Heyward v. Public Housing Administration Joint Appendix

    JOINT APPENDIX

Itu ttb t&mvt of Appeals
For the District of Columbia Circuit 

No. 11,865

PRINCE F. HEYWARD, et al.,

Appellants,

y.

PUBLIC HOUSING ADMINISTRATION, et al.,

Appellees.

A ppeal fbom the U nited States District Court fob the 
District of Columbia

HON. HOLMES BALDRIDGE, 
Ass’t A tt. General;

CHARLES M. IRELAN,
U. S. Attorney;

ROSS O’DONOGHUE,
Ass’t U. S. Attorney;

EDWARD H. HICKEY,
Alt. Dept, of Justice;

DONALD B. MacGUINEAS,
A it. Dept, of Justice;

Washington 25, D. C.,
Attorneys for Appellees.

FRANK A. DILWORTH, III,
458% West Broad Street, 

Savannnah, Georgia;

THURGOOD MARSHALL, 
CONSTANCE BAKER MOTLEY, 

107 West 43rd Street,
New York 36, N. Y.;

FRANK D. REEVES,
2000 Ninth Street, N, W., 

Washington 1, D. C,,

Attorneys for Appellants.

S upreme P rinting Co., I nc., 41 Murray Street, N. Y. BArclay 7-0349



APPENDIX

PAGE

O rder.............................................................................................. 1

Opinion....................................   2

Complaint...................................................................................... 4

Defendants’ Motion For Summary Judgment......................   15

Affidavit of John T. E gan .............................................................  18

Exhibit 1 ............................................................................   26

Exhibit 2 ..........................................................    33

Exhibit 3 ..............................................................................  34

Exhibit 4 ..............................................................................  35

Exhibit 5 ..............................................................................  50

Exhibit 6 ..............................................................................  60

Exhibit 7 ............................................................................... 62

Excerpt From Transcript of Hearing on Motion For Summary 
Judgment .............................................    63



1

JOINT APPENDIX

Order

IN THE UNITED STATES DISTRICT COURT 

F or the D istrict of Columbia 

Civil Action No. 3991—52 

(Filed April 28, 1953)

--------- o---------
H eyward, et al.,

v.
Plaintiffs,

H ousing a n d  H ome F inance Agency, et al.,
Defendants.

-o

This cause having come on to he heard on defendants’ 
motion for summary judgment, and it appearing that there 
is no genuine issue as to any material fact and that the 
defendants are entitled to a judgment as a matter of law 
in that the complaint fails to state a claim upon which 
relief can he granted, it is this 28th day of April, 1953

Ordered, th a t defendants’ motion for summary judg­
ment is hereby granted and the com plaint is hereby dis­
missed.

Alexander H oltzoff,
District Judge.



2

Opinion

IN THE UNITED STATES DISTRICT COURT

F ob the District1 oe Columbia

Civil Action No. 3991—52

(Filed May 8, 1953)

----------------o---------- -----
H eyward, et al.,

v.
Plaintiffs,

H ousing and H ome F inance Agency, et al.,
Defendants.

-o

The Court: This is an action to restrain the Commis­
sioner of the Public Housing1 Administration from advanc­
ing any funds under the United States Housing Act of 1937, 
as amended, and otherwise participating, in the construc­
tion and operation of certain housing projects in the City 
of Savannah, Georgia.

These projects are being constructed and will be 
operated by local authorities with the aid of Federal Funds.

The basis of the action is that it has been officially 
announced that the project referred to in the complaint 
will be open only to white residents. The plaintiffs are 
people of the colored race who contend that such a limita­
tion is a violation of their Constitutional rights.

The Court has grave doubt whether this action lies in 
the light of the doctrine enunciated in the case of Massa­
chusetts v. Mellon, 262 U. S. 447, but assuming, arguendo, 
that the action may be maintained, the Court is of the 
opinion that no violation of law or Constitutional rights 
on the part of the defendants has been shown.



3

Opinion

I t appears from the affidavit submitted in support of the 
defendants’ motion for a summary judgment that there 
are several projects that have been or are being con­
structed in the City of Savannah under the Housing Act, 
some of which are limited to white residents and others to 
colored residents, and that a greater number of accom­
modations has been set aside for colored residents. In 
other words, we have no situation here where colored people 
are being deprived of opportunities or accommodations 
furnished by the Federal Government that are accorded to 
people of the white race. Accommodations are being ac­
corded to people of both races.

Under the so-called “ separate but equal” doctrine, 
which is still the law under the Supreme Court decisions, 
it is entirely proper and does not constitute a violation 
of Constitutional rights for the Federal Government to 
require people of the white and colored races to use separate 
facilities, provided equal facilities are furnished to each.

There is another aspect of this matter which the Court 
considers of importance. The Congress has conferred 
discretionary authority on the administrative agency to 
determine for what projects Federal funds shall be used. 
There are very few limitations in the statute on the power 
of the administrator, and there is no limitation as to racial 
segregation.

The Congress has a right to appropriate money for such 
purposes as it chooses under the General Welfare clause 
of Article I, Section 8, of the Constitution. It has a right 
to appropriate money for purpose “ A” but not for pur­
pose “ B ”, so long as purpose “ A ” is a public purpose.

Under the circumstances, the Court is of the opinion 
that the plaintiffs have no cause of action and the defend­
ants’ motion for summary judgment is granted.

(Thereupon, the above entitled matter was concluded.)

Alexander H oltzoef, 
District Judge.



4

UNITED STATES DISTRICT COURT 

F ob the D istrict of Columbia 

Civil Action No............

-------------------o-------------------
1. P rince F . H eyward 

230 Reynolds Street 
Savannah, Georgia

2. E rsaline. Small,
650 E. Oglethorpe Avenue 
Savannah, Georgia

3. W illiam Mitchell 
226 Arnold Street 
Savannah, Georgia

4. W illiam Golden 
230 Arnold Street 
Savannah, Georgia

5. Mike Maustipher
656 E. Oglethorpe Avenue 
Savannah, Georgia

6. W illis H olmes
321 E. Boundary Street 
Savannah, Georgia

7. Alonzo Sterling
158 E. Boundary Street 
Savannah, Georgia

8. Martha Singleton 
156 E. Boundary Street 
Savannah, Georgia

9. I rene Chisholm
623 E. Oglethorpe Avenue 
Savannah, Georgia

Complaint



5

Complaint

10. J ohn F uller
170 E. Boundary Street 
Savannah, Georgia

11. Benjamin  E. S immons 
647 E. Jackson Street 
Savannah, Georgia

12. J ames Young
636 Wheaton Street 
Savannah, Georgia

13. Ola Blake
214 Reynolds Street 
Savannah, Georgia

Plaintiffs,
v.

1. H ousing and H ome F inance Agency

Serve:
Raymond M. F oley, Administrator 
Normandy Building- 
1626 K Street, N. W.
Washington 25, D. C.

2. Raymond M. F oley, Administrator 
H ousing and H ome F inance Agency 
Normandy Building
1626 K Street, N. W.
Washington 25, D. C.

3. P ublic H ousing Administration,
body corporate,

Serve:
J ohn T. E gan, Commissioner 
Longfellow Building 
1201 Connecticut Avenue, N. W. 
Washington 25, D. C.

4. J ohn T. E gan, Commissioner 
P ublic H ousing Administration 
Longfellow Building
1201 Connecticut Avenue, N. W. 
Washington 25, D. C.

Defendants



6

1. The jurisdiction of this court is involved pursuant 
to Title 28, United States Code, Section 1331, this being a 
suit which arises under the Constitution and laws of the 
United States, that is, the Fifth Amendment to the Con­
stitution of the United States and Title 42, United States 
Code, Sections 1401-1433, as amended (Housing* Act of 
1937 as amended by the Housing Act of 1949), and Title 8, 
United States Code, Sections 41 and 42, wherein the mat­
ter in controversy as to each of the plaintiffs exceeds Three 
Thousand Dollars ($3,000) exclusive of interests and costs.

2. This is a proceeding for a temporary and permanent 
injunction enjoining the Housing and Home Finance 
Agency, the Administrator of the Housing and Home 
Finance Agency, the Public Housing Administration and 
the Commissioner of the Public Housing Administration 
from giving federal financial assistance and/or other federal 
assistance to the Housing Authority of Savannah, Georgia, 
for the construction and/or operation of a public low-rent 
housing project, pursuant to the provisions of the Housing 
Act of 1937 as amended by the Housing Act of 1949, from 
which the plaintiffs, although otherwise qualified for admis­
sion, will be excluded and denied consideration for admis­
sion and/or admission solely because of their race and color, 
in violation of the Constitution and laws of the United 
States.

3. This is a proceeding for a declaratory judgment 
pursuant to Title 28, United States Code, Section 2201, for 
the purpose of determining a question in actual controversy 
between the parties, i.e., whether the defendants and each 
of them can give federal financial assistance and/or other 
federal assistance to the Housing Authority of Savannah, 
Georgia, for the construction and/or operation of a public 
low-rent housing project pursuant to the provisions of the 
Housing Act of 1937, as amended by the Housing Act of

Complaint



7

1949, from which the plaintiffs will he excluded from con­
sideration for admission and/or denied admission, although 
otherwise meeting the qualifications for such consideration 
and admission established by law, solely because of their 
race and color, without violating any rights secured to 
the plaintiffs and each of them, individually by the Consti­
tution and laws of the United States, particuarly the Fifth 
Amendment to the Constitution of the United States, and 
Title 42, United States Code, Sections 1401-1431, and Title 
8, United States Code, Sections 41 and 42, and without 
violating the public policy of the United States.

4. This is a class action pursuant to Rule 23(a) of the 
Federal Rules of Civil Procedure brought by the plaintiffs 
on behalf of themselves and on behalf of other persons 
similarly situated, that is, Negro citizens of the United 
States and of the State of Georgia who are residents of 
the City of Savannah, Georgia, and who reside on a site 
in the City of Savannah, Georgia, commonly known as the 
“ Old Fort Area”, which has been condemned by or on 
behalf of the Housing Authority of Savannah, Georgia, a 
public agency, for the purpose of constructing thereon a 
low-rent public housing project to be known as the Fred 
Wessels Homes (designated by defendants as GA-2-4) pur­
suant to the provisions of the Housing Act of 1937, as 
amended by the Housing Act of 1949, and who will be dis­
placed from said site by reason of the construction of said 
project and who will, in accordance with the announced 
policy, program, and plan of the Housing Authority of 
Savannah, Georgia, which has been approved by these 
defendants consistent with their policy and practice of 
furnishing financial assistance to local public agencies for 
the provision of racially segregated low-rent housing 
projects, be denied consideration for admission and/or 
admission to said project, although they meet all of the

Complaint



8

Complaint

requirements established by law for such consideration 
and admission to said bousing project solely because of 
their race and color. Said persons constitute a class too 
numerous to be brought individually before the court but 
there are common questions of law and fact involved herein, 
common grievances arising out of common wrongs, and 
common relief sought for the entire class as well as special 
relief for the plaintiffs. The interests of said class are 
fairly and adequately represented by the plaintiffs herein.

