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Box 22, Folder 18, Document 1

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  • Title: Box 22, Folder 18, Document 1
  • Text: ot The Department of Housing and Urban Development and The Office of Economic Opportunity CONFERENCE ON HOUSING FOR, THE POOR May 23-24, 1966 Washington Hilton Hotel Washington, D.C. Agenda for CONFERENCE ON HOUSING FOR ‘'TIll: POOR Department of Housing and Urban Development and Office of Economic Opportunity May 23-24, 1966 Washington, D. C. Purpose: The purpose of this Conference is to evaluate the feasibility of providing several million additional standard housing units within the next five years, at prices the poor can afford. We are seeking from this Conference (1) a summary of what we do and do not know about how the poor are housed, in physical, economic and social terms; and (2) identification of alternative programs or combinations of programs and implementation strategies, that might make decent housing available for the several million poor households that would otherwise occupy substandard or overcrowded units by 1970. Program Monday, May 23, 1966 9:00 a.m. Opening Remarks Sargent Shriver, Director Office of Economic Opportunity Robert C. Wood, Under Secretary Dept. Housing & Urban Develop. 9:15 a.m. Conference Procedures Dr. Morton J. Schussheim Director, Office of Program Policy Dept. Housing & Urban Develop. Mr. Alvin L. Schorr, Deputy Chief, Research & Plans Office of Economic Opportunity 9:30 a.m. Statement of Problems and Professor Charles Abrams Its Dimensions Columbia University (The number of units and poor people in need of better housing} the extent to which rehabilitation and/or clearance are required; the costs involved; present locations of substandard units; composition of occupants by race, age, size and family composition; the national goal.) , 11:00 a.m. Social Issues Professor Nathan Glazer University of California (The questions of deghettoizing the poor and particularly the nonwhite poor; the supplemental educational, counseling and back-up services required; the problems of a means test and establishing priority criteria; the attitudes of poor and non-poor to this housing; the difficulties and oppor- © tunities of relocation. Should standards be reduced, e.g. no air conditioning; room sharing; smaller room size; etc...) 1:00 p.m. LUNCH Monday, May 23, 1966 (Cont'd) 5 2:30 - 5:00 Tuesday, May 24, Technological and Land Use Issues Richard J. Canavan National Association of Homebuilders (The type of housing required and its location; the availability of land; architectural and city planning concerns, the technological problems and opportunities of a large-scale building and rebuilding program; the abilities of existing or proposed institutions to implement the program; prospects for cost reduction.) 9:30 a.m. 12:00 2:00 =- 4:00 1966 Economic Issues Professor Chester Rapkin University of Pennsylvania (Alternative means of financing the program; the a effect on the economy of a multi-billion dollar program; the effect on the total housing industry and construction costs; acceptable standards of Space and quality; the effect on the values and condition of existing housing and neighborhoods; efficiencies that might result from a reevaluation of the economics of the housing industry.) LUNCH Program Issues Dr. Louis Winnick Public Affairs Program The Ford Foundation (The types of programs to meet the objective; possible expansion or redirection of existing programs and the invention of new kinds of programs; possible number of units to be developed; the phasing and possible mix of programs over a several-year period.) List of Invited Participants Conference on Housing for the Poor Mr. Charles Abrams Professor of City Planning Columbia University Mrs. Ruth Atkins Community Representatives Advisory Council Office of Economic Opportunity Mr. Richard J. Canavan Staff Vice President Builder Services Division National Association of Homebuilders Mr. Albert M, Cole President, Reynolds Metals Development Corporation Dr. Robert Dentler ' Center for Urban Education Mr. John Eberhardt National Bureau of Standards Professor Bernard Frieden Department of City and Regional Planning Massachusetts Institute of Technology Mr. Robert Gladstone, President Robert Gladstone and Associates Professor Nathan Glazer University of California Dr. William G. Grigsby Institute for Environmental Studies University of Pennsylvania Mr. Nathaniel Keith Consultant Dean Burnham Kelly College of Architecture Cornell University Mr. Saul Klaman Director of Research National Association of Mutual Savings Banks Mr. Arthur Levin Potomac Institute Honorable Sherman Maisel Board of Governors of the Federal Reserve System Honorable Arthur Okun, Member Council of Economic Advisers Professor Chester Rapkin Institute for Environmental Studies University of Pennsylvania Mr. Nathaniel H. Rogg Executive Vice President National Association of Homebuilders Dr. John R. Seeley Chairman, Department of Saciology Brandeis University Mr. Miles Stanley National Advisory Council Office of Economic Opportunity Dr. Louis Winnick Public Affairs Program The Ford Foundation Housing Poor Families . The Problem. A program to house all the nation's poor in decent onstage at Sante ‘thay can afford contains two distinguishable elements: 1) how to improve the housing conditions of those presently living in sub- standard quarters; and 2) how to lessen the financial burden of those who live in standard quarters at the price of devoting an excessive burden of chase income for housing. OEO has estimated that upwards of 4 million poor families and poor unrelated individuals in 1964 lived in housing that was dilapidated, lacked plumbing facilities, or was overcrowded = The number who overpay for standard housing is harder to estimate but is large. For example, in 1960 rent-income ratios were computed for 5.7 million tandttee with incomes under $3,000. 