Box 5, Folder 9, Document 25

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Box 5, Folder 9, Document 25

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HOUSING RESOURCES COMMITTEE
Atlanta, Georgia
December i2, 1968

SECOND ANNUAL REPORT

CONTENTS

Accomplishments
implications of the 19628
Future Direction
Unfinished Business
Reports of Committee Paneis (Encl, 1)
Summary of Status Report (Encl, 2)

=

Housing Act



ACCOMPLISHMENTS

November 15, 1868, marked the completion of the first two
years’ activity of the Housing Resources Committee in its efforts
to premote and accelerate the Loweincome Housing Program in
Atlanta,

The 5 year goal of 15,809 jJow and medium income housing units
announced by the Mayor in his Housing Conference establishing the
HRC on November iS, 1966, is now in the pipe line, This figure
was based on anticipated replacement needs caused by Governmental
action during 196771, and did not take into consideration normal
growth, formation of new families and inemigration,

The Nevember 15 revision of the report on status of the low
and medium income housing program shows:

Completed 3,217 units
Under Construction $,278 units
In Planning 7,327 units
In Sight iS,634 units Total

This Slightly exceeds (by 32 units) the 5 year goal of 16,800
units and is only 305 units short, in the first two categories, of
the anticipated need for 9,800 units during the first two years
of the progran,
2

it is anticipated that most of the 7,337 units in Planning
Wwili materialize, However, in the event that some may fall by
the way Side, there are an additional €,215 units Being Considered,
which will more than compensate for any units now in the In
Plianning category which may be lost to the program.

The Summary (Encl, 2) shows that the peals for ali phases of
the 5 year program are being met, with the exception of Public
Housing which is currently 4,190. units behind,

The Committee has consistently endeavored te overcome and
minimize neighberhcecd chjections to low-inccme housing, which has
been the greatest problem in getting approval on site selections.

The Committee has solicited and obtained the support of the
Chamber of Commerce in seelking the cooperaticn ef County
Commissicners (particulazly Fulton) for establishing iow income
housing projects in urinzorpereted creas c? adjoining Counties,
where occupants ray reside in clese proximity toe sources of
industrial employment.

.

Among other accomplishments, the Housing Resources Committee:

Has worked closely with developers, ee er
and Community groups in promction cf low and med
and in coordination of efforts in this ficid.

city Departmen

aod
5; to
ium income housing

Has been instrumental in establishing the Greater Atlanta
Housing Development Corporation to assist local non-profit housing
corporations, thus providing seed money and other assistance
(including perhaps the banking of land for subsequent use at ne
profit for low income housing developments).

Was a pi
the local and
able units as

ex in preposing and getting approval at both
ational level for use of prefabricated relocat-
emporary relecation housing.

Was influential in promotion, at the Washington level,
of expanding the base for Federal Grants and direct Leans, now
authorized in the 1968 Housing &ct, for assisting home owners
in ret BADE TAA TLON oz their dwellings to meet requirements of
the Housing Co?

Has urged carly adepiicn by the City of miniature Urban
Renewal projects, tireuga ths Peichbecrhend Development Program,
in blighted residential pccskets, to rid the City of its worst

Slum areas

Has urged revision of some previous conventional planning
concepts in an effort to set certain arcas renoued to permit a

more practical approach to improvement of such areas for residentini

use.
3

Urged the dispersal of future Public Housing in relatively
small developments on scattered sites.

Has been instrumental in creation of interest in the low-
ancome housing program by non-profit organizations and the
formation of several such organizations to participate in the
low-income housng program.

Was the catalyst in getting neighborhood interest revived
for improvement of Vine City through Urban Renewal.

Proposed and obtained concurrence of the Board of Education
for drafting legislation for consideration by the General
Assembly in its next session to authorize developers to build
schools simultaneous with development of housing projects,
except in Urban Renewal areas, for lease to the Schcoi Board
until it is in positicn to purchase the facilities.

Was active participant in Atlanta Conference on Equal
Opportunity in Housing.

Has worked with the Model Cities' staff in development of
its housing rehabilitation program and site selection for
experimental housing.

Has pointed out to City officials the necessity for, and
urged recogniticn of, the principie that site selection for
low-income housing should include a planning function and
responsibility, similar to location of schools, water purification
plants, sewerage disposal systems and other public works; that
it shouvlc net be left entirely up to land promoters and developers
to select sites and bear the burden of trying to get them suitably
zoned and approved,

After promoting and receiving support of thirty prominent
Business, Civic and Religious organizations and individuals, the
“RC held a special meeting on sugust 2, 1968, with the Flanzins
aud Development Committee and the Zoning Committee of the Board of
Aidermen in which the following specific requests were made:

i. Asked the Mayor to appoint either an existing
committee or a new committee of the Board of
Aidermen to assume a responsibility in the fiecid
ox low-income housing.