5. Each of the plaintiffs is an adult Negro citizen in the 
United States and of the State of Georgia, Each of the 
plaintiffs resides in the City of Savannah, Georgia, on a site 
commonly known as the “ Old Fort Area” . Each of the 
plaintiffs will be displaced from such site by reason of the 
fact that the said site has been condemned by or on behalf 
of the Housing Authority of Savannah, Georgia, a public 
agency, for the purpose of constructing thereon a low-rent 
housing project pursuant to the provisions of the Housing 
Act of 1937, as amended by the Housing Act of 1949. Each 
of the plaintiffs meets the requirements established by law 
for consideration and admission to the said low-rent public 
housing project. Each of the plaintiffs is entitled by Title 
42, United States Code, Section 1410(g) to a preference for 
consideration and admission to any public low-rent, housing 
project built in the City of Savannah, Georgia, pursuant to 
the provisions of the Housing Act of 1937 as amended by 
the Housing Act of 1949, by reason of the fact that his or 
her family will be displaced from a site on which a low- 
rent public housing project will be built.

6. The defendant, Housing and Home Finance Agency 
is an agency of the United States Government established 
pursuant to Reorganization Plan No. 3, effective July 27, 
1947 (Title 5, United States Code, Section 133 (y-16)’ 
which consists of three constituent agencies, one of which



9

is the defendant Public Housing* Administration. The 
Housing* and Home Finance Agency is headed by an Admin­
istrator, defendant Raymond M. Foley, who is responsible 
for the “ general supervision and coordination of the func­
tions of the constituent agencies of the Housing and Home 
Finance Agency” (Reorganization Plan No. 3, 1947, Sec­
tion 5(b)).

7. Defendant Public Housing Administration, a con- 
stitutent agency of the Housing and Home Finance Agency, 
under the supervision of defendant Administrator Ray­
mond M. Foley, pursuant to Reorganization Plan No. 3, 
effective July 27, 1947 (Title 5, Section 133 (y-16), is a 
corporate agency and instrumentality of the United States 
Government. The Public Housing* Administration is headed 
by a Commissioner, defendant John T. Egan. The de­
fendant Public Housing Administration administers the 
Housing Act of 1937, as amended by the Housing Act of 
1949 (Title 42, United States Code, Section 1401-1433).

8. The Housing Act of 1937, as amended by the Housing 
Act of 1949, provides for federal financial assistance in the 
form of grants, loans, and annual contributions to local 
public housing agencies for the construction and/or opera­
tion of public low-rent housing projects built pursuant to 
the provisions and in accordance with the purposes of the 
Housing Act of 1937, as amended by the Housing Act of 
1949.

9. Pursuant to the provisions of the Housing Act of 
1937, as amended by the Housing Act of 1949, the defendant 
Public Housing Administration has entered into a con­
tract with the Housing Authority of Savannah, Georgia, 
pursuant to the provisions of which the Public Housing 
Administration and the Commissioner of the Public Hous­
ing Administration, with the approval of the other de­

Complaint



10

fendants, have agreed to give federal financial assistance 
to the Housing Authority of Savannah, Georgia, for the 
construction and/or operation of a public low-rent housing 
project to be constructed and maintained by the Housing 
Authority of Savannah, Georgia, pursuant to the provisions 
of the Housing Act of 1937, as amended by the Housing Act 
of 1949. Said public low-rent housing project will be known 
as the Fred Wessels Homes and has been designated by 
defendant Public Housing Administration and the de­
fendant Commissioner of the Public Housing Adminis­
tration as GA—2-4. Said project will be constructed on a 
site in the City of Savannah, Georgia, commonly known as 
the “ Old Fort Area”, on which the plaintiffs reside and 
from which they will be displaced by reason of such con­
struction. The Housing Authority of Savannah, Georgia, 
has condemned the site and has acquired title thereto and 
has proceeded to demolish the buildings thereon for the 
purpose of constructing thereon said public low-cost hous­
ing project.

10. The Housing Authority of Savannah, Georgia, has, 
as a prerequisite to the securing of the agreement for fed­
eral financial assistance from the defendant Public Housing 
Administration and the defendant Commissioner of the 
Public Housing Administration, submitted to said de­
fendants a plan and program for the approval of said 
defendants. Said plan and program describes the site 
on which the project would be built in terms of its present 
racial characteristics and specifies that occupancy of the 
said project to be built thereon would be limited to white 
families.

11. Said plan and program, specifying that the occu­
pancy of the said project would be limited to white families, 
has been approved by the defendant Public Housing Ad­

Complaint



11

ministration and the defendant Commissioner of the Public 
Housing Administration. Said plan and program was ap­
proved by the defendant Public Housing Administration 
and the defendant John T. Egan with the knowledge, con­
sent, and approval of the other defendants. Pursuant to 
said approval, the defendant Public Housing- Administra­
tion and the defendant Commissioner of the Public Housing 
Administration entered into said contract for the provision 
of federal financial assistance to the Housing Authority of 
the City of Savannah, Georgia, for the construction and/or 
operation of the said project.

12. The Housing Authority of the City of Savannah, 
Georgia, has specifically announced that, in accordance with 
its policy, occupancy of said low-rent public housing proj­
ect will be limited to white occupancy. Thus, the plaintiffs, 
who are Negroes, will not be considered for admission 
and/or admitted thereto solely because of their race or 
color. The defendant Public Housing Administration, and 
the other defendants have specific knowledge of this an­
nounced policy and have approved said policy and have 
approved the plan and program specifically indicating 
this policy and have agreed to give federal financial assis­
tance to construct and/or operate the project where said 
policy, plan, and program will be put into effect in violation 
of the right conferred upon the plaintiffs and each of them 
to a preference for consideration and admission to any 
public low-rent housing project in the City of Savannah, 
Georgia, built pursuant to the Housing Act of 1937 as 
amended by the Housing Act of 1949, as persons displaced 
from the site, and in violation of the rights secured to the 
plaintiffs and each of them individually by the Fifth Amend­
ment to the Constitution of the United States and in viola­
tion of the duty imposed upon the defendants by the 
Housing Act of 1937, as amended by the Housing Act of

Complaint



12

1949, and in violation of rights secured to the plaintiffs 
and each of them individually by Title 8, United States 
Code, Sections 41 and 42, and in violation of the public 
policy of the United States.

13. The plaintiffs herein will be denied consideration 
for and/or housing, for which they are otherwise qualified, 
by the Housing Authority of Savannah, Georgia, with the 
aid, support, and financial assistance of the defendants 
herein solely because of their race and color, unless such 
injury and violation of rights is enjoined by this court.

14. The plaintiffs, and each of them, will suffer irrepar­
able injury, for which there is no adequate remedy at law, 
by the violation of these rights by the defendants herein 
unless injunctive relief is granted by this court.

15. Each of the defendants is under a duty to discharge 
his or its duties in conformity with the laws, Constitution, 
and public policy of the United States.

W hebh fo k e , plaintiffs respectfully pray this court that 
upon the filing of this complaint, as may appear1 proper 
and convenient to the court, the court advance this cause 
on the docket and order a speedy hearing of this action 
according to the law and that this court, upon said hearing,

1. Adjudge, decree and declare the rights and other 
legal relations of the parties to the subject matter here in 
controversy in order that said declaration shall have the 
force and effect of a final judgment;

2. Enter a final judgment or decree declaring (a) that 
the defendants and each of them cannot give federal finan­
cial assistance or other federal assistance to the Housing 
Authority of Savannah, Georgia, for the construction

Complaint



13

and/or operation of a public low-rent bousing’ project pur­
suant to the provisions of the Housing Act of 1937, as 
amended by the Housing Act of 1949, from which the plain­
tiffs and other qualified Negroes similarly situated will be 
excluded and denied consideration for admission and/or 
admission solely because of their race and color in violation 
of the Constitution, laws, and public policy of the United 
States; (b) that the plaintiffs and all other Negroes simi­
larly situated cannot be denied consideration for admission 
and/or admission to the Fred Wessels Homes or any other 
federally-aided housing project solely because of their 
race and color; (c) that the plaintiffs and all other Negroes 
similarly situated must be considered for admission and/or 
admitted to the Fred Wessels Homes or any other feder­
ally-aided housing project; (d) that the preference for 
admission to the Fred Wessels Homes or any other fed­
erally-aided low-rent housing project in the City of Savan­
nah, Georgia, conferred on plaintiff's and all other Negroes 
similarly situated by Section 1410(g) of Title 42, United 
States Code, may not be qualified or limited by race or 
color.

3. Issue a temporary injunction restraining and en­
joining the defendants and each of them, their ag’ents, 
representatives, and successors in office from giving fed­
eral financial assistance and/or other federal assistance 
to the Housing Authority of Savannah, Georgia, for the 
construction and/or operation of a public low-rent hous­
ing project pursuant to the provisions of the Housing Act 
of 1937, as amended by the Housing Act of 1949, from which 
the plaintiffs and other Negroes similarly situated will be 
excluded and denied consideration for admission and/or 
admission solely because of their race and color.

4. Issue a permanent injunction restraining and en­
joining the defendants and each of them, their agents, rep­

Complaint



14

resentatives, and successors in office from giving federal 
financial assistance and/or other federal assistance to the 
Housing Authority of Savannah, Georgia, for the con­
struction and/or operation of a public low-rent housing- 
project pursuant to the provisions of the Housing Act of 
1937, as amended by the Housing Act of 1949, from which 
the plaintiffs and other Negroes similarly situated will be 
excluded and denied consideration for admission and/or 
admission solely because of their race and color.

5. And for such other and further relief as to the Court 
shall seem just and proper.

T hubgood Mabshall,
Constance Bakes Motley,

20 West 40th Street,
New York 18, New York;

J ulius T. W illiams,
719% West Broad Street, 

Savannah, Georgia;
F bank I). B eeves,

1901 Eleventh Street, N. W., 
Washington 1, I). C.,

Attorneys for Plaintiffs.

Complaint



15

IN THE UNITED STATES DISTRICT COURT

Defendants’ Motion for Summary Judgment

F ob, the Distbict oe Columbia

Civil Action No. 3991-52

--------- o---------------—
H eywabd, et al.,

Plaintiffs,
v.

