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-GENERAL SUMMARY
HOUSING AND URBAN DEVElCPXENT ACT OF 1968
Public Law 90-448, approved August 1, 1968
Housing goal - d~clant irJn of r,':ilicy
The ConGress affirms in '.he 19~8 Act the national goal of "a decent home
and a suitable living environment for every American family" (as stated
in the Housing Ac t of 1949). It states further that the highest priority
should be given t o m".:! eting the housing needs of those families for which
the national goal has not become a reality, and that there should be
the fullest prRct i.cable util i zation, in administration of Federal housing
programs, of the resour c es and capabilities of private enterprise and
self-help techniques.
OpFort uni ties for ':.r;:1Lnine and employment for lower income persons
The Secretary () f Housing and Urban Devel opment is d Lrecte d , in
administeri ng housinr; pro 6 rarns for low-jnco:ne fa:n.llJes, t o requ ire 1,
that opportunities for training and employment arisin~ in
connection with the planning, construction, rehabilitation,
and ope ra t ion of housing under the programs be given to
lower income persons residing in the area of -the housing;
and
2,
that to the gre atest extent feasible contracts for work
pursuant t o t he housing programs shall, where appropriate, be
awarded to bu s i ness concerns locat ed in or owned in subs t a!1tinl part b y persons r e s.id l ng -Ln the area of t he housing.
Improved des ign i n Gcv ~r nrne nt hou s i ng programs
The Congr e s:, ::om:712 nd s t h e Depar t me nt of ffUD for its recent efforts t o
improve arc h.l t e c t ural st qno ards , but dec lar e s that in the adminis t ratio n
of housin g programs wh ~c ~ a ssi s t in the prov isio n of housing f or low
e.nd mode r a t e l nco me fa mLlies , emphasis shall be gi ven to encouragi ng
good de s ig'1 a s an r!ssent i al component of the housing.
\
Impro vement c,f pr ogr a11 aoml.n: r;tra t l on
The Secret a r ~' is dire cted t o make a re por t t o t he Banking and Currency
Cammi tte e s e ar l i i n cal end ar ,y e ar s 1969 and 197') id en tifying spe c i fic
areas of progr a1n admi.n l stra 1, 1&lt;1! 1 and manageme nt wh i ch requ ire i mpr ovement.
The reports s ha ll describe ac t ions t aken and pr oposed to ~ake improvements
and recommend le gis lat ion ne eded to accomp lish the i mprovements .
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2
TITLE I - 10'.IBR INCOME HOUSING
Horneownershi
for lower incone familie s
sec. 23 of the !fa Lional Jlous inc; Act) is authorized to
provide Federal assistance to homeowner:::;hip uy lower income families
(including membership in a cooperative). Under the new program, the
Secretary of HUD may enter into contracts to make periodic payments
to lenders who make FHA-insured home mortgage loans to these families.
The payments will be in an amount necessary to make up the difference
between ?.O percent of the family's monthly income and the required
monthly payment under the mortgage for principal, interest, taxes,
insurance, and mortgage insur~nce premium. In no case, hrniever, can
the payment on a mortgage exceed the difference between the required
pay1nent und er the mortgage for principal, interest, and mortgage
insurance premi~~ and the payment that would be required for principal
and interest if the mortgage bore an interest rate of 1 percent. The
amount of the payment on each mortgage will vary according to the
income of the homeowner. The family's income is required to be recertified at least every 2 years and appropriate adjustments made in the
assistance payment to reflect any changes.
A new program
·l
The assistance payment is available for a purchaser having an income,
at the time of his initial occupancy, not in excess of 135 percent of
the maximum income limits that can be established in the area for
initial occupancy in public housing. However, up to 20 percent of the
funds authorized in appropriation acts for the program can be used to
assist families with incomes above these limits but which are not in
excess of 90 percent of the income limits for occupancy in a section
22l(d)(J) below-market interest rate housing project.
In calculating the income of the homemmer for the purpose of determining
eligibility as well as the amount on which the 20 percent computation will
be made, there will be deducted $JOO for ea~h minor child who is a
member of the homemmer' s immediate family and living with him. Also,
income of minors will not be included in the homeowner's income for this
computation.
The amount of a home mortga ge can not exceed $15,ooo ($17,500 in high
cost areas). These limits are increased to $17,500 ($20,000 in high
cost areas for families with five or more members. The same limits
apply to cooperative and condominium units.
The minimum downpayment is $200 for families with incomes up to 135
percent of the maximum income limits that can be established in the area
for initial oc cupancy in public housing and 3 percent in other cases .
I
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�J
A homeowner is to be given the opportunity, to the maximum extent
feasible, to contribute the value of his labor as equity in the
dwelling.
The Secretary is authorized to provide budget, debt management, and
related counseling services to homeowners who purchrtse homes under
the new section 2J5 program.
The housin~, with a few limited exceptions, must be new or substantially rehabilitrtted housing, except that up to 25 percent of the
amount of contracts authorized to be mrtde before July 1, 1969 can
apply to existing housin~, with this percentage decreasing to 15 percent the following year, and 10 percent the third year.
The aggregate amount of contracts to make payments Crtn not exceed
amounts approved in appropriation Acts. The payments pursuant to the
contracts can not exceed $75 million per annum prior to ~uly 1, 1969.
This amount is increased by $100 million on July 1, 1969, and by
$125 million on July 1, 1970. A reasonable portion of the contract
authority is to be transferred from time to time to the Secretary of
Airiculture for use in rural a~eas and small towns.
(,
In addition to thP. foregoing provisions, a mortgage executed by a
nonprofit or~rtnization or a public body or agency can he insured where
it fin°mces the ourcha~e (and rehabilitation if necessary) of housing
in viable, or potentially viable, areas for resale to lower income
families. The housing must include at least four or more one-family
dwellings (or two-family dwellings, one unit of which is to be occupied
by the owner), or at least four or more one-family units in a condominium
project, in the cases where rehabilitation is involved. The individual
mortgages given to finance the resale of the housing to lower income
families will also be insured by FHA ~nd assistance payments made on
behalf of the ourch~sers.
221 (h) Program
The 221 (h) program is changed to allow the Secretary to reduce the
interest rate on a home purchaser's mortgage under the program to as
low as 1 percent where the purchaser's income justifies, with periodic
adjustments between 1 and J percent to reflect changes in the homeowner's
incoMe. Under this program nonprofit mortgagors purch~se and rehabilitate housing with FHA insured mortgaies and resell it to low-income
families.
The limit on the aggregate amount of mortgages th~t can be insured and
out~tanding at any one time under the program is increased fro!\\ $20 million to $50 million.
�L
New F1-IA crcdi t assistancl:! for homeowncrshi .
A mort.r,ar,e insurance is at:thorized und e r a new Sec.
237 of the
~ational Housing Act ) for families of low and mocierat,e income wro,
through the incentive of homeownership and counselinf rtSsistance,
appear to be able to achieve homeownershir hut who, for rPrtson s of
credit history, i rre r:u lar income rat terns caus·e d ty seasonal employment, or other factors, are unable to meet the credit requirements
g~nerally applicable for the purchase of a home under the rer,ular
FHA mortgage insu~ance program.
A mortgage must meet the basic re~uirements under one of the various
FHA home mortgage rrograms. The credit and income requireme nts of
the particular rrogram do not apply, howe ve r, anc the r:rincipal ohligation of the mortga - e can not exceed £15,000 (117,500 in high-cost area~).
However, if the limit on th e amount of a mortgaEe is lower under a particular rr?gram, the lower limit is appl;cable.
The monthly paymentf, combined with local real estate taxes on the
property, will not excee d 25 rercent of the home r,t'rchaser' s income,
computed over the previous year or the rrevioi:s J years, whichever is
higher. The interest rates and mortgage insurance premiums are the
same as under the progra_n:i involved for other mortgagors.
C.
The Secretary of HUD is autl·.oriz e d to r rovide debt management
related counseling services to mortgagors whose mortr,age s are
under these ne w ·more liberal rrovisions. He can also provide
ing to otherwise eligible families who lack a downpayment on
in order to help them to save money for a downrayme nt.
and
inst ·r c d
counsela home
The rtggregate balance of mortgages insured under these new provisions
can not exceed at any one time $200 million.
Mortp,a~e ~nsurance for housing in declin "ng areas
Mortgage insurance is authorized, under any of F'PA' c mortgage insl'rance
programs, f0r the pt.:rch::ise, repair, rehabilitR.tion, or con ::;truction of
housing loca ted in olde r, de clining t!r t an areas with out r egard to the
normal reauireinents of th e particular prop.ram if FHA finds that (1) the
area is r e asona bly via ble, giving consid er ation to t. he need for providing adequa t:,r hot· sing for families of low and moderate income s in the
area, and (2) the property is an accer tabl e risk in vie,, of this consideration.
Special Risk Insu ranee fund
Srecial Risk Insurance F\.:nd is established which is not intended
to be act11ariall v sot.nd and 0t;t of which claims wi ll be paid on mortg.qp,es
insrred under th~ several new special mortgage inst; rance rrcr,rams for
housing for low or moderate income families. A .!) 5 million ad va nc P from
the general insurance fund is authorized to init i ate the new Srecial
Risk Fund. Appropriations are a11thorized to cover any lo;;ses sustained
by the new fund.
r new
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5
Condominium anrl cooI?erative owr,ers hip for low and moderate inc ome families
Rental housin8 projects financed with below-market interest rate
FHA 22l(d)(3) mortga8es are permitted to be converted to cooperative or
condominium ownership.
A low or moderate income purchaser can purchase an individual family unit
and an undivided interest in the common areas and facilities of a project
at a price not in excess of the appraised value of the property and with
a mortgage bearing the below-market interest rate then in effect. At
least a 3 percent doi.mpayment will be required, which can be applied in
whole or in part toward closing costs.
A cooperative, with me1i1bership open only to low and moderate income
familie s mee ting income limits prescribed for 221 (d)(3 ) below-market
interest rate projects , can purchase a 221 (d)(3 ) project for an amount
not exceeding the appraised value of the property for continued use as
a cooperative. The insured mortgage can bear the below-market interest
rate in effect at the time the commitment to insure the mortgage is issued.
(_
Assistance to nonprofit sponsors of low and moderate income housing
The Secretary of HUD is authorized to provide technical assistance with
respect to the construction, rehabilitation, and operation of low and
moderate income. housing to nonprofit organizations o The Secretary can
also make SO-percent, interest-free loans to nonprofit sponsors of such
. housing to cover certain preconstruction costs under Federally-assisted
programs .
The LJw and Moderate Income Sponsor Fund is established for the purpose
of making the loans with an authorization for appropriations of $7.5
million for fiscal year 1969 and $10 million for fiscal year 1970. The Fund
will be a revolving fund and repayments of loans will be deposited in the
Fund.
National Homeowner s hip Foundation
The National Home o,mer s hi p Founda tion i s crea t ed to carry out a continuing
program of encourag ing private and public organizations to provide
increased homeownership and housing opportunities i n urban and rural areas
for lower income families.
The Foundat ion i s aut horiz ed to make gr ants and loans (not otherwi se
available f rom Fe der a l s ources ) t o s uc h organizati ons to help defray
organizational and administrat:i_ve expenses , necessar y precons truction
costs, and the cost of couns elling or similar services to lower income
families for whom housing is being provided . The Foundation can also
provide t echnical ass istance to the organiz a tions .
Appropr iat ions up to $10 million are authoriz ed.
a l so use donat ed funds .
The Founda tion can
�6
The Foundation is to be admb.istered by an 18-member Board of Dir(!ctors.
Fifteen members are to be appolnted by the President. The Secretary of
HUD, the Secretary of ftgriculture and the Director of OEO are the other
three members. The bo0rd will appoint an executiYe director as its
executive officer.
N~w techr1olo;3i~s - housine; for lower incorn~ fami 1 Les
The Sccr2t9.ry of illJD ls directed l;o lnstitute a progrcirn under whi~h
q rnlified publl~ and pr i vs te organizations wlll suhrni t plans for the .
~evelcprn-=nt of h0uslng fo r lower Jncone families, using new and ~dvan~~d
~ e ~h ~oloGl cs , on Fed2ral land whl~h has been made a vail~,]~ for that
puc-p•JS-= , er 0 n .Jth-=l· l:md ,..,hi2 h i.s suitabJe.
1
The Secretary will approve up to 5 plans which are sutmlt~ed t o hi.m
under the program. He wi.11 consider (A.rnong other t.hings) the potential
of th·= techrioloGY e mplo;i,ed and the atllity of t:ie organiz'3.t.icn rnb::iittini;
th::! plan to produce a t leas t l,OO,) dwel.llng u;1its a ;year 1.lt ilizing t:.:iat..
tecll.:.10.luGy.
'i 'he ;;;ecrc l.ary .l s dire i::: t ed t0 seek r, o 8.&lt;~hie·-12 t;h e ::or,si·ructi. on of 9.:, least
1 1 )00 dw2lling u1ii!:.s a ye9.r over a 5-.:,·ear p e riod fur e9c!'l l f th~ ·.-erious
typ 2s 0 f L:!chnolo.;ies propo se d -fr, t.he plans appro·-1ed. H:.:: ii=; re·-_.ulr~d
~o r2p0r1; _A.t -t: hc e "!.rllest practicable dRte with respect tc the proj~cts
~saisted, toJet hcr with his r e commendations.
1
1
Mortr3a£;e8 flnanci.ng t he projects are authcrlzed to b e insured unde r t ~e
FJA expe rime n tal housing program.
Sf-,udy of .i nsurani:::e pro~;ect ion for homeowne rs
T':le Secret.'3.ry uf 111JD, in c ooperation Ki t h the prt vate insura nce industry,
i s e.ut hori zed t.o d e velop a plan for establish ing ar1 in surance program
to ?neble h ume uwners t c me et their monthly ~ort gag2 payra2nts in ti me s of
p ':'rsonal ~cono:nic 8dve r s Lty. The Secre tary is r e ·~u ired ~o r eport h l c:
act ion s 9.nd r.ecommc~,1dA.ti ons within 6 mc·nt.hs follow ing enact:ne.ri t of the
law.
N9.tional Advi. c .&gt;r ~- Sc ~::n i!? s ion on :Sow-In·:o:n'2 Hou s i_ng
A Nat i onal Adv i s orJ -.::ummi ::. st on on Low-Income Hous int;; ts &lt;::sta bl l s hed to
c,r.dert.Akc-; fl. c ornprehe :1s ive s tudy and inve stigate the resou:!":ct.::G BJ 1G.
cApabi li ti es Ln t h e publ: c ancl pri. vRt. e se-~t.o~s of ~.he c :: , · i-·11y ·.,~1-c h , w.;y
b ,~ u sec. ~.o f1~1 ru1 more complete ly !:.:ie cb,1&lt;"•~tives of Vv: nati 0nGl gt;al
of "a d e :~en t h,)rne nnd a Ll u itable livine; e nvironment for ever~· American
family".
1
(
·.rh-2 .:;0mrnls s i o.'. 1 ~s d l r2c t e d t o f:ubm i t Lo th-2 fr·2 sidc n:·. A:1d the .:one;r ~ss a.11
i 11t'=rir:: r c?or~. ·.., ~ ~h r es~cc t t o i ':. s f.indi r:..g:c:: anc r &lt;:?ccrrnc:idat ~on s no t lat.er
~.ha::-i .Jul y 1, 196'.: , ru:d. fl fi r.al rep ort no t ~Ater l hA.n J :.ily 1, 1970.
�7
TITLE II - llliN'l'/\ L l!OllSING FOR LOWE!/. UICOHF. li'f,JIILIE::3
A new program of Federal assistance to renLal and coopcrativL: hou s ing for
lower income families fa authorized by addin~ a new section 236 to the
National .Housing Act. The assis t ance is in the form of periodic payments
to the mortragee financing the housing Lo reduce the mort~agor's interest
costs on a market r a te FIUt-insured project morte;at;e.
The interest reducti.o n payinents uill reclm;e payments on thr.; project
mortgage from tlwt rcquireu for principal, inter~st, and mortgage in_surance
premium on a markeL rate mortgage t o that required J~ur principal an:::l.
interest on a mortgac e bear i ng an interest r a Le of :~ per cent.
The interest r educ tion payments will r edu ce renta l s t o .a basic chare;e, and
a tenant or c ooper a tiv(.; member wi l l e i.ther p.'.lf the basic ch:,.rge or such
greater amount as reprec enLs 25 percent of his income, but not in excess
of the charges which would be necessary without any inte res t reduction
payments. Income~; ot' tenants will be r eexamined at l eas t every 2 years
for the purpose of adjusting rentals. Rental char ges collP. cted by the
project owner in excess of the ba sic c har ges are to be returned to the
Secretary for deposit in a r evolving fund for the purpose of maki ng other
interest reduction payments .
Tenants of these projects who pay less than the fair market rental charge
for their units will generally have to have inc omes, at t he time of the
initial rent-up of the p1·oj ects, not in exc ess of 135 pe rcent of the
maximum income limits tha t can be es t ablished in t he area f or initia l
occupancy in public housing dwellings . Howe ver, up to 20 percent of the
contract funds authoriz e d in appropriation a cts may be made available for
projects in which some or all c.,f the unit s w:Ll l be occupied, at the time
of the initial r ent-up, by tenants whose incomes exc ee d the above limit
but do not ex ceed 90 percent of t he inc ome limi ts for occupancy of
section 221 (d) (J 2 be l ow-m.:i.rket i nteres t rat e r enta l housing .
In de ter mini ng i nc ome .for the pur pos e of eligibility as we ll as Lhe amount
of rent to be pa id a $J OO deduc tion i s per mi U ed for eac h minor person in
the family and any income of s uch minor is not counted .
(
To qualify for mortga ~e insuranc e unner t he new progr am, a mortcaeor mus t
be a nonpr of i t organi za t ion, a c ooperati ve, or a l imi t ed di vi de nd entity
of the type s permitt ed under th e FHA se c t ion 221 (d )(J ) r ent a l hous ing
progr am . The ::i.or t eage l iJnitati on::; 'trith r esp ect to maxirrn un mor Lga ge amount
are the s ame as for mort.gaees ins w·ect W1d&lt;~r t he (d )(J ) proc;r .::un . Interes t
reducti on payments can als o be made with res pe ct to State- a i ded rental
housinr; pro j ec t ::; appr oved for r ecei ving the benefiLs of tl1l:! program prior
to compl e t ion of c ons t ruc t ion or r ehabill t a t i on of t!1c proj ects .


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�8
Contrac L::; l'u1· u.::;:..;j3 Lance pay111enLs an! .:rn Lhori ze (t, cutJjcc L trJ a pproval in
appropriation ac L:.;, Lu the :cmonnt. of !C'/S mill i on ann1w. lly prior to ,July 1,
1969. 'l'his 2.mounL i:.; incr8t.. ::i l.' U by i100 mil.Lion oa ,July l, J 9G') , and by
$125 million on ,Jul;yr l , J.9}0 . A reas onable portion of this authority is
tu be trarn.i.l'e rred to t he Se cretary of Ag riculture .for u::;e in rural areas
and small totl'ns.
A pro ject, 1' i.nanc(~rl 1.111dc!r the rlL'\·J progr~im c~..r1 i i:1c lude such nondwelling
facilities as the Secretary deems aduqua te ::rnd appr·opria te to serve the
occupants of the pr ojed, and the surronndi11i:; neighborhoou, as long as
the pro,jcct is preJomln.:rntly res-Lcle n !.:io. l and any nonJtwllinr; facilities
contribute to the economic fea::;ibility ol' the pr oj e c t. Where a project
is designed primarily for occupancy Ly the elderly or handicapped it c;:i,n
include rela ted fncilities f(,r their use, :.r..ich a::; dining·, work, recreation,
and health facilit.i. es .
With appro 11al of the 3 21~re Lary of mm a mortgagor ca,,--i sell the individual
dwelling units Lo lowe r incoJr,;:) p1i.rchm3ers and these p t.Lrcha::;8rs .:ire elig ible
for assisto.nce payments w1der the provisions of th0 ne:w homeownership
program.
(
A cooperative or private nonprofit corporation or acsociat.ion can purchase
a proj ect from a limited dividend mortgagor and finance the purchase wi th
a mortcag8 _insured under the program.
· Projects for low and moderate income families financed under the below
marked 221 (J) (j) progr3Jn can be transferred, prior Lo fina l endorsement
for FH/1. insurance, to the new rental housing interest. reduction program.
Projects for the elrl.erly or ha ndicapped approved for direct loans can
be refina nced unde r the new intere st re duction pro~ram at any time up to,
or a reasonnble time after, proj ec t comple tion.
Rent supplr.ment payme nts may be pr ovide d for tenants in projects financed
under the new program, but no mor e t han 20 p erc ent of the units in any
one proj ec t can r eceive r unt s uppleme nt assistance.
Rent snpplcm&lt;J nts
The authority for r ent supplement c ontracts (sub ject to approval in
appropriation a cts) is increased by $1.iO million on July 1, 1969, and by
$100 million on July 1, 1970.
State-aide d projects are maue el:Lc.Llilc for rent, supplements if the projects
are approved for thiG benefit prior to comple tion of cons tr uc tion or
rehabilitation.
�9
In determining the income of any tenant for the purposes of the rent
supplemr.nL program, $JOO may l.Je deducted for each mi nor person who is a
member of the immediate family of the tenant and li vinr, with t he tenant,
and the earnini:;s of any suc h minor person s hall not be included in the
income of the tenant.
Low-rent public housinE;
Authority for annual contributions to low-rent public housing is increased
by $100 million on enactment of the law, and by $150 million on July 1,
1969, and July 1, 1970.
The Secretary of HUD is authorized to make grants t o local housing
authorities to assist in financing t enant services for tenants of public
housing. Appropria ti ons f or the grant s are author i ze d up to $15 million
for fiscal year 1969, and $JO million for fisc a l 1970 .
l
Preference is to be given to programs providing for maximum tenant participation in the development and operation of tenant services. Tenant
services include: counseling on household management, housekeeping,
budgeting, money management, child care, and similar matters; advice as
to r esources for job training and placement, educa t i on, welfare, health,
and other community services; services which are directly r e l ated to
meeting t enant needs and providing a wholesome living envir onment; and
referral to appropriate agencies when necessary for the provision of such
services.
Public hous ing ass i s tance i s permitted for Indian f amilies who live on
or adjacent to their farmland.
High-rise public housing projects for families with children are prohibited
except where the Secretary of HUD determines that there is no practical
alternative .
The Secr et ary i s prohibited f r om prescribing limitat i ons on the t ypes or
categories of struc tures or dwe l ling uni t s (other t han those provided i n
the law ) whi ch ca.n be l eased under t he publi c hous ing, sec tion 23 leasing
program.
An additional annua l s ubsidy of $120 i s author i zed f or public housing
units occupied by large fami l ies or fami l ies with very low incomes .
w eal housing authorities are permi t ted t o p urch~se structures lease d under
the Section 23 program for the purpose of reselling the strlict'J.I'e to the
t enants , or t o a group of tenants occupying units aggr ega t i ng in value at
least 80 percent of t he structure ' s value. The purchase can be on s uch
terms and condit i ons as may be ne cessary t o enabl e the t enants involved
to make their purc hases without undue financial hardship.
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TITLE III - FEDERAL HOUSING ADMINISTRATION INSURANCE OPERATIONS
Perfecting and liberalizing changes arP. made in a number of existing
FHA mortgagP. insurance programs. In addition:
FHA is authorized to insure loans to homeowners to finance the purchase of fee simple
title to property on which their homes are located where the
homeowner has only a lease.hold interest in the land;
insure 90 percent supplemental loans to finance improvements and
additions to FHA multifamily projects (including nursing homes
and group practice facilities);
insure supplementary rehabilitation loans to housing cooperatives
which purchased war housing covered by an uninsured mortgage;
permit the cost of nursing home equipment to be included in an
insured nursing home mort~age; and
C
insure ·mortgages on new seasonal homes,
The Title I home improvement loan insurance program is changed by -
(
1.
raising the limit on the amount of a loan from $3,500 to
$5,000,
2.
raising the maximum maturity from 5 years and 32 days to
? years and 32 days, and
·
J.
incre~sine the maximum financing charge to $5.50 discount
per $100 of the first $2,500 plus $4.50 in excess of $2,500
(now $5 and $4, respectively). ·
Mortiages financing the purchase of housing rehabilitated by local pub1ic
agencies in urban renewal areas is authorized to be insured by FHA under
the existing 220 and 221 (d) (3) pro grams as well as under th e new section
2J6 progr~m providing for interest reduction payments,
The maximum mortgage amount under section 203 (1) for homes in outlying,
semirural and rural are~s is increased from $~~00- to $1),500.
~~
�11
TlTLF
r, -
l il A;iA, !"['l: !·:~: 1.. ·,11
r·1 r:x ,;: r·H,
'.·! '·I,' i~!")t,F-'1 : i rT" LA 1: ]) 111: 1!\U: };:'. f;r r
(n ;:e\-.' ~~011,;ra:n iti ~s Act o :' 1 ') ( ;0 11 )
Title IV, the 11 Ifot-l Comrm,r!ities Act of 1968 11 , rrovices additional FPdP.ral
assist;:ince to new cornmt.; ni ties.
It . is designed t,o Ccnlist new so1 :rces of
private capital in t he ir develorment.
The Secretary of HUD is authorized to guarantee obligations issued un
the bond market by private developers to help finance the land acquisi~
tion and land development cdsts of new communities.
The obli1:ations f'. t.: arant e ed for a n~w c omtnun-i.. ty may not exc e·ed the lesser
of (a) Go r c rcent, n C \he Socn, tary's estimate of t,he ·1al: :e o.t' ·.he prorerty ur,on completion o ~· t he lanr. development, or ( h ) t hP s t.:m of "(5 rercent oi' t.b c Sc cr0. ta r y' s estimc3Le o f th8 ·, ale e of the land h 0 for e development plt.:s ) 0 r e rcent of his estim.:1te of the act uc1l co s t 0 1· the land
development, or (c) ~:·so mi1 lion.
The a ?cr c gnte amount of outstandinB principal obli ~ations that may he
gcarant c ed is limit e d to ~ 250 mi llion.
l
(
To be eligible f or a f.Uarantee or commitme nt to guarant e e t,he Secretary
must det e rmine that 1.
t,he r, ropo se d new cornmi;ni.ty will be economic a lly i'e a s iblc and
wjll contrihut.e to the orderly de velopment of the areci of
which i t is a part;
2.
th e re is a practicab le plan fo r financin g the n1:=w c or.uurnity
and for mark e tinr the land which r e presents an accepta ble
fin .:r ncial risk to th r. l' n ited State s;
3.
th e re is a sound int e rn a l deve l opme nt plan for t r e new
comm•;ni t y t-:h ich has r c ce i ve d all rent.: ire d St.J. '·,e or local
f:;OV c rn m0 n t a r::r ro vals, ;md i_s acceptabl e to th e Secre tary
as cont r ibLtin g to r;oo d livin g condition s in t he are a and
incl11dinr; a r,ropE: r balance of hoi: sirp: f or famili e s o f low
and moderate income&gt; ; and
th 0 int 0 rn ~1 de ve lo p me nt r lan i s c onsic t e nt ~i t h c o~rrehensive
pl:mrinp; .::'or th P. are a wh j ch mee ts c rit nria c s tab l ished by
th e Se c re t.ary.
The Se cret ary is au t h ori ze d i. o es tahlish a r c vol vin r f und t'or !.he w aranty
f !'Of'. ram wf-: i. ch will ·r e comp ri sr: d o f (1 ) r e c P.i p t,s :'rom r'c-e s an d charr,e s , (2)
othe r r P. ce i p ts, and (3) s L: ch sLi ms , a1 1th ori zed to he appr opriatP d, as ma~·
be r equ i re d.
�'
.L,
.
The Secretary is al~,o alithoriz r-d t.o rnrikr. s1 1 prlcrTH!nLa.ry r.rant.~, t,r;
SLaLc anLi l e-cal rd,ljc bodies anc:I c1.. ·C'nc i c s for 1-:atr·r nnd r, (Jv1r, r
facili tics anc! ortin srace assisted l:y f'. ran ts Under the l1 01 1SllW ;ind
Urban Development Act o C 1965 or th e Gons olidat.e ci Varrn0rs' f1 nme
Administr:.ition Act, and the l!oijsing Act of l &lt;)(,l. The S8crc1..'.lr;r r-,11d
determine~ that tr.e surrlementary 1:rants are desir.:i.ble t'or ca.rryin~~
out a new commun"i ty ciP.vc lopment ~-roj f·r. t, and th;1L .1. s1:l",t'trmtL1l n1 ,rr.l 1er
of housinf'. i.;11it.s for low and 1::ociPral.P. inr.orr:P. p·rsot!S is to r mar:e
availahlr: t.hroi.;;,:h :.h&lt;: r r nj~r.t..
0~
The suppltir;;r.; nl. :11':1 r.,i·arit cannot. · xr.cr.d 20 rcrcent of t.} ~1' r.u~; t, 01· t.bc
t'acil Hy and th -~ Lot:11 Federal 1;rant i~,; limi tC: d to 8::, f •f:rr:cn_t of
fncili t.y coi,t. Arprorri.:1tions t'or s1:pple1n1:nt,3.ry r:rants a,8 .11 · thorizrid
up to ~,5 million for fiscal year 196) , and up to :: 2~ mi , lion for l'iscal
year 19'(0.
TITLE
(_
1/
-
T_!HBAN RENE&gt;.-! AL
Netghb..:irh noc~ Dev~: Jupr:1eni, Pro 0r9.m.~
The Secrcl.2.ry of Elm 1 : _; authurlzed. to provide financi e.l assist.an&lt;-~) for
n~lghborhood develop:n2rit programs, ~1 ne,.,r n.pproneh to urorn1 !-=n~ ·, ra] wh ich
wlll faciJ l tat c more rapid reha.1:iili tat ion 1:md 1·ec'l:::v·. .:lopm:.!nt of blighl~(:a
areas on an 'iffect:v~ sc ale, A neighborh-ood dP.'1elopm1_&gt;!1t program ·.:::on::.: i.sts
of urban renewa l project 1mdertakings 8..'1d activl1..i~ s i f! on~ or more ;,µ·ban
rene,.;al n.r ·=as that are planned and carried out on th1: lJ9.si.s of a:!1. rn.1i:iJ
increments. Financing is based on the amount of l 0ari and grcmt funds
needed to carry out -:h e acti vir.i es pla..1w~d dul'.'ing a l ?-mcnt .h p e :!'lod ln
ea.ch of the urban re!J~ ',181 are es -:.:on l.~ ai!len in 8. CO!Il::11l'1i ty Is r.,rOGt'3.l'i, Ir
funds ar2 avaiJabl~ and a communi tJ" ' f prog:.:-a.m is P..cc0.pt&lt;=1bl2 to the ,3e.:::retar.:,·,
a co:urnnnltJ can receive fina;.1cial assistance based on its need for t;ub:.iequent annual incr,~me nt s of thc.: ;,roc;rom.
The Redevelcprn~nt Land Acency of t-,h8 DL~t:-ri.ct o f' C·.; l •1 !nh ·;_,: is b iv~ n
author lty t o p lan ru1d unde rt ak e ne Lr;hborhoocl develcpm2·,.t progrsms.
r~ ~reas 2 in m1t.borizatlon of grants
'rhe authoriz e.t: i on f o r urban r2 t1ewal gr:mts Ls i nr~t·-~a:·'--'d 1Jy ~1.!~ 1JillL:m
on July J., 1969. In oddi tlon , the authorizat ion for v.rb en ren~,val grants
for proj ects in model c iti es area: Ls lnc r ~ased 1y ~33 0 mi.llion.
(
Reh1Ju.i.li.tatton 16rants
The limit on the a 100unt of a relv=i1; il"LtEi.t.i u ll c;rA ,:-. tu ~.:i. lo•.,·-i. r:c c.,10~
homeowne r ls ir.c r eas c n from :~1, ~,,J0 tv $ 3, 000 and the g ra:11~ Ls made
available f or r ·.=h abi.li t etion of :i:12c.l property tn ':lddi.tion Lo the d·..,re J.ling
itself.
Rehabilitation ~rant s are authori zed to b e mad e to low-:L ncomP. ho;:ne owners
for repa lr s and improveme nts of d\1e llings out s i c1..~ urban r&gt;2rlc ·.-1al end code
enforceme nt areas 1.
where t h e dwe ] lings are .Lr;i areas certif i ed. by t he l ocal go,.rcrnlng
body as contaj 11i.ng a s llb r,t a n LiaJ. numbe r o f s t.ruc t ur~s i n !1eed
of r8habilit.at l on ,
�13
2.
if the locality has in effect a workable program for community
improvement, and
3.
the area is definitely planned for rehabilitation or code
enforcement within a reasonable time, and the repairs to be
assisted are consistent with the plan for rehabilitation or
code enforcement.
mm is also authorized to make rehab ill tat ion grants to
low-income homeowners whose property has been determined, after an·
inspection pursuant to an approved statewide property i nsurance plan, to
be uninsurable because of physi cal hazards. The erant may be made only
to rehabilitate the property to the extent that the Secretar.y determines
necessary to make it meet reasonable underwriting standards imposed by
the statewide plan,
The Secretary of
Rehabilitation loans
'rhe rehabilitation loan program has been broadened in the same manner as
the rehabilitation grant program with respect to properties located outside
urban renewal and code enforcem:nt areas and those found to be uninsurable.
(
The amount authorized t o be appropriated for each fiscal year is increased
from $100 million to ~150 million ru1d the program is extended to June 30,
1973 (in lieu of the previous expiration date of October 1, 1969).
Eligibility for residential rehabilitati on loans is limited to persons
whose annual income is within the locally applicable income limits
for the section 221 (d) (3) below-market interest rate program.
Limit on LPA rehabilitation in urban renewal areas
The previous limits on the acquisition and rehabilitation of residential
properties by local rene wal agencies are r e moved.
Under prior law, an
LPA could acqu:!.re and rehabilitate for demonstration purpos es no more than
100 units or 5 perc ent of the total residential units in en urban renewal
area, whichever is lesser.
Dis osition of ro ert, for low and moderate income housintL_
Land in an urban renewal area is authorized to be leased i n addition to
being sold as previously provided) for low or moderate income housing at
a price consistent with the use for that purpose. A builder is permitted
to purchase the land at the write-down price for low or moderate income
sales housing. Under this provision land can also be made available at
the write-down price for housing assisted under the 221(h) program, and
the new interest reduction payment programs authorized by the Act for
homeownership and multifamily housing.
Grants for low and moderate income housi ng in open land projects
Grants are authorized for open land urban renewal projects where the land
is to be disposed of for low and moderate incomP. housing. Previously,
open land projects were not eligible for grants. The grant may be for
�14
two-thirds of the differenc e between the proceeds from any land dicpoaed
of at its value for low or moderate income housing and the proceeds which
would have been realized if the land had been disposed of at its fair
value without regard to its special use.
Demolition grants - rat harborar:es
The Demolition Grant Program is expanded to permit grants for the
demolition of structures which are rat harborages or potential rat
harborages.
Use of air rights sites for educational facilities
Air-rights urban renewal projects, and the construction of necessary
foundations and platforms in any type project, are authorized for the
development of educational facilities. As in the case of industrial
development, an air-rights project and the construction of foundations
and platforms would only be available for educational facilities if
the area is unsuitable for low or moderate income housing purposes.
Low and moderate income housing in residential urban renewal areas
A majority of the total number of housing units in a community's
(__
residential urban renewal projects which receive Federal recognition
after August 1, 1968 must be for low and moderate income families
or individuals, with at least 2~ of such total for low income
· families or individuals. The Secretary may waive the 20i requirement
to the extent that the units are not needed in the community.
Workable program requirements in case of Indian tribes
An additional period of time, until January 1, 1970, is provided for Indian
tribes, bands, or nations to adopt and carry out minimum standards housing
codes for workable program certification.
·
Interim assistance for blighted areas
The Secretary of HUD is authorized to contract to make grants aggregating
up to $15 million a year to cities or counties to assist them in taking
interim steps to alleviate harmful conditions in slum or blighted areas
of communities which are planned for substantial clearance, rehabilitation,
or federally assisted code enforcement in the near future, but which need
~ome immediate public action until permanent action can be taken .
The Secretary is required to encourage employment of unemployed or
under-employed residents of an assisted area in carrying out the activities
to be assisted.
Grants may not exceed two-thirds of the cost of planning and carrying out
an interim assistance program, except that three-fourths grants can be
made to any community with a population of 50,000 or less.
A community has to have an approved workable program for community
improvement to qualify for assistance, and relocation assistance and
payments will be available.
�.,___ -
15
Rcl.oca Lio11 l'a-: r1 1t : t1l.:,