2. Kevision of the Building Codes for the City of
Atlanta, particularly to allow experimental
housing to be built in the Model Cities area,
3. Revision of the Ordinance governing non-
conforming use of land to allow structural
changes in improving dwelling units to meet
requirements of the Housing Code.

» Accelerate the urban renewal program
particularly in the Nash-Bans, Vine City
and other areas outside the Mcdei Cities
area.

5. Authorize the Atlmta Housing Authority to
request 2,000 additional units of public
housing.

6. Adoption of a revised district zoning map
based on the new Land Use map, to include
adequate areas for low-income housing.

Results:

a. A resolution was adopted on September 16, 1968, charging
the Planning and Development Committee of the Board of Aldermen
with responsilility for assisting the Housing Resources Commitiec
in meeting requirements of the Low-income Housing Program.

b, Vine City and Bast Atlanta have been inciuded in the
Neighborhood Development Program for planning in 1969,

ec. The Board of Aldermen authorized on September ic,
request by the Housing Authority to the Federal Government for an
allocation of an additional 2,000 units of Public Housing; and
the request has been submitted to Housing Assistance Agency of
HUD.

d. ithough specific action on the other three items has
thus far been inconclusive, the need for these clements has been
recognized and emphasized and indirect favorable effects have
been encouraging,

Throughout the program the HRC has endeavored to work for
close contact and understanding with the Federal Agencies, local
groups and City Departments in promotion of the Low-income Housing
Program ang received from them a remarkable degree of cooperation
and assistance, which is very much appreciated,

On December 9, 1968, award was made by the Housing Authority
to National Homes Corp, of LaFayetta, Indiana, for development of
the 26 acre Federal surplus land site, as part of the Thomasville
Urban Renewal project. This award was based on a design competition
among & prominent developers and will include G00 units of low
and medium income housing, 2 schools, parks, commercial develop=
ment to serve the immediate neighborhood and other facilities,
IMPLICATIONS OF THE 1968 HOUSING ACT

The National Housing Act passed by the Congress on August
1, 1968, reaffirms the national goal in the 1949 Housing Act, of
"a decent home and a suitable living environment for every
American family".

Private industry has been challenged to provide six
million additional housing units during the next ten years for
low and moderate income families. The 1968 legislation provides
the tools and incentives and success ‘in meeting the national
objective will largely depend on:

»« eponsor interest.

Availability of land at a reasonable PEAR;
The mortgage money market.

Municipal cooperation

Funding by the Congress in 1969,

Building code and zoning restrictions,

O) cnr ©) DD

Section 238: The 1968 Housing Act established a new Special
Risk Insurance Fund which permits the Federal Housing
Administration to assume higher mortgage insurance risks in
connection with both location and credit characteristics that
were unacceptable under the mutual mortgage sections of the
Act. This should widen both the housing and the mortgage sections.
of the Act. This should widen both the housing and the mortgage
market,

Section 237: Provides, on an experimental basis, FHA
mortgage inSurance to finance homeownership for certain lower
income families who cannot qualify under normal standards because
of their past credit records, but who can meet mortgage
payments with appropriate budget and financial counseling.

section 236: Under this rental housing program the tenant
or cooperator will pay at least 25 per centum of his family
income towards the market rent or the basic rent, whichever
is greater. The basic rental is determined on the basis of
operating the project with payments to principal and interest
on a levei annuity plan at 1 percent interest. HUD pays the
mortgagee the difference between the amount collected from the
occupant and a fair market monthly rental determined on the basis
of operating the project with payments of principal, interest
and mortgage insurance premium required on a level annuity
mortgage at the market interest rate. There will be no subsidy
for the moderate income tenants. Maximum mortgage amounts -
100% of FHA cost to nonprofit and 90% for profit motivated
Sponsors. 40 year term, Limited to families whose incomes are
not in excess of 135% of initial admission levels of public
housing.
6

The above is only a partial outline of Section 236.
The regulations cover a wide segment of rental housing financing
and the mortgage insurance terms are liberial. The Act
authorized $75,000,000 to July 1, 1963, but only $25,009,000
has been funded. These funds will likely be allocated very
rapidly to proposed rental and cooperative projects. There
is no requirement for a Workable Program.