4.4 million of them were paying 25 percent of their income or more for rent. An additional .5 million were paying be- tween 20 and 25 percent of their incomes. In theory, housing needs of poor people should decline because of anticipated declines in the proportion of families who are poor and because of continued upgrading of the total housing stock. Between 1950 and 1960, however, poor families received only 2.5 million standard units out of a net overall increase of 19 million. That is, families representing 30 per- cent of the total in 1950 and 20 percent in 1960 showed 13 percent of the 1/ The incidence of housing characteristics in 1960 was applied to 1964 data about the poor population, producing a total of 4.1 million in such units in 1964. If one proceeds alternatively from the housing stock itself and the rate at which improved housing stock reaches poor families, an estimate as high as 5 million poor families in substandard housing would be produced. net overall increase. Moreover, in some places and for some groups, "natural forest! aay exacerbate the problem in the years just ahead. Low income families present ly living in substandard housing are less mobile and have more deviant characteristics than those who were able to take advantage of », the filtering process during the 1950s. And such forces as zoning and sub- division controls are likely to ocidens ade impediments to the distribution downward of standard housing. That the current welfare system -~- an example of the pure income approach to housing =-- has not produced larger results ‘is another argument for seeking substantial approach to the supply side of thd equation. : Obviously, some improvement will occur naturally and one must bane ; too that cash income maintenance programs will meet increasing portions of | family income deficits. Reasoning from 4 million families and individuals in substandard housing in 1964 and additional millions paying more than they can afford for standard housing, one may estimate the objective more or less at will. OEO has estimated that the objective should be pitched to the expectation that the median income of families who should be reached would be $3,000 (for a family of four). From this base, one must deter~ mine an overall objective within the target date of five or six years. Developing a Program. In approaching the development of a program it is necessary to judge what may be built and what may be reclaimed. Such an approach represents more than simple economy. It allows room for families that may wish not to give up their homes and provides a pattern for continned maintenance of the nateius supply. In the decade from 1950 to 1960, are thing less than one-fourth of the net increase in standard dwellings rep- resented rehabilitated units. On one hand, there has been considerable reduction in the stock of housing that lacks plumbing facilities and is comparatively easily rehabilitated. On the other hand, new aids are available for rehabilitation and new effort is to be invested in it. It is, in any event, necessary to make some assumption about the proportion of standard housing that would be secured by rehabilitation and the pro- portion that would be built new. Similarly, it fs necessary to make judgments about the geographic distribution of additional standard housing. Although substandard housing is disproportionately distributed in rural areas, some number of the people now using it will be seeking housing in urban areas. Finally, plans for a substantial program should include consideration of staging a buildup of the construction industry. For example, a net increase of 1 million units a year might be built up to at the rate of 200,000 or 300,000 each year for several years. The supply of housing for low-income families can be increased either through government incentives to the private sector or through direct con= struction by public housing authorities. Incentives to the private sector include subsidization of land costs and reduction in the cost of borrowing building capital (low interest loans or subsidized interest rates). Use of these aids provides an attractive incentive to private builders (and re- habilitation contractors) while permitting some control over the allocation of benefits and rentals or sales prices. However, these forms of assistance % are not sufficient to produce housing in the $50 a month range. To do this, poor families must also be subsidized. ‘A-program of the magnitude being described might be. fashioned entirely out of two elements --- rental or purchase assistance and interest and land subsidization. ‘The obverse side of these assistances are conditions as to beneficiaries and uses. Obviously, many variants of the two elements are possible and alterna- tive programs may be featitonad de well. Related questions that would arise include the uses and place of code enforcement, the type of research that might be most productive, the special needs of rural areas, the methods of assuring desegregation, and related needs for providing public and social services.