~--Relocation adJu0LT!li;11L
pay1w::nL:, m· c) bn1.:.id0ncd to JJCrmit. p.::iy rr1ent.,:::; of up to
$)00 per J8:.J.l ', !\J!.' .-L / - J c:::i r r1:::'l'~.(ld . ::ur:ll p::.y11tt.mL~: !J:.J.ve be en heretofore
limited to :.J. rnaxjJn11m of $S\..HI pa~_,a:;le OVL!l' a ;; rnonLh period .
A new pRyment is a nt hori_:,ecJ for a dinpl.:lced owner-occupcmt ul' residential
property t o cnahlc !Ji.ill Lo p urr.has c c.1 r e placement d1,elline . Tlte payment,
which cmmo t exceed ~~1_' _,000 , le l,hc• dil'fen.mc e bet.,_·men tlte avcr:i.gc price
for- an adequa t e replaceme n t homt.i und the ucquis i tion price of hi::; former
home.
Tl'l'Jl~ VI - ln-1. 01\N PLi\NN:rNG AND FAC ILITif;_;
Comp:?:"ehe ns i ve pla!m.r nc
(_
The section 701 planning as:::;istance e:rant proc ram ls exter1sivo ly revised.
The Secretary oJ' HUD i s ,not-·authorized to make _comprehensive plannine:
grants to State pl:rnning agencies for ass i stance to 11 distr ict 11 planning
agonc ie::; for rU1·al and other nonmetropoliLan areaG. Consultation with the
Secre t ary of Ag r iculture i s required pr ior t o approval of a n;y district
planning grants. The Secretary of Agriculture and, when appropriate,
the Secretary of Conunerce may provide technical ass i ::;tanc e in connection
with the establishment of districts a nJ the carrying out of planning by
them. Such Jistrict planning may not b e aimed at assistins businesses
to reloca te .from one a rea to another.
Other new provision::; authorize direct planning grarrts t o Indian trib a l
planning counc ils or other bodies for planning on Indian res ervations;
to re g iona l and district councils of governmen t as we ll as those organized
on a metropolitan ba n i ::; ; to reg ional commiss ions and economic development
distric ts established unJe r tho Public Works and Economic Development Act
of 1965; t o cities, without regard to popul:.J.tion, within metropolitllll areas
for plarming which is part of' metropolita n planni..11.g ; and t o official
Goverrunent pl&lt;-1.nninr: a ge ncies for nreas where rapid urbo.niz.:i.tion is expected
as a result of a new c oJ11JT11111i ty- cie ve Lopmc nt a s sisted under title JV of
this act. The Secretory i s r cqnir e d to ·cons ul t i,J ith the Secr e tary of
Cormnerco Lefore rr1c1 king any pl3I111in;_~ gnmt which includes any part of an
economic d~velopment d i strict .
The definition of c ~mprAhensive pl~nning is broadened to include
planning for the provision of governme nt,3 l servlces and for the rievelooment ,3nrl utilization of human and natural resources. The inclusion
of· a housing element is required a~ part of the pr eplration of comprehensive lani use plans. The USP. o f private consultants, whP.re their
profe s si0na] sArv i c~s are dP.P.med appropriate by the assisted governments,
is added to the stated purposes of the program.
The authorlzation of apnropriations for grants is increased by P35 mil~
lion for fis~.:ll y~1r 19t;9 (includ\.ng t 20 million ea r m::irked for district
planning) ancl by :$125 million (induding plO million for district planning) beginnin ~ fiscal YA~r 1970. It is also provided th.qt an additional
$10 million of s P. ct\. on ?Ol apor or r i~tions i s to be avail able fo r study ,
fes e a r ch ani de~onstr~tion proje~ts.
�16
Planned areawirle rlevPlopm~nt
Supplemontary grants (rt es i gnP.d to Anc0'1r;i.ge areawide planning) are autl1orized for F'P.der.11ly-assisted projects in ;ill multi j 11risdictional
areas (not just metropolitan ar~a~ as previou ~ly provided )su~h as the
rural pl;mninp; distri c ts proposeri to ~e assisted with co·TJprehensive
planninR grants unde r t he comorehensive plRnnin g provisions of the
law. UnUBed authorizations for appropriations for supplementary grants
for fiscal year 19~7 3nd 1968 are made available through fiscal year 1970.
Advance Acqui sition of l and
The adv::ince acquisti on of bnd progr.:im is extensively revised. Among
the more signific::int ch::inges is a broadenin g of the definiti on o f eligible
land from land "pl::inned to ~e utilized in connec t ion with the future
construction of oublic works and facilities" to "land planned to be
utilized in the future for public purposes". Grants can also be made
for the imputed interest cost when a public body does not use borrowed
funds to acqui~e the land. Authority is given the Secretary to extend
the requirement that the land must be used for its proposed purpose
within five years if he de ems a longer period necessary due to unusual
circumstancPs ~nd so advises the B~nking and Cur~ency Committees of the
Congress. It is also provided that assistance under this program will
·not render a project ineligible for othPr Federal assistance programs
and th at the cost of land acquired with assistance under this prograM
will not be an ineligible project cost in such other programs.
Water and s ewer f ac i lit i es progr am
The interim planning requirements under the basic water an~ s ewer facilities grant pro ~ram is extended to Octobe r 1, 19~9. It is also provided that in admini s t e ring the program, to the greatest extent practicable, new job O:.lportunities shall be provided for unemployed or
underemployed persons.
Authorizati ons -- water and sewer, neighorhood f acilities, and advanc e
acq~~ ~~ t _
~o!1 _of lanrl prog!_cl!11S .
The author i7.ation fo r appropri ations for the s e three pr o:rams is ext ended
to permit the appropr i ation , fo r fi s cal ye ar 1970, of any fu nds autho r i zed
but not appropr i ated p r ior to th at time . Also, an additional $150 million
fo r f i sc al ye ar 19h9 an1 $115 milli on for fis ca l y ear 1970 are autho r i zed
to be anor opr i a t ed fo r the wa t er and s Pwer faciliti es grant pr ogram.
Open space l and program
The contract authoriza t ion o f $310 mil l ion for grants under th e open
space land nrogram ls changed to a lJ lO mi l l i on au thori zat i on o f appropriations prior to July 1, 1969, wi t h $150 millio~ in add i tional appro. priations authorized for fiscal year 1970 . The l imit on the amount of
the fun1s that can be used for s t udies and ~ublishing of information
is increased from $50, 000 to $1?.5,000 per year.
�17
FPa:.ih .i. liLy ::, Lurlic s - p 11h.lic i-rork;:; pl.r. nninc :t&lt; !'ro.ncr :,
It is ·m:.ide clear th:'lt the Secret::iry of HUD has au th0ri ty t0 m;ike ;iclvanr:es
for feasibility stur:lies unrier the oubl ic works pl;rnning .:i-iv;inces progr;:im.
TITLE VIT - !JRBAU MASS TRANSPORTATION
Authoriza tlon
The autl1~ri7.,:ition o ~ appropri;itionf; for gr;ints ;,nri 0ther ::issi.c:-t.;rnce to
· urb::in mass transportation is inr:re:ised by $190 mil lion ror fiscal ye;ir
1970. The a'.llount of funrls which c 'rn be used . for res~;:ireh, riev ~lopment,
and demonstration projects is increased hy ~IS mill i on, c0i'!lTTl 0 nc i.np.:
July 1, 1968, -'l !lri t.hP. st;itutory limit on the fun-1s av:1i1;1ble fo'!" this
purpose is n ~moved, cor.imencing July 1, 191S9.
Emergency rir orr am extended
The emergency ma s s transportation c apital grant program expir~ti 1n d::it~
is extended from ~ovember 1, 19~8 to July 1, 1970.
Defi nition
The definition of "mas s transportation" in the Urhan Mas s Transnortation
Act of 194+ is amended t o allow g r e;i ter flexibility 1.nd oon0rtunity for
aoplication of n~w concepts ::ind systems.
Non f e deral sho.re of ne t projec t cos ·t
Not more thnn half of the non-federal sh~r or the n~t proj r rt ros t of
a mass trRns por tation nro j ect is oermitte d to ~e paid fro~ priv ~t e
sourc es , e xcept in cer t a in c as e s of rle:non s tralf:id fL=; cal in;-1h i Lity . A'1y
oublic or r riv a t e tr.:rn s i.t sy st em f'unrl. s provi ciPci for l !,P. rn, n- t;"l"! ler;il
sh;J.re mu s t 1-ie sol e ly fro"! unr:list.rihute d c ~sh surplu ~Ps, r w)l ::i c P11ent or
de'1reci:ition funds or r &lt;"?se rve s av.:1 il a ble i n c1sh, o r new ca ptia1.
0
1
TITLE VIII - SECONDiillY MOTITGJ\GE MAR.KET
The existing Ft::ldcral Na tiona l l"iort.ra8e Associa t ion (1'1Il'iA) i s directed t o
be par titi one d i nto t wo i, cpa ratc corporations . One wi ll b ~] a Governme nt
spons ored privat e c orpor ation, to b e lrnmm a:.; tile Fe dera l. !la t i.cno.l Mortr.a '.:i:e
Association (FNHA ), to ope rat e t h0 :,c~c ondary mortr..:i.r,e marke t. oywr:Li,l ons .
The othe r wi ll r ema in in the Government a nd conti nue to ope1\1.te t he
opecia l assio t a nc e funct i ons for s pecial Fe de r a lly - aided hons ing programs,
and the manageme nt a nd l i qui da tin~; f unc U one of the old FNMA. TllP 112H
cor porat i on wi ll b e known a s t he Governme nt Nat :Lonal Mort c;ago A:J;:;ocfo.t ion
(GHMA ) .
FNMA i s authoriz ed to issn8 and s e ll securities l..i.::.tckod by a por tion of
i t s mortgage p 0rtfolio , with GNM.J\ ~u.'.lran t ce :i.ng pa;y11tenL on s uc h securitie s.
GNMA can also euarantee s imilar securi t i es i ssued by o ther pr i vate issuers
·where they are uacke tl by FIIJ\, VA, and some Farme rs Home Administration
mortgages or loans.
�••
JO
The spcci.:i.l assit,tance authorl7. a Lion of FU.MA. (no.-1 GNHA ) i s increa:..:ed by
$500 million on July 1, 1969.
The provisions of thi:.; title will become effective after a date, no more
than 120 days following its enactment, established by tlte Secretary of
HUD. The Secretary ho.s established this date as September 1, 1?68 .
Provisions are madu uit h respect to tlie capital stock of F1'111A and its
board of directors Juring a transitional period. The transiLiono.l period
will end when 1/ 3 o.f Lhe FI,JMA r, omm,·,n ::; t ock is owned h•r pers ons or orc;aniza tions in tile rnorti_:.:i.;:e l endin~; , home builu:Lnr; , r eal r.stn Le or related
businesses , but not sooner than May 1, 1:)70, nor .la ter than M.:.i.y 1, 1973.
The ITU1jor i ty of FNMA' s board of di rec t or::; ar c. to b e; appointcrJ. by the
Secretary of HUD durini; t he trans i t ional period. 'I'lic President of FNMA
during this period will be appointed Ly the Prc::iident of the United States
and confirme d by the Sen:i.te. One of t he ~ecretary ' s o.ppoinkes to the
Boa.rd will be the President.
After the trans itiona l period FNMA wi ll be governed by a 15- memuer board
of directors, five of whom will be appointe d by the Pres i dent of the United
States.
(
The new FNMA will be sub,ject to the general regula tory control of the
Secretar y of HUD, who also mus t approve the issuance of all stocks and
other obligati ons by FNMA and may r equire it to alloca te a r eas onable
portion of its mortgae;e purchases to mortgages i n low and moder ate inc ome
housing .
TITLE IX - NATIONAL HOUSING PARTNERSHJJl~
A nati ona l housjJ1g partners hip i s · to be cr eat ed f or the purpose of securing
the partic ip3.tion of private i nves t or s in progr c:ww and projects to provj de
hous ing for l ow and moderate i nc ome families .
Ini ti.ally , a f eder .:i.lly char ter ed, priva t el y f unded corpora tion will be
organize d under the Db trict of Columtia Dusiness Corpor~tt i ou Act . The
corpora tion in turn will organize t he Nat i ona l partners hip under t he D.C.
Unif orm Limi t e d Par t ner ship Ar:t .
The corporat.i.on will serve as t he ccncral partner anrl manDr,i.ng acent of
the Na t iono.l partnc1·chip and each of its stockl1olders can be limited
partner s. It will provi de the staff .:i.nd expertise f or t lie Partnerchip in
orc;ani zing and plannint.; project undcrtakinc;s i n which Lile p::ir L11crship
has an interest, and r eceive a fee for such s crv:ices .
Both the corporation .:md the Na tional par~,nership are authorized to
engage in a uroad range of' ac tivities appropria t c to tl ie provision of
housing and relate d facilities primarily for low or moderate income
families , with or without the use of Federo.l programs, ancl m.:iy enter int o
and participate in al l forms of -partnerships and associations. The National
�•
19
partnershi p is expected to form pa rtnership ventures with local investors
for the purpose of building low and moderate income housing projects
throughout the nation. Normally, it will be a limited partner in such
undertakings, with an interest of not more than 25% of the aggregate
initial equity investment for the project.
The President will appoint t,he incorporators of the corporation and 3 of
the 15 members of the board of di r ectors. The incorporators will serve
as the initial board of directors and arrange for the initial off ering
of shares of stock in the corporation and interests in the National
partnership.
The President is authorized to create additional partnerships when he
determines it to be in t he nati onal inter est.
National banks are authorized to invest in a corporation and other
entities formed under this title.
TITLE X - RURAL HOUSJNG
Housing for low and moderate income per s ons and f amili es
The Secre t ary of Agr i culture is aut horized to pr ovide direct and insured
loans for housing in rural areas to low and moderate income persons and
families and to provide renta l or cooper ative housing for such per s ons
where assistance is not available under the new interest redu8tion programs
authoriz ed by t he l aw. The interest rate on the loans can be at a r ate
set by the Secr etary after considering the c ost of money to the Treasury
and the payment ability of the appl icants , but not l ess than 1 percent
per annum. An int erest supplement necessary to market the insured loans
will be paid from, and reimbursed hy annual appropriations to, the Rural
Housing Insurance Fund.
Housing fo r rural t r a inees
The Secret ary of Agriculture is authorized t o provide f i nancial and
technical a ssistance to t he provision of hous i ng and r el a t ed facilit ies
in rural areas f or rural trainees (and their famil i es ) enrolled i n
Federally assisted t r aining cours es to improve their employment capability.
Advances for land purchase f or t he housing will be repayable within 33
years and bear inter est at a r ate (not l ess than 1 percent ) determined by
the Secretary of the Treasury t aking into considerat i on the current
average market yie ld on outs t anding Federal obligations . Other advances
would be nonrepayable, or repayable with or without interest, depending
on t he applicant ' s payment ability, from pro j ect net income and any other
available sources .
Mutua l and self-help housing
A new program of grant s and l oans is aut horized t o provide assistance in
rural areas and small t owns to needy low-income individuals and t heir
fami lies f or mutual or self-help housing. Gr ants can be made to public
or private nonprofit organizations to pay part or all of the costs of
developing compreh nai ve programs of t echnical and supervisory assistance
to aid individuals and their families in carrying out rrrutual or self-help
_housing efforts.
�20
loans can be made on such terms and conditions and rn such amounts as the
Sacl!etary of Agriculture deems necessary, to needy low-income individuals
participating in programs of mutual or self-help housing approved by him,
for .the acquisition and development of land and for the purchase of
building materials as may be necessary, for the construction of dwellings.
Loa.ns will bear interest at not .more than J percent per annum, and be
repayable withrn 33 years.
A eel.f-help housing land development fund is authorized to provide a source
of short-term loans to public or private nonprofit organizations to buy and
develop building sites to be sold to families, nonprofit organizations,_
and cooperatives eligible for assistance under the new interest reduction
progrmna for housing for lower income families.
TITLE J;I - LR PAN PROP~RTY PROTECTION AND REIN.stRArJCE
_T itle XI enacts the "Urban Property Protection and Rernsurance Act of 1968."
(
Under this Act the Secretary of HI.JD is authorized to provide private
.insurers with reinsurance against losses resulting from riots or civil
disorders. The sale of reinsurance is limited to those insurers that
cooperate with State insurance authorities in developin~ statewide plans
to assure fair access to insurance requirements, called FAIR plans.
Reinsurance may only be provided in States which have such plans.
FAIB plans may vary among the States, but all plans must satisfy minimum
statutory criteria. The principal requirement is that no risk can te
written at the surcharged rate or denied covera~e unless there has teen
an inspection of the property and a determi nation made that it does not
meet reasonable underwriting standards at the applicable premium.
Additional requirements relate to the procedures to be followed with
respect to inspections, the provision of reasonable notice to property
owners of cancellation or nonrenewal of policies, and the formation of
an all-industry facility which will place the insurance in the r egu lar
market. S1; ch •'AIR Plans are to be administered under the supervi sion
of the State insurance auth ority. As a condition for providing reinsurance
in a State, the Secretary can require additional programs to make property
insurance available without regard to environmental hazards.
Reinsurance is offere d in standards lines of property insurance coverage
and can be pr ovid ed ·immediately followin g enactment by means of a binder
agreement, which expires aft er 90 days unl es s sooner replaced by a
reinsurance contract.
Premium rates and the terms and conditions of reinsurance contracts are
to be uniform throughout the country. The premiums for the fi rst year
must provide sufficient income to cover a level of riot losses in excess
of the amount of insured riot losses in 1967.
�21
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A :·i:-:tio ,1al Inst:rar 1c'" Tlcv&lt;! : orr.1ent,
a~· thori /. cd. Trc a . 1~ry Lo1-ro1-1.irir:s
for r r:: ~rl~'\,rCd lo ss es, lir.ii t.ec to
Congress rnay at i t/·,c-rizc 't;r j oint
r\ nr! is crca'.:.f'cl 1,c c :,n·y r,1 t, tl if! rroi·r;-1.r.,:
arc ,11 .t.hc,r L ~&lt;;c] t o ;·;ri ~:c r,1.. n-.C? r. V '.'l J cla7rrr·
,,, 2 1J0 miJ.lion or ~- \.Cl: f 1, rj,J-rsr S\ ;,,S ,, :-; i.hc
rcsclu tion.
'he Secrl' t a ry i:; re~uirec to r,1ake a study conce rnirw thr: ;:i,:Ail::i.tilit:/
o!.' rrorc:r1',y ir.s1 ·rance i.11 1. rtan area~ and t c, f;1_:bm:it th r: r e s1 -l f.s to the
President and U1r, Con£;r ess no lat e r t,har. 1 ye ar after t.hf; en,1ct1r.ent
of the lr1w. li e js also actl~orized t:o co:1duct othr:r !':ti.dies r,Prtinent
t.o his reir.s , ra11cc, anci statewi~e rlan responsi h .li ti 8s .
A 11-mcmhe r advisory t .03: ·d is to be aproini.,f?O l-y t, l\e ::ecrr t.::r·y ·, ,i tl\ nrt,
less tl,an i'oL;r n.cmh:n ; to r·,~1,resf:nt t,he 5 nrt,rar:c f; industry ar ·c: not. le~ . s
(
tran ~·01 :r n.fr:th~rt t;o rc:p r csen t th.' St ;,t.e in[;vr~mcf" a1 .t~1o rit,ies.
TITLE XII - DISTRICT OF COLUMBIA INSURANCE PLACEMENT ACT
The District of Columbia Insurance Placement Act establishes programs to
assure the availability of basic property insurar1ce protection against
fire and other perils for residential and business properties in the
District of Columb..i.a. Such programs are subject to the :=mpervision and
regulation of the Commissioner of the District of Columbia.
Within JO day::; after enactment all license d insurers in the District who
write basic property insuranc e are required to establish an Industry
Placement Fa cility which is to adminis-ter a program to provide for the
equitable distribution of responsibility for insuring qualified property
for which insurance cannot be obtained through the normal ins~rance
market.
Rules and regulations are to be adopted by the Facility to assure all
property owners fair access to insurance requirements. Suc h rules and
regulations, which must be approved by the Commissioner, arc requ:i_red
to be consistent with the -state-wide plan requirements of the Urban
Property Protection and Reinsurance Act of 1968 (Title XI, Supra).
The Commissioner is a uthorized to establish a joint unde rwriting association
to provide for the reinsurin[; of basic prop:!rty insurance without regard
to environmental ha zard, if he finds that such a pror ram is necessary to
carry out the purposes of the Act.
�22
The Com.miss ioncr is authorized to a::;sess each insurance company authorized
to do business in tltc District an amount su.fficienl, to satisfy the state
sharing requireme11t for Federal reinsurance under the Urban Propert.y
Protection and Reinsurance Act. Such assessments would be based on a
company's proportionate share of premiums earned on reinsured lines during
the preceding year. In the event of such assessments, the companies will
increase their premiums by an amount sufficient to recover the a::;sessment
within not more than a J year period.
TITLE XIII - NATION/1.L FLOOD INSlJR/',NCE
Title XIII enacts the "National Flood Insurance Act of 19613 11 • Under this
Act, the Secret9-ry of HUD is authorized to estaulish and carFJ out a national
flood insuranc,::! progra,11 to enable persons to purchase insurance against
losses resulting from physical damage to or loss of real property or
personal property arising from any flood occurring in the United States.
He is directed to encourage and arrange for maximum participation in the
program by insurance companies and other insurers, and by related agents,
brokers and organizations .
(_
The Act provides for the operation of the flood insurance progr~n .J.~ a
joint venture between the Federal Government and the private insurance
industry (with the industry participating on a risk-sharing ba::.;is).
However, as an alternative, the Secretary may, if necessary, operate
the program without the companies participating on other than a fiscal
agency basis.
The Secretary is authorized to borrow up to $250 million from the Treasury
to carry out the ins urance program. A National Flood Insurance Fund is
established for makinc payments authorized by the bill, including premium
equalization payments and reinsurance for losses in excess of losses
assumed by insura~c~ company pools form~d to provide flood ins urance .
Coverage will be available initially for one to four family dwellinr;s and
small business establishments but is to be extended to additional types
and classes of property as found f easiule by the Secretary. In the case
of dwellings, the insurance limit, where the rate is less than the full
risk rate, will be $17,500 for any s i ngle dwe lling and $JO,ODO for a
twc to .fo'. H' family structure, plus $,S,000 per dwelling for contents. Small
business properties can be insured for up to a total of $30 , 000 for the
structure and $5 , 000 for the contents of each individual busine::,s. These
limits may be doubled upon the payment of full premium rates for t!te
coverage in excess of such limits by the insured proper ty mmer.
The Secretary is directed to develop cri tcria designed to enc ouracc tlie
adoption of State and local measures to constrict · the devclopmc.mL of land
which is expose d to· flood dam.:1r;e, s uide development of proposed construction
away from locations threatened by flood hazard3, assist in reducing d&amp;~age
caused by .floods, and otherwise improve land management arnl use of floodprone areas.
�(
2J
After June JO, 1970, no new flood insurance coverage can be provided in
aey area unless an appropriate public body has adopted permanent land UBe
and control measures which the Secretary finds are conBistent with the
criteria he has prescribed for land management and UBe in flood prone areas.
The Secretary is directed to appoint a flood insurance advisory connnittee.
The face amount of flood insurance coverage outstanding and in force at
$2.5 billion.
any one time is limited to
The Flood Insurance Program will go into effect 120 days following the
date of enactment unless the Secretary prescribes a later effective date,
not to exceed 180 days from the date of enactment.
The Secre:ary of HUD is authorized to undertake studies for the purpose
of determining the extent to which insurance protection against earthquakes
or other natural disaster perils, other than flood is not available and '
the feasibility of such insurance protection bein~ made available. '
TITLE XIV - INTERSTATE LA~D SALES
(
The "Interstate Land Sales Full Disclosure Act" enacted by Title XIV
makes it unlawful for any developer to sell or lease, by the u~e of the
mail or by any means in interstate commerce, any lot in any subdivi sion
(defined 86 one with 50 or more lots for sale 88 part of a common
promotional plan) unless
(1)
there has been filed with Secretary of HUD
listing certain required information about
land, the state of its title, its physical
of roads and utiliti es , and other matters;
a statement of record
the ownership of the
nature, the availab ility
and
(2)
a printe d property report, containing pertinent extracts from the
statement of record, is furnished to the purchaser in advance of the
signing of an agreement for purchase or lease.
These requirement s do not apply to any subdivi sion where the property is
clear of all liens and if every purchaser has personally inspected the
lot which he purchased, as evidenced by a written affi rmation by the
developer.
Any contract for the purchase or lease of a lot covered by this Act is
voidable at the option of the purchas r if be was not furnished with
a property report ·at least 48 hours in advance of his signing the contract.
If the property report was received by the purchaser less than 48 hours
in advance of his signing the contract, it is voidable for a period of
48 hours after the signing .unless he stipulates in writing that he has
read the report and inspected the lot before he signed the contract •
._____
_____
.___
~-~-~~-~-~-~
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Hillful viol.:it:i.on of these requirements is su1;jcct to criminal penalties of
imprisonment for not more than 5 yea.rs, or a fine of not more than
$5,000, or both. Broader civil remedies than heretofore available are
also provided. A suit for damages may be brought in any State or
Federal court for the district in which the defendent may be found or in
which the transaction took place. The Secretary is authorized to seek
an injunction against any developer he can show is violating or about
to violate the law.
In carrying out his responsibilities under this legislat-Lon, the
Secretary is required to cooperate with State authorities charged with .
the responsibility of regulating the sale of lots in subdivisions.
This Act does not become effective untll 270 days after enactment.
TITLE XV - tv()RTGAGE INSURANCE FOR NONPROFIT HOSPITALS
This title establishes a new FHA program ( section 242 of the National
Housing Act) under which the Secretary of HUD will insure mortgages covering
new or rehabilitated hospitals (including initial equipment). The mortgage
may not exceed $25 million or 90 percent of replacement cost and the
hospital must be owned and operated by one or more nonprofit organizations.
(
. TITLE XVI - HOUSJNG GOAL'3 AND ANNUAL HOUSING REPORT
Reaffirmation of national goal
The Congress finds that the supply of the Nation's housing is not increasing
rapidly enough to meet the national housing goal and reaffirms this goal.
It determines that it can be substantially achieved within the next decade
by the construction or r ehabilitation of twenty-six million housing units,
six million of these for low and moderate income families.
Report outlining plan
Not later than January 15, 1969, the President is required to make a
report to the Congress setting f orth a plan to be carried out over the
next ten years for the elimination of all substandard housing and the
realization of the national housing goal. The report shall, in addition,
contain a projection of the residential mortgage market needs and
prospects during the coming year, including an estimate of the requirements with respect to the ava ilability, need and flow of mortgage funds ,
together with recormnendations for encouraging the availability of funds.
Periodic reports
1.5, . 1970, and on each succeeding year through 1979, the President
is required to submit to the Congress a report of results achieved in the
provision of hous ing, and r ecormnendations for legislation or additional
adm.:i.ni.strati ve ac tion tha t may be needed to achieve the objectives of
the President's plan.
On January
�25
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.Q_onnnission on Mortga13e Interest Rates
Funds appropriated and available for studies of hoUBing markets and credit
under laws previously enacted in 19LB and 1956 are made available for
expenses of the Corrnnission on MortcaBe Interest Rates to study mortgage
interest rates. This Commission was established by Public law 90-JOl.
TITLE XVII - MISCELLANEOUS
Model cities
The authorization for supplemental grants for model cities is increased
by $1 billion for fiscal year 1970, and an additional $12 million is
authorized for fiscal year 1969 for grants for planning model cities
programs. Amounts authorized but not appropriated are made available for
appropriation for any succeeding f i scal year commencing prior to July 1, 1970.
•Urban renewal demons tration grant program
Urban renewal demonstration grants are authorized to be made to nonprofit
organizations. Under prior law these grants were available only for
public bodies.
The l:illlit on the amount of urban renewal demonstrati on grants i s increased
from two-thirds of the cost of the undertakings to 90 percent of the cost.
(
The amount of funds available for these grants is increased from $10
million to $20 milli on.
~
r..l'§at i on ror urban lnfol"Ti\ation and t echnic al Msist ance lervice
~
Thea.ithor ization for grants to State s to assi s t in the pr ovis ion of
urban in fomation and tP.chnical assistance i s increased by $5 million
tor fi s cal y ear 1969, and by $15 million for fisc al year 1970. Amounts
author i~od for the se gr~nts but not appropriat ed are author i zed to be
appr opr iat ed fo r any succeeding fi.scal year commencing pr ior to July 1, 1970.
Advance~ in t e chnology in housing and urban deve lopment
Such 8Wl1S as may be
mencing wi t h fi s cal
que s and m~thods of
and rehabilitation ,
authorh.ed for such
authorized.
necessary are authori zed t o be appropr iated comye ar 1969, fo r s t udies of new and improved t echni~
appl yin g advance s i n ~echnoloa to horlsin c construction
and to urban devolopment. Fbur-year contrac t s are
Btu.dies rat her than 2-year cont ract &amp;r as heretofore
Collne;e housin&amp;
The colle e housini direct . l oan program i s expanded t o add a new profP'e.M t o provide financial aBsist ane by means of annual debt service
grmnts. Tb now grant program i s t o he need t o reduce t he borro~er•s
annual debt service payments on pr i vat e market l oan5 t o the average,
annual debt service that woul d h~ve ooen required if the loan
"
�26
based on the rate charge~ on loans unner the direct loan program. Annual
grants can be marlA over rt fixed period up to 40 years. The total amount
or annual grant contracts is subject to approval in appropriation acts.
The total ~nount cannot exceed $10 million, with this limit increased
by $10 million on July 1, 1969.
The loan and new grant program are made available for the purchase of
existing propP-rties which are in need of little or no_rehabilitation.
Federal-State traininr prn rrams
The Federal-State training program is 'croadened to permit grants to
States for th e train i ng of ffiibprofe~sional (heretofore limit ed to
professional) persons who will be employed in the field of hot,sing
as well as communit y develor ment. The trainees may be trained for
employment by _private nonprofit organizations which have responsibility
for h0t:sins and comrm.:n:i.ty development rrograms, in addition to public
organizations. Guam, Air,eri can Samoa, and the Tr: st Te rritory of the
Pacific Islands are made eligible for f,rants under the program.
Additional Assistant Secretary ol' Housing and l rban Development
·An additional Assistant Secretary of Housing and Urban Development
l.
is authorized.
Self-help Studies
Grants are authorized to be made t.:nder the low-income housing de :r onstration program for studies of self-he lp in the construction, r ehab ilitation,
and maintenance of hocsing for low-income persons and families and the
methods of se l ec tin F, , involving, and directing them in self-help activiti es .
Tbe Secretary of HUD is required to r eport to C~neress within one year
on the results of any scch studies.
Saving&amp; nnd loan as socj ations
Federal sa vings and l oan as sociations are autrorized to raise carital
in the form oi savings deposits or oth er accounts (in addition to shares)
and to borrow and isst;e bonds or other obligations.
Their lending and ~nve s tment powers are liberalized and br oadened by
authori~ine them to invest in 1. time deposits, certificate s or accounts in banks insured by
the FDIC;
2. unsecured loan s r.o l. exceeding f5, 000 to finance the cons t nction
of new structure s relating to resid ential use (vacation homes);
J. mobile home financin g ;
h. loans not exceetjing ~s,ooo for th e equipping of homes;
S. loans gu aranteed by AID on housine projects locate d in
developing co untries outside o f Latin American; and
�•
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27
/). lc:,a !l~: Lo i•'eci e l';J lly s Ll r e rvi S C'd 1'i nai 'r, i;.i 1 in ~, t. i. tl J t 101 ,:; or
tr·ok-~1· ~ or [:1-; aler~; rq :i s tt~r,·d ,1i Lh Lhe SEC, i '. ' Ll 1E: l oa ns
arc secured ·l:y loa ns, ol ,lit'.atiuns or invcst.m 0. nk-; iri which
the fode1·al a:;soc i:ition ha s c: tatu tory a11 tr.ority to inv~s L d ir ~c :.ly.
reocral Porne Loan 71 a nk Act
Federal home loan banks are authorized to invf:st in ho1 ·sinr: rro _je ct
loans huarante ed 1,nut~r Lhe Foreign Assistance Act or 19(;1.
Section 2L of the . [,'edc r a l f-icservc act is amenc.lc cl to allt~1cy,~-~~--,; s&gt;,n._:',.lru~tion loans by nat1onal banks 1:r to J rn ont,h.- 1n lr.rwth ·,,se:r1 C"Ji.:0fy r':!--1'.--1111 t.eci
to 211 rr.onths) as an exce ption to t he limitation on r ~al cs t at.e loai1s .
National f.ai1ks are pc: rmi tt c d to continue to ru r chase part.ici ra t ions in
existirw mort~'.agcs, .:md it is mat:c c l ear t hat loans by nat i. onal h;mks
are not to he consid e r e d as re a l e s tate loans wh ~r c the bnnk looks primarily for rerayrnent ol; t of secc rit y othi:-?r than r e al e state.
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'
-GENERAL SUMMARY
HOUSING AND URBAN DEVElCPXENT ACT OF 1968
Public Law 90-448, approved August 1, 1968
Housing goal - d~clant irJn of r,':ilicy
The ConGress affirms in '.he 19~8 Act the national goal of "a decent home
and a suitable living environment for every American family" (as stated
in the Housing Ac t of 1949). It states further that the highest priority
should be given t o m".:! eting the housing needs of those families for which
the national goal has not become a reality, and that there should be
the fullest prRct i.cable util i zation, in administration of Federal housing
programs, of the resour c es and capabilities of private enterprise and
self-help techniques.
OpFort uni ties for ':.r;:1Lnine and employment for lower income persons
The Secretary () f Housing and Urban Devel opment is d Lrecte d , in
administeri ng housinr; pro 6 rarns for low-jnco:ne fa:n.llJes, t o requ ire 1,
that opportunities for training and employment arisin~ in
connection with the planning, construction, rehabilitation,
and ope ra t ion of housing under the programs be given to
lower income persons residing in the area of -the housing;
and
2,
that to the gre atest extent feasible contracts for work
pursuant t o t he housing programs shall, where appropriate, be
awarded to bu s i ness concerns locat ed in or owned in subs t a!1tinl part b y persons r e s.id l ng -Ln the area of t he housing.
Improved des ign i n Gcv ~r nrne nt hou s i ng programs
The Congr e s:, ::om:712 nd s t h e Depar t me nt of ffUD for its recent efforts t o
improve arc h.l t e c t ural st qno ards , but dec lar e s that in the adminis t ratio n
of housin g programs wh ~c ~ a ssi s t in the prov isio n of housing f or low
e.nd mode r a t e l nco me fa mLlies , emphasis shall be gi ven to encouragi ng
good de s ig'1 a s an r!ssent i al component of the housing.
\
Impro vement c,f pr ogr a11 aoml.n: r;tra t l on
The Secret a r ~' is dire cted t o make a re por t t o t he Banking and Currency
Cammi tte e s e ar l i i n cal end ar ,y e ar s 1969 and 197') id en tifying spe c i fic
areas of progr a1n admi.n l stra 1, 1&lt;1! 1 and manageme nt wh i ch requ ire i mpr ovement.
The reports s ha ll describe ac t ions t aken and pr oposed to ~ake improvements
and recommend le gis lat ion ne eded to accomp lish the i mprovements .
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2
TITLE I - 10'.IBR INCOME HOUSING
Horneownershi
for lower incone familie s
sec. 23 of the !fa Lional Jlous inc; Act) is authorized to
provide Federal assistance to homeowner:::;hip uy lower income families
(including membership in a cooperative). Under the new program, the
Secretary of HUD may enter into contracts to make periodic payments
to lenders who make FHA-insured home mortgage loans to these families.
The payments will be in an amount necessary to make up the difference
between ?.O percent of the family's monthly income and the required
monthly payment under the mortgage for principal, interest, taxes,
insurance, and mortgage insur~nce premium. In no case, hrniever, can
the payment on a mortgage exceed the difference between the required
pay1nent und er the mortgage for principal, interest, and mortgage
insurance premi~~ and the payment that would be required for principal
and interest if the mortgage bore an interest rate of 1 percent. The
amount of the payment on each mortgage will vary according to the
income of the homeowner. The family's income is required to be recertified at least every 2 years and appropriate adjustments made in the
assistance payment to reflect any changes.
A new program
·l
The assistance payment is available for a purchaser having an income,
at the time of his initial occupancy, not in excess of 135 percent of
the maximum income limits that can be established in the area for
initial occupancy in public housing. However, up to 20 percent of the
funds authorized in appropriation acts for the program can be used to
assist families with incomes above these limits but which are not in
excess of 90 percent of the income limits for occupancy in a section
22l(d)(J) below-market interest rate housing project.
In calculating the income of the homemmer for the purpose of determining
eligibility as well as the amount on which the 20 percent computation will
be made, there will be deducted $JOO for ea~h minor child who is a
member of the homemmer' s immediate family and living with him. Also,
income of minors will not be included in the homeowner's income for this
computation.
The amount of a home mortga ge can not exceed $15,ooo ($17,500 in high
cost areas). These limits are increased to $17,500 ($20,000 in high
cost areas for families with five or more members. The same limits
apply to cooperative and condominium units.
The minimum downpayment is $200 for families with incomes up to 135
percent of the maximum income limits that can be established in the area
for initial oc cupancy in public housing and 3 percent in other cases .
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A homeowner is to be given the opportunity, to the maximum extent
feasible, to contribute the value of his labor as equity in the
dwelling.
The Secretary is authorized to provide budget, debt management, and
related counseling services to homeowners who purchrtse homes under
the new section 2J5 program.
The housin~, with a few limited exceptions, must be new or substantially rehabilitrtted housing, except that up to 25 percent of the
amount of contracts authorized to be mrtde before July 1, 1969 can
apply to existing housin~, with this percentage decreasing to 15 percent the following year, and 10 percent the third year.
The aggregate amount of contracts to make payments Crtn not exceed
amounts approved in appropriation Acts. The payments pursuant to the
contracts can not exceed $75 million per annum prior to ~uly 1, 1969.
This amount is increased by $100 million on July 1, 1969, and by
$125 million on July 1, 1970. A reasonable portion of the contract
authority is to be transferred from time to time to the Secretary of
Airiculture for use in rural a~eas and small towns.
(,
In addition to thP. foregoing provisions, a mortgage executed by a
nonprofit or~rtnization or a public body or agency can he insured where
it fin°mces the ourcha~e (and rehabilitation if necessary) of housing
in viable, or potentially viable, areas for resale to lower income
families. The housing must include at least four or more one-family
dwellings (or two-family dwellings, one unit of which is to be occupied
by the owner), or at least four or more one-family units in a condominium
project, in the cases where rehabilitation is involved. The individual
mortgages given to finance the resale of the housing to lower income
families will also be insured by FHA ~nd assistance payments made on
behalf of the ourch~sers.
221 (h) Program
The 221 (h) program is changed to allow the Secretary to reduce the
interest rate on a home purchaser's mortgage under the program to as
low as 1 percent where the purchaser's income justifies, with periodic
adjustments between 1 and J percent to reflect changes in the homeowner's
incoMe. Under this program nonprofit mortgagors purch~se and rehabilitate housing with FHA insured mortgaies and resell it to low-income
families.
The limit on the aggregate amount of mortgages th~t can be insured and
out~tanding at any one time under the program is increased fro!\\ $20 million to $50 million.
�L
New F1-IA crcdi t assistancl:! for homeowncrshi .
A mort.r,ar,e insurance is at:thorized und e r a new Sec.
237 of the
~ational Housing Act ) for families of low and mocierat,e income wro,
through the incentive of homeownership and counselinf rtSsistance,
appear to be able to achieve homeownershir hut who, for rPrtson s of
credit history, i rre r:u lar income rat terns caus·e d ty seasonal employment, or other factors, are unable to meet the credit requirements
g~nerally applicable for the purchase of a home under the rer,ular
FHA mortgage insu~ance program.
A mortgage must meet the basic re~uirements under one of the various
FHA home mortgage rrograms. The credit and income requireme nts of
the particular rrogram do not apply, howe ve r, anc the r:rincipal ohligation of the mortga - e can not exceed £15,000 (117,500 in high-cost area~).
However, if the limit on th e amount of a mortgaEe is lower under a particular rr?gram, the lower limit is appl;cable.
The monthly paymentf, combined with local real estate taxes on the
property, will not excee d 25 rercent of the home r,t'rchaser' s income,
computed over the previous year or the rrevioi:s J years, whichever is
higher. The interest rates and mortgage insurance premiums are the
same as under the progra_n:i involved for other mortgagors.
C.
The Secretary of HUD is autl·.oriz e d to r rovide debt management
related counseling services to mortgagors whose mortr,age s are
under these ne w ·more liberal rrovisions. He can also provide
ing to otherwise eligible families who lack a downpayment on
in order to help them to save money for a downrayme nt.
and
inst ·r c d
counsela home
The rtggregate balance of mortgages insured under these new provisions
can not exceed at any one time $200 million.
Mortp,a~e ~nsurance for housing in declin "ng areas
Mortgage insurance is authorized, under any of F'PA' c mortgage insl'rance
programs, f0r the pt.:rch::ise, repair, rehabilitR.tion, or con ::;truction of
housing loca ted in olde r, de clining t!r t an areas with out r egard to the
normal reauireinents of th e particular prop.ram if FHA finds that (1) the
area is r e asona bly via ble, giving consid er ation to t. he need for providing adequa t:,r hot· sing for families of low and moderate income s in the
area, and (2) the property is an accer tabl e risk in vie,, of this consideration.
Special Risk Insu ranee fund
Srecial Risk Insurance F\.:nd is established which is not intended
to be act11ariall v sot.nd and 0t;t of which claims wi ll be paid on mortg.qp,es
insrred under th~ several new special mortgage inst; rance rrcr,rams for
housing for low or moderate income families. A .!) 5 million ad va nc P from
the general insurance fund is authorized to init i ate the new Srecial
Risk Fund. Appropriations are a11thorized to cover any lo;;ses sustained
by the new fund.
r new
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.I
5
Condominium anrl cooI?erative owr,ers hip for low and moderate inc ome families
Rental housin8 projects financed with below-market interest rate
FHA 22l(d)(3) mortga8es are permitted to be converted to cooperative or
condominium ownership.
A low or moderate income purchaser can purchase an individual family unit
and an undivided interest in the common areas and facilities of a project
at a price not in excess of the appraised value of the property and with
a mortgage bearing the below-market interest rate then in effect. At
least a 3 percent doi.mpayment will be required, which can be applied in
whole or in part toward closing costs.
A cooperative, with me1i1bership open only to low and moderate income
familie s mee ting income limits prescribed for 221 (d)(3 ) below-market
interest rate projects , can purchase a 221 (d)(3 ) project for an amount
not exceeding the appraised value of the property for continued use as
a cooperative. The insured mortgage can bear the below-market interest
rate in effect at the time the commitment to insure the mortgage is issued.
(_
Assistance to nonprofit sponsors of low and moderate income housing
The Secretary of HUD is authorized to provide technical assistance with
respect to the construction, rehabilitation, and operation of low and
moderate income. housing to nonprofit organizations o The Secretary can
also make SO-percent, interest-free loans to nonprofit sponsors of such
. housing to cover certain preconstruction costs under Federally-assisted
programs .
The LJw and Moderate Income Sponsor Fund is established for the purpose
of making the loans with an authorization for appropriations of $7.5
million for fiscal year 1969 and $10 million for fiscal year 1970. The Fund
will be a revolving fund and repayments of loans will be deposited in the
Fund.
National Homeowner s hip Foundation
The National Home o,mer s hi p Founda tion i s crea t ed to carry out a continuing
program of encourag ing private and public organizations to provide
increased homeownership and housing opportunities i n urban and rural areas
for lower income families.
The Foundat ion i s aut horiz ed to make gr ants and loans (not otherwi se
available f rom Fe der a l s ources ) t o s uc h organizati ons to help defray
organizational and administrat:i_ve expenses , necessar y precons truction
costs, and the cost of couns elling or similar services to lower income
families for whom housing is being provided . The Foundation can also
provide t echnical ass istance to the organiz a tions .
Appropr iat ions up to $10 million are authoriz ed.
a l so use donat ed funds .
The Founda tion can
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The Foundation is to be admb.istered by an 18-member Board of Dir(!ctors.
Fifteen members are to be appolnted by the President. The Secretary of
HUD, the Secretary of ftgriculture and the Director of OEO are the other
three members. The bo0rd will appoint an executiYe director as its
executive officer.
N~w techr1olo;3i~s - housine; for lower incorn~ fami 1 Les
The Sccr2t9.ry of illJD ls directed l;o lnstitute a progrcirn under whi~h
q rnlified publl~ and pr i vs te organizations wlll suhrni t plans for the .
~evelcprn-=nt of h0uslng fo r lower Jncone families, using new and ~dvan~~d
~ e ~h ~oloGl cs , on Fed2ral land whl~h has been made a vail~,]~ for that
puc-p•JS-= , er 0 n .Jth-=l· l:md ,..,hi2 h i.s suitabJe.
1
The Secretary will approve up to 5 plans which are sutmlt~ed t o hi.m
under the program. He wi.11 consider (A.rnong other t.hings) the potential
of th·= techrioloGY e mplo;i,ed and the atllity of t:ie organiz'3.t.icn rnb::iittini;
th::! plan to produce a t leas t l,OO,) dwel.llng u;1its a ;year 1.lt ilizing t:.:iat..
tecll.:.10.luGy.
'i 'he ;;;ecrc l.ary .l s dire i::: t ed t0 seek r, o 8.&lt;~hie·-12 t;h e ::or,si·ructi. on of 9.:, least
1 1 )00 dw2lling u1ii!:.s a ye9.r over a 5-.:,·ear p e riod fur e9c!'l l f th~ ·.-erious
typ 2s 0 f L:!chnolo.;ies propo se d -fr, t.he plans appro·-1ed. H:.:: ii=; re·-_.ulr~d
~o r2p0r1; _A.t -t: hc e "!.rllest practicable dRte with respect tc the proj~cts
~saisted, toJet hcr with his r e commendations.
1
1
Mortr3a£;e8 flnanci.ng t he projects are authcrlzed to b e insured unde r t ~e
FJA expe rime n tal housing program.
Sf-,udy of .i nsurani:::e pro~;ect ion for homeowne rs
T':le Secret.'3.ry uf 111JD, in c ooperation Ki t h the prt vate insura nce industry,
i s e.ut hori zed t.o d e velop a plan for establish ing ar1 in surance program
to ?neble h ume uwners t c me et their monthly ~ort gag2 payra2nts in ti me s of
p ':'rsonal ~cono:nic 8dve r s Lty. The Secre tary is r e ·~u ired ~o r eport h l c:
act ion s 9.nd r.ecommc~,1dA.ti ons within 6 mc·nt.hs follow ing enact:ne.ri t of the
law.
N9.tional Advi. c .&gt;r ~- Sc ~::n i!? s ion on :Sow-In·:o:n'2 Hou s i_ng
A Nat i onal Adv i s orJ -.::ummi ::. st on on Low-Income Hous int;; ts &lt;::sta bl l s hed to
c,r.dert.Akc-; fl. c ornprehe :1s ive s tudy and inve stigate the resou:!":ct.::G BJ 1G.
cApabi li ti es Ln t h e publ: c ancl pri. vRt. e se-~t.o~s of ~.he c :: , · i-·11y ·.,~1-c h , w.;y
b ,~ u sec. ~.o f1~1 ru1 more complete ly !:.:ie cb,1&lt;"•~tives of Vv: nati 0nGl gt;al
of "a d e :~en t h,)rne nnd a Ll u itable livine; e nvironment for ever~· American
family".
1
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·.rh-2 .:;0mrnls s i o.'. 1 ~s d l r2c t e d t o f:ubm i t Lo th-2 fr·2 sidc n:·. A:1d the .:one;r ~ss a.11
i 11t'=rir:: r c?or~. ·.., ~ ~h r es~cc t t o i ':. s f.indi r:..g:c:: anc r &lt;:?ccrrnc:idat ~on s no t lat.er
~.ha::-i .Jul y 1, 196'.: , ru:d. fl fi r.al rep ort no t ~Ater l hA.n J :.ily 1, 1970.
�7
TITLE II - llliN'l'/\ L l!OllSING FOR LOWE!/. UICOHF. li'f,JIILIE::3
A new program of Federal assistance to renLal and coopcrativL: hou s ing for
lower income families fa authorized by addin~ a new section 236 to the
National .Housing Act. The assis t ance is in the form of periodic payments
to the mortragee financing the housing Lo reduce the mort~agor's interest
costs on a market r a te FIUt-insured project morte;at;e.
The interest reducti.o n payinents uill reclm;e payments on thr.; project
mortgage from tlwt rcquireu for principal, inter~st, and mortgage in_surance
premium on a markeL rate mortgage t o that required J~ur principal an:::l.
interest on a mortgac e bear i ng an interest r a Le of :~ per cent.
The interest r educ tion payments will r edu ce renta l s t o .a basic chare;e, and
a tenant or c ooper a tiv(.; member wi l l e i.ther p.'.lf the basic ch:,.rge or such
greater amount as reprec enLs 25 percent of his income, but not in excess
of the charges which would be necessary without any inte res t reduction
payments. Income~; ot' tenants will be r eexamined at l eas t every 2 years
for the purpose of adjusting rentals. Rental char ges collP. cted by the
project owner in excess of the ba sic c har ges are to be returned to the
Secretary for deposit in a r evolving fund for the purpose of maki ng other
interest reduction payments .
Tenants of these projects who pay less than the fair market rental charge
for their units will generally have to have inc omes, at t he time of the
initial rent-up of the p1·oj ects, not in exc ess of 135 pe rcent of the
maximum income limits tha t can be es t ablished in t he area f or initia l
occupancy in public housing dwellings . Howe ver, up to 20 percent of the
contract funds authoriz e d in appropriation a cts may be made available for
projects in which some or all c.,f the unit s w:Ll l be occupied, at the time
of the initial r ent-up, by tenants whose incomes exc ee d the above limit
but do not ex ceed 90 percent of t he inc ome limi ts for occupancy of
section 221 (d) (J 2 be l ow-m.:i.rket i nteres t rat e r enta l housing .
In de ter mini ng i nc ome .for the pur pos e of eligibility as we ll as Lhe amount
of rent to be pa id a $J OO deduc tion i s per mi U ed for eac h minor person in
the family and any income of s uch minor is not counted .
(
To qualify for mortga ~e insuranc e unner t he new progr am, a mortcaeor mus t
be a nonpr of i t organi za t ion, a c ooperati ve, or a l imi t ed di vi de nd entity
of the type s permitt ed under th e FHA se c t ion 221 (d )(J ) r ent a l hous ing
progr am . The ::i.or t eage l iJnitati on::; 'trith r esp ect to maxirrn un mor Lga ge amount
are the s ame as for mort.gaees ins w·ect W1d&lt;~r t he (d )(J ) proc;r .::un . Interes t
reducti on payments can als o be made with res pe ct to State- a i ded rental
housinr; pro j ec t ::; appr oved for r ecei ving the benefiLs of tl1l:! program prior
to compl e t ion of c ons t ruc t ion or r ehabill t a t i on of t!1c proj ects .


