Box 5, Folder 10, Document 14

Dublin Core

Title

Box 5, Folder 10, Document 14

Text Item Type Metadata

Text

October 4, 1968 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

MEMORANDUM

To: Mr. Dan E,. Sweat, Jr.
Director of Governmental Liaison

Reference is made to your Memo of September 20 and Bill Wofford's
letter of September 12 to Mayor Allen pertaining to difficulties
encountered in Housing Code enforcement in the Cooper-Glenn area,

FHA has recently liberalized its policy by relaxing its require-
ments for mortgage insurance. This should help. A copy of the
liberalized policy is attached.

The billion dollar commitment by the Insurance Industry to the
President for purchase of mortgages in hard-core and previously
uninsurable areas, should also assist somewhat in this field. However,
insurance companies are still extremely reluctant to make the loans
without FHA insured mortgages.

The Housing Act of 1968 has liberalized the requirements for
direct 3% Federal Loans, under Section 312 of the Act, and has increased
maximum Federal Grants, under Section 115, for rehabilitation from
$1,500 to $3,000 for needy home owners, However, both the Federal
Loans and Grants are still limited to certain areas; these are:
Urban Renewal areas, Code Enforcement areas, Neighborhood Development
Program areas, Section 117 areas (which require little acquisition),
Certified areas (See sub-par. (B)(i), Section 509) and the so-called
“Fair Plan" areas (See Section 1211 of the Act and sub-par. (C) (i),
Section 509).

At present, it appears that the Cooper-Glenn area. does not
automatically qualify under any of the above indicated Sections of
the Act; and if sufficient improvement is made in the area through
rehabilitation, this could still possibly prevent subsequent
Qualification of the area for an Urban Renewal Project. This has
been confirmed by a Federal official,

I have been advised by Mr. Phillip Johnson of the Rehabilitation
Loans and Grants Branch of Renewal Assistance Administration of
HUD, the mere fact that this or other areas are included in Atlanta's
Model Cities area is insufficient within itself to enable property
owners to qualify for assistance under the 1968 National Housing Act;
that perhaps the simpliest and quickest means of qualifying the
Mr. Dan E. Sweat, Jr.
October 4, 1968
Page 2

the Cooper-Glenn area, as well as other similar areas, for direct
Federal Loans and Grants would be through the filing and Federal
approval of an application for a "Certified" area; and further,

that in order to qualify for direct 3% Federal Loans and Rehabilitation
Grants, the property involved must be residential and owner-occupied;
definite boundaries must be established for the area; the area must

be eligible for Urban Renewal within a three (3) year period; and

the City must demonstrate its ability to meet its share of the Urban
Renewal costs within that length of time; and the Federal authorization
will be limited to a 1 year's duration. Amowner-occupied residential
structure may comprise 1-4 units; the Federal Loans and Grants are
100%; However, administration of applications and follow through,
except in Urban Renewal areas, must be borne 100% by City funds; and
the individual applications must be processed by a City designated

LPA and filed with the Rehabiliation Loans and Grants Branch of the
Renewal Assistance Administration of HUD at 645 Peachtree,

Even though the application for a Certified area may be approved
by HUD, I have been informed that the Federal authorization for
expenditures is still extremely limited and funds may not be avilable
until additional funding by Congress,

The "Fair Plan" to which reference is made in sub-par. (C)(i),
Section 509 and Section 1211 of the Act (See “Fair Plan", page 83,
Public Law 90-448) requires the passage by the State of Fair Act
legislation. To date, no State has passed such legislation and only
one State is working on it, If and when the State passes the required
Fair Act legislation, specific sreas will not then have to qualify
as "Certified" areas,

It thus appears that the liberalization of extending the direct
3% Federal Loans and increasing the Federal Grants to $3,000 will
not apply on a City wide basis (but will apply only within certain
specified areas discussed above); that it can only be taken advantage
of on a city wide basis when and after the State Fair Act has been
enacted by the State Legislature.

All of the above has been derived from current interpretations
of the Act by those in HUD who have attended special briefing conferences
in Washington on provisions of the Act. It is still without
interpreting administrative material,

To me, this all appears to boil down to this: Federal Assistance
in the form of Direct Loans and Rehabilitation Grants to owner-
occupants of residential properties can only be obtained in Urban
Renewal areas, Code Enforcement areas, Neighborhood Development Program
areas, Certified areas, Section 117 areas and Fair Plan areas, only
one type of which currently exists in Atlanta i.e. Urban Renewal areas.
Mr. Dan E, Sweat, Jr.
October 4, 1968
Page 3

Furthermore, it is also quite clear that Atlanta does not have enough
time nor money to qualify all of its Slum areas for Federal assistance;
and that it is a fallacy to deliberately hold in suspense any area
which is in need of substantial residential improvement, while hopefully
waiting for extensive direct Federal assistance,

If we are to eliminate the slums and put every family in a decent,
safe and sanitary dwelling, as the Mayor has indicated, in a 5-year
period, or even within the next 10 years, in addition to such Federal
Assistance as may become awilable in any of the various type Federal
approved areas which may be designated, the following steps are necessary:

A. The Housing Code and appropriate Sanitary
Regulations will have to be rigorously enforced
in all areas of the City (which are not definitely
scheduled for acquisition within the next 1-2
years) against property owners who are able to pay
(and also against tenants, as appropriate) for the
necessary improvements. (As Bill Wofford's letter
states, this is not being done now in all areas of
the City.)

B. The Zoning Ordinance should be amended to permit
struturel changes in Non-Conforming Use Residential
property (if used for residential purposes) to meet
full requirements of the Housing. (This would
encourage improvement of residential properties,
rather than perpetuating slum conditions, This was
recently unsuccessfully recommended by the HRC.

C. Churches and Non-Profit Organizations will have to
financially assist those home owners who are not

financially able to pay for the required improvements;
and,

D. In order to improve residential environment in many
areas, the City should adopt a Commercial and
Industrial Code,




Malcolm D.
Housing Coordinator

MDJ/me

Encl: Copy, FHA MEMO on Relaxation of Mortgage Insurance Requirements,

Comments

Document Viewer