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HomeMy WebLinkAbout02-02-42 Council Special Meeting Minutese it remembered that the members of the Common Council met in special session in the Council Chambers, City Hall, onday, February 2, 1942, at 7 :35 P.M. All members present except President Pulaski. Vice - president Hull presided. IAL CALL South Bend, Indiana January 31 -1942 0 THE CITY CLERK, PRESIDENT AND EMBERS OF THE CO PAON COUNCIL, ITY OF SOUTH BEND, INDIANA. lemen: You are hereby notified that under and by virtue of the authority vested in me as Mayor of the City of South Bend, in the State of Indiana, a special meeting of the Common Council of said City is hereby called to meet at the hour 7:30 o'clock P.M. on February 2nd, 1942 in the Council Chambers in said City for the purpose of considering the following item: The report concerning changed conditions relative to the Local Housing Authority and for recommendations concerning same. City Clerk is hereby directed to forthwith serge a copy of this notice on each and every member of the Common oil of said City and make due return of such service of said special meeting. J. I. PAVEY Mayor of the City of South Bend, Ind. I, Marie Nelson, Clerk of the City of South Bend, Indiana, do hereby certify that copy of the above notice was serv- ed upon the President and each member of the Common Council of said City prior to the date set for the meeting. MARIE H. NELSON City Clerk .e within call came to hand this 31 day of January A.D. 1942, which I served the same to each Councilman, upon the to designated, as follows: HULL- ON JANUARY 31, 1942 HEIDEMAN ON JANUARY 3119 1942 MC CARTHY " If '*' " PULASKI RICHARDSON " it n n NIEZG01DSKI BISHOP tt it BRANNAN JORDAN If And by leaving a certified copy thereof at the last and usual place of residence of such members as I was unable to find as follows: NONE B. J. ROE #22 Member of the South Bend Police Department - he Clerk read the special call. At the conclusion of the reading, Mayor Pavey stated he would give his report to he Council. REPORT CITY OF SOUTH BEND, INDIANA Office of the Mayor January 26 -1942 bers of the Honorable Common Council, th Bend, Indiana. . lemenr t a regular meeting, of your Honorable body, you passed Ordinance No. 3370 entitled "An Ordinance approving and uthorizing the execution of a Cooperation Agreement between the City of South Bend and the Housing Authority of the ity of South Bend, Indiana." his Ordinance ordained that the Mayor is authorized and directed to execute a contract in substantially the form et forth in the Ordinance, which provided among other things that: (1) The Housing Authority agrees to develop and administer a low -rent housing project or projects. (2) In consideration therefore the City will eliminate by demolition, condemnation, closing or compulsory repair, a number of unsafe or insanitary dwelling units equal in number to the number of new dwelling units. These units to be eliminated within one (1) year after the date such Project is substantially ready in its entirety for occupancy. r the purpose of this Agreement a dwelling unit shall be considered unsafe or unsanitary wherever by reason of lapidation, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination these factors, it is detrimental to safety, health or morale. 3) The City further agrees that throughout the useful life of such Project, it will not levy, impose or charge any axes, special assessments, service fees, charges or tolls against the Project, and, that it will furnish, without ost or charge to the Authority or the tenants the usual municipal services and facilities which are furnished to then dwellings or inhabitants in the city. term "useful life of such Project" shall mean the period of physical usefulness for the purpose of providing lling accomodations, but in no event less than the number of years during which any of the bonds issued to fi: development of such project or bonds issued to refund such bonds remain outstanding. (4) It is agreed that the Authority shall pay annually,in lieu of taxes and assessments a sum equal but not in ex- cess of three percent (3%) of the aggregate income derived from shelter rents. This three percent (3o ) to be dis- tributed among all taxing bodies as their interest appears. (5) The City andThe Authority agree that this contract shall not be abrogated, changed or modified so long as any bonds issued to aid the financing the development of any Project shall remain outstanding and unpaid, and so long as the title to said Project is held by the Authority. the time this Ordinance was passed, I am of the opinion it was the thought and -the desire of the majority of your mbers that those people; who because of circumstances beyond their control are not properly or adequately housed; tizens who because of low and inadequate income are unable to pay sufficient rent to secure proper, safe and sani- ty living acgomodations should'be provided.standard, safe'-and sanitary dwellings ,.and it was for this group only at the Ordinance was passed. 