Box 18, Folder 24, Document 13

THE IREINEWEIR

NEWSLETTER of THE CITIZENS ADVISORY COMMITTEE
FOR URBAN RENEWAL





























Vol. 5 No. 8 Atlanta, Georgia September 1967

NEW PROGRAM FINANCES REHAB OF HOUSES A new federal funding program
BY NON PROFIT SPONSORS, COMMITTEE HEARS under the Federal Housing
Administration, known as 221 H,
provides méans by which non profit sponsors can undertake rehabilitation of deteriora-
ting housing units, our committee was informed at its first fall meeting, Sept. 20.
Introduced by Henry Fillmer, urban renewal representative in the regional HUD
headquarters, Kenneth Finn, architect in the architectural section of the Georgia
FHA office, explained the detailsof the program for which $20 million has been
appropriated by Congress. Accompanying Mry Finn were Otis M. Haire, Georgia
FHA real estate evaluator, and Glenn Barger, chief of HUD's disposition branch.
At the outsei Mr. Finn first stressed the point that the main purpose of 221H is to
provide homes for those who cannot purchase houses at current market prices, The
chosen instrument through which old but restorable houses can be rehabilitated to
achieve the program's purpose will be a non profit sponsor. Such can be Chambers
of Commerce, church groups, civic organizations, our committee. In substance Mr.
Finn explained, any going concern that can be certified by the internal revenue ser-
vice as non profit organization may enter into this program.

FHA'S FINN OUTLINES PROCEDURES To qualify for funding under
BY WHICH SPONSOR PUTS PROGRAM INTO ACTION 221H plan, a sponsor must

designate not less than five
houses for rehabilitation, Mr. Finn pointed out. These can be anywhere within the
city, in an urban renewal area or elsewhere but for efficient operation, should be
within a two mile radius for each project. After selecting the houses to be rehabili-
tated, the sponsor with the assistance of Mr, Finn and Mr, Haire applies to the
federal agency for an allocation of funds, Following approval of the application
FHA appraises the property. Then a work sheet is made out for the contractor to
bring the property up to code standards established for this program. To finance
this work a conventional construction loan is obtained, Upon completion of the re-
hab work, a loan at 3 percent interest, guaranteed by the Federal National Mortgage
Associgstion goes into effect, under terms of which a qualified purchaser can buy the
home under 25 year. terms at this low rate of interest. Mr. Finn further explained
aAhat certain limits on income and cost of house had been set, For example, under
the present market analysis for the Atlanta area, a family of four can have an income
of $3,800 a year and under the 221 H plan, can pay up to $11,400 for a house. He
pointed out that this means that the head of a family of four, earning $75 to $80 a
week, can purchasea $11, 400 house and pay for it at 3 percent interest over 25 years,
This works out at a monthly payment of $54.50. In reply to a question, he said
there was no terminal limit for home purchasers,

MORRIS BROWN COLLEGE FIRST SPONSOR First non profit sponsor to
OF A 221H PROJECT IN ATLANTA AREA apply for an allocation in

Atlanta is Morris Brown
College, Mr. Finn reported, In reply to a question he said the 221 H is not limited
to single family dwelling units, but if multiple units are included, they must be side
by side on the ground and not superimposed, Each unit must be occupied by a home
owner, To facilitate home ownership, the sponsor can act as a cosigner on the prop-
erty. So cana close blood relative of the purchaser, In reply to questions about
maintenance of properties, Mr. Finn pointed out that annual inspections would be
made and that the sponsor would work with the new owner to help him keep his house
up to code standard. He added that FHA requires all units to be equipped with a new
cooking range, a 30 gallon automatic water heater and an automatically defrosting
refrigerator.






