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URBAN LEAGUE
MINORITY ENTREPRENEURSHIP
INTRODUCTION
As in most communities across this nation, Augusta’s black
owned and operated business enjoy only a marginal proportion of
the total-economic base in the thriving industrial community of
Augusta. Our audit shows that 98 percent of the black businesses
in Augusta are small neighborhood proprietorships, commonly
known as “Mon and Pop” operations. Skilled entrepreneurial and
investment-managerial concerns, such as insurance companies, a
black owned and operated radio station, undertaking
establishments, furniture stores, and contractors are the major
means of enabling money spent by the black community to
remain in the the black community. These business enterprises
comprise only a small percentage of the total black businesses in
Augusta.
The majority of black-owned businesses in Augusta is in the
service-retail area, e.g., barber and beauty shops, grocery stores,
and small restaurants. There are several businesses that require
relatively large amounts of capital, e.g., franchise operations such
as fast food and service stations, but most black businesses in
Augusta are under-capitalized and exist on a day-to-day kind of
basis, i.e., shoe shine parlors, barber shops, and beauty parlors. As
an example of the marginality of black businesses and their
exclusion from the la r ?e consumer market, we note that black
entrepreneurs own 85.8 percent of the shoe shine parlors and
only 1.9 percent of the real estate companies. (*1) (See Table
15). This statistic in and of itself underscores the marginal
position of black entrepreneurs in the total business community
of Augusta.
(* 1) 1969 City Directory, R.T. Polk & Co., Publishers; Minority
Business Directory of Augusta, Progress Association for
Economic Development, Inc., Publishers.
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FINDINGS
Os the 158 black-owned businesses cited in this audit, (*2) 59
percent fell within the following categories: (1) Service outlets
beauty, barber, and shoe shine parlors; (2) Retail-grocery stores
and small restaurants.
The number of black businesses in Augusta that rank in the top
10 percent of the total Augusta business community is 45. The
aggregate percentage of black businesses in this category is 24.6
of the total Augusta businesses in these categories, a parameter
which is an indice of the under-capitalization and lack of
resources within the black business community of Augusta. (*4)
The Pilgrim Life Insurance Company, home based in Augusta
and operative in four states (Georgia, Alabama, Florida, and
South Carolina), constitutes the largest black business in the area
and is also the largest black employer with reported assets of
approximately sl4-Million. (* 1) Atlanta Life Insurance and Afro
American Life Insurance Company also operate branches in
Augusta, providing the black insurance industry with, by far, the
largest economic and revenue-producing base of operative
business concerns in the Augusta black community.
(*1) Pilgrim Life Insurance Company, 72nd Annual Financial
Statement, December, 1969
(*2) See Table 16
(*3)ibid
(*4) See Table 18
HOUSING
BACKGROUND
The difficulties encountered in attempting to document
housing conditions in the Augusta area, for the purposes of this
community audit, are staggering. There are at least three planning
agencies responsible for collecting data and conducting studies in
the region; nevertheless, conversations with officials of a number
of agencies indicate that no detailed study of housing conditions
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in the city has been conducted since 1937.
Attempted use of the 1960 Housing Census Data for Georgia,
compiled by the Department of Commerce/Bureau of the Census,
proved confusing since data on nonwhite households varied
between tables used for evaluation. In addition, recommendations
from various local professional contacts indicated that 1960
Housing Census Data for the Augusta-Richmond County area
was, to all intents and purposes, “worthless” because of “gross
inaccuracies”. Random interviews suggest that the 1970 Census
effort in the Augusta area may be even less accurate than data
resulting from the 1960 Census.
It seems apparent that inaccuracies tend to work to the
detriment of black residents of this geographic area, both in terms
of their inability to participate in the Census process -a
politically controlled “pork barrel” exercise -- and the fact that
conditions in areas of black residential concentration suffer from
the grossest inaccuracies of data collection. In spite of these
inaccuracies, a pattern of resultant hardships in non-white
statistics is obvious. Using the criteria of “soundness and all
plumbing fixtures”, the City of Augusta housed only 34.96
percent of its 5,412 non-white renters in adequate rental units.
