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@ Ae ’ Z — 2 27 ly ee
M. B. SATTERFIELD
EXECUTIVE DIRECTOR AND SECRETARY
EDWIN L. STERNE
CHAIRMAN
GEORGE S. CRAFT
VICE CHAIRMAN
CARLTON GARRETT
DIRECTOR OF FINANCE
GILBERT H. BOGGS
DIRECTOR OF HOUSING
J. B. BLAYTON
JOHN O. CHILES
GEORGE R. SANDER
FRANK G. ETHERIDGE TECHNICAL DIRECTOR
824 HURT BUILDING
ATLANTA, GEORGIA 30303
JAcKsON 3-6074
The Honorable Ivan Allen, Jr.
Mayor of the City of Atlanta
City Hall
Atlanta, Georgia
Dear Mayor Allen:
This replies to your letter of May 10 transmitting copy of a
memorandum submitted by the Housing Resources Committee and
requesting our specific comments on items 5, 6 and 9. These
comments are as follows:
(5) We are unaware of any offers for sale by owners of
103 units on Boulevard resulting from housing code inspections.
As a general rule it is not financially feasible to acquire old
housing by purchase since necessary financing of the resulting
project must extend over a 0 year life. It is preferable to
lease units in such buildings since the economics usually do
not justify purchase.
(6) At the present time negotiations are proceeding concerning
the leasing of units in four additional separate sites. We hope
to be able to add to the total number of units now under lease.
The great difficulty is the low vacancy rate in housing of
acceptable standard in the Atlanta area, which has resulted in an
attitude by most landlords that there is no financial advantage
to them to enter into a lease agreement with the Housing
Authority since they already have extensive waiting lists and
are not having to make improvements that possibly would be
required under the Housing Authority leasing program.
Mayor Allen
Page 2
The Housing Authority representative is devoting ample time to
the investigation of all available leads. All real estate firms
listed in the Yellow Pages have been circularized as well as
members of the two real estate boards. Constant visual
investigations are made in trips to various sections of the city
to find out where vacancies might be in existence.
The processing of individual tenant leases for occupancy of
units in private housing is not greatly time consuming since at
only averages about thirty minutes per tenant.
It is considered very important for the leasing representative
to make very frequent checks of existing leased housing to make
sure that the public housing tenants are living up to their
obligations affecting the care of the premises, etc. If this
program can be controlled so that private landlords see that
public housing tenants are better than average tenants this
should have an important impact on the availability of additional
units for lease. Although the number of leased sites has not
increased in the past few weeks, the number of public housing
tenants has had a steady growth as dwelling units have become
available in present locations.
(9) Reduction in minimum price of single family lots for
sale in the Thomasville Urban Redevelopment Project below their
current minimum has been considered in the past. The staff is
of the opinion that such reduction would not encourage the
development of these lots because:
(a) The price as now set is less than the value of
the lots should the developer acquire land at
reasonable price and provide the streets,
utilities, and other amenities as provided
by this project.
(b) The Federal Housing Administration will allow
as land value only the amount actually paid
to us by the developer. Therefore, any
reduction in the price of the land would mly
result in a reduction in the amount of the
loan underwritten by FHA.
At the moment it appears to us the greatest opportunity for
provision of additional units for low income families lies in
Mayor Allen
Page 3
May 17, 1967
the 221D-3 Program, and hopefully in increasing the number
of units leased for public housing use, although the latter
does not increase total housing supply.
Sincerely yours,
_
ALALL
M. B. Satterfield
Executive Director
MBS/fm