H ousing and H ome F inance A gency, et al.,
Defendants.

■o

Now come defendants, by their attorneys, and move the 
Court for summary judgment of dismissal of the complaint 
on the ground that there is no genuine issue as to any 
material fact and that defendants are entitled to a judg­
ment as a matter of law for the following reasons:

1. This Court has no jurisdiction over defendant Hous­
ing and Home Finance Agency, which is an agency in the 
Executive Branch of the Government not subject to suit.

2. The complaint fails to state a claim upon which 
relief can be granted.

3. There is no case or controversy between plaintiffs 
and defendants with respect to any actual, adverse issue 
involving the parties’ legal rights or obligations.

4. The action is premature in that plaintiffs are not 
threatened with any immediate irreparable injury. The 
injury of which plaintiffs complain is that they will be



16

excluded from occupancy, solely because of their race and 
color, of a low-rent housing project, Project GA-2-4 (known 
as ‘‘Fred Wessels Homes” ), now under construction by the 
Housing Authority of Savannah, Georgia. This project 
will not be ready for occupancy until approximately March, 
1954. Accordingly, plaintiffs cannot suffer any injury at 
this time.

5. Plaintiffs are not, and will not be, denied any prefer­
ence in occupancy of low-rent housing projects to which 
they may be entitled by virtue of 42 U. S. C. 1410(g). 
Plaintiffs, as persons displaced from the site of Project 
GA-2-4 and as members of low-income families which are 
eligible applicants for occupancy, are being- given and will 
be given preference, to the extent provided by law, in occu­
pancy of low-rent housing projects in Savannah owned 
and operated by the Housing Authority of Savannah.

6. Defendants have not taken, and are not threatening 
to take any action which will deprive plaintiffs of their 
asserted right to preference in occupancy of any of the 
low-rent housing projects in Savannah owned and operated 
by the Housing Authority of Savannah, Georgia. Defend­
ants do not impose any restrictions upon the occupancy of 
said projects on the basis of applicants’ race or color. 
Any such restrictions in occupancy on the basis of race or 
color are imposed solely by the Housing Authority of 
Savannah. Hence, plaintiffs ’ complaint is against the acts 
of the Housing Authority of Savannah, not against any 
acts performed or threatened by defendants.

7. There is no actual controversy between plaintiffs 
and defendants as to plaintiffs’ alleged right to have 
Project GA-2-4 rented on a racially non-segregated basis. 
Defendants have taken and now take no position as to 
whether plaintiffs do or do not have such alleged right.

Defendants’ Motion for Summary Judgment



17

8. Plaintiffs have no legal interest in the expenditure 
of Federal funds for Project GA-2-4 and hence have ho 
standing to sue to enjoin such expenditure.

9. The relief sought by plaintiffs, to enjoin defendants 
from giving any Federal financial assistance to the Housing 
Authority of Savannah for the construction of a low-rent 
housing project from which plaintiffs will be excluded 
solely on the basis of their race or color would be futile. 
The granting of such relief would not open Project GA-2-4 
to occupancy by the plaintiffs; on the contrary, it would 
merely prevent the construction of said project and thereby 
deprive other low-income families in addition to plaintiffs 
of an opportunity to obtain such housing without affording 
any benefit to plaintiffs.

10. There is a lack of an indispensable party—the Hous­
ing Authority of Savannah, which prescribes the policies 
of occupancy of this project on the basis of race and color. 
This Housing Authority is a municipal corporation of the 
State of Georgia, is not joined as a defendant in this action, 
and is not subject to suit within the jurisdiction of this 
Court.

H olmes Baliridge,
Assistant Attorney General;

Charles M. I relan,
United States Attorney;

Ross 0  ’Donoghtje,
Assistant United States Attorney;

E dward H. H ickey,
Attorney, Department of Justice;

Donald B. MacGuineas, 
Attorney, Department of Justice,

Attorneys for Defendants.

Defendants’ Motion for Summary Judgment



18

IN THE UNITED STATES DISTRICT COURT

F or the District1 of Columbia

Civil Action No. 3991-52

Affidavit of John T. Egan in Support of Defendants’
Motion for Summary Judgment

--------- o----------

H eyward, et al.,

v.
Plaintiffs,

H ousing and H ome F inance Agency,
Defendants.

-------------------o-------------------

District of Columbia )
City of W ashington ^

J ohn T. E gan, being first duly sworn deposes and states:

1. I am the Commissioner of the Public Housing Ad­
ministration, which is an agency within the executive depart­
ment of the Federal Government and a constitutent agency 
of the Housing and Home Finance Agency, an independent 
agency in the executive branch of the Federal Government.

2. As Commissioner of the Public Housing Administra­
tion I am vested with the function of administering the 
low-rent housing program of the Federal Government pro­
vided by the Housing Act of 1937, as amended by the Hous­
ing Act of 1949 (42 U. S. C. 1401-33).

3. Under the low-rent housing program, low-rent hous­
ing projects to provide dwellings within the financial reach



19

of families of low income are constructed, owned and 
operated by a State, county or municipal public housing 
agency, referred to in this affidavit as a “ local authority.” 
The function of the Public Housing Administration is to 
provide financial assistance to the local authorities in the 
development and administration by them of low-rent hous­
ing projects.

4. Such financial assistance may take the form of (1) 
loans to local authorities pursuant to 42 U. S. C. 1409, 
(2) annual contributions to local authorities to assist in 
achieving and maintaining the low-rent character of their 
housing projects pursuant to 42 U. S. C. 1410, (3) capital 
grants to local authorities to assure the low-rent character 
of their projects pursuant to 42 U. S. C. 1411.

5. (a) Where a development plan for low-rent housing 
projects is submitted by the local authority to the Public 
Housing Administration for financial assistance which in­
volves the use of slum sites with consequent displacement 
of site occupants, the regulations of the Public Housing 
Administration require the local authority to demonstrate 
to the satisfaction of the Public Housing Administration 
that relocation of site occupants is feasible by showing that 
with respect to displaced families apparently eligible for 
public low-rent housing, such families can be offered dwell­
ings in low-rent housing projects at the time of displace­
ment or that they can reasonably be expected to find 
temporary dwelling accommodations of some kind and 
later be accommodated in low-rent housing projects (Low- 
Rent Housing Manual, Section 213.2, a copy of which is 
attached to this affidavit as Exhibit 1).

(b) The regulations of the Public Housing Adminis­
tration further require that programs for the development 
of low-rent housing must reflect equitable provision for eli­

Affidavit of John T. Egan



20

gible families of all races determined on the approximate 
volume and urgency of their respective needs for such hous­
ing (Low-Bent Housing Manual, Section 102.1, a copy of 
which is attached to this affidavit as Exhibit 2).

(c) The regulations further require that sites for pub­
lic housing projects shall be selected in such manner as to 
make possible the application of the policies on racial equity 
in tenant selection referred to above; that the number of 
dwelling units which are developed for racial minority 
occupancy shall not be less than the number of units de­
stroyed which are in racial minority occupancy; that the 
selection of sites should not result in a material reduction 
in the land area in the locality available to racial minority 
families; that every effort be made to avoid the selection 
of sites which will result in the displacement of minority 
group populations; and that the use of congested slum 
sites occupied predominantly by racial minority groups 
should be made only where the local authority can demon­
strate that relocation of site occupants in accordance with 
regulations of the Public Housing Administration is feasi­
ble (Low-Bent Housing Manual, Section 208.8, a copy of 
which is attached to this affidavit as Exhibit 3).

6. While, as stated above, the Public Housing Adminis­
tration requires the development programs of local au­
thorities to make equitable provision for eligible families 
of all races, the policy of the Public Housing Administra­
tion with respect to whether or not a particular low-rent 
housing project shall be operated by the local authority on 
a racially segregated or non-segregated basis is that the 
determination of that question is entirely one for the local 
authority. The Public Housing Administration has not 
and would not interpose any objection to a determination 
by a local authority to operate such a project on a racially 
non-segregated basis.

Affidavit of John T. Egan



21

7. Low-rent housing projects in the City of Savannah, 
Georgia, for which financial assistance is provided by the 
Public Housing Administration are constructed, owned and 
operated by the Housing Authority of Savannah, a munici­
pal corporation organized under the Housing Authorities 
Law of the State of Georgia (Act Number 411 of the Laws 
of 1937, as amended). At the present time five low-rent 
housing projects have been completed and are being oper­
ated by the Housing Authority of Savannah. These are 
Projects GA-2-1, with 176 dwelling units for Negroes, 
GA-2-2 with 480 dwelling units for Negroes; GA-2-3, with 
314 dwelling units for whites; GA-2-5, with 127 dwelling 
units for Negroes; and GA-2-6, with 86 dwelling units for 
whites.

8. The status of the low-rent housing project specifi­
cally referred to in the complaint in this action, No. GA-2-4 
(known as Fred Wessels Homes) is as follows:

(a) On September 22, 1949, the Housing Authority of 
Savannah filed with the Public Housing Administration an 
application for a program reservation for four projects 
totaling 800 low-rent dwelling units, consisting of Projects 
GA-2-5 and GA-2-6 (referred to above), GA-2-4 to contain 
250 dwelling units for wdiites, and GA-2-7 to contain 337 
dwelling units for Negroes, together with an application 
for a preliminary loan necessary to inaugurate such a hous­
ing program. On November 8, 1949, and again on October 
1, 1951, the Public Housing Administration issued such 
program reservation for these 800 dwelling units in accord­
ance with the application submitted by the Housing Au­
thority of Savannah.

(b) On September 12, 1950, the Housing Authority of 
Savannah and the Public Housing Administration entered 
into a preliminary loan contract (a copy of which is attached 
to this affidavit as Exhibit 4) under which the Public Hous­

Affidavit of John T. Egan



22

ing Administration agreed to loan to the Housing Authority 
of Savannah not to exceed $210,000 for use in making pre­
liminary surveys and planning for low-rent housing proj­
ects. On March 19,1952, the Housing Authority of Savannah 
and the Public Housing Administration entered into an an­
nual contributions contract under which the Public Housing- 
Administration agreed to lend to the Housing Authority 
of Savannah $2,292,000, bearing interest at 2%% per an­
num, to cover the estimated development cost of said 
project and agreed to make annual contributions to the 
Housing Authority of Savannah to provide funds necessary 
to meet the annual payments of interest and amortization 
of principal of the funds borrowed by the Housing Au­
thority of Savannah for the development of that project. 
A copy of Part One of said annual contributions contract 
is attached to this affidavit as Exhibit 5. A copy of Part 
Two of said annual contributions contract is attached to 
this affidavit as Exhibit 6. On July 24, 1952, the Housing 
Authority of Savannah and the Public Housing Administra­
tion entered into Amendatory Agreement No. 1 to said 
annual contributions contract by which the principal amount 
of the Public Housing Administration loan was changed 
from $2,292,000 to $2,792,000. A copy of said Amendatory 
Agreement No. 1 is attached to this affidavit as Exhibit 7.

