Atlanta Housing and Integral Group End Eight-Year Legal Dispute
Atlanta Housing and Integral Group have finally ended their long-standing legal dispute over land transactions, opening up four key properties for redevelopment. This marks the end of an eight-year feud between the local developer and the city’s housing authority regarding the value of and development rights to about 88 acres spanning four properties within the city initially owned by Atlanta Housing.
Details of The Resolution
Integral Group, along with its partner companies, constructed housing complexes on land initially held by Atlanta Housing Authority. These included two developments located in and near Sweet Auburn, one in West End, and another in South Atlanta. The developer last week declared a settlement with Atlanta Housing that will enable all plans for redevelopment dating back to 1999, previously halted by the court stalemate, to move forward.
The Integral partnership paid the Housing Authority $26 million to settle the matter, effectively buying the authority’s stake in the 88 acres. The private partnerships subsequently relinquished their development rights to 34 acres of the land from their original development blueprint, allowing Atlanta Housing to retain title to these parcels. This leaves the private partnerships with title to the remaining 54 acres.
Federal Grant to Assist with MARTA Transit Development Plan
In another significant development, MARTA (Metropolitan Atlanta Rapid Transit Authority) recently received a federal grant of $750,000 to propel affordable housing and other new terrains in southwest Atlanta neighborhoods, which were historically deprived of investments. This includes major changes by the Oakland City MARTA station on the South line.
The grant, awarded by the Federal Transit Administration (FTA), will be used to realize MARTA’s expansive vision for transit-oriented development along the planned Campbellton Road bus rapid transit line, earmarked for completion by 2028. Notably, this grant will aid MARTA in crafting strategies to combat food insecurity, affordable housing, homelessness, economic development, education, greenspace, stormwater management, and transit accessibility.
Habitat for Humanity Awarded Federal Funding
Habitat for Humanity based in Atlanta has received $2 million in federal funding to construct 20 new homes just north of the airport. This funding comes as part of the budget appropriations package that was passed by Congress in March. It kickstarts the second phase of the Browns Mill Village project managed by Habitat, which will see a total creation of 32 new homes. The first phase of this project, comprising 139 homes, is expected to be completed next year.
Sweet Auburn ‘Co-Living’ Project
Another intriguing project is materializing in Sweet Auburn, where a ‘co-living’ model of shared apartments is being touted as an affordable option in an expensive housing market. Aimed at college students and young professionals, renters can lease bedrooms in shared apartments for around $1,400 per month. The duration of leases varies from three months up to a year.
Wall Street’s Influence on Atlanta’s Housing Market Continues
The housing market in Atlanta continues to attract interest from Wall Street investors. Investment funds have targeted Atlanta as one of the top national housing markets since the 2008 housing crisis. The city’s single-family housing market is largely owned by institutional investors, revealing the extent to which powerful corporate landlords have established their foothold in the area.
Three corporate landlords alone own just over 10% of Atlanta’s single-family rental market—eclipsing 19,000 homes, as recent research from Georgia State University and Rutgers University shows.
Despite growing concern, the political will to regulate powerful corporate landlords appears insufficient at both state and national level to stem the tide. Meanwhile, housing experts and lawmakers continue to explore strategies for limiting home purchases and increasing transparency from private equity and hedge funds involved in the real estate market.
