Box 5, Folder 11, Document 90

Box 5, Folder 11, Document 90

MINUTES

HOUSING RESOURCES EXECUTIVE COMMITTEE AND
LOW-INCOME HOUSING COORDINATION GROUP MEETING

February 1, 1968

The regular monthly meeting of the Housing Resources Committee Executive
Group and the key individuals involved in low-income housing, was held at 10:00
asm. this date, in Committee Room 2, Second Floor, City Hall.

Fifteen (15) members of the Housing Resources Executive Group; Nine (9)
key individuals concerned with Low-income Housing; five (5) other invited
guests; and members of the Press attended the meeting. Lists of those invited,
with attendance indicated, is attached to the file copy of these minutes.

Chairman Alexander presided.

Mr. Alexander opened the meeting by stating that this was the second
meeting of the Low-income Housing Coordination Group. He expressed regret that
the School Department was not included in the first meeting on January 2, 1968.

Each guest introduced himself by giving his name and organization he
represented.

Mr. Alexander asked Mr. Jones to explain the Summary of the Low-income
Housing Report, dated January 15, 1968, copies of which were distributed to
all in attendance.

Mr. Jones explained the Summary. He stated that this report showed the
status of a 2-year goal of a 5-year program that Mayor Allen's office had
established. He pointed out that this was the first time this report showed
a comparison with the previous report. He stated that the "In Planning" totals
were actual projects that were being worked on, He said that applications may
not be made to HUD for commitments on some of these projects. He said that
in addition, ,l:81 units in various projects are in discussion stage. He
pointed out that unfortunately 8,266 units which had been proposed did not
materialize and specifically mentioned the Sewell Road project as an example.

He stated that 10,157 units have been rehabilitated through the Housing Code
Division, plus 27 units by the Housing Authority in the West End U. R. Project
and 30 units voluntarily by private enterprise. He pointed out that this report
deals only with Low-income Housing in Atlanta. The second page of this Summary
is a compilation of Public Housing in Atlanta. The third page consists of notes
that have a direct bearing on the Low-income Housing Program. He also mentioned
that during the period of existence of this Committee (Nov.15'66 to present)
1,312 new low-income units were constructed; that according to reports from the
Building Department for end of 1967 that under the Housing Code Enforcement
Program 1,272 units were demolished; that it can be assumed that most of the
units demolished were low-income housing.
2

Mr. Alexander asked that copies of the Summary report be distributed to
those invited but who did not come and stated that developers should be included
in next meeting.

Mr. Alexander said there were two primary problems to discuss: (1) acqui-
sition of land that is approved by all parties concerned that could be zoned
and community facilities be provided and; (2) the use and ability to use low-
income housing that could be built that does not meet the Building Codes but
which would be every bit as good as the Housing Code calls for,

Mr. Alexander asked Dr. Letson about the possibility of having developers
build schools for lease to the School Department.

Mr. Earl Landers said he had nothing definite to report, but Tom Choyce
had advised him that he had been in contact with Pete Lattimer, and had mailed
a letter to Mr. Lancers on January 31, 1968; that apparently the City Attorney
is working on the possibility of having schools built for lease to the School
Department.

Mr. Archer Smith said that "governmental" bodies cannot commit themselves
to long-term leasing beyond their term of office (which is usually one ycar).
He stated that City schools are considered "governmental"; that contractors
could dedicate land to City; that a lease that would be terminable would be
impossible to get. He said the only way to acquire schools by leasing would
be by legislation to change the code section of schools being considered
"governmental".

Dr. Letson said that schools built by private developers and leased to the
School Board would probably be more expensive than construction by the City
through General Obligation Bonds. However, failure 10 years ago to provide
adequate school facilities for today's population mcans the Board must now
build schools on more expensive property at higher interest and construction
costs. He placec emphasis on the neet! for Kindergartens to be built in or
near housing developments.

Dr. Letson said that procedures for zetting capital outlay funds are
tied to the calm, quiet past many years ago and are not adequate for today's
necds.

Mr. Alexander asked where do these funds come from that would be used to
pay rental on leased schools?

Dr. Letson said the funds would have to become an annual charge in terms
of the budget; that funds are limited to property tax; that we need some
additional source of revenuc.

Dr. Harrison asked what dezree of independence did schools have on
expenditures?

Dr. Letson said no independence in bonds.
Dr. Harrison asked what the governing responsibility was?
Dr. Letson said the same law as Board of Aldermen.

Mr. Archer Smith gave three ways to solve the problem of leasing schools:
(a) go to the courts and look into former cases of this nature and get the
courts to see that things have changed and that schools must lease on a long
term (20-30 year) basis; (b) that financing is even more strenuous; we should
arrange for cxtending the lease provision beyond the term of the Council;
(c) casiest way to solve the problem is probably to tell the private ceveloper
we will zone the land if you will decicate the land to the City.

Mr. Alexancer said we also want to know whether a developer can be
authorized to actually build a school?

Dr. Letson said this tics up with a proposal that we secure legislation
authorizing a local School Building Authority. Such an Authority by legislation
should be given certain rights and privileges to overcome these problems,

Mr. Flanigen said that the Zoning Committee at present time does not trade
for zoning.