301 In order that your body might be properly informed as-to the physical condition of the dwellings and the income of families living therein, a W.P.A. project was sponsored to make a house to house survey and report its findings. This survey was not completed at the time the above named Ordinance was passed, but that since been concluded, and the Cooperation Agreement was delayed pending the conclusion of the survey. This survey was supervised by Mr. Clare Pittman of the City Plan Commission. Mr. Pittman was selected because he had supervised a similar survey made in 1935, and it was felt his experience in that survey would be beneficial in supervising this survey. The summary of this survey, briefly showed the following results: 3055 Sub - standard dwelling units in the area sur- veyed. Of these sub - standard units 401 were classified as unfit or needing major repairs as follows: 154 unfit, 247 needing major.repairs. This 401 unit unfit or needing major repairs was so classified because 307 were without toilet or bath, 84 had toilets but no bath and 9 had bath and toilet both but were otherwise unfit. The balance, or 2654 dwelling units, were classified as sub - standard and needing minor repairs. Of this number, 1226 were so classified because of no toilet and no bath, 1333 had toilets but no bath while the remaining 95 were so classified because of over - crowding and or lacked adequate heating facilities. The report of this survey was forwarded to the United States Housing Authority in Washington and on December 19th, 1941, Mr. F. Chas. Starr, Acting -Director, Region V, wrote the local Authority as follows:: "The preliminary results of the Survey of Low-Rent Housing needs show a total of 314 families living in dwellings which are unfit for occupancy or in need of major repairs, and an additional 1852 families living in dwellings which lack sanitary facilities. As compared with these figures, the Federal Census of 1940 shows a total of 2,576 dwelling units in need of major repairs or un- fit for use and 5,182 units lacking sanitary facilities. The Real Property Inventory of 1935 showed figures very similar to the Census, namely, 3,301 units in bad repair and 5,897 units lack - ing,.sanitary facilities. "`In view`•of this discrepancy between the survey on one hand and the Federal Census and the Real Property Inventory on the other, we are inclined to believe that the Housing Survey results represent a serious understatement of the true housing needs of South Bend. The discrepancy, moreover, is so considerable that it cannot be explained in terms of the fact that the above survey'data covers only tenant fem ilies, whereas, the Census and the BPI include owner families and non - family groups as well. We believe the understatement to be largely due to an excessive conservatism in the definition of what constitutes a sub - standard dwelling. In addition, the survey did not cover certain areas tr:hich, while they are outside of the city limits, comprise a large amount of sub - standard housing and represent a potential market for the housing projects which should not be ignored. "We feel it is essential, therefore, that the survey results be checked more accurately against the Census data by wards, and we have asked you to submit material to us at your earliest conven- ience. When these data are compared, it will be possible to determine how much of the discrep- ancy is due to a difference in evaluation as to sub - standard criteria and how much of it is due to a difference in coverage. It will then probably be necessary to revise the survey results both in terms of reclassifying borderline cases as to sub - standard criteria and in terms of ex- panding the coverage of the survey by adding certain areas outside the city limits. This is advisable because it is indispensable that the survey should represent a full coverage of all sub - standard housing in the city, thus giving the entire pool of families eligible for the pro - ;- Jects." On the same date the Local Housing Authority received another letter from Mr. Starr which read as follows: "'On the basis of the preliminary results of the survey of Low -Rent Housing Needs which you have R submitted to us, we have made a preliminary analysis of the market for low -rent housing in South Bend. When the survey results are checked against other available data such as the Federal Census of 1940 and the Real Property Inventory, it is apparent that there is an adequate market fort he two proposed projects, namely, a 250 -unit project for white occupancy and an 80 -unit project for negro occupancy. "The survey data indicate that the white project would dispose of a market ratio of approximately 3.7 to 1, and the negro project of a market ratio of about 3.3 to 1. We believe these ratios to be adequate, especially in view of the relatively high average gross rents shown in the survey. These high rents would tend to bring a very large portion of the income group to be served into the effective market for the projects, since the project rents they would have to pay would in general be lower than those they are paying now for substandard housing. "We have taken into account in this connection the fact that South Bend has 500 defense housing units which may revert to low -rent housing use at the end of the emergency. Even then, however, the total low -rent housing program for South Bend would amount to only 830 units, whereas our experience in communities throughout the United States has shown that a city the size of South Bend offers a market for approximately 1,000 low -rent housing units. In view of this fact, we feel that the proposed 330 USU- aided units would dispose of an adequate market both during and