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 13

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  • Title: Box 22, Folder 18, Document 13
  • Text: — THE WASHINGTON POST - 11-30-66 T°y RR AN aT “mm Th ET COLE {RIC YD cae x2 VLOIC Yi SPROUL Ea) Wi7 oan e o a HY -Crisi Att Wy= Ui 1Sis \ELACIK By Andrew J. Glass Washington Post Staff Writer ” Sen. Abraham
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 14

http://allenarchive.iac.gatech.edu/originals/ahc_CAR_015_022_018_014.pdf
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  • Title: Box 22, Folder 18, Document 14
  • Text: THE NEW YORK TIMES - November 27, 1966 | | TAX SHARING PLAN OFFERED BY 6.0.2. Rep. Goodell Asks Allotting of 3% of Income Tax WASHINGTON, Nov. 26 jJ(AP)—4 House Republican leader has already drafted a plan for sharing Federal taxes with state and local govern- ments that will be a corner- stone of Republican policy in the next Congress. The plan calls for turning back 3 per cent of Federal in- come tax receipts to states and localities to use as they sce fit. The amount would rise gradu- ally to 5 per cent. Offered by Representative Charles E. Goodcll, Republican of upstate New York, the plan is the first concrete proposal by the House Republican leadership since the Republican election triumphs of Nov. 3. “This proposal seeks to pro- vide for the great public needs of the 1960's and 1970's by equipping state and local gov- ernments to meet these needs,” Mr. Goodell said. “It is an al- ternative to the philosophy of the Great Society,” he added. Not Replacing Anything Mr. Goodell, chalrman of the Republican Planning and Re- search Committee, said in a statement that tax-sharing would provide needed general aid funds without reducing state and local governments to administrative subdivisions of Washington. It is not being offered, at least originally, as a substitute for any existing programs, he said, although in time it may permit some of them to be cut back, A tax-sharing plan was pro- posed in 1964 by Walter W. Hel- ler, then chairman of the President's Council of Economic of mterest the White House ap- parently put it aside, Represen- tative Henry 8, Reuss, Demo- crat of Wisconsin, has also suggested it in the House. Mr. Goodell said his plan dii- fered frorn Mr, Heller's in mak- ing a specific allotment of tax receipts to local communities, The plan calls for distributing 90 per cent of the funds for state purposes, with 45 per cent to be redistributed by the states to local governments, and 5 per cent to strengthen the executive and management functions of states, The state and local govern-/ ments would have full discretion over how the money was used, but each state would be required to submit its plan for allocating the money and make an annual report on how it was spent. Treasury Post Planned The office of administrator of general aid would be established in the Treasury Department to assume Federal responsibilities under the plan. Mr. Goodell’s plan calls for distributing 90 per cent of the Federal income tax distribution to the states on a basis of pop- ulation, The remaining 10 per cent would be used to raise thel- per capita allotment in the 17}. poorest states. Using estimated income tax payments for 1967, Mr. Goodell said that $1.8-billion would be available for distribution, The average basic allocation would be $8.50 per person, with the equalizing funds raising the poorer states by as much as $6.) Although the Federal Govern- ment would have no control over how the states and localities} used the money, Mr. Goodell said, such use would have to comply with Federal law, includ- ing the Civil Rights Act ban on using money for programs in which there is. racial discrim-|! ination, Mr. Goodell would also require}: a review and possible revision of the program by Congress Advisers, but after a brief flurry] after four years, ¥ —
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 17

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  • Title: Box 22, Folder 18, Document 17
  • Text: THE NEW YORK Trvms - 11-30-66 PRIVATE APTAGK: ON SWS BACKED 307 o-— Senate Panel Endorses Bid for Heavy Investment er By ROBERT GB. SEMPLE dr. Special to The New York Tinos WASHINGTON, Nov. 29 —Proposals aimed’; attracting huze_sums_ ar Dtivate capital into slum rehabilitation received) strong endorsement toda ¥ as the}. . Senate Government Operations . subcommittee began a sccond| = round ofh earings on what has! been ‘called. the, ‘crisis’ in. the/ a ees ‘e ay cities: 2-4" : nay Senator Jacob K, Javits, Now, York Republican, a subconunit- tee member, said he was “en- couraged” by recent reports that the Johnson Administration had such a plan under study. Senator Abraham A. Ribicofi, the subcommittee chairman, de- clared that the task ef providing decent housing in slums was not going to be solved ‘by Government: alone, ‘ _ He indicated that “he would listen sympathetically to any Proposal involving: a joint pub- lic-private assault - on ghetto housing. .