(c) On May 20, 1952, the Housing Authority of Savan­
nah entered into a contract with the Byck-Worrell Con­
struction Company of Savannah for the construction of 
Project G-A-2-4, with a construction period of 460 days 
after the issuance of a notice to proceed. Work under this 
contract has, however, been delayed because of difficulty in 
obtaining the approval of the City Council of Savannah to 
the lay-out of the project. At the present time the only 
work done consists of work in connection with the assem­
bling and clearing of the site. Revised drawings were 
submitted to the contractor on November 6, 1952, for a new

Affidavit of John T. Egan



23

cost estimate. Such estimate has not yet been received; 
and upon its receipt, it must be approved by the Public 
Housing Administration. Assuming such estimate is ap­
proved by December 15, 1952 (the earliest date likely), it 
is estimated that, based on a construction period of 460 
days, Project GA-2-4 will not be completed and available 
for occupancy until the latter part of March, 1954.

(d) Up to the present the Public Housing Administra­
tion has advanced to the Housing Authority of Savannah 
under the annual contributions contract the sum of $939,567.

9. (a) As appears from the preceding paragraphs of 
this affidavit, the low-rent housing program of the Housing 
Authority of Savannah, including projects completed and 
planned, consists of the following:

Affidavit of John T. Egan

Dwelling Units Dwelling Units
Project No. for Whites for Negroes

GA-2-1 176
GA-2-2 480
GA-2-3 314
GA-2-4 250
GA-2-5 127
GA-2-6 86
GA-2-7 337

Totals 650 1,120
Percentage of 

Total 36.7% 63.3%

(b) The percentage distribution of low-rent housing 
required to achieve racial equity, based on the volume of 
substandard housing as estimated by the Director of the 
Atlanta Field Office of the Public Housing Administration 
on the basis of a 1950' census of housing prepared by the



24

Bureau of Census, Department of Commerce, is white 
33.7%, Negro 66.3%. I am informed by the Director of the 
Atlanta Field Office of the Pulbic Housing Administration 
that the Housing Authority of Savannah contemplates sub­
mitting an application for another low-rent housing project 
(in addition to the seven projects listed above) to consist 
of 800 dwelling units for Negro occupancy.

10. I am informed by the Housing Authority of Savan­
nah that the occupants of the site of Project GA-2-4 were 
78% Negroes and 22% whites. The seven low-rent housing- 
projects in Savannah listed above (and in addition the 
eighth project contemplated by the Housing Authority of 
Savannah, in the event it is constructed) are, or when con­
structed will be, available for occupancy by low-income 
families displaced from the site of the Project GrA-2-4 who 
are otherwise eligible for occupancy of such projects, in 
the relative preferences prescribed by 42 U. S. C. 1410(g).

11. In view of the policy of the Public Housing Admin­
istration set forth in paragraph 6 of this affidavit to leave 
to the determination of the Housing Authority of Savannah 
the question as to whether Project GA-2-4 shall be operated 
by that Authority on a racially segregated or non-segre- 
gated basis, it is my opinion that no real dispute exists 
between the plaintiffs and the defendants in this action as 
to whether or not the plaintiffs have any legal right to have 
said project operated on a non-segregated basis.

12. In my opinion, the issuance of any order by this 
Court prohibiting the Public Housing Administration from 
rendering financial assistance to the Housing Authority 
of Savannah in the construction and operation of Project 
GA-2-4 will not provide any additional low-rent housing 
accommodations to plaintiffs. The only effect of such an 
order would be to prevent construction of Project GA-2-4

Affidavit of John T. Egan



Affidavit of John T. Egan

and thereby reduce the number of low-rent dwelling units 
available in Savannah for other low-income persons eligi­
ble for occupancy of such projects.

J ohn T. E gan
Commissioner of Public Housing 

Administration

City of W ashington 1 *District of Columbia j

Subscribed and sworn to before me this day
of

Notary Public



26

HHFA
PHA

5-15-51 LOW-RENT HOUSING MANUAL 213.2 

Relocation of Site Occupants

1. Introduction
a. If a Local Authority proposes to use a slum site, in 

order that displacement of site occupants will not result 
in undue hardship to such occupants, the Local Authority 
shall:

(1) As a condition to preliminary approval of the site 
demonstrate to the satisfaction of the PHA (in 
accordance with paragraph 2 below) that relocation 
of site occupants is feasible;

(2) As a condition to approval of the Development 
Program establish a plan satisfactory to the PHA 
for relocating site occupants; and

(3) In the Annual Contributions Contract agree to 
carry out the relocation plans set forth in the 
Development Program.

Proposals for use of slum sites involving the displace­
ment of minority groups will be subject to careful scrutiny 
by the PHA, because such groups are often seriously re­
stricted as to the neighborhoods in which they can find other 
dwellings.

b. Suggested procedures for setting up and staffing a 
Housing Advisory Office and for effecting the removal of 
site occupants will be contained in a Low-Rent Housing 
Bulletin.

Exhibit 1

N ote: This Section supersedes Section 213.2, dated 10-
13-50. The entire release has been revised.



27

2. Demonstration of Feasibility'
a. To demonstrate the feasibility of relocation the 

Local Authority must show:
(1) A reasonably sound estimate of the number of 

families to be displaced from the site, including 
appropriate data as to income and race;

(2) The approximate time of displacement, particu­
larly when demolition and rebuilding is to be car­
ried out in stages;

(3) With respect to families apparently eligible for 
public low-rent housing, that such families can 
be offered dwellings in low-rent housing projects 
at the time of displacement or that they can 
reasonably be expected to find temporary dwelling 
accommodations of some kind and later be accom­
modated in low-rent housing projects;

(4) With respect to families not eligible for public 
low-rent housing, that they can reasonably be ex­
pected to find dwelling accommodations no worse 
than those on the site and at rents within their 
financial means.

b. The demonstration of feasibility must recognize any 
restrictions in the supply of housing for minority group 
families.

c. The demonstration must recognize the demands of 
any other relocation which will take place in the community, 
particularly any slum clearance assisted under Title I of 
the Housing Act of 1949.

d. The demonstration shall be made in the form of 
Item 223 of the Development Program and must be sub­
mitted before the PHA will give tentative approval of the 
site (see Manual Section 208.1).

Exhibit 1



Exhibit 1

3. Relocation Plan
a. The Local Authority shall prepare a relocation plan 

with respect to assisting- the occupants of the site to find 
other quarters. Such plan shall include the proposals which 
the Local Authority considers necessary for the provision 
for personnel to handle relocation, an office at the site or 
elsewhere at which families may obtain information, survey 
of site occupants to determine individual family rehousing 
needs and problems, notification to families of the avail­
ability of advice and assistance in finding other quarters, 
arrangements for obtaining information on vacancies, in­
spection of any vacanies to which families not eligible for 
public low-rent housing are to be referred, arrangements 
for obtaining the cooperation of other community agencies, 
arrangements for coordinating the relocation activities 
of the Local Authority with those of any other local agency 
which is engaged in a relocation program (see paragraph 5 
below), and any other actions deemed necessary by the 
Local Authority. As part of the relocation plan the Local 
Authority shall include in the Development Program an 
estimate of the cost of the services described in this para­
graph.

b. If the Local Authority believes it will be necessary 
to extend any direct financial assistance to site occupants 
(see paragraph 4, below), there shall also be included an 
estimate of the number of cases for which such assistance 
will be necessary and an estimate of the aggregate cost of 
such assistance.

c. The relocation plan shall be prepared in the form 
of Item 224 of the Development Program and shall be sub­
mitted with the final Development Program.



29

4. Direct Financial Assistance to Site Occupants
a. The Local Authority may furnish direct financial 

assistance to site occupants who are to he displaced if after 
exhausting all other reasonable means it appears that, in 
the determination of the Local Authority, legal eviction 
will otherwise be necessary to secure the removal of certain 
site occupants and the attendant expense in attorney’s fee 
and court costs incident to eviction proceedings, together 
with other costs incident to delay in the project while 
waiting to secure eviction, will in the aggregate equal or 
exceed the aggregate of the proposed financial assistance. 
Such financial assistance to any site occupant shall not, 
without approval of PHA, exceed a reasonable amount for 
moving expenses plus a reasonable amount for the first 
month’s rent in appropriate quarters.

b. If, after approval of the Development Program, the 
Local Authority finds it necessary to furnish any other type 
of financial assistance in specific cases beyond that author­
ized by paragraph 4a, above, or to expend for all cases 
more than the total sum provided for direct assistance in 
the relocation plan, it should address a letter to the PHA 
Field Office Director stating the type of assistance to be 
given, the approximate number of cases which will re­
ceive such assistance, the cost thereof, full justification as 
to the necessity (in terms of savings in attorneys fees, 
court costs and other costs incident to delay), and, if 
required, a revised Development Cost Budget. The PHA 
Field Office Director will notify the Local Authority by 
letter of approval or disapproval of the request.

c. No expenditures for rehabilitation, improvement, or 
decoration of privately owned property can in any event 
be approved as a part of the development cost.

Exhibit 1



30

5. Coordination With Other Agencies Engaged
in Relocation
a. If slum clearance under an urban redevelopment 

program or any other program, such as a highway project, 
is being undertaken by other agencies in the community; 
the Local Authority should pay very careful attention to 
coordinating its relocation activities with those of such 
other agencies. This will help to avoid duplication of 
effort in conducting surveys and obtaining vacancy listings, 
will result in less hardship to families by avoiding duplicate 
referrals to the same dwelling, and will promote better 
understanding of and sympathy for the program among the 
families being displaced as well as the community at large.

b. The local agencies involved should together consider 
this problem and decide that either:

(1) Each agency should do its own relocation work, 
depending on close liaison between the personnel 
of each agency to achieve the necessary coordina­
tion, or

(2) All relocation work should be done by one of the 
agencies involved, or

(3) A centralized relocation agency should be created 
for this purpose.