after the emergency." During the time the local survey was being completed changing conditions, occasioned by the National emergency, brought about confusing reports to me concerning the occupancy of the proposed project. Mr. Voor reported to me that he understood from Mr. Hahn of the USHA that in order to proceed with a project, it would be necessary to set aside fifty percent (50%) of the dwelling units in the project for occupancy by defense workers. In order to verify Mr. Voorts understanding on this matter, I wrote to Mr. Starr asking information on the subject, and received the following reply from him :: "Permit me to acknowledge your letter of December 12, inquiring as to whether a new ruling has been made whereby 50 percent of all construction of USHA housing must be set aside for defense workers, leaving only 50 percent available for low income or slum clearance use. "We have no knowledge of any such ruling. However, the various steps which must be taken in order to permit construction of a housing project might be said to result in a situation whereby only those hous4g projects which will give preference to defense workers will be constructed in the future. The reason for this is that it is practically impossible to obtain a decent bid (in fact, any bid) for the construction of a housing project unless the project has received a preference rating. To date this preference rating has not been issued unless the project is in an area where there is a critical shortage of housing for defense workers. When these conditions exist a preference rating will, in general, be issued, but only with the understanding that in renting the units the Local Authority will give reasonable preference to defense workers for the duration of the defense emergengr. The extent to which defense workers will avail themselves of the opportunity to tenant a project depends, of course, on local conditions, and a particular project may have relatively few defense workers - the balance of tenants being obtained from the low income families residing in slums - or it may be filled with defense workers. It should be clearly understood, however, that this pref- erence for defense workers will exist only for the duration of the defense emergency. 'I£ this information is not sufficient, or if you have further questions, please let us know." Some few days later, Mr. Clarence Keller of the Local Authority, came to my office to discuss the housing situation and in the course of the discussion stated that in order for the project to secure approval, it would be necessary for the Authority to increase the income bracket for eligibility of those living in the project dwellings from $12000 ' 00, as originally,stated to the Council, to $2100.00. This was necessary in order that defense workers would be eligible to live in the project. Because of the confusion occasioned by the difference between the various surveys, as pointed out .previously in this letter, and by the changed conditions brought about by the emergency, I told Mr. Keller I would make a personal in- vestigation in Washington and then make a report to your body. In Washington in conference with Mr. Starr, Mr. Bergeron, Mr. Hahn and Mr. Posniak, it was decided that Mr. Posniak should come to South Bend, get in touch with Mr. Pittman and together they would spot check the survey for accuracy and thus determine whose figures were most nearly correct as to housing conditions. Mr. Posniak spent spent Monday and Tuesday of last week here'.checking with Mr. Pittman various areas in the city and at the conclusion of this check, they handed me the following joint report of their findingsr "`Report on the Low Rent Housing Market in South Bend by Mr. Clare E. Pittman, Acting Executive Director, Housing Authority of South Bend, and Edwar& G. Posniak, regional Research Advisor, Region V, United States Housing Authority. "We have analyzed the .Low -Rent Housing Market in South Bend on the basis of the W.P.A. Survey of Low - Rent housing Needs, as compared with the Federal Cansus of 1940 and the Real Property Inventory of 1936. Having checked the survey data with these sources, we have made a joint spot check of alk areas covered in the survey by inspection of structures selected at random.. "'On the basis of these spot checks and comparisons, we believe that the total number of dwelling units, which are sub - standard, is 6,222. We believe that this total represents an ample market for the hous- ing projects under consideration, even when account is taken of a possible reversion of the defense housing units to low -rent housing purposes after the end of the war emergency. 