Atlanta Business Chronicle From the December 5, 2005 print edition
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| Atlanta Business Chronicle
From the December 5, 2005 print edition Terrell Johnson - Contributing Writer
With metro residents moving back into town, developers and regional planners are heralding the movement toward density as a way to cut down on congestion. But a large segment of the intown work force still could be commuting from the suburbs in years to come, since most of the new housing is out of their income range, according to a study by Central Atlanta Progress, which showed that 89 percent of the people who work along Peachtree Street earn $40,000 or less. This year, controversy has brewed in more than one county over "inclusionary" zoning, or requiring developers to price a certain percentage of units below market rate. Above the fray, over the last decade several developers have been building affordable units into the mix, using a combination of city and federal funds. David Dwyer, a principal with Capitol Development Group LLC, says his company is offering affordable housing because it's needed -- and also profitable. "We do it because, well, we make money," said Dwyer, who used to build million-dollar condos in Buckhead. "But we also do it because it is something that needs to be done." "Firemen, policemen, teachers -- you always hear these are the people who can't afford to live in Buckhead," he said. "But it goes so much more beyond that. It's administrative staff for law firms, nurses at Piedmont hospital, the workers in hotels, the managers at retail stores." Although Dwyer said federal funds are needed, he added that the key to profitability is marketing the units to those who can afford to pay full price. Last year, his firm completed Auburn Glenn, a 271-unit apartment complex on Boulevard that sets aside 60 percent of its units for residents who earn 60 percent or less of the area median income (about $40,000), with the remainder rented out at market rates. "You couldn't make it work just anywhere," he said. "We're trying to develop a product that is attractive to people who have an infinite number of choices." Auburn Glenn has been helped by the fact that it is "in a neighborhood where the concept of mixed income isn't new," he added. Dwyer is building on a model pioneered by projects like The Integral Group LLC's Centennial Place, the 60-acre apartment complex on the former site of Techwood Homes near Centennial Park downtown. Completed nine years ago, the project benefited from a housing enterprise zone set up by the city, which provides phased property tax abatements. The project's success led to a number of new mixed-use projects for the company, said Chairman and CEO Egbert Perry, including the townhouse project next door, Centennial Park North. Nine of the 45 units in the first phase (20 percent) were set aside at below-market rate prices of just over $200,000 per unit, versus about $700,000 each for market-rate units. Perry cautions that mixed-income housing will only work if it has broad public support. "It has a chance of working if there are appropriate incentives accompanying that mandate, but you can't tell somebody to sell a unit at a lower price and not help them offset the cost of what they're losing economically," he said. Back in May, DeKalb County Commissioners Larry Johnson and Burrill Ellis proposed requiring developers of 30 units or more to set aside 15 percent of those for residents with low to moderate incomes. The measure has been deferred for further study. Commissioner Elaine Boyer has opposed the measure, calling it an "attempt at social engineering." Fulton County is considering an ordinance that would require 10 percent of a development to be "inclusionary" housing, but that measure also has been delayed for further study. Noel Khalil, president of Columbia Residential LLC, knows what it takes to not only offer affordable housing, but to replace an institution like Perry Homes. Khalil's company partnered with the Atlanta Housing Authority and other partners to convert the infamous downtown development into the mixed-use West Highlands. "If people work in the city, they should be able to live in the city," Khalil said. Directory: News -> Georgia Georgia -> Paying for energy efficiency investments a challenge Urvaksh Karkaria Georgia -> Atlanta's district sec office to be regionalized Atlanta Business Chronicle March 30, 2007 Georgia -> Atlanta Business Chronicle From the February 28, 2005 print edition Georgia -> Atlanta Journal Constitution Thursday April 7, 2005 Georgia -> Atlanta Business Chronicle From the January 3, 2005 print edition Georgia -> Charlotte Business Journal March 31, 2006 by David Mildenberg-Staff Writer Georgia -> Atlanta Business Chronicle From the April 11, 2005 print edition Georgia -> The Atlanta Journal and Constitution Georgia -> Consultant: Atlanta's traffic is endangering its growth By ariel hart Download 7.72 Kb. Share with your friends:
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