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Box 5, Folder 11, Document 78
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March 25, 1968
MEMORAN DOM
fo: Mayor Ivan Allen, Jr.
Mr. Cecil A. Alexander, Chairman
Housing Resources Committee
Mr. Charles A. Mueller of Charles A. Mueller Companies, Jonesboro, came in
to see me last week relative to utilization of houses for the City's Low-income
Housing Program which are being condemned and sold in connection with expansion
of the Atlanta Airport.
Mr. Mueller has proposed that these houses be bided in, as currently being
done, moved into the City of Atlanta, placed on new foundations on either existing
single family lots or in small Subdivisions on appropriately zoned and priced raw
land, completely rehabilitated and then sold under FHA 20-year insured mortgages,
on which FHA is apparently willing to cooperate.
These houses could thus provide home ownership for medium income families,
or better homes than can be built today for higher costs. There are apparently
several hundred of these houses available or to become available soon, consisting
mostly of houses in the $10 - 18 thousand class having 2-3 bedrooms with 800-1000
square feet of liveable floor area.
A number of these houses are reported to have recently been moved to Griffin,
reerected and financed through FHA insured mortgazes in a manner similar to this
proposal,
PHA makes three inspections of each house 1.e. (1) Appraisal inspection of
the house before removal amd inspection of the lot on which it is to go; (2)
Yootings and foundations on which the house is to be erectod; and (3) Final
inspection after complete rehabilitation.
Mr, Mueller's rough estimate of approximate top cost involved runs something
like this:
Initial Cost $ 1,500
Moving Cost 500
Lot (mproved) 2,000
Foundation and Rehabilitation 3,000
FHA fees, tape and closing costs 560
Builder's overhead and profit Hts
Total Selling Price $9,
Page 2 March 25, 1968
Memorandum to: Mayor Ivan Allen, Jr.
Mre Cecil A. Alexander
My. Mueller advises that he is able, willing and ready to inter into this
operation either on his own or preferably in connection with the City of Atlanta
or a non-profit corporation, to purchase the houses, procure the sites and advance
the interim construction money, if the City is interested Aa eee gan obtain
in advance the City's blessing on this general idea and assurance o e City's
cooperation on the undertaking.
This proposal seems to have considerable merit and its execution appears
feasible. Any positive advantage to be derived from this proposal will Tone
quick action as many of the houses are being sold now.
Recommendations:
(1) That this office be authorized to encourage Mr. Mueller to pursue
this proposal promptly and vigorously.
(2) That the Land Department and the Building Department be requested
to cooperate with Mr. Mueller on this project.
(3) That the newly created Non-profit Housing Development Corporation
be requested to take this on in cooperation with Mr. Mueller, es its initial project,
ee ee ee ae existing vacant single family lots, many of which now
exist in the core area of the City and on appropriately located and suitably soned
Sincerely,
_ Maleolm D, Jones
Housing Coordinator
cot Mr. Dan Ee Sweat, dre
MEMORAN DOM
fo: Mayor Ivan Allen, Jr.
Mr. Cecil A. Alexander, Chairman
Housing Resources Committee
Mr. Charles A. Mueller of Charles A. Mueller Companies, Jonesboro, came in
to see me last week relative to utilization of houses for the City's Low-income
Housing Program which are being condemned and sold in connection with expansion
of the Atlanta Airport.
Mr. Mueller has proposed that these houses be bided in, as currently being
done, moved into the City of Atlanta, placed on new foundations on either existing
single family lots or in small Subdivisions on appropriately zoned and priced raw
land, completely rehabilitated and then sold under FHA 20-year insured mortgages,
on which FHA is apparently willing to cooperate.
These houses could thus provide home ownership for medium income families,
or better homes than can be built today for higher costs. There are apparently
several hundred of these houses available or to become available soon, consisting
mostly of houses in the $10 - 18 thousand class having 2-3 bedrooms with 800-1000
square feet of liveable floor area.
A number of these houses are reported to have recently been moved to Griffin,
reerected and financed through FHA insured mortgazes in a manner similar to this
proposal,
PHA makes three inspections of each house 1.e. (1) Appraisal inspection of
the house before removal amd inspection of the lot on which it is to go; (2)
Yootings and foundations on which the house is to be erectod; and (3) Final
inspection after complete rehabilitation.
Mr, Mueller's rough estimate of approximate top cost involved runs something
like this:
Initial Cost $ 1,500
Moving Cost 500
Lot (mproved) 2,000
Foundation and Rehabilitation 3,000
FHA fees, tape and closing costs 560
Builder's overhead and profit Hts
Total Selling Price $9,
Page 2 March 25, 1968
Memorandum to: Mayor Ivan Allen, Jr.
Mre Cecil A. Alexander
My. Mueller advises that he is able, willing and ready to inter into this
operation either on his own or preferably in connection with the City of Atlanta
or a non-profit corporation, to purchase the houses, procure the sites and advance
the interim construction money, if the City is interested Aa eee gan obtain
in advance the City's blessing on this general idea and assurance o e City's
cooperation on the undertaking.
This proposal seems to have considerable merit and its execution appears
feasible. Any positive advantage to be derived from this proposal will Tone
quick action as many of the houses are being sold now.
Recommendations:
(1) That this office be authorized to encourage Mr. Mueller to pursue
this proposal promptly and vigorously.
(2) That the Land Department and the Building Department be requested
to cooperate with Mr. Mueller on this project.
(3) That the newly created Non-profit Housing Development Corporation
be requested to take this on in cooperation with Mr. Mueller, es its initial project,
ee ee ee ae existing vacant single family lots, many of which now
exist in the core area of the City and on appropriately located and suitably soned
Sincerely,
_ Maleolm D, Jones
Housing Coordinator
cot Mr. Dan Ee Sweat, dre
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