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Contrac L::; l'u1· u.::;:..;j3 Lance pay111enLs an! .:rn Lhori ze (t, cutJjcc L trJ a pproval in
appropriation ac L:.;, Lu the :cmonnt. of !C'/S mill i on ann1w. lly prior to ,July 1,
1969. 'l'his 2.mounL i:.; incr8t.. ::i l.' U by i100 mil.Lion oa ,July l, J 9G') , and by
$125 million on ,Jul;yr l , J.9}0 . A reas onable portion of this authority is
tu be trarn.i.l'e rred to t he Se cretary of Ag riculture .for u::;e in rural areas
and small totl'ns.
A pro ject, 1' i.nanc(~rl 1.111dc!r the rlL'\·J progr~im c~..r1 i i:1c lude such nondwelling
facilities as the Secretary deems aduqua te ::rnd appr·opria te to serve the
occupants of the pr ojed, and the surronndi11i:; neighborhoou, as long as
the pro,jcct is preJomln.:rntly res-Lcle n !.:io. l and any nonJtwllinr; facilities
contribute to the economic fea::;ibility ol' the pr oj e c t. Where a project
is designed primarily for occupancy Ly the elderly or handicapped it c;:i,n
include rela ted fncilities f(,r their use, :.r..ich a::; dining·, work, recreation,
and health facilit.i. es .
With appro 11al of the 3 21~re Lary of mm a mortgagor ca,,--i sell the individual
dwelling units Lo lowe r incoJr,;:) p1i.rchm3ers and these p t.Lrcha::;8rs .:ire elig ible
for assisto.nce payments w1der the provisions of th0 ne:w homeownership
program.
(
A cooperative or private nonprofit corporation or acsociat.ion can purchase
a proj ect from a limited dividend mortgagor and finance the purchase wi th
a mortcag8 _insured under the program.
· Projects for low and moderate income families financed under the below
marked 221 (J) (j) progr3Jn can be transferred, prior Lo fina l endorsement
for FH/1. insurance, to the new rental housing interest. reduction program.
Projects for the elrl.erly or ha ndicapped approved for direct loans can
be refina nced unde r the new intere st re duction pro~ram at any time up to,
or a reasonnble time after, proj ec t comple tion.
Rent supplr.ment payme nts may be pr ovide d for tenants in projects financed
under the new program, but no mor e t han 20 p erc ent of the units in any
one proj ec t can r eceive r unt s uppleme nt assistance.
Rent snpplcm&lt;J nts
The authority for r ent supplement c ontracts (sub ject to approval in
appropriation a cts) is increased by $1.iO million on July 1, 1969, and by
$100 million on July 1, 1970.
State-aide d projects are maue el:Lc.Llilc for rent, supplements if the projects
are approved for thiG benefit prior to comple tion of cons tr uc tion or
rehabilitation.
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In determining the income of any tenant for the purposes of the rent
supplemr.nL program, $JOO may l.Je deducted for each mi nor person who is a
member of the immediate family of the tenant and li vinr, with t he tenant,
and the earnini:;s of any suc h minor person s hall not be included in the
income of the tenant.
Low-rent public housinE;
Authority for annual contributions to low-rent public housing is increased
by $100 million on enactment of the law, and by $150 million on July 1,
1969, and July 1, 1970.
The Secretary of HUD is authorized to make grants t o local housing
authorities to assist in financing t enant services for tenants of public
housing. Appropria ti ons f or the grant s are author i ze d up to $15 million
for fiscal year 1969, and $JO million for fisc a l 1970 .
l
Preference is to be given to programs providing for maximum tenant participation in the development and operation of tenant services. Tenant
services include: counseling on household management, housekeeping,
budgeting, money management, child care, and similar matters; advice as
to r esources for job training and placement, educa t i on, welfare, health,
and other community services; services which are directly r e l ated to
meeting t enant needs and providing a wholesome living envir onment; and
referral to appropriate agencies when necessary for the provision of such
services.
Public hous ing ass i s tance i s permitted for Indian f amilies who live on
or adjacent to their farmland.
High-rise public housing projects for families with children are prohibited
except where the Secretary of HUD determines that there is no practical
alternative .
The Secr et ary i s prohibited f r om prescribing limitat i ons on the t ypes or
categories of struc tures or dwe l ling uni t s (other t han those provided i n
the law ) whi ch ca.n be l eased under t he publi c hous ing, sec tion 23 leasing
program.
An additional annua l s ubsidy of $120 i s author i zed f or public housing
units occupied by large fami l ies or fami l ies with very low incomes .
w eal housing authorities are permi t ted t o p urch~se structures lease d under
the Section 23 program for the purpose of reselling the strlict'J.I'e to the
t enants , or t o a group of tenants occupying units aggr ega t i ng in value at
least 80 percent of t he structure ' s value. The purchase can be on s uch
terms and condit i ons as may be ne cessary t o enabl e the t enants involved
to make their purc hases without undue financial hardship.
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TITLE III - FEDERAL HOUSING ADMINISTRATION INSURANCE OPERATIONS
Perfecting and liberalizing changes arP. made in a number of existing
FHA mortgagP. insurance programs. In addition:
FHA is authorized to insure loans to homeowners to finance the purchase of fee simple
title to property on which their homes are located where the
homeowner has only a lease.hold interest in the land;
insure 90 percent supplemental loans to finance improvements and
additions to FHA multifamily projects (including nursing homes
and group practice facilities);
insure supplementary rehabilitation loans to housing cooperatives
which purchased war housing covered by an uninsured mortgage;
permit the cost of nursing home equipment to be included in an
insured nursing home mort~age; and
C
insure ·mortgages on new seasonal homes,
The Title I home improvement loan insurance program is changed by -
(
1.
raising the limit on the amount of a loan from $3,500 to
$5,000,
2.
raising the maximum maturity from 5 years and 32 days to
? years and 32 days, and
·
J.
incre~sine the maximum financing charge to $5.50 discount
per $100 of the first $2,500 plus $4.50 in excess of $2,500
(now $5 and $4, respectively). ·
Mortiages financing the purchase of housing rehabilitated by local pub1ic
agencies in urban renewal areas is authorized to be insured by FHA under
the existing 220 and 221 (d) (3) pro grams as well as under th e new section
2J6 progr~m providing for interest reduction payments,
The maximum mortgage amount under section 203 (1) for homes in outlying,
semirural and rural are~s is increased from $~~00- to $1),500.
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TlTLF
r, -
l il A;iA, !"['l: !·:~: 1.. ·,11
r·1 r:x ,;: r·H,
'.·! '·I,' i~!")t,F-'1 : i rT" LA 1: ]) 111: 1!\U: };:'. f;r r
(n ;:e\-.' ~~011,;ra:n iti ~s Act o :' 1 ') ( ;0 11 )
Title IV, the 11 Ifot-l Comrm,r!ities Act of 1968 11 , rrovices additional FPdP.ral
assist;:ince to new cornmt.; ni ties.
It . is designed t,o Ccnlist new so1 :rces of
private capital in t he ir develorment.
The Secretary of HUD is authorized to guarantee obligations issued un
the bond market by private developers to help finance the land acquisi~
tion and land development cdsts of new communities.
The obli1:ations f'. t.: arant e ed for a n~w c omtnun-i.. ty may not exc e·ed the lesser
of (a) Go r c rcent, n C \he Socn, tary's estimate of t,he ·1al: :e o.t' ·.he prorerty ur,on completion o ~· t he lanr. development, or ( h ) t hP s t.:m of "(5 rercent oi' t.b c Sc cr0. ta r y' s estimc3Le o f th8 ·, ale e of the land h 0 for e development plt.:s ) 0 r e rcent of his estim.:1te of the act uc1l co s t 0 1· the land
development, or (c) ~:·so mi1 lion.
The a ?cr c gnte amount of outstandinB principal obli ~ations that may he
gcarant c ed is limit e d to ~ 250 mi llion.
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To be eligible f or a f.Uarantee or commitme nt to guarant e e t,he Secretary
must det e rmine that 1.
t,he r, ropo se d new cornmi;ni.ty will be economic a lly i'e a s iblc and
wjll contrihut.e to the orderly de velopment of the areci of
which i t is a part;
2.
th e re is a practicab le plan fo r financin g the n1:=w c or.uurnity
and for mark e tinr the land which r e presents an accepta ble
fin .:r ncial risk to th r. l' n ited State s;
3.
th e re is a sound int e rn a l deve l opme nt plan for t r e new
comm•;ni t y t-:h ich has r c ce i ve d all rent.: ire d St.J. '·,e or local
f:;OV c rn m0 n t a r::r ro vals, ;md i_s acceptabl e to th e Secre tary
as cont r ibLtin g to r;oo d livin g condition s in t he are a and
incl11dinr; a r,ropE: r balance of hoi: sirp: f or famili e s o f low
and moderate income&gt; ; and
th 0 int 0 rn ~1 de ve lo p me nt r lan i s c onsic t e nt ~i t h c o~rrehensive
pl:mrinp; .::'or th P. are a wh j ch mee ts c rit nria c s tab l ished by
th e Se c re t.ary.
The Se cret ary is au t h ori ze d i. o es tahlish a r c vol vin r f und t'or !.he w aranty
f !'Of'. ram wf-: i. ch will ·r e comp ri sr: d o f (1 ) r e c P.i p t,s :'rom r'c-e s an d charr,e s , (2)
othe r r P. ce i p ts, and (3) s L: ch sLi ms , a1 1th ori zed to he appr opriatP d, as ma~·
be r equ i re d.
�'
.L,
.
The Secretary is al~,o alithoriz r-d t.o rnrikr. s1 1 prlcrTH!nLa.ry r.rant.~, t,r;
SLaLc anLi l e-cal rd,ljc bodies anc:I c1.. ·C'nc i c s for 1-:atr·r nnd r, (Jv1r, r
facili tics anc! ortin srace assisted l:y f'. ran ts Under the l1 01 1SllW ;ind
Urban Development Act o C 1965 or th e Gons olidat.e ci Varrn0rs' f1 nme
Administr:.ition Act, and the l!oijsing Act of l &lt;)(,l. The S8crc1..'.lr;r r-,11d
determine~ that tr.e surrlementary 1:rants are desir.:i.ble t'or ca.rryin~~
out a new commun"i ty ciP.vc lopment ~-roj f·r. t, and th;1L .1. s1:l",t'trmtL1l n1 ,rr.l 1er
of housinf'. i.;11it.s for low and 1::ociPral.P. inr.orr:P. p·rsot!S is to r mar:e
availahlr: t.hroi.;;,:h :.h&lt;: r r nj~r.t..
0~
The suppltir;;r.; nl. :11':1 r.,i·arit cannot. · xr.cr.d 20 rcrcent of t.} ~1' r.u~; t, 01· t.bc
t'acil Hy and th -~ Lot:11 Federal 1;rant i~,; limi tC: d to 8::, f •f:rr:cn_t of
fncili t.y coi,t. Arprorri.:1tions t'or s1:pple1n1:nt,3.ry r:rants a,8 .11 · thorizrid
up to ~,5 million for fiscal year 196) , and up to :: 2~ mi , lion for l'iscal
year 19'(0.
TITLE
(_
1/
-
T_!HBAN RENE&gt;.-! AL
Netghb..:irh noc~ Dev~: Jupr:1eni, Pro 0r9.m.~
The Secrcl.2.ry of Elm 1 : _; authurlzed. to provide financi e.l assist.an&lt;-~) for
n~lghborhood develop:n2rit programs, ~1 ne,.,r n.pproneh to urorn1 !-=n~ ·, ra] wh ich
wlll faciJ l tat c more rapid reha.1:iili tat ion 1:md 1·ec'l:::v·. .:lopm:.!nt of blighl~(:a
areas on an 'iffect:v~ sc ale, A neighborh-ood dP.'1elopm1_&gt;!1t program ·.:::on::.: i.sts
of urban renewa l project 1mdertakings 8..'1d activl1..i~ s i f! on~ or more ;,µ·ban
rene,.;al n.r ·=as that are planned and carried out on th1: lJ9.si.s of a:!1. rn.1i:iJ
increments. Financing is based on the amount of l 0ari and grcmt funds
needed to carry out -:h e acti vir.i es pla..1w~d dul'.'ing a l ?-mcnt .h p e :!'lod ln
ea.ch of the urban re!J~ ',181 are es -:.:on l.~ ai!len in 8. CO!Il::11l'1i ty Is r.,rOGt'3.l'i, Ir
funds ar2 avaiJabl~ and a communi tJ" ' f prog:.:-a.m is P..cc0.pt&lt;=1bl2 to the ,3e.:::retar.:,·,
a co:urnnnltJ can receive fina;.1cial assistance based on its need for t;ub:.iequent annual incr,~me nt s of thc.: ;,roc;rom.
The Redevelcprn~nt Land Acency of t-,h8 DL~t:-ri.ct o f' C·.; l •1 !nh ·;_,: is b iv~ n
author lty t o p lan ru1d unde rt ak e ne Lr;hborhoocl develcpm2·,.t progrsms.
r~ ~reas 2 in m1t.borizatlon of grants
'rhe authoriz e.t: i on f o r urban r2 t1ewal gr:mts Ls i nr~t·-~a:·'--'d 1Jy ~1.!~ 1JillL:m
on July J., 1969. In oddi tlon , the authorizat ion for v.rb en ren~,val grants
for proj ects in model c iti es area: Ls lnc r ~ased 1y ~33 0 mi.llion.
(
Reh1Ju.i.li.tatton 16rants
The limit on the a 100unt of a relv=i1; il"LtEi.t.i u ll c;rA ,:-. tu ~.:i. lo•.,·-i. r:c c.,10~
homeowne r ls ir.c r eas c n from :~1, ~,,J0 tv $ 3, 000 and the g ra:11~ Ls made
available f or r ·.=h abi.li t etion of :i:12c.l property tn ':lddi.tion Lo the d·..,re J.ling
itself.
Rehabilitation ~rant s are authori zed to b e mad e to low-:L ncomP. ho;:ne owners
for repa lr s and improveme nts of d\1e llings out s i c1..~ urban r&gt;2rlc ·.-1al end code
enforceme nt areas 1.
where t h e dwe ] lings are .Lr;i areas certif i ed. by t he l ocal go,.rcrnlng
body as contaj 11i.ng a s llb r,t a n LiaJ. numbe r o f s t.ruc t ur~s i n !1eed
of r8habilit.at l on ,
�13
2.
if the locality has in effect a workable program for community
improvement, and
3.
the area is definitely planned for rehabilitation or code
enforcement within a reasonable time, and the repairs to be
assisted are consistent with the plan for rehabilitation or
code enforcement.
mm is also authorized to make rehab ill tat ion grants to
low-income homeowners whose property has been determined, after an·
inspection pursuant to an approved statewide property i nsurance plan, to
be uninsurable because of physi cal hazards. The erant may be made only
to rehabilitate the property to the extent that the Secretar.y determines
necessary to make it meet reasonable underwriting standards imposed by
the statewide plan,
The Secretary of
Rehabilitation loans
'rhe rehabilitation loan program has been broadened in the same manner as
the rehabilitation grant program with respect to properties located outside
urban renewal and code enforcem:nt areas and those found to be uninsurable.
(
The amount authorized t o be appropriated for each fiscal year is increased
from $100 million to ~150 million ru1d the program is extended to June 30,
1973 (in lieu of the previous expiration date of October 1, 1969).
Eligibility for residential rehabilitati on loans is limited to persons
whose annual income is within the locally applicable income limits
for the section 221 (d) (3) below-market interest rate program.
Limit on LPA rehabilitation in urban renewal areas
The previous limits on the acquisition and rehabilitation of residential
properties by local rene wal agencies are r e moved.
Under prior law, an
LPA could acqu:!.re and rehabilitate for demonstration purpos es no more than
100 units or 5 perc ent of the total residential units in en urban renewal
area, whichever is lesser.
Dis osition of ro ert, for low and moderate income housintL_
Land in an urban renewal area is authorized to be leased i n addition to
being sold as previously provided) for low or moderate income housing at
a price consistent with the use for that purpose. A builder is permitted
to purchase the land at the write-down price for low or moderate income
sales housing. Under this provision land can also be made available at
the write-down price for housing assisted under the 221(h) program, and
the new interest reduction payment programs authorized by the Act for
homeownership and multifamily housing.
Grants for low and moderate income housi ng in open land projects
Grants are authorized for open land urban renewal projects where the land
is to be disposed of for low and moderate incomP. housing. Previously,
open land projects were not eligible for grants. The grant may be for
�14
two-thirds of the differenc e between the proceeds from any land dicpoaed
of at its value for low or moderate income housing and the proceeds which
would have been realized if the land had been disposed of at its fair
value without regard to its special use.
Demolition grants - rat harborar:es
The Demolition Grant Program is expanded to permit grants for the
demolition of structures which are rat harborages or potential rat
harborages.
Use of air rights sites for educational facilities
Air-rights urban renewal projects, and the construction of necessary
foundations and platforms in any type project, are authorized for the
development of educational facilities. As in the case of industrial
development, an air-rights project and the construction of foundations
and platforms would only be available for educational facilities if
the area is unsuitable for low or moderate income housing purposes.
Low and moderate income housing in residential urban renewal areas
A majority of the total number of housing units in a community's
(__
residential urban renewal projects which receive Federal recognition
after August 1, 1968 must be for low and moderate income families
or individuals, with at least 2~ of such total for low income
· families or individuals. The Secretary may waive the 20i requirement
to the extent that the units are not needed in the community.
Workable program requirements in case of Indian tribes
An additional period of time, until January 1, 1970, is provided for Indian
tribes, bands, or nations to adopt and carry out minimum standards housing
codes for workable program certification.
·
Interim assistance for blighted areas
The Secretary of HUD is authorized to contract to make grants aggregating
up to $15 million a year to cities or counties to assist them in taking
interim steps to alleviate harmful conditions in slum or blighted areas
of communities which are planned for substantial clearance, rehabilitation,
or federally assisted code enforcement in the near future, but which need
~ome immediate public action until permanent action can be taken .
The Secretary is required to encourage employment of unemployed or
under-employed residents of an assisted area in carrying out the activities
to be assisted.
Grants may not exceed two-thirds of the cost of planning and carrying out
an interim assistance program, except that three-fourths grants can be
made to any community with a population of 50,000 or less.
A community has to have an approved workable program for community
improvement to qualify for assistance, and relocation assistance and
payments will be available.
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15
Rcl.oca Lio11 l'a-: r1 1t : t1l.:,

