Dublin Core
Title
Box 5, Folder 10, Document 21
Text Item Type Metadata
Text
October 25, 1968
Mr. James L. Wright, Jr.
Physical Planning Coordinator
Model Cities
673 Capital Avenue, 8.W.
Atlanta, Georgia 30312
Dear Mr. Wright:
Reference is made to my Memorandum of October 18 to Mr. J. C. Johnson,
Model Cities Director, and my subsequent discussion with you re construction
of low-cost single-family houses on scattered lots in the Model Cities area,
as a means of getting some tangible housing improvements started in the
area as soon as possible.
Yesterday,mI talked with a reputable builder who is ready and willing
to construct immediately one or more "Imperial Homes", on a trial basis,
on the home owner's lot(s) in the Model Cities area, to be financed under
Section 235 of the 1968 Housing Act. I understand that limited funds for
implementing this program may be available to the local FHA office next
week. In any event, application can be made under Section 221 d (2) and
transferred to 235.
Under the 235 program the owner must occupy a unit of a 1-2 family
dwelling and is required to pay 20% of his monthly income to the purchase
(maximum mortgage is $15,000). The difference between the 20% income
payment and the monthly payment on principal, interest, taxes and insurance
(if the purchase had been financed at market interest rates) above a
1-3% interest rate, according to family income, may be subsidized to the
mortgagee directly by FHA.
If youvand your staff will find owner(s) of scattered lots in the
Model Cities area who.would like to have a home(s) constructed on their
lot(s) under this program and occupy the home(s), I will be glad to put
the builder in touch with them for selection of houses and filing of
application with FHA, A subdivision "Die" developed exclusively with
these houses may be seen near Jonesboro just off Highway I-75.
The builder is also ready and willing to purchase vacant lots in the
Model Cities area on which to construct and sell these houses to qualified
purchasers, providing the land cost per unit is reasonable.
‘Mr. James L. Wright, Jr. October 25, 1968
Page 2
Under this program it is doubtful that a builder could afford to
pay more than $1,500 per unit for the land on streets which have utilities
already installed,
Similar financing is available for rehabilitating residential
structures to be sold to owner-occupants.
It appears that this is the most feasible way of getting much needed
residential improvements started right way in appropriate portions of
the Model Cities area.
Very truly yours,
Malcolm D. Jones
Housing Coordinator
f
MDJ/mc
cc: Mr. Dan E. Sweat, an.”
Mr. Cecil A. Alexander
Mr. J. C. Johnson
Mr. James L. Wright, Jr.
Physical Planning Coordinator
Model Cities
673 Capital Avenue, 8.W.
Atlanta, Georgia 30312
Dear Mr. Wright:
Reference is made to my Memorandum of October 18 to Mr. J. C. Johnson,
Model Cities Director, and my subsequent discussion with you re construction
of low-cost single-family houses on scattered lots in the Model Cities area,
as a means of getting some tangible housing improvements started in the
area as soon as possible.
Yesterday,mI talked with a reputable builder who is ready and willing
to construct immediately one or more "Imperial Homes", on a trial basis,
on the home owner's lot(s) in the Model Cities area, to be financed under
Section 235 of the 1968 Housing Act. I understand that limited funds for
implementing this program may be available to the local FHA office next
week. In any event, application can be made under Section 221 d (2) and
transferred to 235.
Under the 235 program the owner must occupy a unit of a 1-2 family
dwelling and is required to pay 20% of his monthly income to the purchase
(maximum mortgage is $15,000). The difference between the 20% income
payment and the monthly payment on principal, interest, taxes and insurance
(if the purchase had been financed at market interest rates) above a
1-3% interest rate, according to family income, may be subsidized to the
mortgagee directly by FHA.
If youvand your staff will find owner(s) of scattered lots in the
Model Cities area who.would like to have a home(s) constructed on their
lot(s) under this program and occupy the home(s), I will be glad to put
the builder in touch with them for selection of houses and filing of
application with FHA, A subdivision "Die" developed exclusively with
these houses may be seen near Jonesboro just off Highway I-75.
The builder is also ready and willing to purchase vacant lots in the
Model Cities area on which to construct and sell these houses to qualified
purchasers, providing the land cost per unit is reasonable.
‘Mr. James L. Wright, Jr. October 25, 1968
Page 2
Under this program it is doubtful that a builder could afford to
pay more than $1,500 per unit for the land on streets which have utilities
already installed,
Similar financing is available for rehabilitating residential
structures to be sold to owner-occupants.
It appears that this is the most feasible way of getting much needed
residential improvements started right way in appropriate portions of
the Model Cities area.
Very truly yours,
Malcolm D. Jones
Housing Coordinator
f
MDJ/mc
cc: Mr. Dan E. Sweat, an.”
Mr. Cecil A. Alexander
Mr. J. C. Johnson
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