The developer would have the option of either razing theexisting properties and replacing them with a mix of new shelterand commercial development or renovating and improving all sixmultifamily buildings. The structures house 238 family tenants inan estimated 600 units.

The developer would allocate at least 40% of the units to publichousing tenants. The remainder would be rented at current marketrates. One property especially, the 100-unit Lake Monroe Terraceapartments, is in rickety condition and has long needed repairs.<p<In a published statement, Hudson says he feels a privatedeveloper could quickly raise about $7 million and do the LakeMonroe Terrace job in eight months compared to his agency whichwould take 10 years to complete the job because of bureaucraticFederal red tape. Placing the six public housing properties underprivate ownership would put the complexes on the tax rolls and makethem a revenue-maker for the city, Hudson says. Under HUD, theproperties are exempt from local taxes.

But convincing the tenants of such a plan will be a difficultassignment, the Housing Authority official concedes.