(*1) In the entire Augusta SMSA (Richmond and Aiken
Counties) these criteria identified only 23.6 percent of the 9,202
(* 1) non-white renters as satisfactorily housed. Among non-white
owner-occupants, the percentages of units listed as sound with all
plumbing facilities in Augusta and the SMSA were 56.53 percent
and 46.82 percent (*2), respectively.
Thus, it is apparent that non-white owner-occupants provide a
better standard of habitation for themselves than is provided their
counterparts in rental units -by a substantial margin of
difference. There are hundreds of acres of substandard,
dilapidated, and deteriorating housing units allowed to molder in
areas of wealth-producing poverty. Ineffective and low-priority
health and building code enforcement programs contribute to the
perpetuation of these living conditions. The combination of
inaccessible financing and high land costs with a lack of
affirmative sensitive redevelopment and planning efforts prevents
low-income and black participation in rehabilitative efforts.
The result of this lack of affirmative housing activity is
exemplified by the transitional nature of neighborhood racial
patterns in the city and surrounding areas. Both the “hill” area
and sections of Highland Park have undergone change from white
to black residency patterns in the last several years. The tendency
for whites to flee from black neighbors and self-fulfilling
prophecy of declining property values are magnified and
enhanced by the failure of local Augusta interests to re-educate
negative attitudes by the example of a rebuilding effort.
Sufficient capital resources are available in the community for
industrial expansion, commercial, and public-use urban renewal
programs, as well as highways and public works projects;
therefore, it must be assumed that the failure to invest in
rehousing and rehabilitation of low-income, black neighborhoods
is, as alleged by several local officials, deliberate, if not contrived.
(* 1) 1960 Census of Housing ■ State of Georgia: U.S. Bureau of
Census.
(*1) ibid
(*2) ibid
PUBLIC HOUSING
The Augusta Housing Authority was the first Georgia
Authority incorporated under the Housing Act of 1937. Since its
inception it has been responsible for the production of 1,957
units of housing for low-income families and individuals which
are currently under management. The Authority recently has
accepted bids on an additional 500 units in three projects. As of
August 10, 1970, there were approximately 1,040 (*1) families
on the Augusta Housing Authority’s waiting list. (Source:
Personal interview with the Augusta Housing Authority’s
officials).
During conversation with a number of Augusta Housing
Authority residents, several points were raised which indicate, at
the least, major communications problems between the
management and tenants. Among concerns raised were questions
concerning the charge to residents for mowing grass • $3.00 per
occasion. Scheduled repainting of units • one person said their
unit had been painted only once in seven years while another
could not remember repainting in more than eight years. Another
tenant observation centered on the lack of concern for project
occupants in that the project manager rarely “visits” around the
project; moreover, the Augusta Housing Authority Director had
never been seen by some occupants of one project. Additional
investigation has shown that decisions concerning special
maintenance costs as lawn mowing are left to project managers to
determine.
(*1) Personal interview with Augusta Housing Authority Officials
as of August 10, 1970.
Such a practice allows too many opportunities for misuse ot
decision-making power.
Mr. Madden Reid, Executive Director and Secretary and
Secretary of the Board of Commissioners, indicated in an
interview that the charge of infrequent visits was not true, and he
related at some length the fears which both he and his wife shared
as a result of his visits to project areas.
Tenant organizations’ activities have caused the Executive
Director of the Augusta Housing Authority to question the
necessity of such groups since the Agency has its own resident
councils at the project site. Mr. Reid takes strong exception to
the organizations calling themselves “Improvement Committees”.
His indication that such terminology appeals to people’s “Baser
instincts” seems unreasonably parternalistic.