~--Relocation adJu0LT!li;11L
pay1w::nL:, m· c) bn1.:.id0ncd to JJCrmit. p.::iy rr1ent.,:::; of up to
$)00 per J8:.J.l ', !\J!.' .-L / - J c:::i r r1:::'l'~.(ld . ::ur:ll p::.y11tt.mL~: !J:.J.ve be en heretofore
limited to :.J. rnaxjJn11m of $S\..HI pa~_,a:;le OVL!l' a ;; rnonLh period .
A new pRyment is a nt hori_:,ecJ for a dinpl.:lced owner-occupcmt ul' residential
property t o cnahlc !Ji.ill Lo p urr.has c c.1 r e placement d1,elline . Tlte payment,
which cmmo t exceed ~~1_' _,000 , le l,hc• dil'fen.mc e bet.,_·men tlte avcr:i.gc price
for- an adequa t e replaceme n t homt.i und the ucquis i tion price of hi::; former
home.
Tl'l'Jl~ VI - ln-1. 01\N PLi\NN:rNG AND FAC ILITif;_;
Comp:?:"ehe ns i ve pla!m.r nc
(_
The section 701 planning as:::;istance e:rant proc ram ls exter1sivo ly revised.
The Secretary oJ' HUD i s ,not-·authorized to make _comprehensive plannine:
grants to State pl:rnning agencies for ass i stance to 11 distr ict 11 planning
agonc ie::; for rU1·al and other nonmetropoliLan areaG. Consultation with the
Secre t ary of Ag r iculture i s required pr ior t o approval of a n;y district
planning grants. The Secretary of Agriculture and, when appropriate,
the Secretary of Conunerce may provide technical ass i ::;tanc e in connection
with the establishment of districts a nJ the carrying out of planning by
them. Such Jistrict planning may not b e aimed at assistins businesses
to reloca te .from one a rea to another.
Other new provision::; authorize direct planning grarrts t o Indian trib a l
planning counc ils or other bodies for planning on Indian res ervations;
to re g iona l and district councils of governmen t as we ll as those organized
on a metropolitan ba n i ::; ; to reg ional commiss ions and economic development
distric ts established unJe r tho Public Works and Economic Development Act
of 1965; t o cities, without regard to popul:.J.tion, within metropolitllll areas
for plarming which is part of' metropolita n planni..11.g ; and t o official
Goverrunent pl&lt;-1.nninr: a ge ncies for nreas where rapid urbo.niz.:i.tion is expected
as a result of a new c oJ11JT11111i ty- cie ve Lopmc nt a s sisted under title JV of
this act. The Secretory i s r cqnir e d to ·cons ul t i,J ith the Secr e tary of
Cormnerco Lefore rr1c1 king any pl3I111in;_~ gnmt which includes any part of an
economic d~velopment d i strict .
The definition of c ~mprAhensive pl~nning is broadened to include
planning for the provision of governme nt,3 l servlces and for the rievelooment ,3nrl utilization of human and natural resources. The inclusion
of· a housing element is required a~ part of the pr eplration of comprehensive lani use plans. The USP. o f private consultants, whP.re their
profe s si0na] sArv i c~s are dP.P.med appropriate by the assisted governments,
is added to the stated purposes of the program.
The authorlzation of apnropriations for grants is increased by P35 mil~
lion for fis~.:ll y~1r 19t;9 (includ\.ng t 20 million ea r m::irked for district
planning) ancl by :$125 million (induding plO million for district planning) beginnin ~ fiscal YA~r 1970. It is also provided th.qt an additional
$10 million of s P. ct\. on ?Ol apor or r i~tions i s to be avail able fo r study ,
fes e a r ch ani de~onstr~tion proje~ts.
�16
Planned areawirle rlevPlopm~nt
Supplemontary grants (rt es i gnP.d to Anc0'1r;i.ge areawide planning) are autl1orized for F'P.der.11ly-assisted projects in ;ill multi j 11risdictional
areas (not just metropolitan ar~a~ as previou ~ly provided )su~h as the
rural pl;mninp; distri c ts proposeri to ~e assisted with co·TJprehensive
planninR grants unde r t he comorehensive plRnnin g provisions of the
law. UnUBed authorizations for appropriations for supplementary grants
for fiscal year 19~7 3nd 1968 are made available through fiscal year 1970.
Advance Acqui sition of l and
The adv::ince acquisti on of bnd progr.:im is extensively revised. Among
the more signific::int ch::inges is a broadenin g of the definiti on o f eligible
land from land "pl::inned to ~e utilized in connec t ion with the future
construction of oublic works and facilities" to "land planned to be
utilized in the future for public purposes". Grants can also be made
for the imputed interest cost when a public body does not use borrowed
funds to acqui~e the land. Authority is given the Secretary to extend
the requirement that the land must be used for its proposed purpose
within five years if he de ems a longer period necessary due to unusual
circumstancPs ~nd so advises the B~nking and Cur~ency Committees of the
Congress. It is also provided that assistance under this program will
·not render a project ineligible for othPr Federal assistance programs
and th at the cost of land acquired with assistance under this prograM
will not be an ineligible project cost in such other programs.
Water and s ewer f ac i lit i es progr am
The interim planning requirements under the basic water an~ s ewer facilities grant pro ~ram is extended to Octobe r 1, 19~9. It is also provided that in admini s t e ring the program, to the greatest extent practicable, new job O:.lportunities shall be provided for unemployed or
underemployed persons.
Authorizati ons -- water and sewer, neighorhood f acilities, and advanc e
acq~~ ~~ t _
~o!1 _of lanrl prog!_cl!11S .
The author i7.ation fo r appropri ations for the s e three pr o:rams is ext ended
to permit the appropr i ation , fo r fi s cal ye ar 1970, of any fu nds autho r i zed
but not appropr i ated p r ior to th at time . Also, an additional $150 million
fo r f i sc al ye ar 19h9 an1 $115 milli on for fis ca l y ear 1970 are autho r i zed
to be anor opr i a t ed fo r the wa t er and s Pwer faciliti es grant pr ogram.
Open space l and program
The contract authoriza t ion o f $310 mil l ion for grants under th e open
space land nrogram ls changed to a lJ lO mi l l i on au thori zat i on o f appropriations prior to July 1, 1969, wi t h $150 millio~ in add i tional appro. priations authorized for fiscal year 1970 . The l imit on the amount of
the fun1s that can be used for s t udies and ~ublishing of information
is increased from $50, 000 to $1?.5,000 per year.
�17
FPa:.ih .i. liLy ::, Lurlic s - p 11h.lic i-rork;:; pl.r. nninc :t&lt; !'ro.ncr :,
It is ·m:.ide clear th:'lt the Secret::iry of HUD has au th0ri ty t0 m;ike ;iclvanr:es
for feasibility stur:lies unrier the oubl ic works pl;rnning .:i-iv;inces progr;:im.
TITLE VIT - !JRBAU MASS TRANSPORTATION
Authoriza tlon
The autl1~ri7.,:ition o ~ appropri;itionf; for gr;ints ;,nri 0ther ::issi.c:-t.;rnce to
· urb::in mass transportation is inr:re:ised by $190 mil lion ror fiscal ye;ir
1970. The a'.llount of funrls which c 'rn be used . for res~;:ireh, riev ~lopment,
and demonstration projects is increased hy ~IS mill i on, c0i'!lTTl 0 nc i.np.:
July 1, 1968, -'l !lri t.hP. st;itutory limit on the fun-1s av:1i1;1ble fo'!" this
purpose is n ~moved, cor.imencing July 1, 191S9.
Emergency rir orr am extended
The emergency ma s s transportation c apital grant program expir~ti 1n d::it~
is extended from ~ovember 1, 19~8 to July 1, 1970.
Defi nition
The definition of "mas s transportation" in the Urhan Mas s Transnortation
Act of 194+ is amended t o allow g r e;i ter flexibility 1.nd oon0rtunity for
aoplication of n~w concepts ::ind systems.
Non f e deral sho.re of ne t projec t cos ·t
Not more thnn half of the non-federal sh~r or the n~t proj r rt ros t of
a mass trRns por tation nro j ect is oermitte d to ~e paid fro~ priv ~t e
sourc es , e xcept in cer t a in c as e s of rle:non s tralf:id fL=; cal in;-1h i Lity . A'1y
oublic or r riv a t e tr.:rn s i.t sy st em f'unrl. s provi ciPci for l !,P. rn, n- t;"l"! ler;il
sh;J.re mu s t 1-ie sol e ly fro"! unr:list.rihute d c ~sh surplu ~Ps, r w)l ::i c P11ent or
de'1reci:ition funds or r &lt;"?se rve s av.:1 il a ble i n c1sh, o r new ca ptia1.
0
1
TITLE VIII - SECONDiillY MOTITGJ\GE MAR.KET
The existing Ft::ldcral Na tiona l l"iort.ra8e Associa t ion (1'1Il'iA) i s directed t o
be par titi one d i nto t wo i, cpa ratc corporations . One wi ll b ~] a Governme nt
spons ored privat e c orpor ation, to b e lrnmm a:.; tile Fe dera l. !la t i.cno.l Mortr.a '.:i:e
Association (FNHA ), to ope rat e t h0 :,c~c ondary mortr..:i.r,e marke t. oywr:Li,l ons .
The othe r wi ll r ema in in the Government a nd conti nue to ope1\1.te t he
opecia l assio t a nc e funct i ons for s pecial Fe de r a lly - aided hons ing programs,
and the manageme nt a nd l i qui da tin~; f unc U one of the old FNMA. TllP 112H
cor porat i on wi ll b e known a s t he Governme nt Nat :Lonal Mort c;ago A:J;:;ocfo.t ion
(GHMA ) .
FNMA i s authoriz ed to issn8 and s e ll securities l..i.::.tckod by a por tion of
i t s mortgage p 0rtfolio , with GNM.J\ ~u.'.lran t ce :i.ng pa;y11tenL on s uc h securitie s.
GNMA can also euarantee s imilar securi t i es i ssued by o ther pr i vate issuers
·where they are uacke tl by FIIJ\, VA, and some Farme rs Home Administration
mortgages or loans.
�••
JO
The spcci.:i.l assit,tance authorl7. a Lion of FU.MA. (no.-1 GNHA ) i s increa:..:ed by
$500 million on July 1, 1969.
The provisions of thi:.; title will become effective after a date, no more
than 120 days following its enactment, established by tlte Secretary of
HUD. The Secretary ho.s established this date as September 1, 1?68 .
Provisions are madu uit h respect to tlie capital stock of F1'111A and its
board of directors Juring a transitional period. The transiLiono.l period
will end when 1/ 3 o.f Lhe FI,JMA r, omm,·,n ::; t ock is owned h•r pers ons or orc;aniza tions in tile rnorti_:.:i.;:e l endin~; , home builu:Lnr; , r eal r.stn Le or related
businesses , but not sooner than May 1, 1:)70, nor .la ter than M.:.i.y 1, 1973.
The ITU1jor i ty of FNMA' s board of di rec t or::; ar c. to b e; appointcrJ. by the
Secretary of HUD durini; t he trans i t ional period. 'I'lic President of FNMA
during this period will be appointed Ly the Prc::iident of the United States
and confirme d by the Sen:i.te. One of t he ~ecretary ' s o.ppoinkes to the
Boa.rd will be the President.
After the trans itiona l period FNMA wi ll be governed by a 15- memuer board
of directors, five of whom will be appointe d by the Pres i dent of the United
States.
(
The new FNMA will be sub,ject to the general regula tory control of the
Secretar y of HUD, who also mus t approve the issuance of all stocks and
other obligati ons by FNMA and may r equire it to alloca te a r eas onable
portion of its mortgae;e purchases to mortgages i n low and moder ate inc ome
housing .
TITLE IX - NATIONAL HOUSING PARTNERSHJJl~
A nati ona l housjJ1g partners hip i s · to be cr eat ed f or the purpose of securing
the partic ip3.tion of private i nves t or s in progr c:ww and projects to provj de
hous ing for l ow and moderate i nc ome families .
Ini ti.ally , a f eder .:i.lly char ter ed, priva t el y f unded corpora tion will be
organize d under the Db trict of Columtia Dusiness Corpor~tt i ou Act . The
corpora tion in turn will organize t he Nat i ona l partners hip under t he D.C.
Unif orm Limi t e d Par t ner ship Ar:t .
The corporat.i.on will serve as t he ccncral partner anrl manDr,i.ng acent of
the Na t iono.l partnc1·chip and each of its stockl1olders can be limited
partner s. It will provi de the staff .:i.nd expertise f or t lie Partnerchip in
orc;ani zing and plannint.; project undcrtakinc;s i n which Lile p::ir L11crship
has an interest, and r eceive a fee for such s crv:ices .
Both the corporation .:md the Na tional par~,nership are authorized to
engage in a uroad range of' ac tivities appropria t c to tl ie provision of
housing and relate d facilities primarily for low or moderate income
families , with or without the use of Federo.l programs, ancl m.:iy enter int o
and participate in al l forms of -partnerships and associations. The National
�•
19
partnershi p is expected to form pa rtnership ventures with local investors
for the purpose of building low and moderate income housing projects
throughout the nation. Normally, it will be a limited partner in such
undertakings, with an interest of not more than 25% of the aggregate
initial equity investment for the project.
The President will appoint t,he incorporators of the corporation and 3 of
the 15 members of the board of di r ectors. The incorporators will serve
as the initial board of directors and arrange for the initial off ering
of shares of stock in the corporation and interests in the National
partnership.
The President is authorized to create additional partnerships when he
determines it to be in t he nati onal inter est.
National banks are authorized to invest in a corporation and other
entities formed under this title.
TITLE X - RURAL HOUSJNG
Housing for low and moderate income per s ons and f amili es
The Secre t ary of Agr i culture is aut horized to pr ovide direct and insured
loans for housing in rural areas to low and moderate income persons and
families and to provide renta l or cooper ative housing for such per s ons
where assistance is not available under the new interest redu8tion programs
authoriz ed by t he l aw. The interest rate on the loans can be at a r ate
set by the Secr etary after considering the c ost of money to the Treasury
and the payment ability of the appl icants , but not l ess than 1 percent
per annum. An int erest supplement necessary to market the insured loans
will be paid from, and reimbursed hy annual appropriations to, the Rural
Housing Insurance Fund.
Housing fo r rural t r a inees
The Secret ary of Agriculture is authorized t o provide f i nancial and
technical a ssistance to t he provision of hous i ng and r el a t ed facilit ies
in rural areas f or rural trainees (and their famil i es ) enrolled i n
Federally assisted t r aining cours es to improve their employment capability.
Advances for land purchase f or t he housing will be repayable within 33
years and bear inter est at a r ate (not l ess than 1 percent ) determined by
the Secretary of the Treasury t aking into considerat i on the current
average market yie ld on outs t anding Federal obligations . Other advances
would be nonrepayable, or repayable with or without interest, depending
on t he applicant ' s payment ability, from pro j ect net income and any other
available sources .
Mutua l and self-help housing
A new program of grant s and l oans is aut horized t o provide assistance in
rural areas and small t owns to needy low-income individuals and t heir
fami lies f or mutual or self-help housing. Gr ants can be made to public
or private nonprofit organizations to pay part or all of the costs of
developing compreh nai ve programs of t echnical and supervisory assistance
to aid individuals and their families in carrying out rrrutual or self-help
_housing efforts.
�20
loans can be made on such terms and conditions and rn such amounts as the
Sacl!etary of Agriculture deems necessary, to needy low-income individuals
participating in programs of mutual or self-help housing approved by him,
for .the acquisition and development of land and for the purchase of
building materials as may be necessary, for the construction of dwellings.
Loa.ns will bear interest at not .more than J percent per annum, and be
repayable withrn 33 years.
A eel.f-help housing land development fund is authorized to provide a source
of short-term loans to public or private nonprofit organizations to buy and
develop building sites to be sold to families, nonprofit organizations,_
and cooperatives eligible for assistance under the new interest reduction
progrmna for housing for lower income families.
TITLE J;I - LR PAN PROP~RTY PROTECTION AND REIN.stRArJCE
_T itle XI enacts the "Urban Property Protection and Rernsurance Act of 1968."
(
Under this Act the Secretary of HI.JD is authorized to provide private
.insurers with reinsurance against losses resulting from riots or civil
disorders. The sale of reinsurance is limited to those insurers that
cooperate with State insurance authorities in developin~ statewide plans
to assure fair access to insurance requirements, called FAIR plans.
Reinsurance may only be provided in States which have such plans.
FAIB plans may vary among the States, but all plans must satisfy minimum
statutory criteria. The principal requirement is that no risk can te
written at the surcharged rate or denied covera~e unless there has teen
an inspection of the property and a determi nation made that it does not
meet reasonable underwriting standards at the applicable premium.
Additional requirements relate to the procedures to be followed with
respect to inspections, the provision of reasonable notice to property
owners of cancellation or nonrenewal of policies, and the formation of
an all-industry facility which will place the insurance in the r egu lar
market. S1; ch •'AIR Plans are to be administered under the supervi sion
of the State insurance auth ority. As a condition for providing reinsurance
in a State, the Secretary can require additional programs to make property
insurance available without regard to environmental hazards.
Reinsurance is offere d in standards lines of property insurance coverage
and can be pr ovid ed ·immediately followin g enactment by means of a binder
agreement, which expires aft er 90 days unl es s sooner replaced by a
reinsurance contract.
Premium rates and the terms and conditions of reinsurance contracts are
to be uniform throughout the country. The premiums for the fi rst year
must provide sufficient income to cover a level of riot losses in excess
of the amount of insured riot losses in 1967.
�21
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rejr.sL-ruJ ci.a:iH.s).
1·
A :·i:-:tio ,1al Inst:rar 1c'" Tlcv&lt;! : orr.1ent,
a~· thori /. cd. Trc a . 1~ry Lo1-ro1-1.irir:s
for r r:: ~rl~'\,rCd lo ss es, lir.ii t.ec to
Congress rnay at i t/·,c-rizc 't;r j oint
r\ nr! is crca'.:.f'cl 1,c c :,n·y r,1 t, tl if! rroi·r;-1.r.,:
arc ,11 .t.hc,r L ~&lt;;c] t o ;·;ri ~:c r,1.. n-.C? r. V '.'l J cla7rrr·
,,, 2 1J0 miJ.lion or ~- \.Cl: f 1, rj,J-rsr S\ ;,,S ,, :-; i.hc
rcsclu tion.
'he Secrl' t a ry i:; re~uirec to r,1ake a study conce rnirw thr: ;:i,:Ail::i.tilit:/
o!.' rrorc:r1',y ir.s1 ·rance i.11 1. rtan area~ and t c, f;1_:bm:it th r: r e s1 -l f.s to the
President and U1r, Con£;r ess no lat e r t,har. 1 ye ar after t.hf; en,1ct1r.ent
of the lr1w. li e js also actl~orized t:o co:1duct othr:r !':ti.dies r,Prtinent
t.o his reir.s , ra11cc, anci statewi~e rlan responsi h .li ti 8s .
A 11-mcmhe r advisory t .03: ·d is to be aproini.,f?O l-y t, l\e ::ecrr t.::r·y ·, ,i tl\ nrt,
less tl,an i'oL;r n.cmh:n ; to r·,~1,resf:nt t,he 5 nrt,rar:c f; industry ar ·c: not. le~ . s
(
tran ~·01 :r n.fr:th~rt t;o rc:p r csen t th.' St ;,t.e in[;vr~mcf" a1 .t~1o rit,ies.
TITLE XII - DISTRICT OF COLUMBIA INSURANCE PLACEMENT ACT
The District of Columbia Insurance Placement Act establishes programs to
assure the availability of basic property insurar1ce protection against
fire and other perils for residential and business properties in the
District of Columb..i.a. Such programs are subject to the :=mpervision and
regulation of the Commissioner of the District of Columbia.
Within JO day::; after enactment all license d insurers in the District who
write basic property insuranc e are required to establish an Industry
Placement Fa cility which is to adminis-ter a program to provide for the
equitable distribution of responsibility for insuring qualified property
for which insurance cannot be obtained through the normal ins~rance
market.
Rules and regulations are to be adopted by the Facility to assure all
property owners fair access to insurance requirements. Suc h rules and
regulations, which must be approved by the Commissioner, arc requ:i_red
to be consistent with the -state-wide plan requirements of the Urban
Property Protection and Reinsurance Act of 1968 (Title XI, Supra).
The Commissioner is a uthorized to establish a joint unde rwriting association
to provide for the reinsurin[; of basic prop:!rty insurance without regard
to environmental ha zard, if he finds that such a pror ram is necessary to
carry out the purposes of the Act.
�22
The Com.miss ioncr is authorized to a::;sess each insurance company authorized
to do business in tltc District an amount su.fficienl, to satisfy the state
sharing requireme11t for Federal reinsurance under the Urban Propert.y
Protection and Reinsurance Act. Such assessments would be based on a
company's proportionate share of premiums earned on reinsured lines during
the preceding year. In the event of such assessments, the companies will
increase their premiums by an amount sufficient to recover the a::;sessment
within not more than a J year period.
TITLE XIII - NATION/1.L FLOOD INSlJR/',NCE
Title XIII enacts the "National Flood Insurance Act of 19613 11 • Under this
Act, the Secret9-ry of HUD is authorized to estaulish and carFJ out a national
flood insuranc,::! progra,11 to enable persons to purchase insurance against
losses resulting from physical damage to or loss of real property or
personal property arising from any flood occurring in the United States.
He is directed to encourage and arrange for maximum participation in the
program by insurance companies and other insurers, and by related agents,
brokers and organizations .
(_
The Act provides for the operation of the flood insurance progr~n .J.~ a
joint venture between the Federal Government and the private insurance
industry (with the industry participating on a risk-sharing ba::.;is).
However, as an alternative, the Secretary may, if necessary, operate
the program without the companies participating on other than a fiscal
agency basis.
The Secretary is authorized to borrow up to $250 million from the Treasury
to carry out the ins urance program. A National Flood Insurance Fund is
established for makinc payments authorized by the bill, including premium
equalization payments and reinsurance for losses in excess of losses
assumed by insura~c~ company pools form~d to provide flood ins urance .
Coverage will be available initially for one to four family dwellinr;s and
small business establishments but is to be extended to additional types
and classes of property as found f easiule by the Secretary. In the case
of dwellings, the insurance limit, where the rate is less than the full
risk rate, will be $17,500 for any s i ngle dwe lling and $JO,ODO for a
twc to .fo'. H' family structure, plus $,S,000 per dwelling for contents. Small
business properties can be insured for up to a total of $30 , 000 for the
structure and $5 , 000 for the contents of each individual busine::,s. These
limits may be doubled upon the payment of full premium rates for t!te
coverage in excess of such limits by the insured proper ty mmer.
The Secretary is directed to develop cri tcria designed to enc ouracc tlie
adoption of State and local measures to constrict · the devclopmc.mL of land
which is expose d to· flood dam.:1r;e, s uide development of proposed construction
away from locations threatened by flood hazard3, assist in reducing d&amp;~age
caused by .floods, and otherwise improve land management arnl use of floodprone areas.
�(
2J
After June JO, 1970, no new flood insurance coverage can be provided in
aey area unless an appropriate public body has adopted permanent land UBe
and control measures which the Secretary finds are conBistent with the
criteria he has prescribed for land management and UBe in flood prone areas.
The Secretary is directed to appoint a flood insurance advisory connnittee.
The face amount of flood insurance coverage outstanding and in force at
$2.5 billion.
any one time is limited to
The Flood Insurance Program will go into effect 120 days following the
date of enactment unless the Secretary prescribes a later effective date,
not to exceed 180 days from the date of enactment.
The Secre:ary of HUD is authorized to undertake studies for the purpose
of determining the extent to which insurance protection against earthquakes
or other natural disaster perils, other than flood is not available and '
the feasibility of such insurance protection bein~ made available. '
TITLE XIV - INTERSTATE LA~D SALES
(
The "Interstate Land Sales Full Disclosure Act" enacted by Title XIV
makes it unlawful for any developer to sell or lease, by the u~e of the
mail or by any means in interstate commerce, any lot in any subdivi sion
(defined 86 one with 50 or more lots for sale 88 part of a common
promotional plan) unless
(1)
there has been filed with Secretary of HUD
listing certain required information about
land, the state of its title, its physical
of roads and utiliti es , and other matters;
a statement of record
the ownership of the
nature, the availab ility
and
(2)
a printe d property report, containing pertinent extracts from the
statement of record, is furnished to the purchaser in advance of the
signing of an agreement for purchase or lease.
These requirement s do not apply to any subdivi sion where the property is
clear of all liens and if every purchaser has personally inspected the
lot which he purchased, as evidenced by a written affi rmation by the
developer.
Any contract for the purchase or lease of a lot covered by this Act is
voidable at the option of the purchas r if be was not furnished with
a property report ·at least 48 hours in advance of his signing the contract.
If the property report was received by the purchaser less than 48 hours
in advance of his signing the contract, it is voidable for a period of
48 hours after the signing .unless he stipulates in writing that he has
read the report and inspected the lot before he signed the contract •
._____
_____
.___
~-~-~~-~-~-~
�24
Hillful viol.:it:i.on of these requirements is su1;jcct to criminal penalties of
imprisonment for not more than 5 yea.rs, or a fine of not more than
$5,000, or both. Broader civil remedies than heretofore available are
also provided. A suit for damages may be brought in any State or
Federal court for the district in which the defendent may be found or in
which the transaction took place. The Secretary is authorized to seek
an injunction against any developer he can show is violating or about
to violate the law.
In carrying out his responsibilities under this legislat-Lon, the
Secretary is required to cooperate with State authorities charged with .
the responsibility of regulating the sale of lots in subdivisions.
This Act does not become effective untll 270 days after enactment.
TITLE XV - tv()RTGAGE INSURANCE FOR NONPROFIT HOSPITALS
This title establishes a new FHA program ( section 242 of the National
Housing Act) under which the Secretary of HUD will insure mortgages covering
new or rehabilitated hospitals (including initial equipment). The mortgage
may not exceed $25 million or 90 percent of replacement cost and the
hospital must be owned and operated by one or more nonprofit organizations.
(
. TITLE XVI - HOUSJNG GOAL'3 AND ANNUAL HOUSING REPORT
Reaffirmation of national goal
The Congress finds that the supply of the Nation's housing is not increasing
rapidly enough to meet the national housing goal and reaffirms this goal.
It determines that it can be substantially achieved within the next decade
by the construction or r ehabilitation of twenty-six million housing units,
six million of these for low and moderate income families.
Report outlining plan
Not later than January 15, 1969, the President is required to make a
report to the Congress setting f orth a plan to be carried out over the
next ten years for the elimination of all substandard housing and the
realization of the national housing goal. The report shall, in addition,
contain a projection of the residential mortgage market needs and
prospects during the coming year, including an estimate of the requirements with respect to the ava ilability, need and flow of mortgage funds ,
together with recormnendations for encouraging the availability of funds.
Periodic reports
1.5, . 1970, and on each succeeding year through 1979, the President
is required to submit to the Congress a report of results achieved in the
provision of hous ing, and r ecormnendations for legislation or additional
adm.:i.ni.strati ve ac tion tha t may be needed to achieve the objectives of
the President's plan.
On January
�25
'\ _
.Q_onnnission on Mortga13e Interest Rates
Funds appropriated and available for studies of hoUBing markets and credit
under laws previously enacted in 19LB and 1956 are made available for
expenses of the Corrnnission on MortcaBe Interest Rates to study mortgage
interest rates. This Commission was established by Public law 90-JOl.
TITLE XVII - MISCELLANEOUS
Model cities
The authorization for supplemental grants for model cities is increased
by $1 billion for fiscal year 1970, and an additional $12 million is
authorized for fiscal year 1969 for grants for planning model cities
programs. Amounts authorized but not appropriated are made available for
appropriation for any succeeding f i scal year commencing prior to July 1, 1970.
•Urban renewal demons tration grant program
Urban renewal demonstration grants are authorized to be made to nonprofit
organizations. Under prior law these grants were available only for
public bodies.
The l:illlit on the amount of urban renewal demonstrati on grants i s increased
from two-thirds of the cost of the undertakings to 90 percent of the cost.
(
The amount of funds available for these grants is increased from $10
million to $20 milli on.
~
r..l'§at i on ror urban lnfol"Ti\ation and t echnic al Msist ance lervice
~
Thea.ithor ization for grants to State s to assi s t in the pr ovis ion of
urban in fomation and tP.chnical assistance i s increased by $5 million
tor fi s cal y ear 1969, and by $15 million for fisc al year 1970. Amounts
author i~od for the se gr~nts but not appropriat ed are author i zed to be
appr opr iat ed fo r any succeeding fi.scal year commencing pr ior to July 1, 1970.
Advance~ in t e chnology in housing and urban deve lopment
Such 8Wl1S as may be
mencing wi t h fi s cal
que s and m~thods of
and rehabilitation ,
authorh.ed for such
authorized.
necessary are authori zed t o be appropr iated comye ar 1969, fo r s t udies of new and improved t echni~
appl yin g advance s i n ~echnoloa to horlsin c construction
and to urban devolopment. Fbur-year contrac t s are
Btu.dies rat her than 2-year cont ract &amp;r as heretofore
Collne;e housin&amp;
The colle e housini direct . l oan program i s expanded t o add a new profP'e.M t o provide financial aBsist ane by means of annual debt service
grmnts. Tb now grant program i s t o he need t o reduce t he borro~er•s
annual debt service payments on pr i vat e market l oan5 t o the average,
annual debt service that woul d h~ve ooen required if the loan
"
�26
based on the rate charge~ on loans unner the direct loan program. Annual
grants can be marlA over rt fixed period up to 40 years. The total amount
or annual grant contracts is subject to approval in appropriation acts.
The total ~nount cannot exceed $10 million, with this limit increased
by $10 million on July 1, 1969.
The loan and new grant program are made available for the purchase of
existing propP-rties which are in need of little or no_rehabilitation.
Federal-State traininr prn rrams
The Federal-State training program is 'croadened to permit grants to
States for th e train i ng of ffiibprofe~sional (heretofore limit ed to
professional) persons who will be employed in the field of hot,sing
as well as communit y develor ment. The trainees may be trained for
employment by _private nonprofit organizations which have responsibility
for h0t:sins and comrm.:n:i.ty development rrograms, in addition to public
organizations. Guam, Air,eri can Samoa, and the Tr: st Te rritory of the
Pacific Islands are made eligible for f,rants under the program.
Additional Assistant Secretary ol' Housing and l rban Development
·An additional Assistant Secretary of Housing and Urban Development
l.
is authorized.
Self-help Studies
Grants are authorized to be made t.:nder the low-income housing de :r onstration program for studies of self-he lp in the construction, r ehab ilitation,
and maintenance of hocsing for low-income persons and families and the
methods of se l ec tin F, , involving, and directing them in self-help activiti es .
Tbe Secretary of HUD is required to r eport to C~neress within one year
on the results of any scch studies.
Saving&amp; nnd loan as socj ations
Federal sa vings and l oan as sociations are autrorized to raise carital
in the form oi savings deposits or oth er accounts (in addition to shares)
and to borrow and isst;e bonds or other obligations.
Their lending and ~nve s tment powers are liberalized and br oadened by
authori~ine them to invest in 1. time deposits, certificate s or accounts in banks insured by
the FDIC;
2. unsecured loan s r.o l. exceeding f5, 000 to finance the cons t nction
of new structure s relating to resid ential use (vacation homes);
J. mobile home financin g ;
h. loans not exceetjing ~s,ooo for th e equipping of homes;
S. loans gu aranteed by AID on housine projects locate d in
developing co untries outside o f Latin American; and
�•
l
27
/). lc:,a !l~: Lo i•'eci e l';J lly s Ll r e rvi S C'd 1'i nai 'r, i;.i 1 in ~, t. i. tl J t 101 ,:; or
tr·ok-~1· ~ or [:1-; aler~; rq :i s tt~r,·d ,1i Lh Lhe SEC, i '. ' Ll 1E: l oa ns
arc secured ·l:y loa ns, ol ,lit'.atiuns or invcst.m 0. nk-; iri which
the fode1·al a:;soc i:ition ha s c: tatu tory a11 tr.ority to inv~s L d ir ~c :.ly.
reocral Porne Loan 71 a nk Act
Federal home loan banks are authorized to invf:st in ho1 ·sinr: rro _je ct
loans huarante ed 1,nut~r Lhe Foreign Assistance Act or 19(;1.
Section 2L of the . [,'edc r a l f-icservc act is amenc.lc cl to allt~1cy,~-~~--,; s&gt;,n._:',.lru~tion loans by nat1onal banks 1:r to J rn ont,h.- 1n lr.rwth ·,,se:r1 C"Ji.:0fy r':!--1'.--1111 t.eci
to 211 rr.onths) as an exce ption to t he limitation on r ~al cs t at.e loai1s .
National f.ai1ks are pc: rmi tt c d to continue to ru r chase part.ici ra t ions in
existirw mort~'.agcs, .:md it is mat:c c l ear t hat loans by nat i. onal h;mks
are not to he consid e r e d as re a l e s tate loans wh ~r c the bnnk looks primarily for rerayrnent ol; t of secc rit y othi:-?r than r e al e state.
(
(
�</text>
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                    <text>HOUSING RES,JURCES COHI-IITTEE
CITY HALL
ATLANTA, GA. 30303
Tel. 522 -4463 Area Code 404
Room 1204, City Hall
IVAN ALLEN, JR., MAYOR
April 29, 1968
CECIL A. ALEXANDER, Ch airman
Housing Reso urces Committ ee
MALCOLM D. JONES
Housing Coordinator
Dear Housing Resources Committee Member:
The reglL.lar monthly meeting of the Exe cutive Group of the Housing Re sources
Cownittee for Hay 1968 will be held as scheduled, Thursday, Hay 2, at _l0:00 a.m.,
in Committee Room 2, City Hall.
This will be another joint meeting with t he Coordination Group composed of
Heads of Departments and Agencies whose activities relate to Low-income Housing.
We are working on a plan for making more land available for 1011-income
housing , which we propose to explain at this meeting and· which will need your
support.
Please consider t he f un ctions of your pai.'1.el and be prepared t o offer
spe cific proposals f or making concrete contr ibutions to the progr am .
Chairman Alexander proposes scheduling a special re-ori entation meeting
soon with t he compl ete membershi p of each Panel of t he HR C.
'
,J
We hope t hat you will be able to attend t his meeting .
date on your cal endar.
Please r e s erve the
A return addres s ed postal card is enclosed for your convenience in advising
us whether you wi ll be able t o attend t he 1'".:ay 2 meeting .
Sincerely,
~~
. . ~~


