Box 5, Folder 17, Document 36

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Room 12043 Ext. 30 Tel, 522-4463 Area Code 404
March 10, 1967

R. EARL LANDERS, Administrative Assistant
MRS, ANN M. MOSES, Executive Secretary ;
DAN E. SWEAT, JR., Director of Governmental Liaison

Dear Committee Members:

Enclosed for your file is a copy of minutes of the organizational
meeting of this Committee in the Aldermanic Chamber at the City Hall,
February 1h. Several members who were unable to attend that meeting
have requested that minutes be sent them in order that they could keep
abreast of developments,

Also enclosed for the benefit of those who did not attend the meet-
ing is a copy of Mayor Allen's address at the meeting.

The guest speaker Mr. Ferd Kramer of Draper and Kramer of Chicago
related in a very interesting manner, some of his experiences in working
with a group of private individuals in developing a much needed community
housing project in Chicago which contributed in stabilizing a declining
neighborhood and at the same time providing much needed housing for the
staff of Michael-Reese Hospital and Illinois Institute of Technology.

The project involved the purchase of badly deteriorated homes and

tenements and construction of new apartments, together with the reha-
bilitation of the better structures. Mr, Kramer emphasized the importance
of group action and support in projects of this kind, including cooperation
of owners of existing properties and participation by lending institutions,
builders, sub-contractors, labor and the City. It is hoped that this

may inspire similar projects in Atlanta.

Mr. Kramer stressed the importance of using Section 221d(3) of the
National Housing Act in connection with financing rental housing for
medium--- low income occupants. The 3% below market interest rate, to-
gether with FHA's waiver of the ‘4 mortgage insurance fee allows the
Sponsor to provide housing at lower rentals, or in the case of cooperatives,
lower monthly payments. This helps to close the rental gap between
conventionally financed apartments and Public Housing. He also stated
that apartment sponsors could usually obtain a substantial tax write-
off through the use of limited dividend corporations, Mr, Kramer indi-
cated that mortgage funds are now available for needed housing projects
in all of the larger cities and stated that financing discounts have
dropped to l/s in most areas during the past three months.

Mr. Kramer's talk was extemporaneous, so unfortunately copies
are not available. .

A copy of news release by Committee Chairman, Cecil A. Alexander,
on February 2h, as to activities and accomplishments of the Committee has
been mailed to each member. We will endeavor to keep you informed through
periodic reports of this nature from time to as to progress of the program.

On February 2), HUD announced approval of fund "reservation" for
3000 additional units of Public Housing for Atlanta. The Housing Authority
request for these units to help meet its share of the accelerated program
for low-cost units was approved by the Board of Aldermen, December 20, 1966.
This will be quite a boost in providing standard housing for many of
Atlanta's families in the lowest income bracket.

On March 7, bids were opened by the Housing Authority for construction
of 140 units of Public Housing as an extension of Perry Homes, South of
Proctor Creek. These will consist of 78 three bedroom units, h6 four
bedrooms and 16 five bedrooms,

Panel meetings were held recently by the Social Problens and Public
Information Panels,

Dr, Edwin Harrison has been elected Chairman of the Construction and
Design Panel and Moreland Smith, Vice-Chairman,

Virgil Milton has been elected Chairman of the Business Participation
Panel and Edward L, Simon, Vice-Chairman,

Dean William 5, Jackson has been elected Chairman of the Social Problems

Lee Burge has been elected Chairman of the Finance Panel and Gordon Jones,

Acting Chairmen of other Panels are urged to report as soon as possible
the names of Permanent Chairman and Vice-Chairman of their Panels,

During February permits were taken out for construction of 11 single
family houses to cost under $15,000 each; 23 such houses were completed
within the City; permit was also issued for construction of 95 apartment
units to cost under $10,000 each,

; Due to the shortage and high price of large suitable tracts of land
within the City for development of low cost housing, it appears that a
substantial portion of the accelerated program requirements will have to
be built on small tracts and individual lots scattered throughout the
City. Builders.should be encouraged in this direction.

On small lots, of which there are many in the Central City, where
dilapidated structures are being demolished under the Housing Code, if
such lots are zoned residential and were of record at the time the
Zoning Ordinance was adopted in 195, a single family residence can be
rebuilt on the lot. This is not generally known by property owners.

Cooperative housing, sponsored by non-profit organizations taking
advantage of the 34 FHA insured mortgages, at 100% of FHA appraisal,
including the land, is becoming a very popular trend in the Atlanta area.

' This provides an incentive of ownership by the occupants which greatly

reduces abuse end vandalism, so prevalent in the past in low income areas,
Many fraternal, educational and religious organizations are in a position
to take advantage of this approach and should be encouraged to do so,
Additional information on this technique is available at the Housing
Resources Committee office in City Hall.

Any member learning of new or projected developments in the low
cost housing field is requested to pass such information on to the
Housing Resources Committee office which endeavors to maintain a
record of such developments and their status.


I oe

Malcolm D. Joreé
Supervisor of “Inspection Services
Encl: Minutes of February 1) Meeting |

Copy of Mayor Allen's Address

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