Box 5, Folder 17, Document 10

Box 5, Folder 17, Document 10

MIKUTES
HOUSING RASOURCES COM ITTES BUCuTIV' COMMITTEES iissTThe

August 9, 1967

The Executive Group of the Housing fesources Comittee met at 10:00 a.m,
August 9, 1967, in Committee oom #2, City Hall, The following members weve
present:

Mr, Cecil A, Alexander, Chairman, Housinz Resources Committee

Dr, Sanford S, Atwood, Co-Chairman, Housing Nesources Vommittee

Dre Benjamin E. Mays, Co-Chairman, Housing Resources Committee

Mr. Archer Smith, representing Mr. Charles L. Weltner, Acting Chairman,
Legal Panel

kr, Robert Winn, representing Ur. Edwin Harrison, Chairman, Construction
and Vesizn Panel

Mr. toreland Smith, Vice-Chairman, Construction and Design Panel

Mr. Lee Burge, Chairman, Finance and Non-Profit Funds Panel

‘Mr. “illiam Bohn, representing Mr, Clarence 0, Coleman, Acting Chairman,
Public Housing Panel

Mr. Vharles i. Palmer, member, Public Housing Panel

Mr. Frank Terrell, representing Mr. Wallace L. Lee, member, Land Accuisition
Panel

Mr. Clayton it, Yates, member, Land Acquisition Panel

Mir. Jim &. Land, member, Land Acquisition Panel

Mr. Stewart Wight, member, Land Acquisition Panel

Dean William S. Jackson, Chairman, Social Problems Panel

Mr, Lewis Cenker, member, Social Problems Panel

Mr. Virgil Milton, Chairman, Business Participation Panel

Mr. Jim Wood, Vice-Chairman, Public Information Panel

Mr. W. WV, Gates, Consultant

Mr. Malcolm U, Jones, Director

Also present at the meeting were:

Mr. Hell Ware, Attorney, King & Spalding

Mr. Collier Sladin, Planning Engineer

Mr, Lester H, Percells, Associate Executive Director, Housing Authority
Mrs. Xernona Clayton, American Friends Service Committee

The Chairman recognized the presence of both Co-Chairmon, Dr, Atwood and
Urs Mays.




Mr. Gladin, Plannins Engineer, was then called upon to comment on the
Lance. Use Study beinzs proposed by the Plannin: Yepartment and the report
previously provided this Committee on Zoned acreages of vacant land.

Mr, Gladin instead passed out several copies of a new report which he
had prepared to the Housing ‘tesources Committee proposing certain solutions
to the critical housing shortaze and commented on it briefly. At the conclusion
he asked for the assistance from the Housing -tesources Committee of its one
permanentstaff member to assist the Plannin; Vepartment in developing a
joint plan, with detailec implementation steps, for presentation at the joint
meeting of the Planning and Jevelopment Committee and the Housing ‘tesources
Committee (now scheduled for Sestember 15). Copies of Mr. Gladin's report
are attached (Encl. 2). Mr. Alexander offered Mr. Jones! services.

Mr. Alexander then introduced Mr. William 2%, Hirshson, Executive virector,
Greater Hartford Housin; Jevelopment “und Inc. tir. Hirshson was the zuest
speaker and presented a very interesting imoromptu report on his experiences
in the formation and operation of Hartford's Non-profit Housing Vevelopment
Corp. The followin: is some of what Mr. Nirshson had to say:

General



Hartford consists of 18 square miles, has a population of 160,000 and
needs 6,0CO low-income dwelling units, of which 5,000 are now substandard,
There are only 90~10%. acres of vacant land in the city and few large housing
developments, but many of 16-32 units.

The Greater Hartford area consists of 29 separate municipalities or
communities of which only four have approved Workable Pro:rams.

The corvoration has developed a pre-processed reusuable package for
assistance and guidance of developers. This packaze has basic designs for
two and three bedroom units. %2,00C to $3,000 per project is usually
sufficient to test proposed project's practibility.

The corporation has not gone deeply into rehabilitation. It has thus
far rehabilitated two units under 221 d (3) and purchased 12 sroup units,
221 (h) has not been popular because cannot find suitable areas in which to
work.