/hdJc.d.-....


~ -'-&lt;-.t.~
Mal colm I!• Jones
Housing Coordinator
Encl :
Postal Card
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              <text>CTTY fw" fe rer f WITT “j 2 %
HOUSING RESOURCES COMMITTEE Orry PEA ET; dam AeA A BOSS

Tel. 522-4463 Area Code 404

Room 120, City Hall

IVAN ALLEN, JR., MAYOR
April 29, 1968

CECIL A. ALEXANDER, Chairman
Housing Resources Committee

MALCOLM D. JONES
Housing Coordinator

Dear Housing Resources Committee Member:

‘The regular monthly meeting of the Executive Group of the Housing Resources
Cormittee for May 1966 will be held as scheduled, Thursday, May 2, at 10:00 a.m.,
in Committee Room 2, City Hall.

This will be another joint meeting with the Coordination Group composed of
Heads of Departments and Agencies whose activities relate to Low-income Housing.

We are working on a plan for making more land available for low-income
housing, which we propose to explain at this meeting and which will need your
support.

Please consider the functions of your panel and be prepared to offer
specific proposals for making concrete contributions to the program.

Chairman Alexander proposes scheduling a special re-orientation meeting
soon with the complete membership of each Panel of the HRC.

We hope that you will be able to attend this meeting. Please reserve the
date on your calendar.

A return addressed postal card is enclosed for your convenience in advising
us whether you will be able to attend the May 2 meeting.

Sincerely,
Dy eheeliacArft+2—
Malcolm D./Jones

Housing Coordinator

Encl: Postal Card
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                    <text>... : ~ ~-.
-· ..
·,_
HOUSING RESO"URCES C·] ,JNITTEE
Room 1204, City Hall
CITY HALL
ATLANTA, GA. 30303
Tel. 522-44 63 Area Code 404
IVAN ALLEN, JR ., MAYOR
April 29, 1968
CECIL A. ALE XANDER, Ch ai rm an
Housing Resources Committee
MALCOLM D. JO NES
Housing Coordinator
Alderman G. :Cverett Millican
Alderman Rodney 11. Cook
Nr. Dan E. S1-r eat, Jr.
Mr. Jim Crawford
Mr. Collier B. Gladin
Mr. Lester A. Persells
Mr. Edwin L. Sterne
Mr. Cary S. tiooks
Dr. John H. Letson
Mr. A. B. Padgett
Mr. Jim Parham
Mr. Johnny C. Johnson
Mr. George H. Kennedy
Mr. James B. Pilcher
Dr. Sidney L. Davis
Gentlemen:
The next meeting of this Coordinating Group, for the purpose of getting
together, comparing notes a nd exchanging ideas in interest of expediting t he
Low- income Housing Program through effective coordina tion, will be held Thursday,
May 2, at 10:00 a.m., in Committee Room 2, City Hall.
This will be another joint meeting with t he Exe cutive Group of the Housing
Resources Committee.
The s everal previous mee tin2s of t ris group have been ver y stimulating and
helpful to the Low-income ::rousing Pro6 r am.
We are now working on a plan for making more land available for loH-income
housing , whi ch we propose to explain at thi s meeting and for whi ch we ne ed and
solicit your supp or t.
Mr. Cecil A. Alexander , Chairman, Housing Res ources Committee , and I hope
t hat you will be able to attend t hi s meeting, as your participation is very
hel pful in furthering t he progress of t he Low-income :qousin3 Program.
A return addressed pos tal card is enclosed for your convenience in informing
us whether you pl an to attend t he Hay 2 meeting.
Sincerel y ,
73.a~e-r-f~ --.,U/.)..-J
Mal colm D.· ; ~
Housing Coordinator
Encl:
Postal Card
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              <text>oe ~ p-—— ak TR A
f 7 yry ms? a yest f.TT tei Z m Per? A
ee Sr. ee ee ote wth ee ede eh.

JOUSING RESOURCES COMMITTEE
HOUSING RESOURCES CNMITTE: Bein RAC aa Bachanaee

Room 12 Oh, City Hall Tel. 522-4463 Area Code 404

April 29, 1968 IVAN ALLEN, JR., MAYOR
CECIL A. ALEXANDER, Chairman

Alderman G. Everett Millican RGe Ee
Alderman Rodney iM. Cook Housing Coordinator
Mr. Dan E. Sweat, Jr.

Mr. Jim Crawford

Mr. Collier 3. Gladin

Mr. Lester A. FPersells

Mr. Edwin L. Sterne

Mr. Cary S. Hooks

Dr. John lJ. Letson

Mr. A. B. Padgett

Mr. Jim Parham

Mr. Johnny C. Johnson

Mr. George W. Kennedy

Mr. James B. Pilcher

Dr. Sidney L. Davis

Gentlemen:

The next meeting of this Coordinating Group, for the purpose of getting
together, comparing notes and exchanging ideas in interest of exoediting the
Low-income Housing Program through effective coordination, will be held Thursday,
May 2, at 10:00 a.m., in Committee Room 2, City Hall.

This will be another joint meeting with the Executive Group of the Housing
Resources Committee. ;

The several previous meetings of this group have been very stimulating and
helpful to the Low-income Housing Program.

We are now working on a plan for making more land available for low-income
housing, which we propose to explain at this meeting and for which we need and
solicit your support.

Mr. Cecil A. Alexander, Chairman, Housing Resources Committee, and I hope
that you will be able to attend this meeting, as your participation is very
helpful in furthering the progress of the Low-income Housing Program.

A return addressed postal card is enclosed for your convenience in informing
us whether you plan to attend the May 2 meeting.

Sincerely,

FA zhe. tinh ‘

Malcolm D. Jéfes
Housing Coordinator

 

Enel: Postal Card
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                    <text>WARE, STERNE Sc GRIFFIN
A TTORNE Y S
A T
L AW
SU ITE 639 TR U S T COMPANY OF GEOR G IA BUI L DI NG
ATLANTA, GEORGIA 30303
HENRY H . WARE, JR .
E DWIN L. ST ER N E
WI LLI AM W . GR IFF"I N
RO BERT F . LYLE
April 22, 1968
T EL EPHONE saS- 5591
JOHN P. RABUN , JR.
RALP H S . F ORC E
AL T ON H . HO P KINS
JO H N W . AKR I DG E , JR.
M I CHAEL L . S E L L ERS
Mayor Ivan Allen, Jr.
City Hall
Atlanta, Georgia 30303
Dear Ivan:
After our discussion last week at lunch, I met with Mr. Satterfield, Executive Director of the Atlanta Housing Authority, and Les
Persells, his assistant, and discussed the whole matter with them at
leng th .
While I am sure you recognize that there are some delays which
are beyond our control , nevertheless, I would like f or the Housing
Author ity to do everything possible not only to avoi d de lays on i ts
own account but t o keep afte r t he ot he rs with whom we have t o deal ,
such as t he Fe deral Government , arch itects , City Plann i ng Department,
etc., t o try t o move things a long as speedily a s poss i ble.
With t his in mind Mr . Satterfield te lls me t h i s morni ng that
he has employed Co l . Jame s B. Mi ller, . a retir e d Army Colon el , as
Production Coordinator f or the Housing Authority. His duties will
be specifically to try t o cut red tape, break log jams and move things
along both within and without the Housing Authority.
I hope, t oo, that Col . Miller will make periodic reports, copies
of which will be sent to you and others interested, so that we may
see and keep up with any lags in these matters.
Wi th kindes t regards, I am
ELS:ms
cc: Mr. Cecil Alexander
cc: Mr . M. Bo Satterfield
Edwin L. Sterne
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              <text>WARE, STERNE &amp; GRIFFIN
ATTORNEYS AT LAW
SUITE 639 TRUST COMPANY OF GEORGIA BUILDING
ATLANTA, GEORGIA 30303

HENRY H. WARE, JA.
EDWIN L. STERNE

WILLIAM W. GRIFFIN April 22 3 19 68

ROBERT F. LYLE
JOHN P. RABUN, UR.
RALPH S. FORCE
ALTON H, HOPKINS

JOHN W, AR RIOGE, JR.
MICHAEL L. SELLERS

Mayor Ivan Allen, Jr.
City Hall
Atlanta, Georgia 30303

TELEPHONE 525-5591!

Dear Ivan:

After our discussion last week at lunch, I met with Mr. Satter-
field, Executive Director of the Atlanta Housing Authority, and Les
Persells, his assistant, and discussed the whole matter with them at
length,

While I am sure you recognize that there are some delays which
are beyond our control, nevertheless, I would like for the Housing
Authority to do everything possible not only to avoid delays on its
own account but to keep after the others with whom we have to deal,
such as the Federal Government, architects, City Planning Department,
etc,, to try to move things along as speedily as possible,

With this in mind Mr. Satterfield tells me this morning that
he has employed Col. James B, Miller, a retired Army Colonel, as
Production Coordinator for the Housing Authority. His duties will
be specifically to try to cut red tape, break log jams and move things
along both within and without the Housing Authority.

T hope, too, that Col. Miller will make periodic reports, copies
of which will be sent to you and others interested, so that we may
see and keep up with any lags in these matters,

With kindest regards, I am

incerely, ~O yf
ia x weg
ELS:ms Edwin L. Sterne

ec: Mr. Cecil Alexander
ec: Mr. M. B. Satterfield
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                    <text>.. . ...


,


AUGUST 2, 1968
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CITY HALL
ATLANTA. GA. 30303
Tel. 522-4463 Area Code 404
IVAN ALLEN, JR., MAYOR
CECIL A. ALEXANDER, Chairman
Housing Resources Committee
MALCOLM 0. JONES
Housing Coordinator
I am appearing before you as Chairman of the Housing Resources
Comrni ttee of the City _o f Atlanta.
charged by
In November 1966, we were
the Mayor to assist by all means possible the con-
struction of 16,800 units of low and moderate income housing
units.
These units were to serve as relocation for persons to
be moved by urban renewal, new roads, schools, and other government action.
As of May 15 we stood as follows:
Units completed
Under construction
In planning
'rotal in sight
Of this 16,800,
2,031
5,108
7,151
14-,290
9,576 were to be public housing -- 3,906 of these
are in some stage of completion, 658 have been leased, and 372 are
being negotiated.
This means that 4-,64-0 more units are needed by
1971.
In the F.H.A. programs . for low to moderate incomes, we are running
ahead by 3,165 units.
It is then in the area of public housing,
the most needed and the most difficult to find land for, that we
-need help.
�•
-2In addition to the replacEment housing we need, the total requirement for low and moderate units as compiled by the City
Planning Department is 31,400.
Thus even if we complete the
16,800 units, we are still 14,600 units short of our total needs.
It is no news to you that this program is controversial.
White
and black, rich and poor, people in government and out, good guys
and bad guys, say either, "we need it, but put it somewhere else."
or "don't put anymore of it anywhere."
And our proposals are
themselves controversial, open to misinterpretation and exploitation.
But this Committee feels that our requests are justified in terms
of the successful completion of this program--and we did not join
this committee to fail.
The question has been raised concerning the inability of the people
of Atlanta to stand the tax burden of carrying out the program.
It
should not be forgotten that over 7,000 of these units will, in
fact, be tax producing and will present no additional burden on
Atlanta's taxpayers.
in lieu of taxes.
Even Public Housing makes payment to the Cit y
All pay, even if at a reduced rate.
It is well
known that slums absorb an inordinate amount of taxes in the extra
police protection, fire protection and sanitary services.
When we
eliminate sl ums we als o eliminate considera ble p r ofitl ess d rain of
tax dollars.
The Housing program will p res umably put over
$170,000 , 000.00 in construction costs into Atlan-ta's economy during
construction; jobs will be created during construction and long
after in man~gement and maintenance.
We submit that the net effect
on the City will be incieased ta x yield and substantial improvement
in the overall economy.
The point was also made that if we enforce the laws against ove rcrowding, the people would have no place to go but Fulton and
�; ~
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DeKalb County.
We approve of the enforcement of the law, but .
challenge the assumption of knowing where the displaced would
.go.
If history.repeats, they will stay as close by as possible
-and "block bust" adjoini.n g neighborhoods,: unless . a definite
program is set up to relocate them.
One of the T.V. stations warned us that you would want several
que.s .tions answered today.
They are good questions--we believe
we have. good answers •
1.
Why don't we look for sites already zoned for apartments'?
ANSWER:
We have--the developers have--the areas now zoned
for apartments of all kinds amount to 455 acres and of this
more than three-fourths have been tried and found wanting.
Zoning isn't the only criteria.
The site selected must be
priced right, it must satisfy H.U.D., the Atlanta -Housing
Authority, F.H.A., schools must be available, utilities
must be in, terrain must be feasible and so on.
2.
What is to prevent prices on rezoned land from soari.ng'?
ANSWER:
The more land available, the lower the prices should
be.
3.
Is the housing being built being used by displaced Atlanta
people or is it making Atlanta a dumping ground for the poor'?
ANSWER:
We acknowledge this possibility and have taken the
following steps:
1.We recommended to the Atlanta Housing Authority and they have
required one year· residency ror acceptance in public housing.
�I
-4--- .
Recent figures, however, show that the people who want
public housing are our own Atlantans.
From November 1, 1967 to June 30, 1968, the Atlanta Housing
Authority received 2,903 applications.
Of these only 141
were from persons in Atlanta less than six months, whose applications
were rejected.
2. Ttu.~· Comml ttee has brought into being a metropolitan
oriented non-profit fund for promoting projects thro_u ghout
the metropolitan area
. 3.
This committee has encouraged the creation of the Inter-
Faith Housing Group, a non-profit group of churches seeking
to build housing throughout the area.
4.
We have supported and encouraged such organizations as
SWAP which have encouraged the stabilization of neighborhoods
in transition.
5.
We have encouraged the construction of upper income hou·s ing
in the central city and the preservation of existing neighborhoods.
6.
We are mcving to organize a state-wide low cost housing group.
Yet it would seem that your fears aqd ours are not valid.
First of all
as noted above, the Atlanta Housing Authority figures indicate that
there is only a small influx of poor seeking housing.
Secondly, we
cite the following figure from Sales Management- a. publication that
many businesses and planning bodies rely on.
�I
-5-
Their figures indicate that low income families are on the decline
in the City limits of Atlanta and higher income on the rise.
YEAR
INCOME LEVEL
PERCENTAGE
1966
3,000 or less
23.7%
1967
3,000 or less
20.9%
1966
10,000 or more
22.9%
1967
10,000 or more
26.9%
The poor families dropped 2.8% and the $10,000.00 or better increased 4%.
The Atlanta Constitution, in discuss ing a similar effect in the
metropolitan area says,"Last year's increase of some 13,500 in
number of households here also may have influenced the unusual
trends, particularly if most of them represent migrants moving
into relatively well paid jobs heI'e."
We do not know what part housing plays in attra cting poor people
to Atlanta, but we are convinced that °jobs, schools, community
services, and the racial relations here, as contrasted with the
rural areas, attract far more than housing.
If we want to stop the poor who do· come to Atlanta we should also
stop the Fo~ward Atlanta program, the efforts of the local businessmen to find jobs for the hard-core unemployed,the Community Chest and
�-6-· .
let race relations deteriorate.
In short, stop every effort of
these last years that is making Atlanta great in our own eyes
and across the nation.
One thing we do need to do is to move on rapidly with the NASHP.ANS and other urban renewal projects.
The problem with this
pr_ogram is not that we . are building too much housi_ng ( the need is
there with or without clearance projects)
but that we are lagging
in our slum clearance efforts.
We are vigorously opposed to any slowing down of this program while
such places as Vine City, Lightnin', Plunkett Town, Summerhill,
Mechanicsville, and severe overcrowding even in the better areas
exists.
In order to help this program and,wc believe, benefit the entire
city, we are asking the Mayor and Board of Aldermen to take the
following actions.
1.
We request the Mayor to appoint either an existing committee
or a new committee to assume the reponsibility for the housing
program in the Board.
We do not believe you are "the bad guys"--we want and need your
assistance .
2.
Revise the Building Code for the City of Atlanta at least to
�I
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allow experimental housing to be built in the Model Cities
Area.
It has been made clear to us that such action is needed if
Atlanta is to qualify in the Model Cities experimental housing pr_ograms .
3.
Revise the ordinance governing non-conforming use of land
to allow structural repairs to dwelling units.
We understand that .t he Planning Commission has this under
consideration.
We urge haste
in this matter to allow the
enforcement of the .Housing Code in areas of non-conforming
use.
4.
Accelerate the urban renewal program particularly in the
NASH-BANS, Vine City area, and others outside of the Model
Cities area which is moving.
As long as the horrible conditions in some of these areas
exists, we are asking for trouble--we are inhumane and we
are not a great city.
5.
Authorize the Atlanta Housing Authority to ask for 2,000
additional units of public hou~ing. _
The present allocations are used up and developers are being
turned away.
As stated above, 4,640 additional unit s are needed to complete
the program .
�•
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We recommend that a substantial part of this housing should
be built by the Authority itself so that it can select sites.
6.
Finally, we request that a revised District Zoning Map be
adopted.
This map should be based on the new land use map of
the city after careful review of that map.
As a part of this ~ap, we ask that sufficient land be zoned to·
more than meet the requirements of this program both in low
cost single family 9-wellings and in multi-family units.
We further suggest that the District Zoning Map be updated on
a periodic basis, say every four years.
The last rezoning of the City was done in 1954.
As you gentlemen
well know, the map is now seriously inadequate and the City is
constantly being rezoned by individuals seeking changes.
This
method keeps the City in constant turmoil (one group has even
opened a liquor ·store to raise money to fight rezoning.)
This
method undermines property values in adjacent areas and causes
people to oppose all zoning because there is not certainty
changes will not continue.
that
You gentlemen and the Planning
Department should, we believe, control zoning by positive action
rather than react to individual requests .
Furthermore, our Workable Program requires that the Zoning Map
be updated periodically.
�-9-
The scattering of relatively small sites throughout the City will
prevent large concentrations of public housing with all its attendant problems .
It will further allow people to live near their work.
The vast pile~up of people transferring buses in .the center of Atlanta is clear indication that many _live miles from their jobs in the
northeast and northwest.
Not only would housing close to jobs aid .
the employee and employer, it also would cut down appreciably on
traffic.
We are not proposing specific areas at this time.
These should be
carefully selected by the Planning Department, the Aldermen, the
Housing Authority, and, we hope, the Housing Resources Committee.
We
assume that the total changes would be spread before the public in open
hearing.
We do not believe that it is feasible as has been suggested that,
before any more housing is built, those s ect i ons of the city wher e hous ing doe s not exist must be brought up to all other areas .
The land
at the nec es sary price is just not available .
Furt hermore, we have indi cat i ons t hat efforts will be made to use this
rezoning t o "get even" with one part of t he c i t y or a nother.
Gentlemen, we developed this program because we do acknowledge that,
due to the location of open, le ss expensive land, the developers have
�i
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. sort out areas to the West, East, Southeast and Southwest.
We ask
this rezoning, a difficult task for you, because we believe that it
is right, that it is ·healthy for the City, and it is a real effort
not to strain the resources of a particular area of the City.
But
we do not believe for a moment that we can equalize low income
housing or any other city function throughout the city.
This is,
however a sincere effort to alleviate but not ~mmediately cure an
- - ) ' inbalance.
We urge you to proceed.
These, then are our requests:
1.
A committee of the Aldermen concerned with housing.
2.
Revised Building Code.
3.
Revised Non-Conforming Use Ordinance.
4.
Stepped-up urban renewal.
5.
2,000 more public housing units.
6.
Updated District Zoning Map including areas for low income
housing.
Gentlemen, we are in the middle of a new revolution that makes the
old industrial revolution look like a footnote in history.
People,
American immigrants, are moving from the rural areas into our urban
centers.
They come at a time when we are beset wi th problems.
The poor and uneducated people already in our cities are ill-equipped
to compete.
�-11-
We have built a totally artificial culture.
chop down logs and build himself a cabin.
and knowledge to trade for this house.
it will not_ go away.
No longer can a man
He must have the skills
We created this society and
It I s like this--either we house our poor or
we have within our midsts, if not in this generation, then certainly
in the next, an alienated people ready to grasp by force what we
would not provide when there was yet time •
.,,......,
.



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~ ( ~~¼'""--Cec.:i:l A. Alexander, Chairman
Housing Resources Commit~ee
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              <text>=

CITY OF ATLANTA

  
  

ose
# :

AUGUST 2, 1968 Pre le
: CITY HALL ATLANTA, GA. 30303

Tel. 522-4463 Area Code 404

IVAN ALLEN, JR., MAYOR

CECIL A. ALEXANDER, Chairman
Housing Resources Committee

MALCOLM D. JONES
Housing Coordinator

"I am appearing before you as Chairman of the Housing Resources

Committee of the City of Atlanta. In November 1966, we were
charged by the Mayor to assist by all means soeatbae the con-
struction of 16,800 units of low and moderate income housing
units. These units were to serve as relocation for persons to
be moved by urban renewal, new roads, schools, and other govern-

ment action.

As of May 15 we stood as follows:

 

Units completed 2,031
Under construction 5,108
In planning 7,151
Total in sight 14,290

Of this 16,800, 9,576 were to be public housing -- 3,906 of these
are in some stage of completion, 658 have been leased, and 372 are

being negotiated. This means that 4,640 more units are needed by

i971. ,

In the F.H.A. programs.for low to moderate incomes, we are running
ahead by 3,165 units. It is then in the area of public housing,

the most needed and the most difficult to find land for, that we

‘need help.
-2-

In addition to the replacement housing we need, the total re-
quirement for low and moderate units as compiled by the City
Planning Department is 31,400. Thus even if we complete the

. 16,800 units, we are still 14,600 units short of our total needs.

It is no news to you that this program is controversial. White

and black, rich and poor, people in government and out, good guys
and bad guys, say either, "we need it, but put it somewhere else."
or "don't put anymore of it anywhere" And our proposals are
themselves controversial, open to needntopnticta tien and exploitation.
But this Committee feels that our requests are justified in terms

of the successful Anterior of this program--and we did not join

this committee to fail.

The question has been raised concerning the inability of the people
. of Atlanta to stand the tax burden of carrying out the program. It
Should not be forgotten that over 7,000 of these units will, in
fact, be tax producing and will present no additional burden on
Atlanta's taxpayers. Even Public Housing makes payment to the City
in lieu of taxes, All pay, even if at a reduced rate. It is weil
known that slums absorb an inordinate amount of taxes in the extra
police protection, fire protection and sanitary services. When we
eliminate slums we also eliminate considerable profitless drain of
tax dollars. The Housing program will presumably put over
$170,000,000.00 in construction costs into Atlanta's economy during
construction; jobs will be created during construction and long
after in management and maintenance. We submit that the net effect
‘on the City will be increased tax yield and substantial improvement
in the overall economy. .

The point was also made that if we enforce the laws against over-

crowding, the people would have no place to go but Fulton and
DeKalb enue We approve of the enforcement of the law, but
challenge the assumption of knowing where the displaced would
go. If history repeats, they will stay as close by as possible
and "block bust" adjoining neighborhoods, unless a definite

program is set up to relocate them.

One of the T.V. stations warned us that you would want several

questions answered today. They are good questions--we believe

we have good answers.

1. Why don't we look for sites already zoned for apartments?
ANSWER: We have--the developers haeae the areas now zoned
for apartments of all kinds amount to 455 acres and of this
more than three-fourths have been tried and found wanting.
Zoning isn't the only criteria. Thesite selected must be
priced right, it must satisfy H.U.D., the Atlanta Housing
Authority, F.H.A., schools must be avatieles utilities
must be in, terrain must be feasible and so on.

2. What is to prevent prices on rezoned land from soaring?
ANSWER: The more land stalivbie, the lower the prices should
be.

3. Is the iaundng Reine Badtt being used by ddeplaced Atianta

people or is it making Atlanta a dumping ground for the poor?
ANSWER: We acknowledge this possibility and have taken the
following steps:
1.We recommended to the Atlanta Housing Authority and they have

required one year residency for acceptance in public housing.
oe

Recent figures, however, show that the people who want

public housing are our own Atlantans.

From November 1, 1967 to June 30, 1968, the Atlanta Houstng
Authority received 2,903 applications. Of these only 141

were from persons in Atlanta less than six months , whose applications
were rejected.

2. This Committee has brought into being a metropolitan
oriented non-profit fund for promoting projects throughout

the metropolitan area
-3. This committee has encouraged the creation of the Inter-
Faith Housing Group, a non-profit group of churches seeking

to build housing throughout the area.

4. We have supported and encouraged such organizations as

SWAP which have encouraged the stabilization of neighborhoods
in transition.

5. We have encouraged the construction of upper income housing
in the central city and the preservation of existing neighbor-
hoods.

6. We are moving to organize a state-wide low cost housing group.

Yet it would seem that your fears and ours are not valid. First of all

as noted above, the Atlanta Housing Authority figures indicate that

there is only a small influx of poor seeking housing. Secondly, we

cite the following figure from Sales Management- a publication that

many businesses and planning bodies rely on.
| ‘Their figures indicate that low income families are on the decline

in the City limits of Atlanta and higher income on the rise.

YEAR , ‘ INCOME LEVEL PERCENTAGE
1966 3,000 or less - _ 23.7%
1967 3,000 or less 20.9%
1966 10,000 or more 22.9%
1967 . . 10,000 or more 26.9%

The poor families dropped 2.8% and the $10,000.00 or better in-

creased 4%.

