1 - Ivan Allen, Jr. Digital Collection - Georgia Institute of Technology

Jackson Loses BidFor Funds ControlBy JIM MEltRINERMayor Maynard Jackson received arare leglslative rehuke Wednesday when aCity CoWlCIi committee unanirMusly rejectedhis effort to seize control over thespending of $18.7 million in redevelopmentaid.In a separate actioo,lhe committee setin motion a plan to create a re~'()lving mort·gage pool to bypass the banking practioe of"redllni~" or denying housing loans foriMer·dty neighborhoods.The 1)e\"elopment Committee a Isostalled Jackson's attempt to transfer urbanrenewal po",'ers fro m the independentAUanta Housing Authority (AHA) to CityHall.On No\'. 18, \\ilhout advance notice,Jackson introduced a charter amendmentthat would give the mayor aM his top aidesthe p:)\',er to spend money and create jobsfor redevelopment purposes without thecouncil's say-so. The council would belimited to approving an application for thefederal funds.The proposed charter amendment wasdefeated Wednesday on a motion by CouncilmanGarl Ware, who was supported byCouncilmen John Calhoun, Panke Bradleyand Gregory Griggs.'The committee's action, as well as commentsfrom other ClWlClimen who ])l"eviouslydenounced the prtposal, Signal an almostcertain rejection of the amendment onthe council floor Monday.The charter now stipulates that thecouncil must rule on "all measures to expendmoney" and hire public employes.Mayor Jackson was not available foccomment. Olief Administrative Officer JuJeSugannan has previously deftnded t heproposal as more efficient than having thecouncU appropriate e\'ery expenditure, andsaid the council's power over the pursewould be retained because the counciJ woulds~i1I review the city'S application for federal"d.Development Committee OlalrmanRichard Guthman was a b sen t duringWednesday's wte but said later that allsperxUng, "regardless of the source of funds.See DEVELOPMEl'1:", Page 3l-A---:----Development ---I.'rom Pa!!.· 1·,\should have prior approval of the council beforeit is spent"Council President Wyche Fowler saidthe committee's action was "veryresponsible. . . We have to preserve thefISCal authority of the council. IIThe charter amen!knent 'lfould aUow themayor's office to decide the details of howand where to spend. $18.7 mlllion next yearin atd funneled to Atlanta by the new federalcommunity development law.'The law provides "block grants" tociUes, replacing fonnerly separate programssuch as Model Cities, urban renewal.neighborhood facilities, water-sewer grantsand others.The committee passed a resolution ask­Ing the mayor to undertake a thorough studyof the Olnsequences of shifting urbanrenewal powers from the AHA to the City.Jackson's legislation to effect that powertransfer was tabled pending receipt of thestudy by a deadline of March 31.AHA officials have objected that thelegal and technical problems involved in thetra~fer-especia1ly regarding AHA employepef'l!lIons and benefits-might be insunnountable.Jackson's plan would gh'e City Hall theauthority to buy and. sell land for urbanrenewal purposes, demolish buildings andrehabilitate housing. Whether AHA or thecity would have the power to relocate familiesaDd businesses was left undecided_ AHAwould retain its management of public housingprojects.A separate charter amendment, givingJackson the authority to buy and sen parcelsof land for urban renewal purposes withoutprior council approval, was okayed by thecommittee.The amendment would take practical effectomy if AHA's powers are shifted to theCity. It was described as a technical, admin­Istrative matter that properly belq to themayor's office_The council would keep its power todesignate urban renewal areas. Several otficialshave said that council approval ofevery land transaction within those areaswould entangle the lawmakers In an unnecessaryadministrative thicket.In other action, the committee voted toauthorit.e Jackson to negollate a contract fora federally assisted "neighborhood housingservices program" for the city.The program is designed to provtdeloans to rehabilitate and buy housing in rundownareas of the city. Loans in the normalcommercial market are not available becauseof lending Institutions' "red.lining" ofneighborhoods wbere property values are declining.Council Moves To AidDeclining NeighborhoodsBy JIM l\lERRINERThe red lines drawn aroundinner-clty neighborhoods onmaps at Atlanta lending institutionsmight be erased by aprogram initiated Wednesdayby City Councilmen.Banks and other lendinginstitutions usually refuseloans for buying or remode1-ing houses inside the rOO-linedarea. Because the area'sproperty values are dropping,banks fear they can't recouptheir investment in case theloan is foreclosed.CounCilwoman Panke Bradley,a prime mover bP..hind theproposed "neighborhood housingservices program," describedit as an example oflegislative initiative. "Wedidn't wait for him (MayorMaynard Jackson) to teU uswhat to do. nus is somethingthe council did on its own aDdI am proud of it," she said.The council's DevelopmentCommittee approved a res0-lution autboriting the mayorto negotiate and execute acontract for the federally assistedneighborhood housingprogram.Toto. Bell of the local officeof the Federal Home LoanBank Board said the new program"is not a panacea for allhousing problems" but can arrestthe dedine of residentialneighborhoods.The program Is aimed atse\'eral levels to uplift theneighborhoods--a high-risk revolvingmortgage pool, thecooperation of local banks, acitY commltmcnt to capitalimprovements and hoUSingcode enforcement in the area,credit counseling for residentsand other services."It's the most signiIicantstep we have made in a longtime" regarding housing pro~lems, said comm..iltee ChairmanRichard Guttun.an. '''Ibiskeeps the bureaucratic mOorass out of what can be a\\'OrkabJe program."Bell said that City Hall, thelocal banks and a strongnelghbc:dlood group m u s tcome together to form a nonprofitcorporation to implementthe program.The banks cooperation Inbacking up the high-risk mortgagepool has not set been attainedor actively sought, Bellsaid. He said the program hasworked well, wit h strongbanking cooperation, In otherdties.The Washington·basedUrban Reinvestment T 3. s kForce would work with tbecity in setting up !be pr0-gram. It the city's efforts areapproved, grants of up to$100,000 are available to beginthe revolvillr loan fund, Bellsaid.'! h e federal govemmtntdoes not directly guarantee orsubsidize individual loam, andthe only bureaucracy Involvedis a "very small technicalstafr' for the nonprofit c0rporation,be said.'Ibe iniital city outlay wouldbe $30,000 in federal cornmunitydevelopment aid tokick off the program.The elimination of "red-Uning" is mostly aimed at"neighborhoods with basicallysound housing stock and Qh i g h percentage of homeownership. It will keep thatneighborhood from deterioratingfurther," BeJi said.The council began probingthe problems of red·llning lastspring, and passed a resoll!­tion in May urging the mayorto look into the possibility ofcreating a mortgage risk poolfor housing.The mortgage pool, citycommitment to capItal improvementsand other elementsof the proposed pr0-gram were recommended Ina city-funded "central areahousing strategy study" releasedlast summer.'The Federal Deposit Insuran c e Corporation, FederalHom e Loan Bank Board,Federal Reserve Board andComptroller of the CUrrencyare conducting a joint study ofre