If another agency is to do the work for the Local 
Authority, the Local Authority should retain sufficient 
control to insure coordination with site acquisition and con­
struction and compliance with Local Authority relocation 
policy. The Local Authority must, in any event, maintain 
complete responsibility for determining eligibility and pref­
erence rights of families to be admitted to public housing.

c. If the work is to be done for the Local Authority 
by another agency, the Local Authority may reimburse

Exhibit 1



31

such agency for reasonable costs attributable to the reloca­
tion performed for the Local Authority. A firm maximum 
cost should be agreed to in advance to insure that the De­
velopment Cost Budget is not exceeded. If the Local 
Authority does relocation work for another agency it must 
obtain adequate reimbursement to insure that costs of such 
relocation are not charged to PHA-aided projects.

6. Record of Families Displaced
a. The Local Authority shall make and preserve a 

record of the families displaced by the development of the 
project. This information should be obtained at the time 
of the survey of site occupants referred to in paragraph 3, 
above.

b. This record is established for use in determining 
which families, among eligible applicants for admission to 
any Federally aided low-rent housing, are entitled to 
receive preference in tenant selection as displaced site 
occupants. The permanent record of site occupants shall 
contain the following information:

(1) Name of the head of the family;
(2) Site address of the family;
(3) Veteran or service status;
(4) Information on s or vice-con ne et e d disability or 

death;
(5) Date the family moved from the site.

c. The address of the place to which the family moved 
should also be recorded and made a part of the permanent 
record when made possible by the site occupant.

d. Site occupants shall be informed that, if they apply 
for admission to a Federally aided low-rent project and if

Exhibit 1



32

they are found to be eligible, they will be entitled as site 
occupants to receive preferential consideration as units 
become available for occupancy. In connection with this, 
site occupants should be encouraged to keep the Local 
Authority advised of their whereabouts. Specific informa­
tion concerning the preference rating of eligible site occu­
pants will be covered in another Section.

7. Contract Provisions
a. The Annual Contributions Contract will provide that 

the Local Authority (1) shall undertake all steps necessary 
to carry out the relocation plan described in the Develop­
ment Program, and (2) may pay as part of the development 
cost the expense thereof except that no costs of direct 
financial assistance to site occupants shall be included in 
Development Cost other than those approved by the PHA. 
The contract will not obligate the Local Authority to find 
new quarters for every family, nor will the contract estab­
lish any third-party rights on the part of site occupants.

b. The contract will also require that the Local Author­
ity shall make and preserve the record of the families dis­
placed, referred to in paragraph 6, above.

Exhibit 1



33

HHFA
PHA

2-21-51 102.1

Exhibit 2

LOW-RENT HOUSING! MANUAL 

Racial Policy
The following general statement of racial policy shall 

be applicable to all low-rent housing projects developed 
and operated under the United States Housing Act of 1937, 
as amended:

1. Programs for the development of low-rent housing, 
in order to he eligible for PHA assistance, must re­
flect equitable provision for eligible families of all 
races determined on the approximate volume and 
urgency of their respective needs for such housing.

2. While the selection of tenants and the assigning of 
dwelling units are primarily matters for local deter­
mination, urgency of need and the preferences pre­
scribed in the Housing Act of 1949 are the basic 
statutory standards for the selection of tenants.



34

HHFA
PHA

3-27-52 208.8

Exhibit 3

LOW-RENT HOUSING MANUAL

Site Selection Policies in Relation to Problems of Minorities

1. Purpose. This Section sets forth PHA policies gov­
erning the selection of sites in relation to problems of 
minorities.

2. Policies. The following policies should be followed 
in the selection of sites for public housing projects:

a. Sites for public housing projects shall be selected in 
such manner as to make possible the application of 
the policies on racial equity in tenant selection out­
lined in Section 102.1, Racial Policy.

b. The number of dwelling units in local program which 
are developed for racial minority occupancy shall 
not be less than the number of units destroyed which 
are in racial minority ocupancy.

c. The selection of sites for public housing should not 
result in a material reduction of the land area in the 
locality which is available to racial minority families.

d. Every effort should be made to avoid the selection of 
sites which will result in the displacement of minority 
group populations.

e. Use of congested slum sites which are occupied pre­
dominantly by racial minority groups should be made 
only where it is possible to comply with the provi­
sions of Section 213.2, Relocation of Site Occupants.



35

PHA-1926 
Rev. 2-24-50

PRELIMINARY LOAN CONTRACT

This Agreement entered into this 12th day of Septem­
ber, 1950, by and between Housing Authority of Savannah 
(herein called the “ Loca.l Authority” ) and the Public Hous­
ing Administration (herein called “ PHA” ), witnesseth:

In consideration of the mutual covenants hereinafter 
set forth, the parties hereto do agree as follows:

1. The Local Authority certifies that it is a body cor­
porate and politic, duly created and organized pursuant to 
and in accordance with the provisions of The “ Housing 
Authorities Law” of the State of Georgia and laws amenda­
tory thereof and supplemental thereto, and that it is author­
ized to purchase and acquire land, to clear buildings there­
from, to develop, construct, maintain and operate low-rent 
housing and slum-clearance projects for the purpose of 
providing decent, safe and sanitary dwellings for families 
of low income, to borrow money for such purposes, and to 
issue its bonds or other evidences of indebtedness, and in 
connection with the foregoing to take all such other action 
as is provided for herein.

2. The Local Authority proposes to develop low-rent 
housing projects with financial assistance from the PHA 
pursuant to the United States Housing Act of 1937, as 
amended (herein called the “ Act” ). In connection there­
with, the Local Authority proposes to undertake prelimin­
ary surveys and planning necessary for the preparation and 
submission of Development Programs for each of such pro­
jects serving as the basis for applications to the PHA for 
Annual Contributions Contracts.

Exhibit 4



36

3. The PHA has issued to the Local Authority its 
Program Reservation No. Ga-2-A for a total of 800 units of 
low-rent housing, which Program Reservation is not a legal 
obligation or commitment on the part of the PHA, and 
which the PHA intends to cancel unless Development Pro­
grams satisfactory to the PHA for 500 of such units are 
submitted by the Local Authority on or before November 
30, 1950, or unless satisfactory Development Program for 
300 additional units are submitted on or before November 
30, 1951.

4. The Local Authority, pursuant to the provisions of 
the Act, has applied to the PHA for a preliminary loan to 
meet the cost of preliminary surveys and planning of the 
low-rent housing projects to be developed pursuant to such 
Program Reservation and located in the City of Savannah, 
Georgia. The Council of the Mayor and Aldermen of the 
City of Savannah, Georgia (the governing body of the City 
of Savannah, Georgia) has by its resolution duly adopted 
on the 14 day of July, 1950, approved the application of the 
Local Authority for such preliminary loan.

5. The Local Authority has demonstrated to the satis­
faction of the PHA that there is a need for the low-rent 
housing covered by said Program Reservation which need 
is not being met by private enterprise.

6. Subject to the provisions hereinafter set forth, the 
PHA hereby agrees to loan to the Local Authority, for use 
in preliminary surveys and planning for low-rent housing 
projects to be developed pursuant to the aforesaid Pro­
gram Reservation a sum not in excess of $210,000. Of such 
amount, the sum of $30,000 will be advanced immediately 
after the execution of this agreement for use only for eli­
gible costs of such preliminary surveys and planning. As a 
condition to such immediate advance, the Local Authority

Exhibit 4



37

hereby certifies that, in respect to such proposed projects, 
it has complied with the provisions relating to the payment 
of prevailing salaries and wages contained in Section 16(2) 
of the Act.

7. The PHA shall not he obligated to make any further 
advances hereunder in the event of any one of the following 
conditions:

(a) if the Local Authority and the Council of the Mayor 
and Aldermen of the City of Savannah, Georgia 
(the governing body of the City of Savannah, 
Georgia) have not, at the time of the request for 
such further advances, entered into a Cooperation 
Agreement satisfactory to the PHA providing for 
the local cooperation required by the PHA pur­
suant to the Act; or

(b) if the requisition of the Local Authority therefor 
is not accompanied by a signed Certificate of Pur­
poses in form and detail satisfactory to the PHA, 
showing the use of such funds already expended 
and the proposed use of any balance of funds re­
maining and. of the additional funds requested, and 
demonstrating the need at the time for the addi­
tional funds, and by such other documents and data 
as may be requested by the PHA; or

(c) if the Local Authority has not furnished a cer­
tificate prior to each advance that it has complied 
with the provisions relating to the payment of pre­
vailing salaries and wages contained in Section 
16(2) of the Act; or

(d) if the Local Authority has not complied with all the 
provisions in this Contract; or

Exhibit 4



38

(e) if any legal question affecting this Contract, or 
affecting the power of the Local Authority to enter 
into an Annual Contributions Contract has not 
been disposed of to the satisfaction of PHA.

8. Every advance shall be evidenced by a preliminary 
loan note in principal amount equal to the amount of such 
advance. Principal and interest shall be payable on demand 
and shall in any event become due and payable, without 
demand, forty years from the date of this Contract. The 
note shall be in such form and secured in such manner as 
shall be satisfactory to the PHA, and shall bear interest 
from the date of the advance at the rate of two and one- 
half per centum (2%%) per year.

9. The cost of the aforesaid preliminary surveys and 
planning shall be deemed to be a part of the total develop­
ment cost of low-rent housing projects which are developed 
pursuant to the aforesaid Program Reservation and for 
which Annual Contributions Contracts are entered into by 
the PHA and the Local Authority. After the date on which 
the first advance on any Annual Contributions Contract is 
received by the Local Authority, no disbursements shall be 
made from the Preliminary Loan Fund in payment for 
services rendered or material furnished after such date in 
respect to the project or projects covered by such Annual 
Contributions Contract. The Local Authority shall apply 
to the payment of the principal of and interest on said pre­
liminary loan notes the following funds in the following 
manner:

(a) Moneys becoming available for the development 
of the first project or projects for which a single 
Annual Contributions Contract is entered into 
shall be applied to the payment of said preliminary 
loan notes in amounts equal to (i) the full cost of

Exhibit 4



39

all preliminary housing surveys made by the Local 
Authority, and (ii) all costs of planning such first 
project or projects which have been paid from the 
Preliminary Loan Fund;

(b) Moneys becoming available for the development of 
subsequent projects for which Annual Contribu­
tions Contracts are entered into shall be applied 
to the payment of said preliminary loan notes in 
amounts equal to all costs of planning such later 
project or projects which have been paid from the 
Preliminary Loan Fund;

(c) All moneys remaining in the hands of the Local 
Authority out of the funds advanced by the PH A 
hereunder at the time when all the projects to be 
developed pursuant to the aforesaid Program Res­
ervation have been covered by Annual Contribu­
tions Contracts shall be immediately paid over to 
the PHA in whole or partial payment of the pre­
liminary loan notes then held by the PHA; and

(d) Moneys becoming available from any other sources 
for the development of any projects for which pre­
liminary surveys and plans are made with the aid 
of loan funds provided under this Contract shall 
be applied to the payment of any unpaid balance 
of said preliminary loan notes.

