thine; in, is the theory that if nonprofit sponsors financially imo lved
in the success of their project that they will have more permanent interest
in it; that Urban AmGrica's feeling is, if this is done the Rent Supplement
program will die before it gets nn opportunity to grow; and Urban America has
suGgested that those interested send telegrams to their Senators and to
Senator Warren Magnuson sugGesting th2.t this approach of requiring the 5%
equity will defeat the purpose of the program; that what he would like to do
is to eet an authorization from the Committee to sign a t 8l egram in support of
this position and to urge cons ideration of this matter in the final preparation
of the bill.
A motion was made by Mr. Palmer, seconded and unanimously adopt ed asking
Mr. Alexander to send. such telegrams to .:i.ppropriate Senators,
Mr. Cl.:i.rk asked if the
Mr. Alexander stated that it i s
nonprofit, s1Jonsor is not sup;iosed to
2.nd it is asking too much of him to
Mr . Alexanuer also said that to give
nonprofit projects one can borrow up
is what you are competing with, in a
is a known step or a new development.
new; that the thinking is that the
be get tin~ any profit back from the project
put up 5%equity donation to the project.
tho other sid0. of it is, that in 221 d (3)
to a 102% of the project coat and this
Mr. Pers ells asked Mr. Alexander to explain the l02_;i .
Alexander explained what the extra

takes care of.

Mr. Alexander again asked for and received unanimous consent to r equest
the City for a GI.erk for at least 3 months.
Mr. Alexander then called for hrief reports from the Panel Chairmen.
Legal Panel - Mr . Archer Smith made a very interes ting presentation of
his case study and the significance of the She.ffer vs. City of Atlanta Housing
Code Case, which he announced was coming up for hearing the next day.
Constructi on and Design Panel - As no one was present to represent this
panel, Mr. Alexander explained a proj e ct which that panel was working on
involving Building Codes and a System s tudy.
Finance and Nonprofit Funds Panel - Mr. Alexander explained that this
panel is working on creation of a Honpr ofit Housing Development Corporntion,
He also mentioned the favorable comment s made at the Urban America Seminar
by a local banker pertaining to loans made through his bank to sponsors of
nonprofit projects.
Business Participation Panel - Hr. Alexander cormnented briefly on his
rec ent conference in Washington with Se.cretary Weaver and FHA Administrator,
Braim.stein, pertaining to bringing "Big Business 11 into the low-income housing
Public Information Panel - Mr •. Clark commented on the ill-fated Browntmm
Road rezoning at tempt and to a nonprof it sponsor proj ect which is being promoted
locally by the Interfaith Group of the Unitarian Universalist Congregation.
Social Problems Panel - Daan Jackson explained that the avera::,;e annual
income for Negroes in Atlanta is $3600 and that the number one question is the
adequacy of the number of bedrooms in rent8l units .
Mr. Alexander then called on Mr. David T. Edwar ds, sponsor of a rezoning
petition f or an 18 acre site on the \I.Jest side of Atlanta , i'Jorth of Bakers
Ferry Roacl , S. W. (LL 2h, 14th Dist. FF) to present his proposal ( one of three
in Item 5 on the· agenda )~ Ytr. Edwards made a good and convincing presentation.
From questions a ske d mid comments J11ade by some members of the Committee , the
Cornmi ttee ai)poared receptive to Mr. Edwards I propos8l. Formal action by the
Committee however was not called for by the Chairman to endorse this proj ect
to the Zoning Committe e , as had previous ly been re ques ted by Mr. Edwards,
as well a s similar requests from sponsors of t wo other projects which the Committe e
had previously endorsed to the Planning Board. This was for r easons explained
earlier in the mooting . Subsequently however, the Chairman of the Planning
Board. was r eques t ed to pas s on to the Zoning Committee , with the Plannin.r;
Boards' r e commendations, a l etter which had pr eviously been written by the
Committee to the Planning Board endorsing those t wo proj ects.
The mee ting was adjorned nt 12 noon.
l_,. ~ti~ _
,,.,_,,.,,i , ~
Malcolm D. J onefJ
Supervisor of I nspe ction Services
Encls :
Documents contai ned i n fol der provided every member pr esent (wi th
file copy only ) •

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