The Greater Hartford Housins Develonment Fund, Inc. is soonsored by the
Hartford Chamber of Commerce. Funds to finance the corvoration were obtained
from 26 of the major firms in the area in the sum of $1,500,000 ($700,000
in cash and the balance in commitments.) These funds were obtained throuzh
personal solicitation as loans from life insurance companies, banks and major
industries.

The corporation is nonprofit, organized to lend seed money on a revolvinz
basis and to provide technical skill on a consulting basic to sponsors of
rental units for low-income families. Efforts however are not limited to
nonprofit organiz: tions.
Specific

After the corporation was organized arrangements were made to borrow
on a maximum line of credit of $700,000, secured by 10 year notes, with
interest up to 6 percent, payable asavailable, Only $350,000 of this amount
has been actually drawn to date. In lieu of interest, surplus is returned
to lenders, as funds are accumulated as authorized by the directors, in
lump sum amounts.

Uses



The Housing Jevelopment Pu:d, Inc. operates in the capital region
including Hartford and five of the surrounding suburbs. The revolvinz fund
is used primarily for:

1. Seed money loans to other local nonvrofit sroups.

2. Land banking--accunulating land for future development for low-cost
housing. To be resold at no mark up.

3. Rehabilitation of larze homes for larze families.

h. Providing talent and technical assistance to nonprofit groups.

5. Assisting in stabilization of neighborhoods.

Other Activities
The nonvrofit development corporation also:

1. Helps to bring in private investors,

2. Helps to place low-income families wishing to buy new homes.

3. Works closely with the Urban Renewal Department.

. Helps pre-qualify below market rates with JHA.

5. Assist sponsors in requesting below market allotments for FHA projects.

6. Works with the Chamber of Commerce, City Development Commission and
the State Development Commission.

7. Acts as a clearing house for sponsors, builders, and mortzacees with
oroblens.

Experimental

1. Guts time lag.

2. Provides reserve funds for syonsors under the rent supplement
program.

3. Provides the missin; vehicle.

h. It does what nobody else is doing,

5. It does not provide all the answers.

Officers of nonprofit organization in Hartford



Principal Loan Officers of five insurance companies.
Principal Loan Officers of two banks.

Two representatives of minority groups.

Chairman of Chamber of Commerce--Ex-officio.


Income

1. Interest on loans.
2. Fees charged for serviccs (Usually 2% 1st $500,000, 1% above
$500,000 and up to $1,000,000 with decreasinz scals above $1,000,000)

Disbursements

1. Pays losses

2. Pays into reserves.

3. Pays intere::t on loans directors declare interest payment of X number
of dollars periodicaliy as available.

h. Pays administrative expenses of Development Corp.

Recommendations

1. Small projects in seattered areas are preferable.

2. Avoid creation of future ghettos by encouraging the construction of
large developments.

3. Encourage use of two and three bedroom single family homes for
small builders on small sites.

h. Try to get as many families as possible in single family homes and
town house cooperatives.

5. Try to keep families in aporoximately same economic groups.

6. Disburse funds to other nonprofit organizations only as needed.

Statements

1. In Connecticut, the State has a loan fund to supply seed money to
nonprofit sponsors in torm of loans and grants.

2. Rehabilitated homes are most suitable for housing large families.

3. Land held in land bank is subject to usual taxes,

Staff consists of two men (Mr. Hirshson, Executive Director, who is the
outside contact man; and his assistant who is the inside administration man)
and a secretary.

ee *

At the conclusion of Ir. Hirshson's talk, Mr. Alexander then introduced
Mr. Tom Lord, Assistant Director Nonprofit Housing Center,Urban America, Ince,
which organization sponsored and underwrote Mr. iflirshson's trip to Atlanta.

Mr. Lord explained that Urban America is a national, nonprofit organization
headquartered in Washington, D.C., an’ is dedicated to improving housing for
low-income people in the nation's cities.

The Nonprofit Housing Center of Urban America provides technical assistance
to nonprofit sponsors of lower income housing anc helps communities organize
revolving funds and nonprofit housing development corporations, The Center is
financed by the Ford Foundation, the Episcopal, Methodist, United Presbyterian
and United Church of Christ churches. .
Urban America does not ooecrate on a fee basis and always endeavors to
keep local people involved. Tk attemots to adapt to local conditions and assist
in bringing public and private interests together in a joint action to secure
inprovement in housing for low income people. He also announced that
Mr. W. W. Gates, Consultant to the Housing tesources Committee, is Urban
America's representative in Atlanta.