°* ' we A Tentative Proposal The Administration's tentative! Proposal, developed over thel last six months und refined by the Department of Housing and| Urban Development, calls for! erontion ote national, nonprot-| IL, semi-publie Trhan Develan- ment Comparanir ieee its ari " Sos hope, would attract heavy private. investment into slum! rehabilitation by providing. at variety of Federal incentives} and guarantees, F The substance of the plan was! disclosed in The New York , Times on Sunday. : Even though.no member of the subcommittee would com- mit himself to-a specific ap- proach, today’s hearings indi-| cated a lively interest in the; plan on the part of Mr. Ribicoff! and Mr. Javits, as well as the! comimittce's ‘lead witness, David! Rockefeller, New York financier Mr. Rockefeller, president of the Chase Manhattan Gank, de- clared that. “urban rehbiilita- tion is primarily a task for pri- vate enterprise.” But,.in respon to sustained questioning from Mr. Javits, he coneeded that business would be reluctant to make heavy capital outlays in slum areas because the risk was great and, the profit re- turns poor | |¢ a a ® “ -can industrial organization.” ‘Role as Contractor However, the New York! banker also declared that busi-| ness would probably be able to provide substantial help as a “contractor” acting for the Government—which is one of) the roles for business envisioned the proposal now under study in the Administration. Under the pian, the Urgan Development Corporation would) help acquire rundown housing—| using money from private sour- ees such as banks and founda- tions as well as Government| funds—and then invile industry] to rehabilitate it cheaply and) efficiently. In this way, the report de- scribing the plan wasy, the cor- poration would “fuse the presently fragmented purchas- ing power” of the Government with t e managerial and tech- nological capacity of ‘“Ameri- The program's sponsors have said that neither new appropria- tions ‘nor new legislation oould be immediately required. The plan, in its final form, recommends as a first step the purchase and rehabilitation of $0,000 units in several cities, requiring ahout £400-million. Earlier versions of the plan predicted that in 10° years it could provide—-assuming initial success—5 milliom rehabilitated or newly built, slum units at an aggregate cost of $50-billion. Appears Pessimistic Mr, Ribicoff urged Mr. Racke- feller, who at times appeared pessimistic about awakening business enthusiasm ‘ior large- scale investment in slums on anything other than a contrac- tual basis, to cxamine not the obstacles to redevelopment but the “hopes and the possibil- ities." He suggested that business, especially the construction | in- dustry, would find in slum re- habilitation an enormous mar- kel for supplies ranging from flooring material to disposal units, Mr. Rockefeller also had kind words for local: redevelopment plans such as that envisioned by Senator Robert F. Kennedy in the Bedford-Stuyvesant area ot Brooklyn, The Kennedy plan calls for the establishment of a nonprofit corporation to engi- neer the- rehabilitation of Bed- ford-Stuyvesant housing, The New York banker de- scribed the approach as “most hopeful.” He also expressed considera- ble interest in Mr. Javits's sug- gestion that the Government help industry form a techno- logical consortium similar to the supersonic transport program. The New York Republican Pointed out that the Govern- ment was currently pouring large sums of money inta the aircraft industry in the quest for a successful supersonic line, He suggested, and Mr. Rocke- feller agreed, that some kind of “broad - scale hlanagement group" might be established! with Government. help. and. put to work devising answers to the| “Aeeee sf aenhen Tee *
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 23

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  • Title: Box 22, Folder 18, Document 23
  • Text: Dictated -but not read A PILOT PROGRAM TO PROMOTE HOMEOWNERSHIP AMONG SLUM RESIDENTS by Anthony Downs The desire to own a home is a basic part of our tradition. Today 62% of American families have achieved that desire. Yet there are still millions of families who would like to own their own homes,, but cannot. They are too poor to do so under present financing arrangements. At least, half a million such households now rent substandard housing in our metropolitan areas. A chance to own a decent home of their own might have a profound effect upon their attitudes towards society. Instead of feeling like frustrated and helpless we transients floating along in the poverty and filth of the slums, they could begin developing a chance of control over their own destiny. They could gradually build a stake in their communities, and would learn how to use and benefit from legal and political institutions they now regard with hostility. Furthermore, providing the Lagahoors household with home-ownership assistance would now be giving them the same advantage we already extend to millions of middle-income and upper-income households. These households now receive a large subsidy in the form of federal income tax deduction for the interest and property taxes paid on