Replying to a question, Mr, Finn said that if the original purchaser sells wihtout the
sponsor's consent to an ineligible purchaser, interest on the purchase loan would go
up to the standard matket rate, If the owner's income increases, he still can live in
the house and pay off his purchase price at 3 percent interest. Answering another
question, Mr. Finn said that to participate in 221H, a sponsor would need some
$2,500 to $3,000 ''seed money" and some volunteers to do the paper work, etc. The
overhead for which initial moriey would be needed would include fees for drawing
deeds, passing on titlés, arid interest on the construction loans,

MANY POINTS ON 221 H DETAILS RAISED Keen interest by committee

IN SPIRITED 2UESTION AND ANSWER SESSION members in the 221 H program
was indicated by questions

asked in a lively question and answer session following Mr. Finn's talk. For example,

it was stressed that occupancy limits would be enforced in rehabilitated dwellings.

Also, it was explained that the only new construction to be permitted would be the

addition of a bathroom, where needed, and the reconversion of a duplex toa single

family dwelling. In that event, each unit would have to be purchased at a single

dwelling price, In reply to another question, it was explained that financial assets

(other than income) of a purchaser are not considered, \V ith regard to relocation of

people during rehab work, Mr. Finn expressed the hope that the city relocation ser-

vice would help in this. Lester Persells, AHA associate executive director, made

the point that the sponsor should seek this help from the Housing Authority. Asked

how rapidly a would be sponsor might expect a reply from his allocation request,

Mr, Finn said he would think a reply could be received in two weeks. As closing

time for our meeting approached, Chairman Sommerville summed up by saying

"This committee will pursue the 221 H program with the banks, the housing authority,

and others with the idea of getting some sponsors."

COMMITTEE ENDORSES CHAMBER OF COMMERCE CALL Our committeé on #
FOR UPDATED LAND PLAN AND ZONING RULES Sept. 20 unanimously

, endorsed the Atlanta
Chamber of Commerce Board of Directorsrecently adopted resolution calling upon the
city of Atlanta to adopt an updated land plan and a new zoning ordinance based upon
this plan, The resolution was presented to our meeting by Executive Committeeman,
George Kennedy, chairman of the Chamber's Housing and Development Committee.
Because of its important bearing upon all redevelopment and housing activities, the
text of the resolution follows in full:

"The Atlanta Chamber of Commerce Board of Directors recognizes as a
matter of serious concern to the entire community the current shortage of adequate
housing available to the lowsincome and moderate-income families in the City of Atlanta,
This Board is further aware that this shortage of housing, unless the problem is
dealt with forcefully and effectively with all the resources at hand, likely will become
even more serious in nature.

'It is heartening to this Board to note the efferts and the tangible results
achieved by the Mayor's Housing Resources Committee, which is serving as a
coordinating agency in the community-wide effort to encourage construction of new
housing. The Committee has accepted the responsibility to help assure the construction
of some 16, 800 new housing units in Atlanta by the end of 1971, It has been directed to
the attention of the Board, as a result of the studies of the Atlanta Chamber's Housing
and Redevelopment Committee, that one of the major obstacles in attempts to alleviate
the housing shortage is a severe scarcity of available land which has been suitably
zoned for construction of multiefamily structures. Whereas some 1,565 acres of
suitable zoned land would be required for fulfillment of the five year goals, it is
apparent that only about 68 acres can be reasonably anticim ted for use for this purpose.
The last comprehensive zoning for the City of Atlanta was done in 1954, and countless
amendments to the zoning ordinance have been made in the intervening years. Itis
the belief of this Board that a new zoning ordinance for the City of Atlanta is not only
essential but long overdue,




3

‘Therefore, it is resolved by the Atlanta Chamber of Commerce Board of
Directors that immediate steps should be taken by the City of Atlanta, through its
Planning Department and the Board of Aldermen, to adopt an updated land use plan,
and that new zoning ordinance, based on the land use plan, should be prepared for
submission to the Board of Aldermen at the earliest possible time.

