Five days after unanimously rejecting a controversial settlement with a developer, the Atlanta Housing Authority voted without dissent to endorse a revised version of the deal.
The vote taken Wednesday could resolve a long and contentious dispute and hand over control of more than 75 acres of public land on the south side of the city, heading off the continuing costly legal battle with the Integral Group and its partners.
“We want to get out of the lawsuit business,” said authority chairman Christopher Edwards on Thursday. “And we want to remain in alignment with the mayor’s top priority for more affordable housing.”
Years ago, Integral chief executive Egbert Perry struck a deal with city officials to buy control of the land and build housing, including some for lower-income residents. Then-Mayor Kasim Reed objected, and Perry went to court to enforce the deal. The the litigation has meant well over a million dollars in legal bills for taxpayers.
On Feb. 21, members of the agency's board rejected the most recent proposed settlement with Integral, arguing that the deal would have forced them to give up control of too much city-owned land, accept much less than what the board said was its $90 million value, and because it didn't require enough affordable housing. After the vote, the developers' representatives said they would go back to court to compel the authority's acceptance of the previous deal.
But then the two sides started talking again.
Mayor Keisha Lance Bottoms was key in "bringing both sides together to finalize an agreement," said Perry. "We knew justice would win in the end – and it has."
In a statement Thursday, Reed called the board's action "disappointing," coming at a time when the city's affordable housing stock is shrinking.
“Their decision will adversely affect generations of individuals who merely wanted to have a fair shot and a fair shake at a life within the city we love,” he said. “To the folks who stood by and facilitated this transaction and to the folks who made this happen, I hope it was worth it.”
Some basics of the earlier deal apparently remain in place.
The settlement still gives Integral and its partners control of the land for nearly $22 million, although the authority retains a half-interest in the property. The arrangement still calls for the authority to subsidize about one-fifth of the apartments and houses the developer builds to make them more affordable for people with modest incomes.
Atlanta Housing typically serves those who make 40% or less of the area's median income. The median household income is $55,279, according to the U.S. Census Bureau.
But the new deal includes restrictions: if Integral sells the land, the affordable housing requirements stay in place.
It also requires that the developers start construction of the affordable housing units within three years, and it gives the authority the right to buy Integral’s interests if the company decides to sell.
The deal must still be approved by the U.S. Department of Housing and Urban Development before it would take effect.
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