The Atlanta Constitution, in discussing a similar effect in the
metropolitan area says,"Last year's increase of some 13,500 in
number of households here also may have influenced the unusual
trends, particularly if most of them represent migrants moving

into relatively well paid jobs here."

We do not know what part housing plays in attracting poor people
to Atlanta, but we are convinced that jobs, schools, community
services, and the racial relations here, as contrasted with the

rural areas, attract far more than housing.

If we want to stop the poor who do’ come to Atlanta we should also
stop the Forward Atlanta program, the efforts of the local business-

men to find jobs for the hard-core unemployed,the Community Chest and
let race relations deteriorate. In short, stop every effort of
these last years that is making Atlanta great in our own eyes

and across the nation.

One thing we do need to do is to move on rapidly with the NASH-
BANS and other urban renewal projects. The problem with this
program is not that we are building too much housing (the need is
there with or without clearance projects) but that we are lagging
in our slum clearance efforts.

We are vigorously opposed to any slowing down of this program while
such places as Vine City, Lightnin’, Plunkett Town, Summerhill,
Mechanicsville, and severe overcrowding even in the better areas

exists.

In order to help this program and,we believe, benefit the entire
city, we are asking the Mayor and Board of Aldermen to take the
following actions.
1. We request the Mayor to appoint either an existing committee
or a new committee to assume the reponsibility for the housing
program in the Board,
We do not believe you are "the bad guys"--we want and need your

assistance.

2 Revise the Building Code for the City of Atlanta at least to
allow experimental housing to be built in the Model Cities
Area.

It has been made clear to us that such action is needed if
Atlanta is to qualify in the Model Cities experimental hous-
ing programs.

3. Revise the ordinance governing non-conforming use of land
, to allow structural repairs to dwelling units.

We understand that the Planning Commission has this under
consideration. We urge haste in this matter to allow the
enforcement of the Housing Code in areas of non-conforming
use.

4. Accelerate the urban renewal program particularly in Ne
NASH-BANS , Vine City area, and others outside of the Model
Cities area which is moving.

As long as the horrible conditions in some of these areas
exists, we are asking for trouble--we are inhumane and we
are “ee a great city.

5. Authorize the Atlanta Housing Authority to ask for 2,000
additional units of public housing.

The present allocations are used up and developers are being
turned away.

As stated above, 4,640 additional units are needed to complete

the program.
a

We recommend that a substantial part of this housing should

be built by the Authority itself so that it can select sites.

6. Finally, we request that a revised District Zoning Map be
adopted. This map should be based on the new land use map of
the city after careful review of that map.

As a part of this map, we ask that sufficient land be zoned to
more than meet the requirements of this program both in low

cost single faring dwellings and in multi-family units.

We further suggest that the District Zoning Map be updated on

a periodic basis, say every four years.

The last rezoning of the City was done in 1954. As you gentlemen
well know, the map is now seriously inadequate and the City is
constantly being rezoned by individuals seeing changes. This
method keeps the City in constant turmoil (one group has even
opened a liquor store to raise money to fight rezoning.) This
method undermines property values in adjacent areas and causes
people to oppose all zoning because there is not certainty that
changes will not continue. You gentlemen and the Planning
Department should, we believe, control zoning by positive action
rather than react to individual requests.

Furthermore, our Workable Program requires that the Zoning Map

be updated periodically.
The scattering of relatively small sites throughout the City will
prevent large concentrations of public housing with all its attend-
ant problems. It will further allow people to live near their work.
The vast pile-up of people transferring buses in the center of At-
lanta is clear indication that many live miles from their jobs in the
northeast and northwest. Not only would housing close to jobs aid.
the employee and employer, it also would cut down appreciably on

traffic.

We are not proposing specific areas at this time. These should be

carefully selected by the Planning Department, the Aldermen, the
Housing Authority, and, we hope, the Housing Resources Committee. We

assume that the total changes would be spread before the public in open

hearing.

We do not believe that it is feasible as has been suggested that,
before any more housing is built, those sections of the city where hous-

ing does not exist must be brought up to all other areas. The land

at the necessary price is just not available.

Furthermore, we have indications that efforts will be made to use this

rezoning to "get even" with one part of the city or another.
g g p y

Gentlemen, we developed this program because we do acknowledge that,

due to the location of open, less expensive land, the developers have
 

210s

. sort out areas to the West, East, Southeast and Southwest. We ask
this rezoning, a difficult task for you, because we believe that it
is right, that it is healthy for the City, and it is a aca effort
not to strain the resources of a particular area of the City. But
we do not believe for a moment that we can equalize low income
housing or any other city function throughout the city. This is,
however a sincere effort to alleviate but not immediately cure an.
“inbalance. We urge you to proceed. .

~

These, then are our requests:

1. A committee of the Aldermen concerned with housing.

2. Revised Building Code.

3. Revised Non-Conforming Use Ordinance.

4. Stepped-up urban renewal.

§. 2,000 more public housing units.

6. Updated District Coning Map Pelvates areas for low income

housing.

Gentlemen, we are in the middle of a new revolution that makes the
old industrial revolution look like a footnote in history. People,
American immigrants, are moving from the rural areas into our urban

centers. They come at a time when we are beset with problems.

The poor and uneducated people already in our cities are ill-equipped

to compete.
es ee

We have built a totally artificial culture. No longer can a man
chop down logs and build himself a cabin. He must have the skills
and knowledge to trade for this house. We created this society and
it will not go away. It's like this--either we Husetoue poor or
‘we have within our midsts, if not in this generation, then certainly
in the next, an alienated people ready to grasp by force what we

would not provide when there was yet time.

a
= e &lt; ° Ae. Vie FOX i
fo CELE: " : EL peek
cecil A. ie. Chairman
Housing Resources Committee
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                    <text>NATIONAL COMMISSION ON URBAN PROBLEMS
ROOM 640, 806 15TH ST. N. W., WASHINGTON, D. C. 20005
CU- 8 - 68
Contact : Walt e r Rybeck
Phone: 202/382-20 68
FOR RELEASE
Sunday
September 1, 1968
SEVE N-CI TY STUDY PINPOINTS HOUSING PLIGHT
OF LARGE POOR FAMILIES
Publi c a nd pr iva te. hous ing have fail ed by a la rge marg in to mee t th e ne eds
of large poor fa mil ies , a ccord ing t o a stud y pr e pa r ed for the Natip nal Commission
on Urban Probl ems and re l eased today .
"The fin din g o f a shortage of some 71,000 dwe lling units aff e cting almost
70 pe rc e nt of t he l a r ge poor f a mili e s in s eve n major citi e s is not just a nother
sta t isti c , " sa id Commis s ion Chairman Paul H. Dougla s .
"The numbe r of children
a ff e ct e d by t h is gap in these citi e s a lon e i s comput e d to be appro ximatel y on e th i rd of a mi ll io n."
( Se e p. 19 .)
The s even c iti e s s t ud i ed we r e Wa shington , Phila de lphia, New Orl eans, St.
Lo uis, Ri chmond , De nver a nd Sa n Fra ncisco. They ~ r e sel e ct ed becau se , in thes e
places, detailed in come data by famil y size could be correlated with available
housing su pp l y i nf orma tion, Walter Smart, Walt er Rybe ck and Howard E. Shuma n of
the Commis s i on sta ff pre pare d the report , "THE LARGE POOR FAMILY--A HOUSING GAP."
The s hor t age of 71,000 unit s was figur ed after including as availabl e for
o cc upan cy 12, 000 units which th e s eve n citi es indica t ed we r e merely plann ed , Wh en
on l y the cur r e nt ava ila bl e i nve ntory is counted, the shorta ge is more tha n 83,000
units a nd a ff e ct s 80 pe rc e nt of th e large poor familie s . Poor f a mi li e s a r e defined
in t h e stud y a s thos e who with 25 pe rcent of famil y income cannot a fford de ce nt
private hous ing. The i nve nt ory available to th em i s ne ce ssaril y the housin g suppli ed
under vari ou s s ub s id y progra ms .
Wha t is th e gap ? The stud y (1) finds th e m1n1mum income required to a fford
sta ndard or de cen t hous ing in each cit y as de t e rmin ed by the local r edev e lopment
a ge nc y , ( 2 ) ca lcula t es th e numbe r of large f a milie s be low that income l eve l, and
(3) t otals th e numbe r of exi s ting and plann ed standard housing unit s suita bl e for
large fa milies und e r a ll housin g pro g rams. In e s senc e , the gap is th e diff e r e nc e
be t ween ( 2) a nd (3), be t ween need and suppl y.
I n the s e ve n ci t i e s (s ee Table 3 , p . 15) there we re 103,464 lar ge famili e s with
i nsuf ficie nt i ncome t o a fford standard housin g . Available and planned housing left
a ga p of 71 , 162 --a sho r ta ge a ff e cting 68 , 8 pe rc e nt of these families.
The f ive- a nd si x -member f a mili e s numbered 63,728 . The gap in thei r ca s e was
40 , 0 26 units - -a shortage affe cting 62.8 percent of these families.
The seve n - a nd e i ght-membe r families numbe red 26,225. The gap in their case
was 19 ,2 37 uni t s--a shor ta ge a f f e cting 73.4 pe rcent of the se famili e s,
The n ine - a nd ten-member families number ed 9,55 8 . The gap in their case was
8,148 units- - a s hortage a f f e ct i ng 85. 2 perce nt of these families.
The very lar ge fam i li e s of 11 or more members numbered 3,953. The gap in
their case was 3 , 75 1 units--a shortage affecting 94.9 percent of them,
As family s i ze increases, the number of families goes down sharply, the size
of the gap ri s e s si gnificantl y, and the number of children affected by each unit of
hou s ing shortage i ncreases . The report further shows the high percentage of nonwhi t es aff ec t ed b y th e l a r ge poor famil y housing gap (pp. 17-18).
The a u t hors c it e a number of legislative and administrative factors that have
tended t o dis cour age the building _o f subsidized housing suitable for large
famili e s, (S e e pp. 21-28.)
Mr. Dougla s said , "I was very pleased to find provisions in the new Housing
and Urban Devel o pme nt Ac t of 1968 which, in part, move in the direction of easing
some of the ho us ing pr oblems faced by large poor families,"
No t e to Cor re s po nden t s :
The au t hors will hold a press conference on the report
(for Sunday release) at 10 a,m , Friday, August 30, in
Room 10211 , tenth floor, of the New Executive Office
Buil ding, 17th &amp; H Streets, N.W. Advance co pies
ava ilable on r equest .
�PUBLICATIONS - NATI ONAL COMMISSION ON URBAN PROBLEMS - AUGUST 1968
1. The Commission hearings cover all topics assigned to th e Commission and
many related cu rrent issues. The compl e te se t of five volumes has been at th e
printers for many months but onl y tµose liste d are available at this time.
2. Ba ckground studies und er take n by the Commission staff and consultants, in
preparation for the Commission's report to the Presid e nt and to Congress, result ed
in several dozen research papers, many of which it was f e lt would be of public
interest. Research reports that are published do not nece ssarily carry th e
endorsement of the Commission,
3. The Commission 's own r e port , carrying out the Congressional and White House
mandates, will be the final category of publication.
Order Form and Summary of Publications to Date
Requests are being handled without charge.
Single copies only, please. Bulk orders cannot be fill e d be cause of limit ed
supplies. (Exception: reprints of Resea rch Report No. 1 have bee n made
available by th e Jo int Economic Committ ee of Congress .)
The Hearings are also available for purchase from "Superintendent of Documents,
Government Printing Office, Washington, D.C. 20402."
To avoid errors and hasten mailing, check publication you wish to receive and
PRINT CLEARLY in the address blank.
HEARINGS BEFORE THE NATIONAL COMMISSION ON URBAN PROBLEMS, Vol. 1. Baltimore,
New Haven , Boston, Pittsburgh. Major topics-- urban r enewal, rehabilitation,
housing codes, fin a ncing and insuring in blighted areas, propert y taxation,
land values, Ind exed , 361 pp. (Our supply almost e xhausted , )
HEARINGS, Vol. 2. Los Angeles, San Francisco, Major topics--land-us e
regulation, building codes and technology, urban desi gn, governing metropolitan
areas , housing l ow-income famili e s. Inde xed, 493 pp.
HEARINGS, Vol 3. Denver, Atlanta, Houston, Fort Worth-Arlington-Dallas, Miami.
Major topics--metropolitan housing patterns, public housing, new housing
subsidi es, zoni ng , building and housing codes, urban finance, government
consolidation. Indexed, 386 pp.
Research Report No. 1, IMPACT OF THE PROPERTY TA X, by Dick Netzer. Measures
the ta x burden on housing, examines intrametropolitan tax differentials that
stimulat e exclusionary practices and unsound development; scores faulty
assessment practices; proposes reforms and alternatives; 62 pp.
Research Re port No. 2, PROBLEMS OF ZONING AND LAND-USE REGULATION, by the
American Societ y of Planning Officials. Finds land-use controls often exclude
low-income minority families from certain urban areas; claims zoning ma y exert
less inf lue nce on development ra.tterns than utility extensions, land speculation,
highwa y locations; includes views of 28 experts; 80 pp.
Research Report No. 3, THE CHALLENGE OF AMERICA'S METROPOLITAN POPULATION
OUTLOOK--1960 TO 19 85, by Patricia Leavey Hodge and Philip M. Hauser. Projects
urban expansion wi th biggest growth in suburban rings; further racial concentration of whites in suburbs and nonwhites in central cities; marked increase in
growth of yo un g labor force (ages 15-44); 90 pp. (Commission supply exhausted,
Praeger, 111 4th Ave., N.Y., N.Y., reprinting for sale. Government may reprint,)
Research Report No. 4, THE LARGE POOR FAMILY--A HOUSING GAP, by Walter Smart,
Wal ter Rybeck, Howard E. Shuman. Stud y of seven cities (Washington, Philadelphia,
New Orleans, St. Louis, Richmond, Denver, San Francisco) finds poor families of
five or more persons neglected in public programs; measures shortage; cites
re strictions inhibiting supply of larger dwelling units; 28 pp.
NAME
ORGANIZATION
STREET
CITY, STATE, ZIP
231008-,
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              <text> 

NATIONAL COMMISSION ON URBAN PROBLEMS
ROOM 640, 806 15TH ST. N.W., WASHINGTON, D.C. 20005

CU-8-68 FOR RELEASE
Contact: Walter Rybeck Sunday
Phone: 202/382-2068 September 1, 1968

SEVEN-CITY STUDY PINPOINTS HOUSING PLIGHT
OF LARGE POOR FAMILIES

Public and private housing have failed by a large margin to meet the needs
of large poor families, according to a study prepared for the National Commission
on Urban Problems and released today.

"The finding of a shortage of some 71,000 dwelling units affecting almost
70 percent of the large poor families in seven major cities is not just another
statistic," said Commission Chairman Paul H. Douglas. "The number of children
affected by this gap in these cities alone is computed to be approximately one-
third of a million." (See p. 19.)

The seven cities studied were Washington, Philadelphia, New Orleans, St.
Louis, Richmond, Denver and San Francisco. They were selected because, in these
places, detailed income data by family size could be correlated with available
housing supply information. Walter Smart, Walter Rybeck and Howard E. Shuman of
the Commission staff prepared the report, ''THE LARGE POOR FAMILY--A HOUSING GAP."

The shortage of 71,000 units was figured after including as available for
occupancy 12,000 units which the seven cities indicated were merely planned. When
only the current available inventory is counted, the shortage is more than 83,000
units and affects 80 percent of the large poor families. Poor families are defined
in the study as those who with 25 percent of family income cannot afford decent
private housing. The inventory available to them is necessarily the housing supplied
under various subsidy programs.

What is the gap? The study (1) finds the minimum income required to afford
standard or decent housing in each city as determined by the local redevelopment
agency, (2) calculates the number of large families below that income level, and
(3) totals the number of existing and planned standard housing units suitable for
large families under all housing programs, In essence, the gap is the difference
between (2) and (3), between need and supply.

In the seven cities (see Table 3, p. 15) there were 103,464 large families with
insufficient income to afford standard housing. Available and planned housing left
a gap of 71,162--a shortage affecting 68.8 percent of these families.

The five- and six-member families numbered 63,728. The gap in their case was
40,026 units--a shortage affecting 62.8 percent of these families.

The seven- and eight-member families numbered 26,225. The gap in their case
was 19,237 units--a shortage affecting 73.4 percent of these families.

The nine- and ten-member families numbered 9,558. The gap in their case was
8,148 units--a shortage affecting 85.2 percent of these families.

The very large families of 11 or more members numbered 3,953. The gap in
their case was 3,751 units--a shortage affecting 94.9 percent of them.

As family size increases, the number of families goes down sharply, the size
of the gap rises significantly, and the number of children affected by each unit of
housing shortage increases. The report further shows the high percentage of non-
whites affected by the large poor family housing gap (pp. 17-18).

The authors cite a number of legislative and administrative factors that have
tended to discourage the building of subsidized housing suitable for large
families. (See pp. 21-28.)

Mr. Douglas said, "I was very pleased to find provisions in the new Housing
and Urban Development Act of 1968 which, in part, move in the direction of easing
some of the housing problems faced by large poor families."

Note to Correspondents: The authors will hold a press conference on the report
(for Sunday release) at 10 a.m. Friday, August 30, in
Room 10211, tenth floor, of the New Executive Office
Building, 17th &amp; H Streets, N.W. Advance copies
available on request.

 
PUBLICATIONS - NATIONAL COMMISSION ON URBAN PROBLEMS - AUGUST 1968

1, The Commission hearings cover all topics assigned to the Commission and
many related current issues. The complete set of five volumes has been at the
printers for many months but only those listed are available at this time.

2. Background studies undertaken by the Commission staff and consultants, in
preparation for the Commission's report to the President and to Congress, resulted
in several dozen research papers, many of which it was felt would be of public
interest. Research reports that are published do not necessarily carry the
endorsement of the Commission,

3. The Commission's own report, carrying out the Congressional and White House
mandates, will be the final category of publication.

Order Form and Summary of Publications to Date

Requests are being handled without charge.

Single copies only, please. Bulk orders cannot be filled because of limited
supplies. (Exception: reprints of Research Report No. 1 have been made
available by the Joint Economic Committee of Congress.)

The Hearings are also available for purchase from "Superintendent of Documents,
Government Printing Office, Washington, D.C. 20402,"

To avoid errors and hasten mailing, check publication you wish to receive and
PRINT CLEARLY in the address blank,

HEARINGS BEFORE THE NATIONAL COMMISSION ON URBAN PROBLEMS, Vol. 1. Baltimore,
New Haven, Boston, Pittsburgh. Major topics-- urban renewal, rehabilitation,
housing codes, financing and insuring in blighted areas, property taxation,
land values. Indexed, 361 pp. (Our supply almost exhausted.)

HEARINGS, Vol. 2. Los Angeles, San Francisco. Major topics--land-use
regulation, building codes and technology, urban design, governing metropolitan
areas, housing low-income families. Indexed, 493 pp.

HEARINGS, Vol 3. Denver, Atlanta, Houston, Fort Worth-Arlington-Dallas, Miami.
Major topics--metropolitan housing patterns, public housing, new housing
subsidies, zoning, building and housing codes, urban finance, government
consolidation. Indexed, 386 pp.

Research Report No. 1, IMPACT OF THE PROPERTY TAX, by Dick Netzer. Measures
the tax burden on housing, examines intrametropolitan tax differentials that
stimulate exclusionary practices and unsound development; scores faulty
assessment practices; proposes reforms and alternatives; 62 pp.

Research Report No. 2, PROBLEMS OF ZONING AND LAND-USE REGULATION, by the
American Society of Planning Officials. Finds land-use controls often exclude
low-income minority families from certain urban areas; claims zoning may exert
less influence on development patterns than utility extensions, land speculation,
highway locations; includes views of 28 experts; 80 pp.

Research Report No. 3, THE CHALLENGE OF AMERICA'S METROPOLITAN POPULATION
OUTLOOK--1960 TO 1985, by Patricia Leavey Hodge and Philip M. Hauser. Projects
urban expansion with biggest growth in suburban rings; further racial concentra-
tion of whites in suburbs and nonwhites in central cities; marked increase in
growth of young labor force (ages 15-44); 90 pp. (Commission supply exhausted.
Praeger, 111 4th Ave., N.Y., N.Y., reprinting for sale. Government may reprint.)

Research Report No. 4, THE LARGE POOR FAMILY--A HOUSING GAP, by Walter Smart,
Walter Rybeck, Howard E. Shuman. Study of seven cities (Washington, Philadelphia,
New Orleans, St. Louis, Richmond, Denver, San Francisco) finds poor families of
five or more persons neglected in public programs; measures shortage; cites
restrictions inhibiting supply of larger dwelling units; 28 pp.

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                    <text>GEORGIA INSTITUTE OF TECHNOLOGY
ATLANTA . GEORGIA 30332
OFFICE OF THE PRESIDENT
April 17, 1968
Mr. Cecil Alexander
Chairman
Housing Resources Committee
City Hall
Atlanta, Georgia
Dear Mr. Alexander:
I am writing in response to your requ est for an evaluation of the
presentation made to the Construction and Design Subcommittee of the
Housing Resources Committee by Mr. McNamara on Tuesday, March 26. You
will recall tha-'c this was a presentation of a new concept for the fabrication of residential units.
This concept involved p:uring on site, by use of vacuum forms, concrete elements of a standardized nature which would become elements of
multi-family residential buildings. The standardized elements could be
varied from job to job and from unit to unit in such a way as to make them
adaptable to the needs of various sites and architectural plans.
It is my opinion, as Chainnan of the Construct ion and Design Subcommittee, and that of those with whom I have talked who were present at this
slide presentation, that the conc·ept is a good one but that it is at this
point in time only a conc ept and not a proven plan. It is my opinion that
Mr. McNamar a should find a developer who is willing to develop this idea on
an actual building project involving a number of multi-family units . If
such a developer can be f ound, this may well be an excellent concept to
utilize in the model city program as it does r epresent one innovation i n
the field of attempting to provide low income housing . The model city
program should be considered because of a n ecessity for r equiring a reasonable sized t ra ct of land in order to build enough units to analyze the
validity of Mr . McNamara 1 s proposed technique. It i s, after all, an experimental project and one which is yet to be proven in the field.
There are many possible applications of pre-fabricated elements within
these units which should be explored, but which may be restricted at this
time by va_rious codes. If max_·. :Jm saving is to be attained in this kind of
project, the use of prefabricated fixtures and materials ~ust be allowed
subject to carefully drawn requirements.
�Mr. Cecil Alexander
page 2.
In summary, it is our belief that this is a good concept but that it
is only a concept at this time and that it does require actual· construction
of a number of units in order to properly evaluate the technique on any
objective basis.
Sincerely yours,
Edwin D. Harrison
President
EDH:lhs
cc:
Colonel Malcolm Jones/
Mr. Moreland Smith
Mr. Bob Winn
•
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              <text>i Derr aw wy 2 af 1

GEORGIA INSTITUTE OF TECHNOLOGY
ATLANTA. GEORGIA 30332

OFFICE OF THE PRESIDENT April 17, 1968

Mr. Cecil Alexander
Chairman

Housing Resources Committee
City Hall

Atlanta, Georgia

Dear Mr. Alexander:

I am writing in response to your request for an evaluation of the
presentation made to the Construction and Design Subcommittee of the
Housing Resources Committee by Mr. McNamara on Tuesday, March 26. You
will recall that this was a presentation of a new concept for the fabri-
cation of residential units.

This concept involved pmring on site, by use of vacuum forms, con-
crete elements of a standardized nature which would become elements of
multi-family residential buildings. The standardized elements could be
varied from job to job and from unit to unit in such a way as to make them
adaptable to the needs of various sites and architectural plans.

It is my opinion, as Chaimnan of the Construction and Design Subcom-
mittee, and that of those with whom I have talked who were present at this
slide presentation, that the concept is a good one but that it is at this
point in time only a concept and not a proven plan. It is my opinion that
Mr. McNamara should find a developer who is willing to develop this idea on
an actual building project involving a number of multi-family units. If
such a developer can be found, this may well be an excellent concept to
utilize in the molel city program as it does represent one innovation in
the field of attempting to provide low income housing. The model city
program should be considered bacause of a necessity for requiring a reason-
able sized tract of land in order to build enough units to analyze the
validity of Mr. McNamara's proposed technique. It is, after all, an experi-
mental project and one which is yet to be proven in the field.

There are many possible applications of pre-fabricated elements within
these units which should be explored, but which may be restricted at this
time by various codes. If max-..um saving is to be attained in this kind of
project, the use of prefabricated fixtures and materials must be allowed
subject to carefully drawn requirements.
Mr. Cecil Alexander
page 2.

a

_ In summary, it is our belief that this is a good concept but that it
is only a concept at this time and that it does require actual’ construction
of a number of units in order to properly evaluate the technique on any
objective basis.

Sincerely yours,

Edwin D. Harrison
President

EDH:hs

cc: Colonel Malcolm Jones a
Mr. Moreland Smith
Mr. Bob Winn
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                    <text>s:a::t1!3TZ AND BBADFI ELD / ARCI-n:TECTS / INCORPORATED/ A.1. l \.
ATLANTA, GEORGIA 30309
Please
address
•
74 FOURTEENTH STREET, N. E.
all - correspondence to:
P.
0.
•
TELEPHONE 892-8722
Box 7988 • Atlanta,
AREA CODE 404
•
Georgia
30309
April 19th, 1968.
Mr. Lester Perse11s,
Housing Authority of the City of Atlanta,
824 Hurt Building,
.
Atlanta, Georgia 30303.
Dear Mr. Perse11s:
We understand that you will have renewal land for sale in the Thomasville
Federal Penitentary area for multi-family housing.
Please let us express our interest and intention of submitting a bid for
either the 221(d)(3) F.H.A. Program or the Turnkey H.A.A. Piogram.
Will you please provide to us a prospectus and the necessary bid documents
for all sites that will be available for multi-family housing.
Very truly yours,
SHEETZ AND BRADFIELD/ARCHITECTS/INCORPORATED/A.I.A.
Francis B. Sheetz, Jr., A.I.A.
copy to:
Mr.
Mr.
Mr.
Mr.
Gilbert Boggs .,.,,Malcolm Jones v
Er nest Tharpe
James F. Kirkpatrick
f bs/gk
FRANCIS B. SHEETZ, JR., A. I.A. • RICHARD H. BRADF IELD, A. I.A. • RICHARD B. JENKINS •
WILLIAMS. MAYTON, A.I.A. • DAN IEL P. SANTACRO CE, A.I.A.
JEROM E J. COSTA
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              <text>) 7 =a
Dev Frieas

SHEATa AND BRADFIELD /ARCHITS ts / INCORPORATED EX Ke c\e
ATLANTA, GEORGIA 30309 + 74 FOURTEENTH STREET, N.—. * TELEPHONE 892-8722 + AREA CODE 404

Please address all correspondence to: P. QO. Box 7988 « Atlanta, Georgia 30309

April 19th, 1968.

Mr. Lester Persells,

Housing Authority of the City of Atlanta,
824 Hurt Building,

Atlanta, Georgia 30303.

Dear Mr. Persells:

We understand that you will have renewal land for sale in the Thomasville
Federal Penitentary area for multi-family housing.

Please let us express our interest and intention of submitting a bid for
either the 221(d)(3) F.H.A. Program or the Turnkey H.A.A. Program.

Will you please provide to us a prospectus and the necessary bid documents
for all sites that will be available for multi-family housing.

Very truly yours,
SHEETZ AND BRADFIELD/ARCHITECTS/INCORPORATED/A.1.A.

Francis B. Sheetz, Jr., A.I.A.

copy to: Mr. Gilbert Boggs 7
Mr. Malcolm Jones ~~
Mr. Ernest Tharpe
Mr. James F. Kirkpatrick

fbs/gk

FRANCIS B. SHEETZ, JR., A.A. © RICHARD H, BRADFIELD, A.A. © RICHARD B. JENKINS © JEROME J. COSTA
WILLIAM S. MAYTON, A.LA. «© DANIEL P. SANTACROCE, A.LA.
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                  <elementText elementTextId="25352">
                    <text>HOUSING RESOURCES CO ITTEE
April 19, 1968
SUPPLE ENTAL ME ORANDU a
o. 1 (r dor l P n
Ro Honor f~rm
lo me ting y
t rdey with Hu ing Authori y repr o nt tiv
ite)
, the following
lint points w 1:-0 b~ught out:
1.
Pric
of th
portion
prior d t rtnin tion
will r qui~
Hou ing Authority e
pl'OC du
2.
Urb
d volop
yor pp
valop d
c n ur.
nd t
nt of
ct without the Urben
t la at
dev
und r Urb n Rn wol .
A
n
t
r could b
ft
ach
quick thtough th• Hou ing
Ex cution
tag
xt
o
~
ntly f
pp
l
th t non of
Public Hou ing nd hat in l
(l
that thi
portion of th
do
).
not p
clud
ting th
Tumk y
I f i th t pzo p ctiv
ncour g d to build
thy could initi
ly or ub
nt und r both Tut:nk•y
•
It
ab
en wal, c
ntly b
nd 221 d {3)
h ou by
th
nt rprie , but h would not pr diet how
di~ ct through priv t
th l nd hould
Uri&gt; n
nt th r
Mz. Pr ell atat d hot Hr. Ed
4.
di
fr it not b
t -,uld t ke to re ch th
dav lop
l or by d v lop r
Urban Rn
Mr.
Authority
rcial
s ton ture of d v lcprnont , i •• , through th
lla
Ex cution at
long
dev lop d for hou ing and
•
r. P r
3.
to b
th t
old to th
hould
r . Op nah wt
$~
occup nt
nd th t
v lo•
dvocated •
tit
vel p nt i
nd Juni~r Hi h Sch
n t und r
uld not be
f cilitie
ff t~
ti
of th cot of n U
n
•
�It
130
dovelopod , how v r , th t thG Junior High School- Cor
would bo e gener l co
the
th
Sine
fo~ lo
Cl'O
inc
hou ing
School
portion ,
hic:h includ
difficulty-
nt can g
City
so,
out o
ite , perticulorly for Public
part
ov rall n d of th
of
•
to bed diet d, th tin vie of th
act th t th
are n ed d, thet th
24
r
24 · ere
h ving g tting lo - inco
Hou in9 , and th
entir
propoa d dovclopmont
o
th
nti~o fedex l Pen Sit
City t
nity Cantor
nity facility o rving th t whol
the city and not lt it d to th
6.
I
of th
uld be batter
b
rv d if thi
t l nd, would b dev lop
hou ing.
RECOr ENDATIOfh
I
( )
Th t th
hou ing
nd r lot d co
d volop d by private ent rpri
R now l proe
of the er ob
ct , without going through th
di
Urben
"
cuzr ntly d ignat d Junior High School nd Co
(b)
ighborhood C nt r site b
(c)
rc:iol portion
Th t
ltipl
Turnk y and 221 d proc
o d v lop d for lo
typ
inco~ h
hou i~ d v lopm nt b
• , withe
o th t thy could ov ntu ly b
ing.
cour q du ing both
unit
ub
old to th
occup nt .
d,
2
nity
d aign d
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              <text>Pon Svre ad

HOUSING RESOURCES COMMITTEE

April 19, 1968

SUPPLEMENTAL MEMORANDUM:
Re Honor Farm No. 1 (Federal Pen Site)

In meoting yesterday with Housing Authority representatives, the following
salient points were brought out:

1. Price of the portions to be developed for housing and related commercial
will require prior determination as to nature of development, i.e., through the
Housing Authority as Urben Renewal or by developers direct without the Urban
Renewal procedure.

2. Mr. Persells stated he would prefer it not be under Urban Renewal.

3. Mr. Paswiiie felt that after an Urban Renewal project reaches the
Execution stage, development thereafter could be as quick through the Housing
Authority es direct through private enterprise, but he would not predict how
long it would take to reach the Execution stage.

4. Mr. Perselis stated that Mr. Ed Baxter apparently feels that none of
the land should be developed as Public Housing and that in last meeting the
Mayor appeared to concur. (I essume that this does not preclude Turnkey
development of at least a portion of the area). I feel that prospective
developers should be encouraged to build e substantial number of units so thet
they could initially or subsequently be sold to the occupants and thet develope
ment under both Turnkey and 221 d (3) should be advocated.

5S. It wes brought out by Mr. Oppenshaw that if development is not under
Uxben Renewal, credite for the Elementary and Junior High Schools would not be
availeble and thet credite for these two facilities would be eufficient to

balance off the entire local shere of the cost of an Urban Renewel project.

a SE
It elso developed, however, that the Junior High School-Community Center
would be e general community facility serving that whole general area of

the city and not limited to the proposed development area.

     
 

6. Since the Junior High-Community Center represents 24 acres out of
the entire Federal Pen Site to be dedicated, that in view of the difficulty-
the City is having getting low-income housing sites, particularly for Public
Housing, and the fact that the School Department can get sites enywhere they
are needed, that the overall needs of the City would be better served if this
entire 24 acre portion, which includes some of the best land, would be developed
for low-income housing,

RECOMMENDATION:

(a) That the housing and related commercial portions of the area be
developed by private enterprise direct, without going through the Urban
Renewal process. |

(b) That the currently designated Junior High School and Community
Neighborhood Center site be also developed for loweincome housing.