10. The Local Authority shall enter into a Preliminary 
Loan Depositary Agreement, which shall be in a form ap­
proved by the PHA, and with a bank (which shall be and 
continue to be a member of the Federal Deposit Insurance 
Corporation.) selected as the depositary by the Local 
Authority. The entire proceeds of every advance made pur­
suant to this Contract shall be deposited in the Preliminary 
Loan Fund at the time such advance is made, unless the

Exhibit 4



40

PHA shall consent in writing to the deposit of such pro­
ceeds in some other account. If the PHA finds that one 
or more of the following conditions has or have occurred:
(a) the depositary is no longer a member of the Federal 
Deposit Insurance Corporation; (b) the depositary has de­
faulted in the performance of any of its obligations under 
the Preliminary Loan Depositary Agreement; (c) the PHA 
for any reason deems the funds deposited by the Local 
Authority with the depositary to be unsafe or insecure, then 
the PHA may require the Local Authority to withdraw all 
its funds immediately from such depositary and to enter 
into a Preliminary Loan Depositary Agreement, and to 
deposit such funds, with a new depositary (which shall be 
a member of the Federal Deposit Insurance Corporation). 
The PHA may exercise its powers under the provisions of 
the Preliminary Loan Depositary Agreement to suspend 
withdrawals by the Local Authority, and may itself make 
withdrawals from the Preliminary Loan Fund, if the Local 
Authority shall default in the performance or observance 
of any of the agreements on the part of the Local Authority 
contained in this Preliminary Loan Contract; but after sus­
pending withdrawals by the Local Authority or itself with­
drawing such funds, the PHA shall use the funds, as far as 
possible, to pay any obligations theretofore validly incurred 
by the Local Authority under the provisions of this Con­
tract,. In the event that the PHA cancels or reduces the 
Program Reservation for any cause without there being 
a default by the Local Authority under this Contract, the 
PHA may exercise its powers under the provisions of the 
Preliminary Loan Depositary Agreement to suspend with­
drawals by the Local Authority; and in that event the PHA 
at the end of sixty (60) days after sending the notice sus­
pending withdrawals (copy of which notice shall at the same 
time be sent to the Local Authority), may itself withdraw 
the funds then remaining and apply the same to the payment

Exhibit 4



41

of the Preliminary Loan Note. In said notice suspending 
withdrawals, the PHA shall authorize the depositary, dur­
ing such sixty day period, to continue to honor any check or 
order drawn by the Local Authority upon the Preliminary 
Loan Fund, if .such check or order shall contain a certificate 
executed by a person authorized on behalf of the Local 
Authority to sign checks or orders upon such Preliminary 
Loan Fund, reading as follows:

“ This is to certify that (1) I am the duly ap­
pointed, qualified and acting officer of the Housing 
Authority of Savannah authorized to sign the check 
[order] to which this certificate relates and to execute 
this certificate; (2) the said check [order] is drawn 
to pay an obligation validly incurred by the Hous­
ing Authority of Savannah under the terms of the 
Preliminary Loan Contract dated the 12 day of Sep­
tember, 1950 between the Public Housing Adminis­
tration and the Housing Authority of Savannah; and 
(3) .said obligation was incurred in good faith prior 
to the date of the written notice by the Public Hous­
ing Administration to the Preliminary Loan De­
positary bank suspending, withdrawals by the Hous­
ing Authority of Savannah from the Preliminary 
Loan Fund.”

11. The Local Authority shall expeditiously and economi­
cally complete the preliminary surveys and planning, sub­
mit Development Programs, and take such other actions as 
are prequisite to the execution of Annual Contributions 
Contracts for the projects to be developed pursuant to the 
aforesaid Program Reservation. Promptly after receipt 
of the initial advance of funds under this Contract, the 
Local Authority shall obtain from financially sound insur­
ance companies, and thereafter maintain in force, the fol­
lowing insurance: (a) fidelity bonds covering all persons

Exhibit 4



42

who will handle or disburse any of the funds made available 
under this Contract; (b) workmen’s compensation; (c) 
automobile insurance (including comprehensive fire and 
theft, liability for bodily injury and property damage); 
(d) public liability; and (e) fire and extended coverage in­
surance on furniture and fixtures. The Local Authority 
shall promptly furnish the PHA with certified copies of 
such policies and bonds.

12. The Local Authority will not undertake preliminary 
housing surveys covering housing and economic conditions 
except after mutual agreement between the Local Authority 
and the PHA as to the type, extent, methods, and proposed 
costs of such surveys.

13. The Local Authority shall by contract, in a form 
prescribed or approved by the PHA, provide qualified archi­
tectural and engineering services necessary for each low- 
rent housing project to be developed pursuant to the afore­
said Program Reservation, including preparation of ma­
terials necessary for Development Programs. Such con­
tracts shall further provide that, in the event of the execu­
tion of an Annual Contributions Contract covering any 
such project, the architects and engineers shall furnish 
the architectural and engineering services necessary for 
the completion of the project. Such contracts shall fur­
ther provide that the Local Authority may at any time 
abandon the construction of the project or any substantial 
part thereof, or may, for cause, abandon all or any sub­
stantial part of the architect’s services, and that in either 
such event, the contract shall be modified or terminated, 
and payment for the services of the architect theretofore 
rendered shall be made in a manner to be set forth in such 
contract. The PHA shall furnish schedules of reasonable 
maximum fees, which fees shall not be exceeded without 
PHA concurrence. Architects shall be required by the

Exhibit 4



43

Local Authority to be responsible for compliance of plans 
and specifications with applicable local laws and regula­
tions.

14. The Local Authority shall by contract, in a form 
prescribed or approved by the PHA, provide qualified 
services for obtaining land surveys, title information, and 
appraisals necessary for each low-rent housing project 
to be developed pursuant to the aforesaid Program Reser­
vation. Specific parcel-by-parcel appraisals shall not be 
made prior to the tentative approval by the PITA of a 
project site and the General Scheme of the project. All 
appraisals shall be held strictly confidential, and in no case 
shall persons who have made such appraisals be employed 
to negotiate options. The Local Authority may by con­
tract, in a form prescribed or approved by the PHA, pro­
vide qualified services for the negotiation of options before 
execution of an Annual Contributions Contract. No part 
of any funds made available to the Local Authority under 
this Preliminary Loan Contract shall be used either to 
acquire land or to make any payments (other than nominal 
payments of one dollar per option) as consideration for 
options, nor shall irrevocable commitments to acquire land 
be made before the execution of an Annual Contributions 
Contract.

15. No part of any funds made available to the Local 
Authority under this Preliminary Loan Contract shall be 
used for any purposes except for making preliminary sur­
veys and planning for low-rent housing projects to be 
developed pursuant to the aforesaid Program Reservation. 
No part of such funds shall be used to make payments for 
any materials or services purchased or contracted for by 
the Local Authority prior to the date of the Preliminary 
Loan Contract without the prior approval of the PHA as 
to the eligibility and amount of such payments. No part

Exhibit 4



44

of any funds made available under this Preliminary Loan 
Contract subsequent to the initial advance shall be used 
for the payment of any items not covered by a Certificate 
of Purposes as provided in Section 7 (b) hereof.

16. The preliminary surveys and planning carried out 
by the Local Authority pursuant to this Preliminary Loan 
Contract shall be limited to low-rent housing projects, (a) 
which will comply with the cost limitations of Section 15(5) 
of the Act, (b) in connection with which the equivalent 
elimination provisions of Section 10(a) of the Act will be 
complied with, and (c) which will comply with all other 
applicable provisions of the Act.

17. The Local Authority, in connection with any low- 
rent housing project to be developed pursuant to the afore­
said Program Reservation, agrees as follows:

(a) The Local Authority will itself pay, and in all 
contracts entered into by it shall require that there 
shall be paid, to all architects, technical engineers, 
draftsmen, and technicians employed in prelimi­
nary surveys and planning or in the development 
of such projects, and to all maintenance laborers 
and mechanics employed in the administration of 
such projects, not less than the salaries or wages 
prevailing in the locality of such project, as such 
prevailing salaries or wages are determined or 
adopted (subsequent to determination under ap­
plicable State or local law) by the P H A ;

(b) The Local Authority will itself pay, and in all 
contracts entered into by it shall require that 
there shall be paid, to all laborers and mechanics 
employed in preliminary surveys and planning or 
in the development of such projects, not less than 
the wages prevailing in the locality of such project,

Exhibit 4



45

as predetermined either (i) by the Secretary of 
Labor pursuant to the Davis-Baeon Act (49 Stat. 
1011), or (ii) under applicable State laws, which­
ever wages are the higher;

(c) The Local Authority will require that architects, 
technical engineers, draftsmen, technicians, labor­
ers and mechanics, employed in the preliminary 
surveys and planning and in the development of 
such projects shall not be permitted to work 
thereon more than eight hours per day nor more 
than forty hours per week, unless such employees 
be paid at least- time and a half for hours of work 
in excess of the limits prescribed above. The said 
limits shall not apply to executive, supervisory, 
or administrative employees, as such. If there is 
a State or local law applicable to any or all of the 
foregoing classes of employees prescribing hours 
of work not in excess of the hours above pre­
scribed, the Local Authority will require compli­
ance with the State or local laws applicable to such 
class or classes, instead of compliance with the 
above requirements;

(d) In cases of underpayment of wages by any con­
tractor or subcontractor to persons employed on 
work covered by this Preliminary Loan Contract, 
the Local Authority shall withhold from the con­
tractor out of payments due, an amount sufficient 
to pay to such persons the difference between the 
wages required to be paid under the contract an'd 
the wages actually paid such employees for the 
total number of hours worked; provided, that the 
Local Authority shall not be considered in default 
under this sub-section (d) if it has in good faith 
made payments to the contractor in reliance upon 
the affidavit or certificate of the contractor as to

Exhibit 4



46

the payment of such wages to such employees. The 
amounts withheld shall be disbursed by the Local 
Authority for and on account of the contractor to 
the respective employees to whom they are due;

(e) The Local Authority will comply in all respects 
with the provisions of the so-called Kick-Back 
Statute (PL-324, Seventy-Third Congress, ap­
proved June 13, 1934), and the Regulations issued 
from time to time pursuant thereto; and will in­
corporate or require to be incorporated in every 
construction contract in connection with the proj­
ects the applicable provisions of said Statute and 
said Regulations;

(f) The Local Authority will not discriminate against 
any employee or applicant for employment be­
cause of race, creed, color, or national origin; and 
will incorporate or require to be incorporated the 
foregoing provision in every contract made by it 
in connection with the preliminary surveys and 
planning, the development, and the administra­
tion of such projects, except in contracts or sub­
contracts for standard commercial supplies or for 
raw material;

(g) The Local Authority will require that only such 
unmanufactured articles, materials and supplies 
as have been mined or produced in the United 
States of America, and that only such manufac­
tured articles, materials and supplies as have been 
manufactured in the United States of America 
substantially all from articles, materials or sup­
plies mined, produced or manufactured, as the 
case may be, in the United States of America,

Exhibit 4



47

shall be used in the development of the projects; 
provided, however, that if the use of domestic 
articles, materials or supplies is impracticable, or 
if the cost thereof is determined by the PHA to be 
unreasonable, the Local Authority may, if it so 
desires, request the PHA to waive the foregoing 
restrictions so as to permit the purchase of foreign 
articles, materials or supplies.