Other Items

As time was growing short, Mr. Alexander then asked Mr. Jones to simply pass
out to the members of the Committee (without comment) a self-explanator, report
dated August 9, 1967 (Encl. 1) prepared by the Housing Resources Committee staff
pertaining to the "Preliminary Report (from the Planning vepartment)--Amount
of Vacant Land in the City by Zoning District," dated July 21, 1967. Also
attached was a comparison, prepared by the Housing Resources Committee staff,
between the Analysis by HiC of the Zoniny Map previously proviced the HRC by
the Planning Department and the tabulations containod in Anvendix to July 21
Memorancum from the Planning Jepaitment.

Time did not permit detailed consideration anc discussion in the meeting
of this report which was designed to serve as a basis for conclusions and
recommendations of the Housing aesourccs Committee for its pronosed mex ting
in the near future with the Planning anc Jevelopment Committee of the Board
of Aldermen,

Mr. Alexander then announced that the Housins siesources Committee had been
requested by respective developers of three rather large tracts to support
them before the Joint Planning Board and the Zoning Committee of the Boari of
Aldermen to get those properties re-zoned to A-l. Mr. Alexander called upon
Mr. Jones to exmlain each site to the Committee.

Mr. Jones pointed out the locations of the three sites on the map and
explained the proposed development of each. (Two with plats and tentative
site layouts).

After Mr. Jones! presentation of the three proposals, Mr. Alexander called
upon Mrs, Xernona Clayton, American Friends Service Committee, for comment
on any of the oronosals and whether they woulc conmlicate the work being done
in the southwest area by SWAP. Mrs. Clayton explained SWAP's purpose and
operation in the Beacher—Cascade—\West Gordon Roac and Fairburn Road area south
to Sewell Road, She offered no objection to any of the proposed projects.

Site No. 1. 51 acre tract north of Brownville Road between Jackson Parkway
and Bolton ‘oad, now zoned M=l, proposed by “hitting-Turner Construction Co, for
Turnkey development for Public Heusing. This tract has been tentatively approved
by the Housiny Authority and HUD and favorable action already recommanded by
the Plannin Board, It is scheduled to ;o before the Zoniny Committee of the
Board of Aldermen in Public Hearing, Auvust 10,
After due consideration and viscussion, Mr. Lee Burge moved that the
Housings iesources Committee endorse this provosal and recommend favorable
action by the Zoning Committee and the Board of Aldermen. The motion was
seconded and carried unanimousl;.

Site No. 2. 59 acre tract (eastern »ortion of a Peedi tract of 171 acres)
located between Westview Cemetery and Peyton Road S. '/., north of Utoy Creek,
proposed. for development of carefully planned 300 units of town houses under
221 d (3) co-of, by Mr. John A. Hartrampf. (The property is currently zoned
R-3) Mr. Hartramf was asked the price range of units he proposed to build.

He stated that the sin le fanily houses would be in the $15,000 to {25,000 range
and payments for the two bedroom town houses vould be aporoximately $90 to 110
per month.

After due consiceration, motion were made by Mr. Lec Burge that the Htc
Comittee endorse this proposal and request the Planning Board that it
recommend favorable action on the rezoning petition for this site. The motion
was seconded and carriei with no dce2znting votes.

Site No. 3. hS acre split tract on both sides of Bankhead Highway N. W.
(10 acres on the north side, just west of Maynard Road, and 35 acres on the south
side) proposed for Turnkey development for Public Housin:, with 221 d (3) as
an alternate, by HLC and Associates Construction Company of Greensboro,
North Carolina. Zoning is now li-l and M-2,

After ample discussion, Mr. Virgil Milton moved that the Housing !tiesources
Committee endorse this proposal and request favorable recommendation by the
Planning Board on the rezoning petition for this site, The motion was seconded
ana carried unanimously.

As there was insufficient time for other business the Comnittce adjourned
at 12:00 noon.

Respectfully submitted,
(naked Rare
Malcolm Ui: Jonds “-

Supervisor of Inspection Services

Enelis: 1. Vousim: R.sourece Comitte. Maud to Mombers, B-cutiv.. Group, HRC,
uted sugu: tb 9, 1967 (with attachments).

2ée Planning Depcrtacnt report to th. Mousing’itic.ourccs Committee dated
fuguot 9, 1967.