their homes. This subsidy amounts to at least $1.7 billion per year for just the wealthiest 20% in the form of all public housing payments, welfare payments, and tax deductions combined. Clearly, tax deductions aren't much help to families with little or no taxable income. Se simple justice demands that we encourage home ownership for them in some other way more suitable to their needs. Therefore, we recommend enactment of a pilot program of aid to low-income families to help them achieve home ownership. This program should concentrate upon slum dwellers because they now have at least an opportunity to own decent homes, and because it would help improve slum living conditions in general. The program should assist slum residents either to move out of slums by buying homes elsewhere, or to acquire ownership of newly rehabilitated units in neighborhoods whoch will be up-graded through a wide variety of other programs too -- as in the Model Cities Program. This home-ownership program would help low-income families buy single-family houses, individual units in multi-family condominiums, or apartment buildings which they operated as resident landlords -- replacing absentee landlords who had neglected their properties. Several types of aid would be involved in this program. “Fiest, the slum housing units involved would be substandard ones rehabilitated by a public agency or a non-profit group before being sold to new owners. Second, below-market-rate loans should be used to finance owners on a no-down payment basis. Third, potential owners should recieve advanced training in the skills of minor maintenance, financing, and other responsibilities of ownership. Fourth, new owners from the lowest- income groups would need a monthly housing supplement similar to the rent supplement but applicable to ownership payments. Fifth, some tenants in resident-landlord buildings would receive rent supplements. Sixth, owners should receive follow-on counseling about financing, and repairs. : Seventh, the public agency running the program would agree ta buy back the housing involved during a fixed period in case the owners could not carry the required burdens. In our opinion, this is a program solidly in the American tradition, and well worth trying.
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 27

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  • Title: Box 22, Folder 18, Document 27
  • Text: CONFIDENTIAL 6/2/67 DRAFT INTRODUCTION America and its conmunities are changing with unsettling rapidity. Most of this change has been healthy; and most of the problems it _has caused tend to evoke their own solutions, This country - despite its transitional strains and its freely-voiced complaints - has an immense capacity for self-correction. There is always a temptation - and a pressure - to over-react: to give equal ear to every complaint, to chase off after every problen, and to wind up with congeries of programs which may slow up rather than _accelerate the nation's natural and long-run capacity for self-correction, Evidence is accumulating that such has already happened in the federal government's response to urban problems over the past twenty years, These have been years of improvisation, and probing. On balance, they have been constructive, But neither in scale nor impact have they caught up with the dimensions and force of the nation's urban trends and developing problems. The time has come to move from improvisation over a wide front, and in sometimes contrary directions, to an effort a) which is aimed at selected problems of transcending importance; b) which is of a scale large enough to make a difference; c) which is not dissipated by conflicting policies and administrative arrangements; d) which offer powerful incentives to state, local and private initiative, and thereby move toward a "steady state" of continuous problem-solving; e) which begin to erase the public's skepticism -- its growing feeling that public programs are not to be taken seriously, that more is promised than will ever be delivered. The Task Force believes that the first priorities for public action in urban America are related to the growing disparity between city and suburb. - A disparity which is expressed in the segregation between white and black, the gap between income in central city and in suburb, the uneven economic growth in our metropolitan areas, and in our capacity for response to the problems of central cities. Today too many of our central cities have become the political jurisdictions and geographic areas in which accident, design and even progress have housed an inordinately high proportion of our problem people and an outsized share of our problens of public policy. The Task Force on cities decided early in its deliberations to» focus on these urban disparities. We have identified two major approaches. The first is a straight- forward discussion of urban segregation by wee and income and some recommendations intended to alleviate its effects, The second involves a series of recommendations - some modest, some sweeping - intended to increase sharply our ability to deal with urban problens creatively, responsively, and on a larger scale than is presently possible. We also have found it convenient to add three smaller sections to our report; on innovation, the model cities program, and an agenda for future study, While we reconmend that Federal action in these areas be altered, refocused and expanded, we admit two general caveats. 