None of the existing eight public housing projects in Augusta is
desegregated. Only one of the three proposed projects is in an
area which is not clearly racially identifiable. There is no
affirmative plan or policy in force which will achieve
desegregation and the present placement system offers little hope
in this regard. The present placement system allows for refusal by
potential tenants and individuals suggest that individuals may be
“coached” to anticipate the difficulties associated with changing
the present practice. Black Augustans raised concerns when
elderly housing projects were constructed because of the apparent
racial patterns established by the Housing Authority. Though it
appears that a large percentage of elderly poor in Augusta are
black (38 percent of all persons over 60 are non-white according
to the 1960 Census), the “white” highrise for the elderly has 256
units while the “black” project includes 100 units for elderly
people. Located in the “white” elderly highrise, the executive
offices are rather obscure to the casual observer. After receiving
instructions from the project receptionist, visitors must proceed
past a door marked “Maintenance” and through a supply,
mechanical,and storage area before achieving the unmarked office
area. Such a procedure appears unwieldy for poor blacks after
having to traverse the bulldozed urban renewal land of the
Medical College complex which has been, created between the
black and white areas and would seem to inhibit communication
between black residents (who occupy 74 percent of all public
housing units) and the management. The total occupancy ratio of
black/white individuals in the ARCHA is 85/15.
The accompanying map shows the location of projects
operated by the Augusta Housing Authority.
CODE ENFORCEMENT
A policy statement entitled “Description of Existing Program
was prepared by the Richmond County and City of Augusta
Building Inspection Departments to describe and differentiate the
News—Review - April 22, 197 F -
various areas of activity and responsibility of agencies involved in
code enforcement. Unfortuantely, this statement ‘does not
actually deal with the problems that are inherent in code
enforcement and building inspection work in the City of Augusta
and Richmond County.
In discussions with two Minimum Housing Division staff
persons in the Augusta Building Inspection Deparmtent, we
learned that areas such as Twiggs Street and the proposed
Calhoun Expressway right of way are rated lowest in priority for
inspection (inspection departments will respond only to specific
complaints and condemnation orders are not enforced). Reasons
given for neglecting such areas of desperate need include an
informal policy not to displace families for whom there are no
other resources. Some families do not have financial resources for
making necessary improvements. Private citizens have implied
that rental rates would increase beyond the economic capabilities
of occupants or units might be demolished (with no alternate
housing available to evicted families) if the codes were enforced.
Actually, these informal policies all combine to deprive the
resident of decent, safe, and sanitary housing while insuring that
property can eventually be aggregated at minimal expenses and
physical exertion under a variety of programs. The failure to
demand upgrading of housing in black and transitional areas by
departments of local government charged with such responsibility
not only allows an open wound to fester with discontent, but also
guarantees a combination of temporary availability of landlord
profits with the opportunity for acquisition and redevelopment at
a minimum cost. Attempts to document the aforementioned
process resulted in the censure of one inspector by department
superiors who apparently thought he had shared too much
information with local public interest groups and individuals.
According to one interview with an inspection, from April,
1969, through April, 1970, the Augusta Inspection Department
handled 3,916 inspections and reinspections of 1,720 dwelling
units. Os 1,549 code violations enumerated, 740 violations in 553
structures were corrected, while 148 dwellings were demolished.
The Richmond County Health Department carried out code
enforcement in the City of Augusta from 1955 until the Fall of
1967. Two inspectors had been employed to carry out the work.
When the Department of Housing and Urban Development
required the city to perform its own function, the complexities
surrounding the shift of responsibility took more than eight
months, during which time no code enforcement was done by
either political entity according to reports in the Augusta Herald
in June, 1968.
The Code Enforcement staff has access to maps and planning
data that is used by the State Highway Department and public
and private planning agencies, but refused to organizations and
individuals concerned about governmental activities affecting
their neighborhoods. It is apparent that departmental priorities
are established without real citizen input though carefully
selected advisory committees have been created throughout the
city/county governmental structures.