"It is further resolved by this Board that any new zoning plan adopted by the
City of Atlanta should make provision for adequate land for multi-family housing and
open up land for increased density of housing in all quadrants of the city, in order
to serve the best interests of a changing and progressive City of Atlanta. This Board
also declares its willingness and desire, and that of the Atlanta Chamber's Housing
and Redevelopment Committee, to counsel and assist in any way possible toward the
attainment of this end. '' September 13, 196/,

TRACK BEING CLEARED FOR PROPOSAL FOR Immediately following the
COMMITTEE TO.SPONSOR A 221-H PROJECT explanation of the new 221 H
program to our full committee
Sept. 20, Chairman Sommerville and Director Howland began setting the wheels in
motion for a proposal to be made to our executive committee October 19 that CACUR
sponsor an Atlanta rehab project, At aluncheon meeting Sept. 27 FHA's Kenneth Finn
outlined the steps for applying to the agency for an allocation of funds. Attending the
luncheon, in addition to Mr. Finn and Mr, Haire of FHA and Mr. Fillmer of HUD,
were Lester Persells, associate executive director, and Howard Openshaw, rehabili-
tation director of the Atlanta Housing Authority, Cecil A, Alexander, founding chair-
man of our committee and now chairman of the Atlanta Housing Resources committee,
George Kennedy, chairman of the Atlanta Chamber of Commerce Housing and Redevelope
ment committee, A. B,. Padgett, chairman of our CIP subcommittee, Mr. Sommerville
and Mr. Howland, In addition to discussing procedural details, a number of possible
project sites were mentioned by the luncheon group. Following this meeting the city
attorney was asked to give our committee guidance on the legal specifics necessary
for us to participate actively in 221 H, It is Chairman Sommerville's intent to present
a definite proposal to the executive committee Oct. 19,

CODE ENFORCEMENT, PLANNING GAINS PRAISED Atlanta's progress in housing
AS WORKABLE PROGRAM IS RECERTIFIED code enforcement and planning

was recertified until August l,
1968. Accompanying HUD Regional Administrator Edward H, Baxter to present the
certificate to Mayor Allen were George Papageorge, workable program branch director,
and Richard L, Larkin, special assistant for public affairs, Representing our com-~
mittee were Chairman Sommerville and Director Howland, As he handed the certificate
to Mayor Allen, said Mr. Baxter "Atlanta has met all requirements and is moving
steadily ahead on its program of improvement,'' Replied Mayor Allen: ‘Without the
help of the federal government, Atlanta would not have the standards it has today. We
are going to continue to do the job required and we are counting on you to help us doa
better job,'' Then Mr, Papageorge chimed in, saying ''Three years ago there was
some difficulty with code enforcement. Now there is tremendous improvement. We
are so proud of Atlanta's achievements that we are pointing it out to other cities as an
example.'' Mr, Baxter added a pat on the back to City Planning Engineer Collier Gladin
saying "Planning is a lot better.'' Commented Chairman Sommerville: ''The city is
doing a wonderful job. Our committee seeks to help the city departments whenever it
can.'' (Note as an example of this, we arranged the certification ceremony.)

CHURCH CONGRATULATED ON HOUSING PROJECT Our committee joined the

Atlanta Housing Authority, city
officials and other agencies in congratulating Ebenezer Baptist Church on being chosen
as the developer of 152 housing units in the Rawson- Washington urban renewal project.
Representing our committee at the contract signing ceremony were J.B, Blayton, Sr.,
Mrs. Grace Hamilton and Director Howland, Speaking for our committee, Mr. Howland
said: "On behalf of Chairman Sommerville and our entire committee, we heartily con-
gratulate Ebenezer Baptist Church and its co-pastors, The Rev. Martin Luther King,
Sr, and Jr., upon their outstanding proposal, which includes notable social considera-
tions as well as excellent design, "'

EXECUTIVE COMMITTEE MEETING - OCTOBER 19th -- DETAILS LATER