1, That our knowledge of how to deal with urban problems both physical and human is still limited. That a period of intensive and well-managed experimentation is a necessary first step in any large scale strategy for altering the pattern of urban development. 2. While we believe that the sorts of programs we are recommending should have the highest national priority, we recognize how politically and practically difficult it is to spend a larger portion of our resources on the urban poor and the central cities. This is true fimdamentally because the present system of urban development works quite well for most people, Most Americans are happy in suburbs, they have done well in the system, and they look forward to doing better. Our report focuses on the disaffected and they are few. Their potential ee on American society, however, is enormous,
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 7

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  • Title: Box 22, Folder 18, Document 7
  • Text: Tait t. o> eee: ; ‘ Subcommittee on Executive Reorgenizetion of the Senate Committee on Government Operations Afternoon session: December 5, 1965 Witness: Walter P. Reuther Subject: Problems of the Cities Mr. Reuther was accompanied by Jack T. Conway former Devuty Director of tne Housing and Home Finance Agency and OHO. Mr. Reuther deliveres his statement on behalf of the six and one-half milion industrial workers represented by the Industrial Union Department of the AFL-CIO and the million and one-half members of the United Automobile, Aerosnace and Agricultural Imolement Workers of Americe. He advocated a weaving of all the elements, housing, anti-pollution control and others, in combating urban blight. He said that these efforts must entail the most participation possible by everyone affected end there must be a maximum coordinetion of effors.: He also said that the problems of cities are beyond the economic capebilivies of the local governments. However, he Yeels that tne real drive anc thr o must come from the local level. Mr. Reuther proposed the ereation of a National Nonprofit zousing Corvoration consisting of the best minds from laoor, rinance, industry, education, etc. He prefers this sen vernmental type oF corporation because such an organizaticn would not be entrenched in the bureaucratic a7 ee also thinks tnas & a patterns which are to be found in the government. He + Te type of organization would not involve in-fighting whicn is ometimes prevalent in government organizations. In his opinion, a peleeie organization would be much more Flexible. Mr. Reuther, in suggesting taav the task of retuilding tie city be done by the totel community, described the Detroit Metropolitan Citi Development Authority, of which he is now chairman. He said the Authority is trying to reouild the city and to qualify Detroit a2 Demonstration City. . This Authority now has the active p i industry, retail stores, churches, civil rignts group _He said they are trying to create a community vartnersnin. Mr. Reuther described the three xinds of money which the eEoup Will use to build housing as "seed money", development money and , He said that the seed’ money is nee interest in the progran, but will government if rade through grants In this regard, pension funds could probably & 2 used only for moregag the funds are controlled by 3 osrds which must dec of the money is secure. * not be & permissible invesbiient fi me mw ia) that seed money and dsv or most pension funds. fo Orne function of the nonprofit corporation, according to Ir. Reuthe would be to stimulate and encourage the building of tone income he ie aol he a by giving technical assistance to builders who would operate for a profit. He seid thet there would necessarily be exerts available or on call. He said that the key to the whole problem of providing Low income housing is to demonstrate the practical capability of tiexing pudlic planning compatible with orivete planning and buildings. Mr. Reuther said that he is very enthusiastic about the Den Cities Bill. However, he criticized Congress! attitude tor approsrietion of money Tor domestic programs. He thinks + se programs should be funded shead of tims, so that the pesextieibe wil iad aus ¥ know whet money is available and have the money in time to plan eh He thinks long term committiments should be made for comestic progr as well as for military programs and Yoreign aid. While criticizing present practices of lend use in cities, Mr Reuther sugzested that a lend bank should be created to help local nities provide’ land for low and moderates income housing. He said that the U. 6. gees learn a lot from Great Eritain. He also pointed out that there are no slums in