'It is our belief that the original understatement of sub - standard units in the survey was due to such inevitable factors as the relative lack of qualifications of the personnel furnished by the W.P.Q« because of the shortage of available man power and the frequent curtailments of the service staff during the course of the survey. We believe that these defects were such that they could not be over- come by the best of supervision and training." In the conference in Washington, Mr. Starr stated that in order for the project to proceed, it would be necessary to increase the income bracket of those eligible to live in the project to approximately $2100.00. This in order that defense workers would be eligible and that preference must be given to defense workers in filling the project. This preference is-to last for'the period of the emergency only, and required by the necessity of securing priority rating for materials needed in the erection of the proposed project. I explained to Mr. Starr this occasioned a change of policy that would require my placing the matter before your Honorable Body for action and that I would do so at the earliest possible moment. I have asked Mr. Pittman to be present in order that he may explain any question in connection with the local survey you may wish to ask. I have also asked the members of the Local Housing Authority to be present in order that this subjbct may be thorougi ly discussed. From the outset, I have maintained that should the results of the local survey indicate the need here for a housing project, I would favor it; on the other hand, if the results did not indicate a need, I would not favor it. I have only one concern and that is that the citizens of South Bend be properly and adequately housed. I am con- cerned that those, who, because of insufficient income for reasons beyond their control, have sanitary, safe and proper housing. I am sure that is the desire of your body. I do not believe the Local Authority or the U.S. Housing Authority have any desire to place in South Bend housing that is not needed. In order that you may have a picture of the housing situation as it is today, let me state that as of January 23rd, there was still unfilled in the Southmore Defense Housing Project 187 dwelling units. Within the next thirty days, the 250 units of the Mutual Housing Corporation on East Jefferson Boulevard'will be available, making a total of 437 defense dwelling units open for occupancy* labor situation among our leading defense industries insofar as I can determine is as follows: Studebaker Corporation writes: "'On my return to the city yesterday, I found your communication of January 5th and regret very much that I was not here to answer it prior to last Thursday. "A statement regarding the anticipated increase of employees during the year 1942 would be of little value, inasmuch as the employment.situation in the Automotive Industry is changing so frequently that it is difficult to make any reasonably accurate estimate. From all appearances at the present time, it is not likely that we will be able to place all of the displaced automobile workers in our Aviation Plants." Oliver Farm Equipment Company writes: "At the present time we have employed in Plant #1 on Chapin Street, 1.,356. In Plant #2, on Walnut Street, we have employed at the present time, 87. "We contemplate increasing our payroll in Plant #2 to 600. Whether we will extend these figures during 1942 I cannot tell at this time because I do not know what changes will be made in our present program. 303 "We do not anticipate the necessity of going outside of South Bend for production employees in Plant #2." The Singer Manufacturing Company writes: "In response to the inquiry in your letter of January 5th, we may advise that although continuing efforts have been made to ' secure-defense work for this plant, they have met with such scant re- sults up to the present time that our employment problem is not likely to be influenced by the small amount of defense work which we are doing. Under the circumstances, we see no reason for expecting either an increse or a decrease in our present force of 1,300 employees in the fore- seeable future." The South Bend Lathe Works writes: " "Replying to your letter of the 5th, we do not have any definite plans at this time to increase our employment during 1942 There is, of course, a possibility we might require additional em- ployees, but we do not think the increase will be more than 10% or 15% of our present force. Frankly, we cannot make any definite estimate nor forecast at this time." The Bendix Aviation Corporation writes: "In reply to your inquiry of January 5th as to the anticipated increase of employees during the year 1942, we wish to advise as follows: "Our forecast at present anticipates approximately 10,000 employees in total for the year 1942. The present payroll_ has been around 9400 consistently for the past six months. "` I vn uld like at this time to thank the Local Authority for the splendid -job they have been doing, for the tireless efforts they have put forth and for their sincerity of purpose in trying and planning to properly house those that require it most. I have given you the information concerning the changes that have taken place affecting the Cooperation Agreement you authorized me to sign sometime ago, together with all other information I have at hand concerning the housing situation in South Bend. I have attempted to make the report as concise and still as complete as possible. With this report before you I would not like to have your consideration, guidance and recommendations. Respectfully yours, JESSE I. PAVEY Mayor of South Bend After a general discussion,.Councilman Richardson made a motion that the Mayor be instructed and directed to sign and execute the Cooperation Agreement. Councilman Brannan seconded the motion. Motion carried by five-'ayes (Richardson, Brannan,. Jordan, Niezgodski and McCarthy) and three nays (Hull, Bishop and Heideman) and one absent (Pulaski)`. The business of the meeting being concluded, Council adjourned.at 9 :25 P.M. ATTEST: OVEll: CITY CLERK e ESIDENT