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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. LIGHT-UR COOK-OUT SAVE $ lO. Now’s the time to light up, cook out and enjoy great patio parties. Right now your Gas Company is offering a $lO savings when you buy a Gas light and grill combination... or two or more Gas lights. Gas grills give you great barbecue flavor, easy rotisserie cooking for roasts, hams, turkeys, etc. plus high, low and medium temperature control. Say goodbye to messy charcoal and lighter fluids. SMC M % I “■" ' • 8.4 ■r ; mH I taat vW IK? rW li k -ar W® ) 4 if - Wis - 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 Gas lights add real charm and safety to patios, walks and driveways. See your Gas Company now and select the grill or light of your choice. Terms are available. Have the last word. Insist on gas. 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