(c) That a multiple type housing development be encouraged using both
Turnkey and 221 d processes, with a substantial portion of the units designed
so that they could eventually be sold to the occupants.

Respectfully submitted,

Malcolm op

Housing Coordinator
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                    <text>2
il 18, l
•
or
• C
Y
Ii
lo
nt,
ts for plam.ing
but th t the Hous
portion (includin
rcial
ed d to the
-
nt un r ' rb
t lO
,.,
i
lo
r• a
1 now con
.Al,thorit
' O.
o vor. h
'Wal .
ded b7 , A to the City
d de
cbool nd
otiv Dep·,r
lo
l c
,
tl.r tot
th project) b
to
d th Hl htJ
t O A
t
ei
portio
d
ro
HUD
or
tl
. _ lated for th
£or
cone
that
ta or direct to
ot er portions of the
•
t th ev tu. l
ehould
d n
t !
pro
ibl
cti
c
proc
, nou ing.
t such propooal could
~o 1.ng Authority,.
itHout
called for by ithor
ting for the title to first
O A.
ace
al o
h red by otb rs, that th
te
pll ed thru. pri
aettaad f'iret to the Mo11 irin:
..
1!


s ibl •


di
tly to HUD in
yf
At li
Inter! 1th h
ci
11t ority '1nd then oing t.hru
t tli'o ot the p:rou ecti ve d!
spocil'ic lly
a hington request ·
dv
toge tb t
skc.d t,
it
do
t-"tho Mayor
l
d cot
ight be dori ved in d v lo ,
t
project , if
by
ri
nt
or
otr·lets
Urban
the
v loper, 1n
o p na t d f or it
sin Auth rity
·--I.\,,
Yt
nt.
hOU in
ul
this
saved and antic1pot d
off s t by the t
or
lopers
thiD proc dur •
tall ion or utiliti a by th!) Hou in Authority thru t
ould
qu eke t
loper dir ct, with-out
nd in tact have requested
1.1ch pr f r it thi
Vhic
th t
It Ill.so ppear
•
4 w-/~ ~
t
ltip
opinion, vhich i
nd
cu.welo1 er
would be thru deGign propo~ 1 by
elo re . for
City or
housing portion to
th
pe i ti
iti
C
t
f
ot
ro


w rd o


din
tot
cot o t
tho
xp nse invol
1 d t o the
d,
velopor.
�3
Aprll 18,
to ork u crit ri t
.or
on th
ly lo
pro
Th
th
01
in
.hey
A
to pl
01·d13r
h
on
&gt;:
d
n a 15
l
oy get the
velripcr
tt
~
lop r
for
u
ptin
(c)
...,11e nat ri 1
to do by • ay 1)
· ttal of propo al
l ction oft e &amp;ucce .f·l
b)
inal elev. lo~.
i
continu hi
lo . nt of' the l~ sit1fl ... f
date of •
t
O
O
r
or
velopmcnt cr1 _ri
unit
bo f ur
ye ( t r
r,
hed int,
A w-1n
l\hou
t d
Jun
1) .
rousing Authority,
oo . as .o"' ibl
r- d inform the
oon s po siblo ( ·ith target
cost of 1 "ld end ~u11'W1ed
(inclu n
p ct1 e t r.i,&gt;a
d
ir d for tho r&lt;'.3 a1nlng
... tcd dovelop .. z·s .
uthority to call aa
l
l)
JO
b·
ugh th
in progre~~ for
·11 be .
l ~d
to pull to- eether
l) unifon1
4.
117 lots, tb
s
ppen~. a
pro
r- · ne traffic circ· 1- tion
ti ~ t achedulv no
r que
r,
d .•
•
, Oo n h
cot
been
rve th rinht to do
hou.l q r
t!ity
.3 .
be dete~ i i1ad
t details could be ·orked out ,1th
rd h
HUD
uc o cvn th .n
lthin JO days .
v loper cou1 · the
t
2.
t
nd in..fom.otion
··iou th 1 e fter .
'f
d 1 lomll
l.
intolli.go. tly.
en·hrw can p ckoge the doveloprnont criteria
( hich ho i...
to
p,1t out to d
l riJ -will
nt th,. t :
o that ell
8
(oth r than the
i
erudou• to kno ~-lu,t, tl
• ladin,,
( )
and
).
oti
o t th , •
cir cuid nee
rtio
ou
furni h d pros. etiv;
bo
oon a pos iblo (t rgot date
nt propo,, l
I
or s b, itt l in
�h
pril 18 • 1968
v lo
r
to b
d th t th
inf.'o
, l~nning:
r1 ht tow rk ou.t with the
,
1
C
11cce
tt
ter
7.
r
in
ec
ful
i
liVJ r y to
i
15 doys
d by letter fro Mnyor Al l n to
v lo d for Housin
lo r to
lop r be r
t
9.
ed itbin
te
( d rel ted co .
rcial)
ed Jointly y tho City-
ut ority.
a.
or
r to b
ul bi
to th porti n of the tract (other th n the
ily lo ) to
et to t
di
loper, traffic
ti! ctory to tho City.
hin ton
D in
le
nt
•
0 · to deli or ti
1$ i
p.ir
ucc
in t o (2)
lli
d to start ph
(b~ k g. ound within aix (6)
l
ical d V\llop. .ent
nths from dat o of
ot title to the l end.
f ul
loper bo required to a
start ing (br
in
to c , lcte devolo ent
- ound)
to .
R sp t fully ubmit ted,
~
I ou
Coordinator
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              <text>2
ipeil 18, 1968

DISCUSSION

Mr. Case of HUD proposes that O.A deed the Highway, School end Parks
portions of the site directly to these respective Departments for planning
and development, but that the Housing portion (including smell commercial
site to serve the project) be deeded to the Housing Authority, for subsequert
processing and development under Urban Renewal. However, he concedés that
these sites could be deeded by O5A to the City of Atlanta or direct to a
selected developer, as is now contemplated for the other portions of the
site.

All agree that the eventual award of the housing portion to a developer
should be based on some form of competitive process. It also appears that
the most feasible competitive procedure would be thru design proposals by
prospective developers, for multiple type, housings

we all also agree that such proposals could be called for by either
the City or the Nousing Authority, witHout waiting for the title to first
pees from OOA,

It is my opinion, which is also sheared by others, that the quickest
development can be accomplished thru private developers direct, with-out
the land being deeded first to the Housing Authority and then going thru
the Urban Renewal process. At least two of the prospective developers
much prefer it this way and in fect have requested it be done this way,
if possible, Interfaith has specifically asked thatthe Mayor write
directly to HUD in Washington requesting this procedure,

Any financial advantage that might be derived in development of streets
and installation of utilities by the Housing Authority thru the Urban
Renewal process, should be off set by the time saved and anticipated
relatively low land cost of the project, if done by the developer, in
conjunction with the housing development.

If necessary, the Housing Authority might be compensated for its
administrative services on this project,by adding the expense involved,
which should be only nasinal, to the cost of the land to the developer.

 

—- —— a ~ —

 

 
Page 3
April 16, 1968

Mr. Oppenshaw proposes to work up criterie to be furnished prospective
developers aniformly in a package for their guidance in prepering and
subaitting proposals on the housing portions of the site (other than the
15 single~fanily lots).

The prospective developers are anxious to know whet the land will
cost them. They should know this in order to plan intelligently,

Mr, Oladin, Mr, Oppenshaw and I are in agreement thats

(a) As soon as Mr. Oppenshaw can package the development criteria
so that all interested developers may get the seme material and information
as to requirements (which he is etteupting to do by Hay 1) such cen then
be pat out to developers for submittal of proposals within 30 days,

(ob) Selection of the successful developer could then be determined
within a 15 day period thereafter.

(c) Additional final development details could be worked out with
the successful developer, after the award has been made,

(ad) The City should reserve the right to determine traffic circulation
within the project site.

RECUMMED DATIONS

l. Mr. Gppenshaw continue his ticht schedule now in progress for
development of the 15 gingle-femily lots, through the Housing Authority.

2. HUD be requested to determine as soon as possible and inform the
City what the cost of the lend will be.

3. Mr. Oppenchaw to pull to-gether as soon as possible (with target
date of May 1) uniform development criteria (including cost of land and suggeszed
approximate namber of units by respective types desired for the remaining
housing sites to be furnished interested developers.

lh. The Housing Authority to call as soon as possible (target date

eve -theten te
May 1) for multiple type,housing development proposels, for submittal in
30 days (terget date June 1).

 

 

 
 

Page
April 18, 1968

5S. Prospective developers to be informed that the Planning Department
reserves the right to work out with the successful developer, traffic
circulation plans within the sites, satisfactory to the City.

6. Selection of successful bidder to be determined within 15 days
after submittal of proposals,

7- HUD in Washington be requested by letter from save Allen to
ask GSA to deliver title to the portion of the tract (other than the
15 single family lots) to be developed for Housing (and related commercial)
direct to the suecessful developer to be determined jointly by the City-
Housing Authority.

Be Successful developer be required to start physical development
of these housing sites (break ground within six (6) signths fron date of
delivery to him of title to the lend.

9. Successful developer be required to agree to complete development
within two (2) years from starting (breaking ground) date.

Respectfully submitted,

Housing Coordinator

 
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                    <text>Mayor Ivan Allen, Jr. - 2 - April 25, 1968
Bec ause of the in novative cha r a cter of our operation. we are desirous
of proving our case in an urban etting as contrasted with the usual
s ubdivision effort .
To accomplish a cost reduction in a rural area is
not ae significant as to accomplish the same savings in the heart of a
city like Atl a nta . These are dnys of careful experimentation in everything having to do with human relation -• and we mean to perform a
s ignificant social service in the process of making the revolutionary
changes tn construction techniques that will mass produce the dwelling
units.
m s ur _ t h t r aiul tion s r e q u ir e a co m pe titive setting tor the d lsposi -.
but, by the same token, the F d eral Government . as ;you know. i s almos t desperately anxlou1:, to s ee
I
tion of th F g r l p n\t nu t y land ,
cost savings accomplished that will make it possible for low and middle
income people to afford new homes without the onus of ma sive financial
ub idy. This we propose to do and for this reason we earnestly requ st
the privilege of using the Honor Farm land in the massive experiment
for which we are now tooling up.
~e are lookin&amp; at various factory sites for rent inside the Atlanta clty
limits and , naturally, are anxious that the land we will u e for the
actual subdivision will be ln close proximity. The nature of the manufacturing process will not require a great many already trained people.
This works another advantage for the urban setting . 'We will be able to
glve un s killed workers the modest training n cessary to manufactur
and fabricate the components . As we see it then, our program for us ing
the Honor Farm Land will provide three immediate benefits. First. lt
will enlarge the housing inventory at very rea .:.· onable cost to the tenant
and to "whatever agency is charged with subsidizing the tenant rent or
µurchas . Second, it will provide employment for
ignificant numb r
of eemi-~killed and un skilled people in Atlanta . Third. the experimentation will natur Uy have geogr 1Jhic significance s o that my favorlt city
can be known as having continued in its cours e of leadership with r ard
to national urban problems.
¼e are already lnto the basic s ite desigi,J, 111 propose single famUy and
multi-f mily detached unlt in addition to a modest highrlse for the
eld rly and whatever shoppini center would be feasible. We will utlllz
our fttreglass materials and techniques in all of the con truction in
whatever degree the
rticula.r s tructure makes possible.
�Mayo r Ivan Allen, Jr . - 3 - April 25, l968
\t\lth such a program, the first question is al ways 1 'wh n? " . The
machinery with which we will rnanuft-.cture our -,rototype m odels
is a lready asse1nbled md win be sbl p ed to Atlanta as soon as we
hove the factory s ite ready. The la r ger machinery will be µurchased and brought into operation as needed . We a re counting our
time in weeks and will produce upwa r · E, of five hundred housing
units during our t esting.
Vie will an~lously a -wait the outcome of Tuesday' s meeting, and wUl
consider lt a µr lvllege to ork with your people in the service of
the citizens of Atlanta .
Richard L. Fullerton
RLF*jl
cc: ~r. Dan Sweat
Dtrector of Government Liaison
City of Atlanta
Mr. Cecll Al xa.nder, Chairman
Hou ing .Res ources Committee
C lty of Atlant
S nator P ul Douala , Ch rlm n
resldent ' Commt.tt e on Urb n P roble ms
Wa shington, D. C .
Mr. VvUUam O. Burke. Director
Indu try Dlvls ion
Georgl D epartm nt of Indu try and T r d
Mr. Georg T. Scharffenberger, t'r e ldent
Clty Inves ttna Company
N w York C lty
Mr. D vld E . K hn
New York C ity
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              <text>Mayor Ivan Allen, Jr. - 2 - April 25, 1968

Because of the innovative character of our operation, we are desirous
of proving our cage in an urban setting as contrasted with the usual
subdivision effort. To accomplish a cost reduction in a rural area is
not ae significant as to accomplish the same savings in the heart ofa
city like Atlanta. These are days of careful experimentation in every-
thing having to do with human relations, and we mean to perform a
significant social service in the process of making the revolutionary
changes in construction techniques that will mass produce the dwelling
units.

Iam eure that regulations require a competitive setting for the disposi-.
tion of the Federal i’enitentiary land, but, by the same token, the F. d-
eral Government, as you know, is almost desperately anxious to 6ee
cost savings accomplished that will make it possible for low and middle
income people to afford new homes without the onus of massive financial
subsidy. This we propose to do and for this reason we earnestly request
the privilege of using the Honor Farm land in the massive experiment
for which we are now tooling up.

We are looking at various factory sites for rent inside the Atlanta city
limits and, naturally, are anxious that the land we will use for the
actual subdivision will be in close proximity. The nature of the manu-
facturing process will not require a great many already trained people.
This works another advantage for the urban setting. We will be able to
give unskilled workers the modest training necessary to manufacture
and fabricate the components. As we see it then, our program for using
the Honor Farm iand will provide three immediate benefits. First, it
will enlarge the housing inventory at very reazonable cost to the tenant
and to whatever agency is charged with subsidizing the tenant rent or
purchase. Second, it will provide employment for a significant number
of semi-skilled and unskilled people in Atlanta. Third, the experimenta-
tion will naturally have geographic significance so that my favorite city
can be known as having continued in its course of leadership with regard
to national urban problems.

We are already into the basic site design, we propose single family and
multi-family detached units in addition to a modest highrise for the
elderly and whatever shopping center would be feasible. We will utilize
our fibreglass materials and techniques in all of the construction in
whatever degree the particular structure makes possible.
Mayor Ivan Allen, Jr. - 3 - April 25, 1968

With such a program, the first question is always "when?". The
machinery with which we will manufacture our srototype models
is already assembled and will be shipped to Atlanta as soon as we
have the factory site ready. The larger machinery will be pur-
chased and brought into operation as needed. We are counting our
time in weeks and will produce upwards of five hundred housing
units during our testing.

We will anxiously await the outcome of Tuesday's meeting, and will
consider it a privilege to work with your people in the service of
the citizens of Atlanta.

COAST Mets

Richard L. Fullerton

RLF*jl

ce: Mr. Dan Sweat
Director of Government Liaison
City of Atlanta

Mr. Cecil Alexander, Chairman
Housing Resources Committee
City of Atlanta

Senator Paul Douglas, Chariman
President's Committee on Urban Problems
Washington, D.C.

Mr. William O. Burke, Director
Industry Division
Georgia Department of Industry and Trade

Mr. George T. Scharffenberger, (resident
City Investing Company
New York City

Mr. David E. Kahn
New York City
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                    <text>April 25 , 1968
Mr . Edward H . Baxter
Regional Administrator
Departm.ent of Housing and
Urban Development
645 Peachtree-Sev nth Building
Atlanta, Georgia 30323
Dear Mr. Baxter:
With this letter I transmit an explanation of the need to convert
open-space p rk l nd in the Thomasville Urb n Renewal Project,
GA R-22 , to single family use.
Enclosed re original and two copies of the docementation
required by P ge 7 of Chapter 5 of th 11 0pen ..$pace Land
Program Guide. 11
l wUl appr ci te you giving urgent considetation to this ction
so that we may me t the May 20 target d te for: beginning
construction of the fir t unit on the Fed r 1 Pd on urplus
prop rty.
Sincer ly your ,
lv n All n, Jr.
Mayo,
IAJr:fy
Enclo ur s
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              <text>a

a

April 25, 1968

Mr. Edward H. Baxter

Regional Administrator

Department of Housing and
Urban Development

645 Peachtree-Seventh Building

Atlanta, Georgia 30323

Dear Mr. Baxter:

With this letter I transmit an explanation of the need to convert
open-space park land in the Thomasville Urban Renewal Project,
GA R-22, to single family use,

Enclosed are original and two copies of the documentation
required by Page 7 of Chapter 5 of the "Open-Space Land
Program Guide,"

I will appreciate you giving urgent consideration to this action

so that we may meet the May 20 target date for beginning
construction of the first unit on the Federal Prison surplus

property.

Sincerely yours,

Ivan Allen, Jr.
Mayor

IAIr:fy

Enclosures
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                    <text>RICHARD L. FULLERTON
AND ASSOCIATES
Con1ultant1 /or ..Atulti-/amily JlouAing
TELEPHONE 872-6089
April 25, 1968
1222 PEACHTREE ROAD, N. E.
P. 0. BOX 7164
ATLANTA. GEORGIA 30309
TELEPHONE 422-4479
145 NORTH MAGNOLIA AVENUE
P. 0. BOX 2068
ORLANDO. FLORIDA 32802
The Honorable Ivan Allen, Jr. , Mayor
The City of Atlanta
Clty Hall
Atl nta, Georgia
D u r Mayor Allen:
For everal weeks I have been in conferences with the very excellent staff of your Hous ing Res ources Committee and of the Hous lng
Authority with reference to a m jor innova tion we a re undertaking
for the provision of low cost housing in urban a r as . Please accept
my sincere expression of gratitude for thelr courtesies and their
very as hite attention to the matters brought before them .
I am worklng ln behalf of a well ca italized g rou p ·whlcb controls
the ~tents by which a major breakthrough ln construction costs can
b achieved. To over lmpllfy, it is our intention to not m rely "prefabrlc te" but t o actua lly manufacture housing wilts and deliver them
to th e s it a lmost intact . The t,Jatents have to do wlth a method of
preforming fibre lass so that the necetJsary s tructural charact rlstlce can be built lnto the bulldlng components on a m as~ production
ba s t • The automobll indu ·try is turning out much mor complicated prod'1ct th n the housing induMtry at enormously lower costs.
Machine work and mass t1roductlon tecbnlque are th obviou nsw r.
Our think.in ls not uniqu t.n thls re ard, but the group I r present
doeliS control rlgld patent and unusual billtie in the necessary ft lds
s o that -we re ur that w can move forw rd.
I am writlng now with reference to th "Honor Farm" land th t is
currently under con ider tlon by your ofrlce • Obviously th re ls an
ov rwhelmlng need for low co t housing to be bullt ln Atl nta. You
ll b v faced this issue squarely and I am conftd nt that adequate
solutions to the many ~roblem
Ul quickly be found.
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              <text>RICHARD L. FULLERTON
AND ASSOCIATES

Consultants for Multi-family Housing

April 25, 1968

TELEPHONE 872-6089 TELEPHONE 422-4479
1222 PEACHTREE ROAD, N. E. 145 NORTH MAGNOLIA AVENUE
P.O. BOX 7164 P.O. BOX 2068
ATLANTA, GEORGIA 30309 ORLANDO, FLORIDA 32802

The Honorable Ivan Allen, Jr., Mayor
The City of Atlanta

City Hall

Atlanta, Georgia

Dear Mayor Allen;

For several weeks I have been in conferences with the very excel-
lent staff of your Housing Resources Committee and of the Housing
Authority with reference to a major innovation we are undertaking
for the provision of low cost housing in urban areas. Please accept
my sincere expression of gratitude for their courtesies and their
very astute attention to the matters brought before them.

I am working in behalf of a well capitalized group which controls

the patents by which a major breakthrough in construction costs can
be achieved. To oversimplify, it is our intention to not merely ‘pre-
fabricate" but to actually manufacture housing units and deliver them
to the site almost intact. The patents have to do with a method of
preforming fibreglass so that the necessary structural characteris-
tice can be bulit into the building components on a mass production
basis. The automobile industry ie turning out a much more compli-
cated product than the housing industry at enormously lower costs.
Machine work and mass production techniques are the obvious answer.
Our thinking is not unique im this regard, but the group I] represent
does control rigid patents and unusual abilities in the necessary fields
so that we are sure that we can move forward.

Iam writing now with reference to the "Honor Farm" land that is
currently under consideration by your offices. Obviously there is an
overwhelming need for low cost housing to be built in Atlanta. You
all have faced this issue squarely and I am confident that adequate
solutions to the many problems will quickly be found.
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                    <text>October 17, 1967
HOUSDJG RESOURCES COMMITTEE
g/
Hr . Ce ci l A. Al exander, Chairman
Housine Resources Cormni t .ee
Finch, Alexander, Dar nes , Rothschild, and Paschal , Ar chi t e cts
10th Floor Standar d Federal Buildi ng
44 Br oad Str eet, N. W.
Atlanta, Geor gi a
30303
Dr. Sanfor d S. Atuood, Co- Chai r man
Housing Re s our ce s Commi ttee
President, Emor y Uni versi ty
Atl anta, Georgia
30322
Dr. Benj ami n E. Mays, Co- Chairman
Housine Res our ce s Commi t tee
Presi dent Emeritus, Morehouse College
3316 Pamli co D-r . S. W.
Atl anta , Georgi a
30311
PANELS
LEGAL
Mr. Charles L. Weltner, Attor ney
The First National Bank , Suit e 2943
2 Peachtree Street
Atl anta , Georgia
30303
Mr . Donald Hollowell, Regional Dire ctor
Equal Empl oyment Opportunity Commission
1776 Peachtree Street, N. W.
Atlanta , Georgia
30309
Honorable Luther Alverson, JudGe
Fulton County Superior Court
13.6 Pryor Street, s. W.
Atl anta, Georgia
30303
v' l·'J-. Archer D. Smith III, Attorney
Harmon and Thackston
1944 National Bank of Geore;ia Bl dg .
Atlanta, Georgia
Hr . Norman L. Underwood, Attorney
Sanders, Hester and Holley
1001 Commerce Building
Atlanta, Georgia
Chairman
�Page THO
. c orSTrtUCTION AND
~
DESIGl•J
Dr. Edwin Harrison, President
Geor gia Institute of Technology
225 North Avenue , N. W.
Atlanta, Georgia
30313
Chairman
Hr . Herman J. Russell, Contractor
504 Fair Street, S. W.
Atlanta, 3eorgia
30313
v lfr . Moreland Smith, Director
Vice-Chai rman
Urban Planning Project
Southern Regional Council, Inc.
5 Forsy th Street, N. W.
Atlanta, Georgia
30303
Rev. John A. I'f.iddleton, President
Horris Bror,m College
673 Hunter Street, i . W.
Atlanta, Georgi a
30314
Mr. Henry F. Alexander , Builder
2Ld9 r"'ernleaf Court, N. W.
Atlanta, Geor i ia
30318


Mr. J ames Noore , President


Atlanta Labor Council
15 Peachtree Street, N. E.
Room 208
Atlanta, Ge orgia
30303
V M,. Re-id C. Wtil~ •I L '.-1
/ti'lr.,,,. 1~
R~a. ~ o--i rle.,e- trHW, "-
~ ;:=-..o R, ' I A Iµ-&gt;t1 l'eAJ 4- ' ~
FI: 1AHCE AI-JD NON- PROFIT F[EJDS'
1
Dean Harding B. Youne
Atlanta University
223 Chestnut Street, S. W.
Atlanta, Ge orgia
3031Li
.,.-, Mt-·., Lee Burce , ~eS'ide nt
E$t ail Credi t Company
P. 0. Box 4081
Atlanta, Georgia
30302


t"lr. Butler T. Hender@on


lfor@house College
22'; Chestnut Street, s. W.
Atlanta, 3eorgia
30314
Chairman
�Page Thr ee
· FilJAHCE AND NON - P:?.OFIT FUNDS ( continued )
Y1r. Vi lls B. Lane, Jr., President
The Citiz ens and South ern National Bank
o. Box 4899
30.303
P.
Mr. Joseph Earle Birnie, President
The .rational Bank of Georgia
Peachtree at Five Points
Atl anta , Geor gia
30303
Mr. August us H. Sterne, President
The Trust Company of Geor gia
36 Edgewoo d Avenue, N. E.
Atlanta, Georgia
30303
V1r . Gordon Jones, President
The Fulton Hational Bank
P. O. Box l.IJ8 7
Atl anta, Georgia
30302
V
v
Mr. A. B. Padge tt, Trust Off icer
Trust Company of Georgia
P. O. Box 4418
Atlanta, Georgia
30302
Nr. Hamilton Douglas, Jr. , Attorney
National Bank of Georgi a Building
Atlanta, Georgia
Rev. William Hol mes Borders, Pastor
1-Theat Street Baptist Church
1426 Mozley Drive , S. W.
Atlanta, Georgia
Presi dent
v' Mr .
J ohn Wilson, President
Horne-Wilson Company
163 Peters Street , S. W.
Atlanta, Georgia
30313
Mr. Albert Love
Exe cutive Vice President
The McCall Corporation
P.O. Box 1000
Doraville, Georgia
30040
Mr. Scott Houston, Jr., Executive Director
Wesley ~,foods Apartments
P. O. Box 15468
Atlanta, Georgia
30333
Vi ce- Chairman
�Pace Four
PlJBLIC HOJSHJG
./Mr. Edwin L. Sterne, Chairman
Housing .Authority of the City of .Atlanta
639 Trust Company of Geor gia Building
Atianta, Ge or~ia
JOJOJ
Dr . Al bert Manley., President
Spel man College
350 Leonard Street, S. W.
Atlanta, Ge orgi a
30303
Hr . Leon2.rd Re i nch, President
Cox Broa.dcas ting Company
1601 West Peachtree St reet , N. E.
Atl:mta, Geor;:;i a
V
Hr. Clarence D. Coleman, Regional Director
Nati onal Urban Lea13ue
136 Mariett a Street, N. W., Suite 242
Atla.nta, Ge orgia
30303
Chairman
V Hr . Charles F. Pa~ner, President
Palmer , I nc. , PaL~er Building
41 Marietta Street
Atlanta, Georgi a
30303
LAI-JD ACQUISITION
Hr . 1 lallace L. Lee, President
Atlanta Gas Light Company
P. O. Box 4569
Atlanta, Georgia
30302
Mr . Clayton R. Yates , President
Yates - Milton Stores
228 Auburn Avenue, N. E.
Atlanta, Georgia
30303
.,,_,


Mr. Jim E. Land


Chief Engineer for Georgia
Southern Bell Telephone &amp; Tel egraph Company
805 Peachtree Street, N. E.
Atlanta, Georgia
30308
,,/
Dr. Vi vian Henderson, President
Cl:·..rk College
2LO Chestnut Street, s. W.
Atlanta, Georeia
3031/-1.
Acting Chairman
�LAND .ACQUISIT I O~,J ( continued )
Nr. J . A. Alston, Pres i dent
E2:1~1ire 1:1e3.~ Estate Board
Alston Realty Co.
195 A Auburn Ave. N. E •
3030.3
.'\..tl anta., GeorE;ia
!-i:'. SteH,:1r -l: ~-Ji;:;ht
1-J::_ght, Couch ·..c Hard
15 Pea chtree Bl dg. , Room 822
Atlanta, Geor~ia
30303
SOCIAL PROBY~: iS
./
Hr. :ma.i1e Beck, Executive ill.rector
Con,--r11.:..n:. tf Co-:..:.r1c::.l o!: the Atlanta Area., Inc.
1000 C·::'..enn BuEci.ir,G
Atlanta, Georgia
30303
Mrs. Sujette Crar~c, Social Dir e ctor
Neir;hborhooc;. Se:-vices., E.O.A., Inc.
101 Hci-iettc:. Str "et
Atlanta, GGorgia
.30303
Dr. Tobe Jcl,nson
Professor of Political Science
Morehouse Collage
223 Cnestr:ut Street, S. W.
Atlanta, Georgia
30314
v" Dea.ri "W illian S. Jack son
School of Social Hark
Atlanta Univers.:..ty
223 Chestnut Street, s. W.
Atlanta, Geor~ia
30314
l·lr. Erwin Stevens, Chairman
Cit:.zens Central Advisory Comi-nittee, E.O.A.
799 Parsons Street, S. 1:I.
Atlantc1., Georgia
3031h
r~. Le1-;is CcrJ-::er, Attorney
20115 1-lanchester, N. E.
Atlanta, Geo1·gia
30309
Chairma.vi
�Page Si..'C
BUSI::-ESS ?.GTICIPATIO)J
Chai rman
Hr. Vir1:;il Mil ton
3626 Tu.'Cedo Road, N. H.
30305
Atlanta, Georzia
t-:r. Eduard L. Simon, Au.di tor
Vi ce-Chairman
Atlanta Life Insurance Company
lh8 Auburn Avenue , N. E.
Atlanta, Georgia
30303
Harl ee Branch , President
Sou· : n Company
3390 Peac}·1trei::
ad,
lfu; neo/
C. ).rthur J erJ-::ins
Director, I~d~3tri al ?celations
Lockheed Con:?&lt;'u1Y
I-!arietta, Gc or~i a
30060
Mr.
.,,,,,,
o-;;r
Er. :toll;:;.:1d Lax;:ell, Pre sident
Davison 1 s I;-epartment Store s
100 Pe acht r e e Street, X. TT.
Atl anta, Georgia
30303
'f\l m , C. .8 c; Y 1), o/.e.rv, "'1
ct,. ll'fflew\ 'l ~~ , iJ tm-f
/l:7' ,~""le.. 1;1-., ~
I
-' l.,,)L~C
P...•.?,0~&lt;;,~ / t o (
lJ·i.'v.ct·i..; . .1.IJ.,
'I
A-fl.u.1.c..,cw:t . .i~3J~
lk . Jarr.~s L . T01-msend
Tov;nsend a nd Associates
101h !·Icaley BldG .
Atl anta, Gcor~ia
v' Er . Dale Cl r1!'k
Dir e c tor of Public Affairs
r,-JAG!,-?V
1551 Bri arcliff Road , N. E.
Atlanta, Geor~ia
30306
Chairman
..,_... I~r • .lc.y 1-:oore


Te~·rs Director


'.TSJ- T'l
1601 ".-!est Peachtr ee St reet, N. E.
Atl anta , Geor;;&gt;.
30309
Lr, J:'_,'&lt;: Wo8d
HeHs Director, WAOIC
110 ~deeHood Avenue , N. E.
At lant a , Georeia
30303
Vice -Cha irman
�Page Seven
STAFF
ROOM 1204., CITY R4.LL
-""'Malcolm Do Jones 1 Director
V H. Wo Gates, Consultant
M-.-..
Sl;.;;,ron er~11fo.,..'1 5
",.g~e1-'-"""1~r
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              <text>HOUSING RESOURCES COMMITTEE

Mr. Cecil A. Alexander, Chairman

LEGAL

 

Housing Resources Committee

October 17, 1967

Finch, Alexander, Barnes, Rothschild, and Paschal, Architects

10th Floor Standard Federal Building
hh Broad Street, N. W.
Atlanta, Georgia 30303

Dr. Sanford S. Atwood, Co-Chairman
Housing Resources Committee
President, Emory University
Atlanta, Georgia 30322

Dr. Benjamin E. Mays, Co-Chairman
Housing nesources Committee

President Emeritus, Morehouse College
3316 Pamlico Dr. S. W.

Atlanta, Georgia 30311

PANELS

Mr. Charles L, Weltner, Attorney
The First National Bank, Suite 293
2 Peachtree Street

Atlanta, Georgia 30303

Mr. Donald Hollowell, Regional Director
Equal Employment Opportunity Commission
1776 Peachtree Street, N. W.

Atlanta, Georgia 30309

Honorable Luther Alverson, Judge
Fulton County Superior Court
136 Pryor Street, S. W.