18. The Local Authority shall at all times during the 
life of this Contract maintain complete and accurate books 
of account and records documenting all expenditures of 
moneys advanced hereunder, and shall submit such periodic 
reports and statements as may be required by the PHA. 
Such books of account records, reports and statements shall 
be in such form as may be prescribed or approved by the 
PHA. At any time during normal business hours, and as 
often as the PHA shall deem advisable, the PHA shall, 
through any agent or representative designated by it, have 
full and free access to all the books of account and records 
of the Local Authority, including the right to make excerpts 
or transcripts from such books of account and records.

19. Any right or remedy which the PHA may have 
under this Preliminary Loan Contract may be waived in 
writing by the PHA, either with or without the execution of 
a new or supplemental agreement, if, in the judgment of 
the PHA, this Preliminary Loan Contract as modified or 
amended by any such waiver will still conform with the 
terms of the Act.

20. No Member of or Delegate to the Congress of the 
United States of America shall be admitted to any share or 
part of this Contract or to any benefit to arise therefrom.

21. No member of the Local Authority shall participate 
in any decision relating to the projects affecting his per­

Exhibit 4



48

sonal interests or the interests of any corporation, partner­
ship, or association in which he is directly or indirectly in­
terested; nor shall any member, officer, agent, servant, or 
employee of the Local Authority have any interest, direct 
or indirect, in any contract for property, materials, or 
services to be acquired by the Local Authority; nor shall 
the Local Authority enter into any contract for property, 
materials, or services with any former member of the 
Local Authority within one year after he shall have ceased 
to be a member except as may be required by law.

22. No member or officer of the Local Authority shall 
be individually liable on any obligation assumed by the 
Local Authority hereunder.

23. Nothing contained in this Preliminary Loan Con­
tract shall be construed as creating or justifying* any claim 
against the PHA by any third party pursuant to any act or 
omission of the Local Authority, except as specifically 
provided in paragraph 10 of this Contract.

24. Neither the execution of this Preliminary Loan 
Contract, nor any acts in pursuance thereof shall be con­
strued as constituting any legal obligation by the PHA to 
enter into any Annual Contributions Contract in connec­
tion with the low-rent housing projects to which this 
Preliminary Loan Contract applies, it being expressly 
understood that the PHA will, in its sole discretion, deter­
mine whether or not such annual Contributions Contract 
or Contracts shall be entered into.

25. If any provision of this Contract is held invalid, 
the remainder of this Contract shall not be affected thereby, 
if, in the judgment of the PHA, such remainder of this 
Contract would then continue to conform to the terms of 
the Act.

Exhibit 4



49

26. The PHA certifies that the President of the United 
States of America has approved the undertaking by the 
PHA of the loan for which provision is made herein and 
has approved the making of this Contract.

27. The Local Authority certifies that all conditions 
precedent to the valid execution and delivery of this Pre­
liminary Loan Contract on its part have been complied 
with and that all things necessary to constitute this Con­
tract its valid, binding and legal agreement on the terms 
and conditions and for the purposes herein set forth, have 
been done and performed and have happened, and that the 
execution and delivery of this Contract on its part have 
been and are in all respects authorized in accordance with 
law. The PHA similarly certifies with reference to its 
execution and delivery of this Contract.

In witness whereof, the Local Authority and the PHA 
have caused this Preliminary Loan Contract to be duly 
executed and their respective seals to be hereunto affixed 
and attested, all as of the date first above written.

H ousing A uthority of Savannah 
(Name of Local Authority)

By /s /  H erbert L. K ayton 
(Seal.) Affixed Chairman
Attest :

/ s /  W . H. S tillw ell

Secretary

P ublic H ousing Administration 
By /s /  M. B. Satterfield 

(S eal) Affixed Director, Atlanta Field Office
A ttest :

/ s /  Fred A. D onham

Attesting Officer

Exhibit 4



50

Exhibit 5

Form PHA-2171 
Eev. December 1, 1951

ANNUAL CONTRIBUTIONS CONTRACT 

P art One.

THIS AGREEMENT entered into as of the 19th day 
of March, 1952 (herein called the “ Date of This Contract” ), 
by and between the Public Housing Administration (Here­
in called the “ PHA” ), which is administering, in accord­
ance with Reorganization Plan No. 3 of 1947, effective July 
27,1947, the functions of the United States Housing Author­
ity, created in pursuance of the provisions of the United 
States Housing Act of 1937, which act, as amended to the 
Date of This Contract, is herein called the “ Act”, and the 
H ousing A uthority of Savannah (Herein called the “ Local 
Authority” ), which is a body corporate and politic organ­
ized and existing under the laws of the State of Georgia 
(Herein called the ‘‘ State” ) and a “ public housing agency” 
as defined in the Act, W itnesseth :

In consideration of the mutual covenants hereinafter set 
forth, the parties hereto do agree, as follows:

Sec. 1. Project, Cooperation Agreement, and Maximum 
Limitations

(A) The Local Authority is undertaking the development 
and operation of low-rent housing as defined in the Act, as 
follows:



Exhibit 5

Project
Approximate 
Number of Estimated Total

Maximum Cost of 
Construction and

No. Dwelling Units Development Cost Equipment per Boom
GA-2-4 250' $2,845,143.00 $1,750.00
GA-2-5 127 1,142,373.00 1,750.00
GA-2-6 86 862,514.00 1,750.00

Total 463 $4,850,030.00

(B) With respect to such low-rent housing and in com­
pliance with Sec. 10(a), Sec. 10(h) and Sec. 15(7) (b) of the 
Act the Local Authority has entered into, and the PHA has 
approved, an agreement or agreements with the governing 
body or bodies of the locality or localities in which such 
housing is or will be situated, as follows:

Public Body Date of Agreement
City of Savannah, Georgia May 6, 1950

Such agreement or agreements collectively are herein called 
the “ Cooperation Agreement” .

(C) The President of the United States approved the 
making of this Contract and the undertaking by the PHA, 
as herein provided, of the loan and annual contributions in 
the amount, at the rates, and on the PHA List or Lists as 
follows:

PHA Loan $2,292,000.00
PHA loan interest rate per annum 2XA% (herein 

called the “ PHA Loan Interest Rate” ).
Maximum contribution percentage 4%% (herein 

called the “ Maximum Contribution Percentage” ).



52

PHA List No. 243, dated July 23, 1951, for Project 
No. GA-2-4; and PHA List No. 205, dated March 
15, 1951, for Projects Nos. GA-2-5, 2-6.

(D) Each propect identified in this Sec. 1 is herein 
called a “ Project” and, if more than one Project is so 
identified, are herein eellectively called the “ Projects”.

Sec. 2. Development Program
Each Project is more fully described in a statement 

(herein called a “ Development Program” ) which has been 
adopted by the Local Authority and approved by the PHA 
to serve as the basis of the development of such Project. 
Each Project including such changes therein (whether in 
the number of dwellings to be provided thereby or other­
wise) as may be made from time to time with the approval 
of the PHA shall be developed and operated by the Local 
Authority in compliance with all provisions of this Con­
tract and all applicable provisions of the Act.

Sec. 3. Development Cost of Project
The Local Authority estimates that the total Develop­

ment Cost of each Project will not exceed the estimated 
total Development Cost therefor as specified in Sec. 1, 
which estimate is approved by the PHA. The respective 
estimates of total Development Cost as specified in Sec. 1, 
or the latest revisions thereof pursuant to the provisions 
of Part Two hereof, are herein called the “ Maximum De­
velopment Cost” of the respective Projects or of all the 
Projects in the aggregate as the context indicates. The 
Local Authority, however, shall complete the development 
of the Projects at the lowest possible cost, and in no event 
at a cost in excess of the aggregate Maximum Development 
Cost therefor.

Exhibit 5



Exhibit 5

Sec. 4. Cost Limits
(A) The cost for construction and equipment of each 

Project (excluding land, demolition, and Nondwelling Fa­
cilities) shall not exceed per room the amount specified for 
such Project in Sec. 1 under the heading “ Maximum Cost 
of Construction and Equipment per Room” and where such 
amount exceeds $1750 for any Project the Public Housing 
Commissioner has found that in the geographical area of 
such Project (1) it is not feasible under the cost limitation 
for construction and equipment (excluding land, demoli­
tion, and Nondwulling Facilities) of not to exceed $1750 
per room as set forth in Section 15(5) of the Act to con­
struct such Project without sacrifice of sound standards of 
construction, design, and livability, and (2) there is an 
acute need for the housing which will be provided by such 
Project. Therefore, and in pursuance of the authorization 
in said Section 15(5) of the Act, the Public Housing Com­
missioner has prescribed such higher cost limitation for 
the construction and equipment (excluding land, demoli­
tion and Nondwelling Facilities) per room for such Project.

(B) The term “ Nondwelling Facilities” as used in this 
Contract includes nondwelling structures, .spaces, and equip­
ment, and site development, improvements and facilities 
located outside building walls (including streets, sidewalks, 
and sanitary, utility, and other facilities, but excluding 
separate heating plant structures, equipment, and distribu­
tion lines).

Sec. 5. Need for Project and Rental Gap
The Local Authority has demonstrated to the satisfac­

tion of the PHA (1) that there is a need for such low-rent 
housing which is not being met by private enterprise, and 
(2) that a gap of at least twenty per centum has been left 
between the upper rental limits for admission to such low- 
rent housing and the lowest rents at which private enter-



54

Exhibit 5
|

prise, unaided by public subsidy, is providing (through 
new construction and available existing structures) a sub­
stantial supply of decent, safe, and sanitary housing 
toward meeting the need of an adequate volume thereof.

