Box 5, Folder 10, Document 25

Box 5, Folder 10, Document 25

October 18, 1968

Mr. J. D. Johnson, Director
Model Cities Program

673 Capitol Avenue, S. W.
Atlanta, Georgia 30312

Dear Johnny:

Yesterday I visited the factory of Imperial Homes (manufacturers
of pre-cut and sectionalized framed houses) ranging in price from
$8, 000. 00 to $45, 000. 00.

I was impressed with the thoroughness, economy of pre-cutting,
packaging and quality of materials and workmanship being used in
this operation. This firm is just coming up now {not yet on the
market) with a 24' x 36', 3 bedroom and bath house with 287 cu. ft.
of general storage area which they claim is designed to sell under
the Farmers‘ Home Administration program for $8,000.09, to the
occupant, to go on his lot.

This firm is also developing" a 4 bedroom and bath house which

they “hope” to sell under the same program for $9, 099. 00 to the
occupant, to go on his lot. Two options are an additional half bath with
ceramic tile floor for $410. 00 extra and an outside attached storage
area for $/50.00 extra.

The President of the firm is Mr. M. .0. Gustafson, and the business
address of the plant is 1520 Kalamazoo Avenue, Griffin, Georgia,
phone 404-228-8477.

Imperial Homes generally selis wholesale te local builders. These
houses are packaged and delivered on flat bed trailers (one house

per trailer for small houses). Truckage cost to Atlanta is only $36, 00.
(This price appears to be symbolic of their entire operations. )


Mr. Johnson
Page Two
October 18, 1968

Mr. Gustafson claims that there is a reasonable profit in these houses
for local builders and that normally a small house can be framed up in
a day and trimmed out in another day.

The manufacturer states that all of these houses meet both FHA and VA
standards and that FHA will insure the mortgages on these houses up to
40 years.

Mr. Gustafson has offered to undertake a sales promotional campaign
direct to owners of existing vacant lots in Atlanta (where houses have been
demolished under the housing code) if he is provided with a list (locations)
of vacant residential lots in the central city, together with the names and
mailing addresses of the owners. Many of these houses can be adapted

80 as to go end-wise on narrow lots.

It has occurred to me that this would be worth exploring for the Model
Cities area. I have a catalogue in color of these houses and a set of plans
on the $8,000 and $9,990 houses, which I will be glad to show to you and/or
other members of your staff.

Sincerely,

Malcolm D. Jones
Housing Coordinator

MDJ:ty

ec: Mr. Dan E. Sweat, Jr.
Mr. Cecil A. Alexander