Mr. Alexander said that one suggestion was made that this could be handled
if someone underwrote the City's schools by insuring the lease. Another might
be for the Federal government to get in the act.

Mr. Persells stated that funds for low rental Public Housing in Urban
Renewal areas may not be used for any school construction whatsoever. It was
brought cut that for HEW to assist on rental of schools for low rent Public
Housing projects would require that the land on which such schools might be
constructed would have to be actually deemed surplus. Also that Federal
projections of the Labor Department have included funds for rentals.

Mr. Thigpen said he doesn't know of any prozram FHA has which could assist
in this field; that HUD may have something.

Mr. Alexander asked if FHA hac relaxed on certain commercial facilities in
housing devclopments?

Mr. Jim Parham said EOA was thinking about Day Care and Head Start paying
for rent for facilitics; that these programs are here to stay to some dogree.

Dr. Letson stated that one of Atlanta's tremendous advantages is a
relatively low property tax. It was also mentioned that General Obligation
Bonds are financcd by property ad valorem tax, This was confirmed by Mr.
Landers.

Mr. Alexancer emphasized.the importance of timing of community facilitics
and housing developments (so that community facilities would be developed
simultaneously with construction of housing).
4

Mr. Alexander asked if any facilitics are being leased at present time?
Dr. Letson said a Catholic School was leased on an annual rental basis.

Dr. Harrison described a system for building low-income housing being
sponsored by Jones-Laughlin at an alledcged cost of $8.50 a square foot, which
he said would not conform to local building codes. This method was onc in
which apartment units would be inserted - shoc box fashion - into a steel frame.
Bathrooms and kitchens would be in line anc served through a central shaft to
save costs of plumbing.

Mr. Alexander mentioned the proposed technique by National Homes to build
houses in Thomasville that were panelizcd and crected on site.

Mr. Alexander said that national codes are more flexible than local coves,

Mr. Alexander told about the team from Savannah which was to make a
presentation to the Construction and Design Pancl on a new proposed process
of construction, but the presentation had to be postponed because of sickness,

Dr. Harrison read his report, which in essence said that the Construction
and Design Panel feels that it will be necessary to find some source of funding,
outside of city funds, and that codes revision is essential to any real advances
in low-cost housing.

Mr. Alexander commented on Interfaith Inc., which has eight or nine
incorporators. They are wide spread across the City. He expressed high hopes
for this group.

Mr, Alexander asked Mr. Collicr Gladin for a report on the Land Use Plan,

Mr. Gladin said that the Planning Department has been working with several
different groups; that the proposed Land Use Plan has been presented to Aldermen
on individual basis, on committee basis, and through the Planiing Boarc, and it
will be brought back to them possibly February 5 to tako some type of action on.
This Plan proposes the projections that we have translatcd from the Atlanta
Metropolitan Regional Plan for the growth which is anticipated within the next
15 years, It is a plan that distributes this growth. He said thoy must get
a statement of policy from the Board of Aldermen to support this basic guide
line approach. The Planners have also met with neighborhood groups. Thoy are working
with the Newspapers. A section (in color) will be in the Atlanta Journal-
Constitution on February 18, to include 2 pages, of the plans, There will be
approximately * million distribution of this paper.

Mr. Howland, CACUR, said the Plan was presented on January 2) to his group
which unaninmouslysupports the plan and that they are pushing it.

Mr, Hills said the Finance Sub-Committee has been working to establish the
Housing Development Corporation sponsored by the business community. They have
been unable to get a firm commitment from a group which is considering furnishing
the seed money funds, Based on present prospects, the Housing Development Corpo=
ration should be operational within 90 days,
5

Mr. Archer Smith said he would bo celightad to check national codes to sce
what the advantages are,

Mr. Winn said we should work head-on for legislation to permit the building
of schools by developers of housing projects.

Mr. Sommerville said he does not think we can get by through evasion
techniques and that we should try to use national codes for experimental work.

Mr. Thigpen statcd that the Low-income Housing Program's pipe line in the

Atlanta Metropolitan area is filled which includes FHA 221 d (3) projects;

11 projects of 1,352 units are fully occupicd; 11 more projects of 916 units
under construction; and 3 projects of 108 units committed. One project is

being closed Fobruary 1, 1968; construction will start soon. He stated that

there are a total of 2,250 units comploted or uncer construction; that there

are 11 more projects which are in application stage; fcasibility letters have been
issued for 2,776 units, making a total of 4,626 units "in sight" for this program.

Mr. Alexander commented on the possibility of reducing the prices on tho
remaining 221 vacant rough lots in Thomasville. There was no response,

Mr, Alexander also stated that Travelers Insurance Company has agreed to
finance 70 units in the Thomasville Urban Renewal area, plus about 70 more if
the builder can obtain the land at a reasonable price, which he can livo with.

Mocting adjourned at 11:30 a.m.

Respectfully submitted,
Friekicoky = ri

Malcolm D, Jones
Housing Coordinator