Sweden. Mr. Reuther “gontended thet the only way to reduc houses is to apply modern, advanced technolosy a to such fields as space exolorati at, ES habiovwe $16,000 according to present standards could be dev $8,000 if industry is shown how to do it by researc! government or a private non-profit corporation cy kK he o Mr. Reuther was hignly critical of the present systems of in this country. de seid that the car industry will eventuslly suffer fren self-strangulation on the highways. E person to carry ea ton and a half of me thinks it is ridiculous for a al with him to work everydey. Main questions raised by Subcomnittee; 1. Particivetion by private industry in rebuilding cities. Mr. Ribicoff asked Walter Reuther what ratio would be participation by private industry and gover in Mr. Reutner replied th re he thought the minimum ravio sh government money for EVERY. 35 of private funds used. prososed by David Rock mereller. 2. Teaching migrants to live in the city. The Chairman asked who teaches the farm peoovle now to live i how to avoid turning housing into slum ereas the olight of public housing in many cities unfortunat = Shine is that most new city dwellers abous hew to Live in a elty. Xe + u fr om the slums to go back int kai @ and take cere oF to liv q a D Pe rl ei ad = or] ha ao xs 4> La in) a mh 28 i § ot i =] aw ow Ad qq GO a) ae wet O et) sg 3 Oo 2 MS bO wo Tt AD eed an e-{ oe o Po © < 43 et BE ‘a oD a ey ta Laood iH ‘a -l Pp w a = og 42 Geis ust i qj. Ago Q sto ov e} ood Oh O mM Ay aa: © OQ Oert ed q 5 “<2 G4 «3 wd a) be co od og m9 wd 2 a pod gs Od al yo te 4 Y o£ @ ro a oO 4 s4 46% O 8 & 4 q) uD 0. o Yeisen Ss Pa {> a OR 44 oo o * ao ol @ Y ng > OR ea 2 8 u 0 aed 0) 02 EF 44 43 ea Pp oO a Mot oo Oo aed oO @ a) = yo. a Q 42 oO On a wa by tr a 3 a a fu me Edict ao Oo v a au a a2 OFF O a ao Ee a vo fa oma) ~ ea ke ED »~ fa asf Py S S QO £3 oY i »m Oo Teed A, Oo Gea i O Hed ao Go « to} £ ° 4D Moo sa a a OC a wiy4o qt Oo is O YU 43 wa a cf GO ef] a ma ie) aoao 6 9 ft a o aA ict CF ee gor woo a9 feed hy Oo acl mes ao pd Sadoasd wa at adadas «a a 5d a _ @ as "ta th eh ort FI O04 “4 po s 4 73420 8 a cai ss u ao uomd uw gO a oS 53 6 y hifeet ee UG On @& 9 O @ 9° aoa hy pt H OTD 2 4 tt Ga a&agd eu o OG rd i) GPO ea Be » 2 ooo oO ct ao wv =f oo ots wo ae) ire ood & tri Hf Oled 9G gp goddaa @ Pi” By Site Hat sd og ef > y go” by ao 2 4 wQ wt oO “y Ved SH Oo Ga te bs wd on pwn o dda © Oo ayer ci feo] Cy Pat Gos a . PPO & w aye oo wv ray he Gp oo a ey i oo mou @ ri a “a he oo Op oe oo = Vet ow Bop 42 ho iho OWN OY Ei @ fy r-t O wo oH SF ay teh wa w-o ovr ude 2 Ps Oago d ta a La ca op a) oa EA : : : . . a 4H, {PF @& 2 0 oS w G Py ee aq 4 fg mlm O 47 Q Sw wo AO ed . 7h - Ss . =r an, a0 nt ake fe to cv 1 i Bnousi fea = nm aa e ao not fever, L wo wan coe he ri, G a Wa e- ros w tl od sy (U} p> op a oe me a 43 £3 a) «a eg 42 4 a Mo gob —m ‘ei g a7 @ a 49 4c o Oy $4 “3 0 oO 2 be Syed w 4. Gt ti 4d qa a6 "3 ed A M6 Pr 2 ca a 3) s i * a a Db yk =D o “7 a wa i ae) Qo @ a oes i = ort wade by nt d, Sas a ae aa weet MSYuLCLVecing ere Att Oris Fi a fovember in laygrounds. Pi © 9 wu; was avor of Oo fe eay wi nm Senator Ke ty De Tema page 2 gmt rayne ¥ 2d A c o i Lm FS & ay eucnier Tt. ms fos MQ. . = facu. i oe it aus local level. Mr. Reuther said he is very much in favor of them. 3 eae ional Corporation to work with tne total problem and to be bac p by local corporations. 6. National Nonprofit Housing Corvoretion. - 4% Senator Ribdicoff seid that the onl be capable of assembling the neces foundations, universities, labor, to participate in the national cor The Senator said tnat he hopes the y level of representation from @, industry and other vii. would be the Pres sident will consider tni wn Or by le 7. How to avoid continuetion of 6 welfare state. Congressman James Scheuer (D - N.Y.) who was eee at the hearing asked Mr. Reuther how third sla isto welfare families and predict drop-outs can be avoided. Mr. Reuther sai that the recomex made by the President's n Augomation should be He said that welfare progrems often emphasize the wrong things and incentives, such as earning outside money. He thinks that a recipi be allowed to do this without loosing his welfare payment so that person will aspire to living on a higher plane. ae nag mi ssicn Mr. Reuther said that enother way to avoid a welfare state and put people to work is to have 2 stendardized comouterized emolo: person he could think of who would At present, Mr. Reuther claimed, tne firty entrencnea stave = obstacles to the setting up of efficient ccmputers which could match unemsloyed person to a joo within ea matter of minutes. Mr. Reuther seid that the wnole person, his hobbies as well as his skills, is now taxen into account uncer the present State systens. 8. Missing element in the slums. Consressman Scheuer asked what is the missing sed to help the city end whether this element is more subsidized hou Mr. Conway said that one reason the government has not helped -encug! subsidizing housing is that in the beginning HHA was a financial in element that has not reson made available for private industry. He said tnat the Asency was not a oriented. Change in Witness schedule: inthony Dechan residen National Farmers Union wi now t Anthony Dechant, esident, Naticnal F s Union will t Tuesday December 6. Dr. | jillian Deebele, Graduate Sch Harvard University was shifted from Wednesday to Tuesday Melvin Thom, Netional Indian Youth Council nas been edde Monday, December 12. Members present: Senator Ribicorr Congressman James H. Scheuer, (D-NY)