Section 235: Thissection places heavy emphasis on home
ownership and provides that if the purchaser of a new home or
a living units © a condomimium will pay at least 20% of the
family's income, HUD will pay the balance of the monthly
mortgage payments. A two family dwelling may also be purchased,
ig owner occupies omunit. Mortgages are limited to $15,000
and $17,009 for large families. Family income limited to 135%
of public housing entrance levels. 30 year mortgage term,
Ne Workable Program is required,

Subsides vary with the income of the purchaser and the
cash investment in the housing unit will range from a minimum
of $200 to 3% of FHA's estimate of ccst.

Section 235 of the Housing Act is very comprehensive and
the present funding of $25,000,000 will be used up rapidly.

Comments: All of the legislation mentioned above applies
to both propesed construction and major rehabilitation and
provides wide opportunity for nonprofit organizations to
operate in a number of fields. It is also attractive to profit
motivated firms, It permits the issuance of mortgage insurance
in urban, suburban, core and rural areas and better distribution
of low income housing in all areas where the need can be
established under the new fct.

it gives the sponsor a choice of construction or rehabilitat-
ing singie family homes, town houses, apartments, condomimiums
and cooperatives. It provides for accumulation of equity by the
buyer through credit for his own labor. It also provides
employment and contract opportunities for lower income families
and business concerns in the construction area to the extent
feasible. Occupant training will be provided where needed in
financing and other fields.

There are many changes and additions to the Mousing Act
that have not been covered in the brief outline above. Other
sections apply to Urban Renewal, Public Housing, Housing for the
Biderly, Nursing Homes, Nonprofit Hospitals, Flood Insurance,
Financing, ctc.

THE IMPACT OF THIS BILL ON HOUSING SHOULD BE TREMENDOUS.
HE TOOLS ARE AVAILABLE AS NEVER BEFORE.
——_-

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for
and
and
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FUTURE DIRECTION

As Chairman of the Housing Resources Committee, I make
following recommendations for the future course of action
the housing program in Atlanta. We request that the Mayor
Board of Aldermen give consideration to these proposals
advise us accordingly, in a revised statement of mission
the Committee:

i, AIL bodies concerned with housing reviaw
the present and continuing needs for low
income housing.

2. Sliminate existing slums and provide housing
as needed in the area for those who wish tc
remain there, ;

3. Place housing near jobs and public facilities
in the City of Atlanta and throughout the
metropolitan area.

4. Continue efforts to promote innovative
low-income housing construction in Atlanta.

&. Continue to aid efforts to eliminate social
preblems connected with housing.

6. Further involve the business community in
the housing program.

7 &ssist nonprofit groups and developers in
their efforts to cbtain Land and construct
housing.

8. Promote and expalin the new general housing
act and the fair housing act,

ww

» Consider national and local legislation useful
to the housing progran.

Assist in the stabiLbisatioa of cxisting
neighborhoods and encourage the construction
of middle and upper income residential
developments in the City of ftlanta.

Juul
©
°

ll. Attempt to involve persons in the slums
in the business side of demolition,
rehabilitation or erecting new units.

12. Continue efforts to sell the need for low
income housing to the people of metrepolitan
At Lanta o
8

It is also suggested that consideration be given to
Placing the functions of the Housng Resources Committee with
the Citizens Advisory Committee for Urban Renewal or as a
part of an activated Urban Coalition,

UNFINISHED BUSINESS

There are many unfinished phases of the initial program
which need the continuing existance cf e e&tizenst group to
help with the completion of the program. Some of them are:

1. Compliection of projects now in planning.

4. Legislation pending that will allow the city
to lease schools to be built by develcpers
Simultaneously with housing projects, except
in urban renewal areas,

3. Investigation of problems relating to code
restrictions on innovative building.

4, Activation of Board for the Greater Atlanta
Housing Development Corporation,

5. Obtaining of additional sites in areas where
low income housing is needed.

It should be borme in mind, that while this program is
apparently in good shape, that many of the projects still need
Shepherding. There are many forces trying to biock housing in
Atlanta and any faltering in continuing efforts might well
decimate the final accomplishment of the erection of the 16,890
units.

I wish to close by thanking Coil. Jones, William Gates of
our staff, the members of our committee who worked dilligently
during the past two years and such members as Archer Smith, Lee
Burge, Clarence Coleman, Charles Palmer, Robert Winn and Dale
Ciark immediately come to mind among many cthezs, This has
truly been a working Committee. We aiso thank the Atlanta
Housing Authority, the Planning Department, the Building
Department, Public Works Department, members of the Board of
Aldermen, Mayor filen and the members of the Press, Radio and
TV Organizations. Not to be forgotten are the developers and
nonprofit groups whe have in the last eee nee the program
pessible,

Cecil A, Alexander
Chairman
Encls: 1, Reports of Committee Panels
@e summary of Status Report

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