Sec. 6. Justification for Project and Financial Assist­
ance by PEA

The development and operation of each Project in ac­
cordance with this Contract will provide decent, safe, and 
sanitary dwellings within the financial reach of families 
who are in the lowest income group and who cannot afford 
to pay enough to cause private enterprise in their locality 
or metropolitan area to build an adequate supply of decent, 
safe, and sanitary dwellings for their use (which families 
are herein called “ Families of Low Income” ), and the pro­
visions of this Contract are adequate to assure that each 
such Project will be developed and operated in compliance 
with all the requirements of the Act. The loan herein pro­
vided is necessary to assist the development of each Project, 
and the annual contributions payable by the PHA in the 
amounts, for the period, and in the manner herein pro­
vided are necessary to achieve, maintain, and assure the 
low-rent character of each such Project.

Sec. 7. Tax Exemption of Project
Under the Constitution and Statutes of the State each 

Project is exempt from all real and personal property 
taxes which may be levied or imposed by the State, city, 
county, or other political subdivisions.

Sec. 8. Loan by PHA
Subject to and in accordance with all the provisions of 

Part Two hereof, and in order to assist the development of 
each Project, the PHA shall lend to the Local Authority



55

an amount not to exceed the PHA Loan specified in Sec. 1. 
Such amount, or the latest revision thereof pursuant to 
the provisions of Part Two hereof, is herein called the 
“ Maximum Loan Commitment” : Provided, That in no
event shall the loan by the PHA exceed ninety per centum 
of the Maximum Development Cost of all the Projects. 
Such loan shall bear interest at the PHA Loan Interest 
Rate.

Sec. 9. Annual Contributions by PHA
Subject to and in accordance with all the provisions of 

Part Two hereof, and in order to assist in achieving and 
maintaining the low-rent character of each Project, the 
PHA shall make annual contributions to the Local Au­
thority in the amount and for the period specified in Part 
Two.

Sec. 10. Bonds and Additional Projects
The Local Authority shall authorize, issue, and sell to 

others than the PHA, obligations of the type described in 
Sec. 411 (herein called the “ Bonds” ), all as prescribed in 
Part Two of this Contract, with respect to the Projects 
and to any other low-rent housing project or projects 
undertaken by the Local Authority with financial assist­
ance of the PHA which, pursuant to mutual agreement of 
the Local Authority and the PHA, may be incorporated 
under the terms of this Contract.

Sec. 11. Regulations as to Citizenship of Tenants
The Local Authority has adopted a resolution contain­

ing regulations prohibiting as a tenant of any Project by 
rental or occupancy any person other than a citizen of the 
United States, except that such prohibition does not apply 
in the case of the family of any Serviceman or the family

Exhibit 5



56

of any Veteran who has been discharged (other than dis­
honorably) from, or the family of any Serviceman who died 
in, the armed forces of the United States within four years 
prior to the date of application for admission to such 
Project. Said resolution shall not be altered, modified, 
amended, or rescinded except to the extent and when sub­
sequent changes in applicable Federal statutes modify or 
relax the requirement for such regulations.

Sec. 12. National Emergency
(A) The Local Authority shall, (1) during any period 

of national emergency in connection with national defense 
as declared by the President of the United States or any 
period during which a state of war between the United 
States and any foreign power exists, and (2) upon either a 
determination by the President of the United States that 
there is an acute shortage of housing in the locality of any 
Project which impedes the national defense and that the 
necessary housing would not otherwise be provided when 
needed for persons engaged in national defense activities, 
or a determination by the President of the United States 
that there is an acute need for housing in the locality of 
any Project to assure the availability of dwellings for per­
sons engaged in national defense activities, to the maxi­
mum extent authorized or permitted under applicable Fed­
eral and State laws then in effect, operate such Project to 
provide housing for persons engaged in national defense 
activities.

(B) If, by reason of any such emergency or state of 
war, the construction of any Project is either prohibited 
or stopped prior to the delivery of Bonds and it appears 
that such prohibition or stoppage of construction will con­
tinue for an extended period, the Local Authority shall 
refrain from the award of any further Construction or 
Equipment Contracts, shall take in respect to Construction 
or Equipment Contracts already let whatever action is 
reasonably necessary to conserve monies and assets (in-

Exhibit 5



57

eluding termination or settlement of any outstanding Con­
struction or Equipment Contracts), and shall take all other 
reasonable actions necessary to minimize overhead ex­
penses and losses. Any monies in the General Fund for the 
development of such Project in excess of the amounts 
needed therefor under the aforesaid limitations shall, upon 
request of the PHA, be applied to the payment of any 
Advance Notes or Temporary Notes issued in connection 
with such Project, and the PHA shall not be obligated to 
make any further advances with respect to work under Con­
struction or Equipment Contracts until such prohibition or 
stoppage is ended. Nothing in this subsection (B) shall be 
construed as prohibiting the Local Authority from pro­
ceeding with site acquisition and the completion of plans, 
drawings, specifications, and related documents.

Sec. 13. Incorporation of Part Two in this Contract
For convenience, various provisions of this annual con­

tributions contract are embodied in a separate document 
designated “ Terms and Conditions” being Form No. PHA 
2172, Rev. Sept. 1, 1951, which (as modified by Sec. 14) 
constitutes Part Two of this Contract. The provisions, 
terms, covenants, and conditions embodied in Part Two 
are binding upon the parties hereto, with the same effect as 
if set forth in full in this Part One of this Contract. The 
term “ Contract” as used herein shall mean this annual 
contributions contract, consisting of this Part One thereof 
and the Terms and Conditions constituting Part Two 
thereof.

Exhibit 5

Sec. 14. Additional Provisions cmd Modifications
The following additional provisions, and modifications 

of either Part One or Part Two, as hereinafter set forth 
constitute the only modifications to this contract :

(A) The Terms and Conditions constituting Part Two 
hereof are hereby modified in the following respect:



58

Sec. 206, subsection (C), is modified to read as follows:
“ (C) ‘Serviceman’ as used in this Contract shall 

mean a person in the active military or naval service 
of the United States who has served therein at any 
time (i) on or after September 16, 1940', and prior to 
July 26, 1947, (ii) on or after April 6, 1917, and 
prior to November 11, 1918, or (iii) on or after 
June 27, 1950, and prior to such date thereafter as 
shall be determined by the President. ‘Veterans’ as 
used in this Contract shall mean a person who has 
served in the active military or naval service of the 
United States at any time (i) on or after September 
16, 1940, and prior to July 26, 1947, (ii) on or after 
April 6, 1917, and prior to November 11, 1918, or 
(iii) on or after June 27, 1950, and prior to such 
date thereafter as shall be determined by the Presi­
dent, and who shall have been discharged or released 
therefrom under conditions other than dishonor­
able.”

(B) The Annual Contributions Contract entered into 
as of April 17, 1951, between the Local Authority and the 
PHA (which Contract, together with any supplements 
thereto or amendments or waivers of any provisions thereof 
are herein collectively called the “ Original Contract” ) is 
hereby amended and consolidated into this Contract which 
shall henceforth govern the development and operation of 
each Project. All actions and proceedings properly had, 
taken, or performed pursuant to the Original Contract shall 
be deemed to have been had, taken, and performed and shall 
be continued under this Contract.

Sec. 15. Performance of Conditions Precedent to Vali­
dity of this Contract

The Local Authority certifies that all conditions prece­
dent to the valid execution and delivery of this Contract on

Exhibit 5



59

its  part have been complied with, that all things necessary 
to constitute this Contract its valid, binding, and legal 
agreement on the terms and conditions and for the pur­
poses herein set forth have been done and have occurred, 
and that the execution and delivery of this Contract on 
its part have been and are in all respects duly authorized 
in accordance with law. The PHA similarly certifies with 
reference to its own execution and delivery of this Contract.

I n witness whereof, The Local Authority and the PHA 
have caused this Contract to be executed in their respective 
names and have caused their respective seals to be hereunto 
affixed and attested as of the Date of This Contract first 
above written.

H ousing A uthority of Savannah 
By / s /  H erbert L. Taylor 

Chairman
(Seal) Affixed 
A ttest :

/ s /  W. H. Stillwell
Secretary

P ublic H ousing A dministration 
By /s /  M. B. Satterfield 

Director, Atlanta Field Office
(Seal) Affixed 
A ttest :

/ s /  R alph 0. Chester
Attesting Officer

Exhibit 5



Exhibit 6

Form No. PHA-2172

(See opposite 1PF* )



61



62

AMENDATORY AGREEMENT NO. 1
TO

ANNUAL CONTRIBUTIONS CONTRACT
This Amendatory Agreement entered into as of the 

24th day of July, 1952, by and between the Public Housing 
Administration (herein called the “ PHA” ) and the H ous­
ing A uthority oe Savannah (herein called the “ Local 
Authority ” ), W itnesseth :

In consideration of the mutual covenants hereinafter 
and in the Annual Contributions Contract set forth the par­
ties do agree as follows:

The Annual Contributions Contract entered into as of 
the 19th day of March, 1952, between the parties shall be 
and the same hereby is amended by deleting from Part One 
thereof the amount of the PHA loan which is specified as 
“ $2,292,000.00”  and by inserting in lieu thereof the amount 
of “ $2,792,000.00” .

In witness whereof the parties hereto have caused this 
amendatory agreement to be executed in their respective 
names and their respective seals to be hereunto impressed 
or affixed and attested as of the date and year first above 
written.

H ousing A uthority of Savannah 
By /S /  H erbert L. K ayton 

(seal) Affixed Chairman
Attest:

/ S /  W. H. Stillwell
Secretary

P ublic H ousing Administration 
/ s /  A. R. H anson

(seal) Affixed Director, Atlanta Field Office
Attest:

/ S /  Ralph C. Chester
Attesting Officer

Exhibit 7



63

Transcript of Hearing

M otion  F or S ummary J udgment

“ Mr. MacGuineas: * * * In the first place, we suggest 
that the action is premature * * # ” (p. 5).

“ The Court: Is there any announcement as to the
nature of the project?” (p. 5).

“ Mr. MacGuineas: Yes * * * ” (p. 5).
#  #  #

“ Mr. MacGuineas: * * # That local authority in Savan­
nah has stated that [sic] proposes to have this project 
when completed occupied exclusively by white people” 
(pp. 5-6).

“ The Court: I do not see that this action is premature. 
This is in the nature of an action for declaratory judg­
ment” (p. 6).

#  *  *

‘ ‘ Mr. MacGuineas: As to that, since the other party to
the contract is not before the Court, to wit, the Savannah 
Authority, we submit there is a lack of indispensable party”
(p. 11).

# .&  -V-w  'A'

“ The Court: I am not going to hold the state agency 
as an indispensable party” (p. 11).