Atlanta, Georgia 30303

Mr. Archer D. Smith ITI, Attorney
Harmon and Thackston

19h National Bank of Georgia Bldg.
Atlanta, Georgia

Mr. Norman L. Underwood, Attorney
Sanders, Hester and Holley

LOO1L Commerce Building

Atlanta, Georgia

Chairman

 
‘CONSTRUCTION AND DESIGN

~ Dr. Edwin Harrison, President Chairman
Georgia Institute of Technology
225 North Avenue, N. W.
Atlanta, Georgia 30313

Mr. Herman Jd. Russell, Contractor
50 Fair Street, S. W.
Atlanta, Georgia 30313

Mr. Moreland Smith, Director Vice-Chairman
Urban Planning Project
Southern Regional Council, Inc.
5 Forsyth Street, N. W.
Atlanta, Georria 30303

Rev. John 4. Middleton, President
Morris Brown College

673 Hunter Street, N. W.

Atlanta, Georgia 3031)

Mr. Henry F. Alexander, Builder
24.39 Fernleaf Court, N. W.
Atlanta, Georgia 30318

Mr. James Moore, President
Atlanta Labor Council
15 Peachtree Street, N. E.
Room 208
Atlanta, Georgia 30303

xn Ate. Felt WT as bade’

7.
BED 2, Alpheretlon, Ca»

FINANCE AND NON-PROFIT FUNDS’

Dean Harding B, Young
Atlante University

223 Chestnut Street, S. W.
Atlanta, Georgia 3031)

VM Mr. Lee Burge, President Chairman
Retail Credit Company
P. O. Box 1,081
tlanta, Georvia 30302

Mrs Butler T. Henderson
Morehouse College

223 Chestnut Strest, S. W.
Atlanta, Georgia 3031)
ray

INANCE AND NON-PROFIT FUNDS (continued)

 

Mr. Mills 8. Lane, Jr., President

The Citizens and Southern National Bank
P, 0. Box 899

Atlanta, Georgia 30303

Mr. Joseph Earle Birnie, President
The National Bank of Georgia
Peachtree at Five Points

Atlanta, Georgia 30303

Mr. Augustus H. Sterne, President
The Trust Company of Georgia
36 Edgewood Avenue, N. E.

tlanta, Georgia 30303

Mr. Gordon Jones, President Vice-Chairman
The Fulton National Bank
P, 0. Box 1387

Atlanta, Georgia 30302

Mr. A. B. Padgett, Trust Officer
Trust Company of Georgia
P, 0. Box 18
tlanita, Georgia 30302

Ww Mr. Hamilton Douglas, Jr., Attorney
National Bank of Georgia Building
Atlanta, Georgia

Rev. William Holmes Borders, Pastor
Wheat Street Baptist Church

1:26 Mozley Drive, S. W.

Atlanta, Georgia

 
  

. Rufus Clement, President
Atlanteiiversity

Desessod

Atlanta, Georgia

Mr. John Wilson, President
Horne-Wilson Company
163 Peters Street, S. W.
Atlanta, Georgia 30313

Mr. Albert Love

Executive Vice President
The McCall Corporation

P, 0. Box 1000

Doraville, Georgia 300)0

Mr. Scott Houston, Jr., Executive Director
Wesley Woods Apartments ’

P, 0. Box 151,68

Atlanta, Georgia 30333

EA
Page Four

PUBLIC HOUSING

“ ur. Edwin L. Sterne, Chairman
Housing Authority of the City of Atlanta
.639 Trust Company of Georgia Building
Atlanta, Georgia 30303

Dr. Albert Manley, President
Spelman College

350 Leonard Street, S. W.
tlanta, Georgia 30303

Mr. Leonard Reinch, President
Cox Broadcasting Company

1601 West Peachtree Street, N. E.
Atlanta, Georsia

“ Mr, Clarence D. Coleman, Regional Director Chairman
National Urban League ,
136 Marietta Street, N. We, Suite 2:2
Atlanta, Georgia 30303

WU Mr. Charles F, Palmer, President
Palmer, Inc., Palmer Building
hl Marietta Street
Atlanta, Georgia 30303

LAND ACQUISITION

Mr. Wallace L. Lee, President
Atlanta Gas Light Company

P, 0. Box 569

Atlanta, Georgia 30302

Mr, Clayton R. Yates, President
Yates-Milton Stores

226 Auburn Avenue, WN. E.
Atlanta, Georgia 30303

“” Mr. Jim E. Land
Chief Engineer for Georgia
Southern Sell Telephone &amp; Telesranh Company
605 Peachtree Street, N. E.
Atlanta, Georgia 30308

- Dr. Vivian Henderson, President Acting Chairman
Clark College
21:0 Chestnut Street, S. W.
Atlanta, Georgia 3031)
Dp.

—

c*,
o

a
k.

a.
a

ive

LAND ACQUISITION (continued)

Mr. J. Aw Alston, President
Empire Real Estate Board
Alston Realty Co.

195 A Auburn Ave. N. E.
Atlanta, Georgia 30303

Mr, Stewart Wight

Wight, Couch % Ward

15 Peachtree Bldg., Room 822
Atlanta, Georgia 30303

SOCIAL PROBLEMS

 

v

Mr. Duane Beck, Executive Director
rami ty uncil of the A a Area. Ce
Community Council of the Atlanta Area, In
Glenn Building
1000 G&amp; Buil g
Atlanta, Georgia 30303

Mrs. Sujette Crank, Social Director
Neighborhood Services, E.0.A., Inc.
101i Marietta Street

Atlanta, Georgia 30303

Dr. Tobe Johnson

Professor of Political Science
Morehouse Collere

223 Chestnut Street, S. W.
Atlanta, Georgia 3031)

Dean William S. Jackson : Chairman
School of Social Work

Atlanta University

223 Chestnut Street, S. W.

Atlanta, Georgia 3031)

Mr. Erwin Stevens, Chairman

Citizens Central Advisory Committee, E.0.A.
799 Parsons Street, S. W.

Atlanta, Georgia 3031)

Mr. Lewis Genker, Attorney
205 Manchester, N. E.
tlanta, Georgia 30309
Page Six
BUSINESS PARTICIPATION

 

Mr. Virgil Milton Chairman
3626 Tuxedo Road, N. We |
Atlanta, Georgia 30305

Mr. Edward L. Simon, Auditor Vice-Chairman

Atlanta Life Insurance Company
1),6 Auburn Avenue, N. E.
Atlanta, Georgia 30303

ee Branch, President Rengned
th n Company

3390 Peachtr
Atlanta, Georgia

 
  

Mr C, Arthur Jenkins

arector, Industrial Relations
Lockheed Company
Marietta, Georgia 30060

Mr. Rolland Maxwell, President

Davison's Department Stores

eo Peachtree Street, N. W.
Atlanta, Georgia 30303

wns. Bertha lero

erp BRLPCCY — Atlin, Ga. 3031%

 

lr. James L. Tormsend
Townsend and Associates
101i Healey Bldg.

Atlanta, Georgia

Mr. Dale Clark Chairman
Director of Public Affairs

WAGA-TV

1551 Briarcliff Road, N. E.

Atlanta, Georgia 30306

Mr. Ray Moore
News Director

T {SPR mir
wml
1601 West Peachtree Street, N. E.
tlanta, Georia 30309
Mr, Jim Wood Vice=Cheirman

News Director, WAOK
110 dgewood Avenue &gt; N.. f.
Atlanta, Georgia 30303

 
STAPF
ROOM 120), CITY HALL
Tel. 522-h)63, Ext. 30
x Maleolm D. Jones, Director

Ww. We Gates, Consultant
Vee Oya a yy Co en man] Secvesany
2

 
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                    <text>•
LITTON SYSTEMS, INC. APPLIED SC IENCE DIVISIO N 7300 PEARL STREET BETHESDA, MARYLAND 20014
(301) 652-6616
April 19, 1968
Honorable Ivan Allen, Jr .
Mayor of the City of Atlanta
At l anta , Geor gia
Subject :
Co- opera t i on during per formance of HUD Exper imental
Hous ing Resear ch and Development Progr am
Dear Mayor Allen:
On March 14, 1968 the Depar tment of Housing and Ur ban Deve lopme nt
solic ited pr opos a l s f or Concept Des i gn a nd Exec ution of a n " In Ci ty"
Experimen tal Hous i ng Re s earch and Deve lopment Program. It i s planned
that the e f f ort wi l l be concentrated in a l arge number of Model Cities .
By May 1, 1968 it is expected that a Contractor will be selected
who will be expected to accomplish an intensive analysis in depth of
the Model Cities by June 15, 1968, prior to the actual development of
experimental housing programs.
In a prior letter to you dated 12-14-67, Litton advised you of its
desire to participate in Model Cities efforts. As further expression
of interest, Litton Industries has assembled what it considers to be an
outstanding team of planners, architects, builders, etc., to perform on
this complex system job.
The purpose of this letter is to solicit your support in establishing contacts with key citizens in your cityo A letter from you defining
principal contacts is deeply appreciated.
Very truly yours,
~/.:.a,
Public Systems Laboratory
Washington Science Center
LJN/cep
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              <text>LITTON SYSTEMS, INC. APPLIED SCIENCE DIVISION 7300 PEARL STREET BETHESDA, MARYLAND 20014
(301) 652.6616
April 19, 1968

Honorable Ivan Allen, Jr.
Mayor of the City of Atlanta
Atlanta, Georgia

Subject: Co-operation during performance of HUD Experimental
Housing Research and Development Program

Dear Mayor Allen:

On March 14, 1968 the Department of Housing and Urban Development
solicited proposals for Concept Design and Execution of an "In City"
Experimental Housing Research and Development Program. It is planned
that the effort will be concentrated in a large number of Model Cities.

By May 1, 1968 it is expected that a Contractor will be selected
who will be expected to accomplish an intensive analysis in depth of
the Model Cities by June 15, 1968, prior to the actual development of
experimental housing programs,

In a prior letter to you dated 12-14-67, Litton advised you of its
desire to participate in Model Cities efforts, As further expression
of interest, Litton Industries has assembled what it considers to be an
outstanding team of planners, architects, builders, etc,, to perform on
this complex system job.

The purpose of this letter is to solicit your support in establish-
ing contacts with key citizens in your city, A letter from you defining
principal contacts is deeply appreciated,

Very truly yours,

Leon. Gi 7 rector

Public Systems Laboratory
Washington Science Center

LIN/cep
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                    <text>CITY OF .ATLANTA.
CITY HALL
April 22, 1968
ATLANTA, GA. 30303
Tel. 522-4463 Area Cod e 404
IVAN ALLEN , JR., MAYOR
R. EARL LANDERS, Admini strative Assist ant
MRS. ANN M. MOSES, Executive Secret ary
DAN E. SWEAT, JR., Director of Governmental Liaison
MEMORANDUM
To: Col. Malcolm Jones
From: Dan Sweat
~
Could .you f urnish m e with a list of the k e y citiz e ns a nd people
which i s r e quest e d i n this l e tte r fro m Litton Sy s t e ms, Inc.
I b e liev e I would want the m to start with you and try to keep
this in the area of our Housin g Reso.u rce s Committee .
DS :fy
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              <text> 

CITY OF ATLANTA

CITY HALL ATLANTA, GA. 30303
April 22, 1968 Tel. 522-4463 Area Code 404

IVAN ALLEN, JR., MAYOR

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

  

MEMORANDUM

To: Col. Malcolm Jones

From: Dan Sweat NG

Could you furnish me with a list of the key citizens and people
which is requested in this letter from Litton Systems, Inc.

I believe I would want them to start with you and try to keep
this in the area of our Housing Resources Committee.

DS:fy
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                    <text>April 29, 1968
Mr . Leon J . Noga, Dil'ettotPublic Systems Laboratory
Washington ScienQe Center
Litton Systems , .lnc .
Applied Science Division
7300 Pearl Stli'eet
Bethesda , Maryland 20014
Subjecte Cooperation during performance of HUD Experimental
Housing Re eareh and Development. Program
Dear Mr. Nog :
In i-eply to youi- 1 tt ~ of April 19 to M yo1" Ivan Allen, I am
enclo ing 1i t of key citlmen and contact pe on in th are
of housing research nd development.
I would :t commend that any initi cont ct by your office be
with Mir. Johnny C. John on, Db· etor- of Mod .1 Citle Program;
535 Hill SU&gt;eet, Atl ..ta (t l phon 524-,8876);· nd Mi-. M lcolm
Jon , Hou ing Cool'din tor, Ollie of th Mayo11." , City of Atlanta.
They will b · gl d to
i t you in addition contaci or th
provision of any
eai-ch mater · 1 you mlght wish.
Slncei-ely you.wa,
Dan Swat
DS :fy
�·-------------------------------------------
Mr . Cecil A . Alexandew, Chairman
Housing Resoui-ces Committee
Finch. Alexandel",, B rnes, Rothschild 8t Paschal
10th Floosr • Standard Federal BuilHing
44 Broad Street, N . W.
Atlal'lta; Georgia 30303
Mr . Arch i' D. Smith, III, Attol'ney
Hannon and Thack ton
1944 National Bank of Georgia Building
Atl t , Georgl
Dl' . Edwin Ha'l'rieon, Pre ident
Georgi Instltu: of Technology
225 North Av nue , N. W ..
Atla.nt , Georgia 30313
Mr •. Moreland Smlth, Director
Urban Pl nning Project
South rn Regional Council,, Inc.
5 Forsyth Street. N.. W .
Atlant , Georgia 30303
Mr. Robert C. Wa
Mo.-ton Road t St t&amp;brid
RFD#
Alphar it , G otgl
Mw. L e Burge, Pr ld nt
B t U Ci- dit Comp ·~
P,, 0 . Box 4081
Atlanta. Geor a 30302
Mr. A. B. Pad tt, Tru t Office~
T~u t Company ol G orgi
P. 0 . Box 4418
.AUu ,, Geor
030Z
Mr. Harollton Do la•,,
N donal B · , of Ci ors
~- J
WU• , P
Hol' •WUecm Com
16 P
Atl
r St
•


r1·.,,,


ef.d n.t
y
• W.
30 l
Attorney
Bulldln
�Mr . Edwin L . Sterne, Chairman
Atlanta Housing Authodty
639 Trust Company of Georgia Building
Atlanta; Georgia 30303
M.r . Clarence D . Coleman
Regional Director
National Urban League
136 Mattietta Street, N. W .
Atlanta , Geo11gla 30303
Mr . Charles F . Palrnez, i President
Pabne~; lnc .
Palmer Building
41 Marietta Stre t
Atlanta, Georg· 30303
Mr. Jim E . Land
Chief Enginee~ fo.- Georgia
Southern Bell T !ephone and Telegraph Company
805 P ac;htree Str t, N . E .
Atlant , Georgia 30308
Dr. Vivian H nd 't on, President
Cl l'k College
240 Che tnut Sti- et, S . W.,
Atlanta, Georg 30314
Mt . Duane B ek, Ex &lt;:utive Director
Commu:nlty CouncU o1 the Atlanta Ar a, Inc.
100 Olenu Building
Atlant ,, Oeot
30303
D an ~Ul m
s.


r ckaon


School of Socl l Wo k
Atl nta Univ
ity
223 Ch stnut Str t S. W.
Atlant , Geor t 30314
Mr, Willie.m. C. B rtholo
Chal1'nlatl and P aid nt
AU.n Br
P. 0, Box 14064
Atl nta., G o
30312
M:r. Da.1 Cla
Di.. tol' of Public A
· I'
w a .. Tv
lSSl Brlarc:1Ut
Atl ta, Geor
E.
y
�Mr. Ray M oore
News Directo~
WSB .. TV
1601 West Peachtre Str·e et, N . E .
Atlanta, Georgia 30309
Col . Malcolm D . Jone
Housing Coo:rdinatoiO£!ie e o! the Mayo:i,
1204 City HaU
Atlanta, Geol'gia 30303
Mr. W . W . Gat~e
Consultant
Housing Resources Committee
.1Z04 City Hall
Atl nta,, Cieorgia 30303
Mi- . Georg W. K nn dy, Chah::man
Hou ing -.»,d Red velopm nt Committe
Cb.amber of Commerce
1300 Commorce Building
Atlant • Georgl 30301
Mr •. Johnny C . JQhneon, Dit ctor
Mod 1 Citie Progr m
565 HiU Str et
Ad.an , Geor
a 3031Z
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              <text>April 29, 1968

Mr. Leon J. Noga, Direttor
Public Systems Laboratory
Washington Science Center
Litton Systems, Inc,
Applied Science Division
7300 Pearl Street

Bethesda, Maryland 20014

Subject: Cooperation during performance of HUD Experimental
Housing Research and Development Program

Dear Mr. Noga:

In reply to your letter of April 19 to Mayor Ivan Allen, I am
enclosing a list of key citizens and contact persons in the area
of housing research and development,

I would recommend that any initial contacts by your office be

with Mr. Johnny C. Johnson, Director of Model Cities Program,
535 Hill Street, Atlanta (telephone 524-8876), and Mr. Malcolm
Jones, Housing Coordinator, Office of the Mayor, City of Atlanta,

They will be glad to assist you in additional contacts or the
provision of any research material you might wish.

Sincerely yours,

Dan Sweat

DS: fy

FE RS SR a EI SRT A a a RR 2 SRT Tbe Palak WET a eS De ae eee ed

 
FF ee

Mr. Cecil A. Alexander, Chairman

Housing Resources Committee

Finch, Alexander, Barnes, Rothschild &amp; Paschal
10th Floor + Standard Federal Builiiing

44 Broad Street, N. W.

Atlanta, Georgia 30303

Mr. Archer D. Smith, II, Attorney
Harmon and Thackston

1944 National Bank of Georgia Building
Atlanta, Georgia

Dr. Edwin Harrison, President
Georgia Institute of Technology
225 North Avenue, N. W.
Atlanta, Georgia 30313

Mr. Moreland Smith, Director
Urban Planning Project
Southern Regional Council, Inc.
5 Forsyth Street, N. W.
Atlanta, Georgia 30303

Mr. Robert C. Watkins
Morton Road at Statebridge
RFD # @

Alpharetta, Georgia

Mr. Lee Burge, President
Retail Credit Company

P. O. Box 4081

Atlanta, Georgia 30302

Mr. A. B. Padgett, Trust Officer
Trust Company of Georgia

P. O. Box 4418

Atlanta, Georgia 30302

Mr, Hamilton Douglas, Jr., Attorney
National Bank of Georgia Building
Atlanta, Georgia

Mr. John Wilson, President
Horne-Wilson Company

163 Peters Street, 5. W.
Atlanta, Georgia 30313

pc lc cients
tee ee eS Is es eR OE TS

Mr. Edwin L. Sterne, Chairman
Atlanta Housing Authority

639 Trust Company of Georgia Building
Atlanta, Georgia 30303

Mr, Clarence D, Coleman
Regional Director
National Urban League

136 Marietta Street, N. W.
Atlanta, Georgia 30303

Mr. Charles F, Palmer, President
Palmer, Inc,

Palmer Building

4l Marietta Street

Atlanta, Georgia 30303

Mr. Jim E. Land

Chief Engineer for Georgia

Southern Bell Telephone and Telegraph Company
805 Peachtree Street, N. E.

Atlanta, Georgia 30308

Dr. Vivian Henderson, President
Clark College

240 Chestnut Street, S. W.
Atlanta, Georgia 30314

Mr, Duane Beck, Executive Director
Community Council of the Atlanta Area, Inc.
100 Glenn Building

Atlanta, Georgia 30303

‘Dean William S, Jackson
School of Social Work
Atlanta University

223 Chestnut Street, S. W.
Atlanta, Georgia 30314

Mr. William C. Bartholomay
Chairman and President
Atlanta Braves

P. O. Box 14064

Atlanta, Georgia 30312

Mr. Dale Clark

Direetor of Public Affairs
WAGA+TV

1551 Briarcliff Read, N. E.
Atlanta, Georgia 30306

2 2 Se Pa Le ee ae)
|

 
Mr. Ray Moore

News Director

WSB-TV

1601 West Peachtree Street, N. E.
Atlanta, Georgia 30309

Col. Malcolm D. Jones
Housing Coordinator
Office of the Mayor
1204 City Hall

Atlanta, Georgia 30303

Mr. W. W. Gates

Consultant

Housing Resources Committee
1204 City Hall

Atlanta, Georgia 30303

Mr. George W. Kennedy, Chairman
Housing and Redevelopment Committee
Chamber of Commerce

1300 Commerce Building

Atlanta, Georgia 30301

Mr. Johnny C. Johnson, Director
Model Cities Program

565 Hill Street

Atlanta, Georgia 30312
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                    <text>HOUSING RESOURCES COMMITTEE
April 18, 1968
Memorandum:
Malcolm Jones
·From:
Re Honor Fann No. 1 (Federal Pen Site)
BACKGROUND
Several days ago Collier Gladin sugge ste d that I t ry to get private
developers interested in this site; and r-ecently Dan Sweat asked me to
work with Collier Gladin and Howard Oppenshaw in trying to expedite
development of the housing portion of this site.
On April 10 I had a scheduled conference with a prospective developer
for this site.
Mr. Howard Oppenshaw of the Housing Authority and
Mr. Dick Case of HUD participated in the conference.
Subsequently I have
discussed the matter with Collier Gladin and others interested in this
development.
CURRENT STATUS
Title to the property is now in General Services Administration.
T()pographic map (2' interval) of the area has been prepared and is in
hands of the Housing Authority.
The State Highway Department has
furnished the center-line for the Expressway and i s working on slope
boundary lines.
However, the State Highway Department cannot accurately
define and confirm the Expressway boundaries until aft er it holds a
Public Hearing several weeks hence.
A small contiguous triangle shaped tract, acquisition of which is
considered desirable for inclusion in the overall project, is owned by
private interests.
It could be acquired separately- by the Housing Authority
and its acquisition should~ delay development of t he land to be dedicated
by the Federal Government.
Mr. Oppenshaw is now working on a tightly timed development schedule
for
15
single --fa~ily lots in a portion of t he area adjacent to the existing
Thomasville Urban Renewal Project.
This should continue and this portion
should be handled separately from the remainder of the housing portion
of the Federal Pen siteo
�Page 2
April 18, 1968
DISCUSSI ON
Mr. Case of HUD proposes that GSA deed the Highway, School and Parks
portions of the site directly to these respective Departmentsfor planning
and development, but that the Housing portion (including small commercial
site to serve the project) be deeded to the Housing At1thority; for subsequent
processing and development under Urban Renewal.
However, he concedes that
these sites could be deeded by GSA to the City of Atlanta or direct to a
selected developer, as is now contemplated for the other portions of the
site.
All agree that the eventual award of the hollsing portion to a developer
should be based on some fonn of competitive process.
It also appears that
the most feasible competitive procedure would be t hrll design proposals by
-£w -';J1Jumt..
prospective developers, for multiple type~housing.
We all also agree that such proposals could be called for by either
the City or the Housing Authority, without waiting for the title to first
pass from GSA.
It is my opinion, which is also shared by others, that the quickest
development can be accomplished thru private developers direct, with-out
the land being deeded first to the Housing Authority and then going thru
the Urban Renewal process.
At least two of the prospective developers
much prefer it this way and in fact have reque ste d it be done this way,
if possible.
Interfaith has specifically asked that the Mayor write
directly to HUD in Washington requesting this procedure.
Any financial advantage that might be derive d in development of streets
and installation of utilities by the Housing Authority thru the Urban
Renewal process, should be off set by the time saved a.rid anticipated
relatively low land cost of the project, if done by the developer, in
conjunction with the housing development.
If necessary, the Housing Authority might be compensated for its
administrative services on this project,by adding the expense involved,
which should be only nominal, to the cost of the land to the developer.
�•
3
April 18., 1968
Page
Mr . Oppenshaw proposes to wor k up cr i teria to be furnished prospective
developers uniformly in a package for t heir gui dance in preparing and
submitting proposals on the housing portions of the site (other than the
15
single-frunily lots).
The pro spective developers ar e anxious to know what the land will
cost them.
They should know this in or der to plan int elligently.
Mr . Gladin, Mr. Oppenshaw and I are in agreement t hat:
(a)
As soon as Mr. Oppenshaw can package t he development criteria
so t hat all interested developers may get the same mat erial and information
as t o requirement s (which he is attempting to do by May 1) such can then
be put out t o developers for submittal of proposal s within 30 days.
(b )
within a
(c)
Selection of the successful developer could then be determined
15
day per iod thereafter.
Additional final development details could be worked out with
the successful developer, after the award has been made.
(d)
The City should reserve the right t o determine traffic circulation
wit hi n t he project site.
RECOMMENDATIONS
1.
Mr. Oppenshaw continue his tight schedul e now in progress for
development of the
2.
15
single family lots, t hrough t he Housing Authority.
HUD be requested to determine as soon as possible and inform the
City what the cost of the land will be.
3. Mr. Oppenshaw to pull to-gether as soon as possible (with target
date of May 1) uniform development criteria (including cost of land and .r&lt;J95~,e.J
approximate number of units by respective types desired for the remaining
housing sites t o be f urnished interested devel opers.
4.
The Housing Authority to call as soon as pos sible (target date
/c:-w-,~», ..
May 1) for mul t i ple type ~hous ~ng developrnent proposals, for submittal in
30 days (target date June 1) .
�J
Page 4
April 18, 1968
5. Prospective developers to be infonned that the Planning Department
reserves the· right to work out with the successful developer, traffic
circulation plans within the sites, satisfactory t o t he City.
60 Selection of successful bidder to be de t er.mined within 15 days
after submittal of proposals.
7. HUD
in Washington be requested by letter from Mayor Allen t0
ask GSA t o deliver title to the portion of the tract (other than the
15
single family lots) to be developed for Housing (and related connnercial) ·
direct to the successful developer to b e deten,d.ned jointly by the CityHousing Authority.
8.
Successful developer be required to start physical development
of these housing sites (break ground within six (6) months from date of
delivery to him. of title to the land.
9.
Successful developer be required to agree to complete development
within two (2) years from starting (breaking gr ound) date.
Respectfully submitted,
/?.;)~JJ/ ~ ~
J'-21.-
Mal~~ Housing Coordinator
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              <text>HOUSING RESOURCES COMMITTEE

April 18, 1968

Memorandum:
From: Malcolm Jones

Re Honor Farm No. 1 (Federal Pen Site)

BACKGROUND

Several days ago Collier Gladin suggested that I try to get private
developers interested in this site; and recently Dan Sweat asked me to
work with Collier Gladin and Howard Oppenshaw in trying to expedite
development of the housing portion of this site.

On April 10 I had a scheduled conference with a prospective developer
for this site. Mr. Howard Oppenshaw of the Housing Authority and
Mr. Dick Case of HUD participated in the conference. Subsequently I have
discussed the matter with Collier Gladin and others interested in this
development.

CURRENT STATUS

Title to the property is now in General Services Administration.
Topographic map (2' interval) of the area has been prepared and is in
hands of the Housing Authority. The State Highway Department has
furnished the center-line for the Expressway and is working on slope
boundary lines, However, the State Highway Departinent cannot accurately
define and confirm the Expressway boundaries until after it holds a
Public Hearing several weeks hence,

A small contiguous triangle shaped tract, acquisition of which is
considered desirable for inclusion in the overall project, is owned by
private interests. It could be acquired separately by the Housing Authority
and its acquisition should not delay development of the land to be dedicated
by the Federal Goverment.

Mr. Oppenshaw is now working on a tightly timed development schedule
for 15 single-family lots in a portion of the area adjacent to the existing
Thomasville Urban Renewal Project. This should continue and this portion
should be handled separately from the remainder of the housing portion

of the Federal Pen site.

 
Page 2
April 18, 1968

DISCUSSION

Mr. Case of HUD proposes that GSA deed the Highway, School and Parks
portions of the site directly to thease respective Departments for planning
and development, but that the Housing portion (including small commercial
site to serve the project) be deeded to the Housing Authority, for subsequent
processing and development under Urban Renewal. However, he concedes that
these sites could be deeded by GSA to the City of Atlanta or direct to a
selected developer, as is now contemplated for the other portions of the
site.

All agree that the eventual award of the housing portion to a developer
should be based on some form of competitive process. It also appears that
the most feasible competitive procedure would be thru design proposals by
prospective developers, for multiple tyouhoostag.

We all also agree that such proposals could be called for by either
the City or the Housing Authority, without waiting for the title to first
pass from GSA,

It is my opinion, which is also shared by others, that the quickest
development can be accomplished thru private developers direct, with-out
the land being deeded first to the Housing Authority and then going thru
the Urban Renewal process. At least two of the prospective developers
much prefer it this way and in fact have requested it be done this way,
if possible. Interfaith has specifically asked that the Mayor write
directly to HUD in Washington requesting this procedure.

Any financial advantage that might be derived in development of streets
and installation of utilities by the Housing Authority thru the Urban
Renewal process, should be off set by the time saved and anticipated
relatively low land cost of the project, if done by the developer, in
conjunction with the housing development.

If necessary, the Housing Authority might be compensated for its
administrative services on this project, by adding the expense involved,

which should be only nominal, to the cost of the land to the developer,

 
Page 3
April 18, 1968

Mr. Oppenshaw proposes to work up criteria to be furnished prospective
developers uniformly in a package for their guidance in preparing and
submitting proposals on the housing portions of the site (other than the
15 single-family lots).

The prospective developers are anxious to know what the land will
cost them. They should know this in order to plan intelligently.

Mr. Gladin, Mr. Oppenshaw and I are in agreement that:

(a) As soon as Mr. Oppenshaw can package the development criteria
so that all interested developers may get the same material and information
as to requirements (which he is attempting to do by May 1) such can then
be put out to developers for submittal of proposals within 30 days.

(b) Selection of the successful developer could then be determined
within a 15 day period thereafter.

(c) Additional final development details could be worked out with
the successful developer, after the award has been made.

(d) The City should reserve the right to determine traffic circulation
within the project site.

RECOMMENDATIONS

1. Mr. Oppenshaw continue his tight schedule now in progress for
development of the 15 single family lots, through the Housing Authority.

2. HUD be requested to determine as soon as possible and inform the
City what the cost of the land will be.

3. Mr. Oppenshaw to pull to-gether as soon as possible (with target
date of May 1) uniform development criteria (including cost of land and suggested
approximate number of units by respective types desired for the remaining
housing sites to be furnished interested developers,

h. The Housing Authority to call as soon as possible (target date
May 1) for multiple isco wonting development proposals, for submittal in

30 days (target date June 1).

 
Page
April 18, 1968

5. Prospective developers to be informed that the Planning Department
reserves the right to work out with the successful developer, traffic
circulation plans within the sites, satisfactory to the City.

6, Selection of successful bidder to be determined within 15 days
after submittal of proposals.

7. HUD in Washington be requested by letter from Mayor Allen to
ask GSA to deliver title to the portion of the tract (other than the
15 single family lots) to be developed for Housing (and related commercial)
direct to the successful developer to be determined jointly by the City-
Housing Authority.

8. Successful developer be required to start physical development
of these housing sites (break ground within six (6) months from date of
delivery to him of title to the land.

9, Successful developer be required to agree to complete development

within two (2) years from starting (breaking ground) date.

Respectfully submitted,

Ar ¥+o5
Malcolm D, Jonés
Housing Coordinator
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                    <text>April 22, 1968
Memorandwn To:
Mayor Allen
Dan E. Sweat, Jr. I;: a.,..___
Director of Governmental Liaison
From:
Attached are two memorandwns dated April 18 and April 19 respectively,
prepared by Malcolm Jones, re the Honor Farm No. l site and containing
some specific recommendations for getting housing development started
there soon.
Collier, 1alcolm and I have discussed the at t ached and I believe
are in general agreement except possibly Malcolm's recommendation
that
the 24 acre portion of the site, currently desi gnated for a Junior Hi gh
School-Communit y Center development, be converted to additional low-income
housing.
It appears too early yet to mal&lt;:e such determination.
The urgency f or starting development on the
15
single-family lots
is to meet Federal insistance for ground breaking in May on at least a
token development for low-income housing.
(Tb.is would pl ace Atlanta
first on actual utilization of Federal dedicated sites for low-income
housing) .
The concensus of opinion now seems to be to assume that development
will not be thru the Urban R~newal process.
If you concur in this at
this t i.Iiie, the following steps should be taken immediately to get the
ball rolling:
a.
A~k the Housing Authority to get a stor y or advertisement in
the newspapers not later than April 28, alerting interested developers
�Page 2
Memorandum To: Mayor Allen
April 22, 1968
that proposals will be called for soon and as close to May 1, 1968 as
possible, for submittal within 30 days.
b.
Request the Housing Authority to prepax·e package invitations,
containing essential material, to interes t ed developers as soon as
possible (with target date of May 1) for ~ubmittal of proposals
within 30 days; for starting construction within 6 months after the
award; and for completing construction within 2 years from starting date.
c.
15
Plan for review of proposals and selection of developer within
days after submittal of proposals.
Encls:
Memos dated April 18 and April 19
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              <text>April 22, 1968

Memorandum To: Mayor Allen
From: Dan E, Sweat, Jr. Pew
Director of Governmental Liaison

Atteched are two memorandums dated April 16 and April 19 respectively,
prepared by Malcolm Jones, re the Honor Farm No. 1 site and containing
some specific recommendations for getting housing development started
there soon.

Collier, Malcolm and I have discussed the attached and I believe
are in general agreement except possibly Malcolm's recommendation that
the 2h acre portion of the site, currently designeted for a Junior High
School-Community Center development, be converted to additional low-income
housing. It appears too early yet to make such determination.

The urgency for starting development on the 15 single-family lots
is to meet Federal insistance for ground breaking in May on at least a
token development for low-income housing. (This would place Atlanta
first on actual utilization of Federal dedicated sites for low-income
housing).

The concensus of opinion now seems to be to assume that development
will not be thru the Urban Renewal process. If you concur in this at
this time, the following steps should be taken immediately to get the
ball rolling:

a. Ask the Housing Authority to get a story or advertisement in

the newspapers not later than April 28, alerting interested developers
Page 2
Memorandum To: Mayor Allen
April 22, 1968

that proposals will be called for soon and as close to May 1, 1968 as
possible, for submittal within 30 days.

b. Request the Housing Authority to prepare packege invitations,
containing essential material, to interested developers as soon as
possible (with target date of May 1) for submittal of proposals
within 30 days; for starting construction within 6 months after the
award; and for completing construction within 2 years from starting date.

c. Plan for review of proposals and selection of developer within

15 days after submittal of proposals,

Encls: Memos dated April 18 and April 19
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