CONVENTIONAL HOUSING ACTIVITY
According to a Federal Housing Authority survey ot unsold
new houses published by the Department of Housing and Urban
Development on January 1, 1970, in twenty-two subdivisions
(totaling 771 single-family homes) only 16 percent (112 units) ot
the 718 speculative homes completed were unsold at the survey
date. None of the homes had been “on the market” more than
twelve months and only seven units had remained unsold more
than six mouths. As of January 1, 1970, fifty-live homes were
listed as under construction by the Federal Housing Authority
and twelve of these units had already been sold. Thus, the Federal
Housing Administration’s survey indicates an available new
construction inventory of homes i.; the Augusta/Gcorgia SMSA
(not including Augusta/South Carolina SMSA) of only 155 units
An additional ninety-two units available were listed for the South
Carolina part of the SMSA.
According to a survey sponsored by Charter investment
Development Company (CID) ot Jacksonville, Florida, and
reported in the Augusta C .ronicle on August 16, 1970, Augusta
had a rental occupancy rate of 97 percent and would construct
only 300 of the projected twelve-mouth need of 700 additional
apartment units.
The “Analysis of Augusta, Georgia - South Carolina Housing
Market as of October 1, 1969”, published by the Federal Housing
Administration/Department of Housing and Urban Development
in February, 1970, lists 46,500 occupied units in Richmond
County divided into 26,500 (57 percent) (* 1) owner-occupied
and 20,000 (43 percent) renter-occupied housing units. The
vacancy characteristics of 48,500 total housing (SIC) are listed as
2,000 vacant Units available, 400 (.08 percent) for sale, 700(1.4
percent) lor rent, and 300 (1.9 percent) other vacant units, as
estimated by the Department of Housing and Urban
Development/Federal Housing Administration’s Housing Market
Analyst.
Total housing units estimated as annual demand from October
1, 1969, to October 1, 1971, are broken down in the federal
Housing Administration’s survey for Richmond County as 600
single-family and 200 multi-family unsubsidized units and 295
single-family and 1,225 multi-family subsidized units not
including the substantial demand which exists among families
eligible for public housing.
Bell Air Hills is an example of private residential development
accomplished by blacks. Pioneers, incorporated has subdivided
and sold 60 percent of 512 lots on a 373-acre tract near Fort
Gordon in Richmond County. Difficulty in achieving favorable
acceptance for insurance from the Federal Housing
Administration or the Veterans Administration for a protracted
time span has inhibited construction and difficulties encountered
in negotiations with county officials regarding roads and paving
have added to the burdens of the developers.
A report (*1) from the Division of Research and Statistics,
Federal Housing Administration, Washington, D.C. indicates that
4,340 single-family homes were covered by FHA insurance as of
March 31, 1970, by program as follows:
The Federal Housing Administration’s insuring activities in
Richmond County through March, 1970, totaled 8,647 single
home policies (approximately 17 percent of all housing units in
the county). In addition, multi-family units insured by the
Federal Housing Administration over the years amount to an
additional 2,045 units listed by program as follows:
There are approximately 39,969 (*1) families eligible for
subsidized housing because of income in Richmond County. Only
97 unit -of Section 235 housing (*2) and 1,957 units of public
housing (*3) are presently available. The failure to use subsidy
programs in housing has been further complicated by the Federal
Housing Administration’s use of their latest Housing Market
Analysis in the Augusta SMSA (*4). Findings in this report have
been used to support decisions by the local Federal Housing
Administration’s insuring office to refuse such projects as
unnecessary. The Federal Housing Administration s presentation
to the local groups have allegedly indicated that a surplus of
housing exists in the community. The Bureau of Public Roads’
officials do not agree, however, and the conflict of “findings” has
stymied development of at least one highway program over the
issue of insufficient relocation housing.
PART 5 OF
URBAN LEAGUE REPORT
NEXT WEEK
Page 3