Box 3, Folder 6, Document 28

Box 3, Folder 6, Document 28

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OFFICE OF THE ASSISTANT SECRETARY
FOR RENEWAL AND HOUSING ASSISTANCE

TO: Local Authorities
Regional Administrators
Assistant Regional Administrators for Housing Assistance

FROM: Don Hummel

mmm mmm mmm mmm mmm memes

SUBJECT: Families With Children to be Located in Low-Rise Buildings

The Housing and Urban Development Act of 1968 (Section 15(11)) specifies
that "except in the case of housing predominantly for the elderly, ... ,
the Secretary shall not approve high-rise elevator projects for families
with children unless he makes a determination that there is no practical
alternative."

This prohibition applies to projects placed under Annual Contributions

Contract on or after August 1, 1968. It does not apply to a project in
this category if the Regional Administrator makes a finding that, prior
to August 1, 1968, development of the project had reached a stage which
would make it impractical to require the Local Authority to change its

housing program.

Pending experience with the above-cited provision of the statute, the
following policies are established to assure compliance with the
legislation:

1. Dwellings for families with children shall be provided in structures
which do not exceed three stories in height.

2. Projects proposed for families with children shall be designed not
to exceed a net dwelling density of 45 per acre nor a net building
coverage in excess of 35 percent.

The Regional Administrator shall make the required finding as to whether
there is "no practical alternative" under Section 15(11) at the earliest
stage. Such a finding may be made under the following circumstances:

(Cont'd)
a. Compliance with the limitation at the selected site would
result in room costs exceeding the statutory limits, and
there are no other acceptable sites available, or

b. Current land value of the site proposed and the going
construction cost produce an average development cost per
family dwelling which is unacceptably high in comparison
with current costs of sale or rental housing for family
dwellings of the same size and character in other resi-
dential neighborhoods within the local area, and other
sites cannot be obtained, or

c. The housing is being leased by the Local Authority for
family occupancy on a short-term basis, and there is no
housing available which satisfies the policies established
above for family dwellings.

A finding of "no practical alternative" on the basis of any other circum-
stances requires the approval of the Assistant Secretary for Renewal and
Housing Assistance.

In those instances where the Regional Administrator makes a finding pursuant
to the provisions of this Circular, a statement setting forth the basis for
such finding shall accompany the Annual Contributions Contract list submitted
to the Assistant Secretary for Renewal and Housing Assistance.

Chest Secretary ~ mae



2318hi1-p HUD-Wash., D. C.

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