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 12

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  • Title: Box 22, Folder 18, Document 12
  • Text: | YORK TIM@S - Decenber 1, rr had WILKINS DEPLORES | £ ANYURBAN AID OUT) ep i Tells Senators Such Savings |, Would Be ‘Criminal’ Special to The New Tors Times bt WASHINGTON, Nov, 30; —Roy Wilkins asserted before! a Senate subcommittee today that it would be “criminal” for) \ either Congress or the Admin: istration to cut back budget expenditures on social and ur ban programs. ; I The executive director of the National Association” for the ¢ 4 Advancement of Colored People| made this point a day ality) eset President Johnson announced,) _. . F a at a news conference in Texas,) Harry Golden, left, the write that he was canceling or de-| director of the National Association for the Advance- | need $5.5-billion | worth off ment of Colored People, tes r Of) = cur=! . é . eral programs in the curs) of » Senate subcommittee on rent fiscal yoar. Cities se hiternational Teleshotos r, nnd Roy Wilkins, executive tifying yesterday at hearing | problems of American cities. | The President insisted that," ~ none of the cuts would “short-'stantial cure for change the young, or the needy,’ cmployment.” Negro un- the iil or the old.” Sources here) "Unfortunately," he went on,, confirmed today that the cuts;the administration of Federal would not require elimination, Manpower development and em- of key Great Society programs ployment programs “has often but would delay the awardjbeen marked by outright racial of some grants and require some discrimination and by precon- belt-tightening as weil. _lecived, stereotyped ideas of Mr. Wilkins said after the;what jobs Negroes can and hearing that although he was should hold. When colored ap- disturbed by the possible con-|plicants have been accepted sequences of some of the cuts— they have often found them-! he did ndét specify them—heiselves being trained’ for blue- had intended his remarks large-|collar, service employment, fre- Iv as a “warning to -the new quently in dying industries.” Congress," which, he feared, The three other witnesses might interpret Mr. Johnson's;Were Harry Golden, author and action as a “mandate” to begin publisher of The Carolina Is- ‘making further slashes. ivaelite; Dr. Rohert Coles. Har- The Negro leader was one of | Vard rescarch psychiatrist, and four witnesses who appeared he-|Judge George Edwards of the fore hearing of the Senate| United States Court of Appeals Government Operations sub- for the Sixth Circuit. committee on urban problems* Mr. Golden proposed that the In other points, he: €Described the “black power” movement of some young Negro activists as “too dangerous, too amateurish, too teen-agerish, too much like a student prank,’ adding: “It isn’t as bad as iig riod in the history of-the world.” sounds, but it's mischievous.” The Negro's struggle for jus- - €Charged that Federal job-| tice, he said, “has not been to training programs had in somejalter a single institution, He did cases helped perpetuate racialynot want to burn the bastille, discrimination. jor ect rid of the tax on tea, nor “Existing Government pro-did he demand a new pariia- grams," Mr. Wilkins said in aiment, or a new Constitution.” ,_»Statement, “have fallen far]| “What he has been telling us “short of providing any sub-jis that the American institu- billion “indemmnity"—in the form of welfare, .housing, and education programs—to pay for his confinement “during the greatest wealth-producing pe- Negro be given a 10-year, $100-) ‘tions are so desirable that he iwants in on them," he said. Judge Edwards struck a re-| \Sponsive chord in the subcom-| |mittee when he called for more yand better-trained policemen in! ‘urban areas and suggested es- |tablishment of a national police| jacademy similar to the service) institutions at West Point and! Annapolis. The subcommittee chairman, j Senator Abraham
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 3

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  • Title: Box 22, Folder 18, Document 3
  • Text: —— poowss ‘ 4 (\Juar, Subcommittee on Executive Reorganization of the Senate Committee on Government Operations fternoon session ~ November 29, 1966. Witness: | Richard M. Scammon, Vice-President, Governmental Afrairs Institute, Washington. Mr. Scammon testified on the need for a mid-decade Census, or an inter- censal urban Census. He said that although the 1960 Census is out-of-date, obviously the 1970 census count won't be available for five years. A big factor in the obsolescence of data is the increased mobility of population. According to.Mr. Scammon, there is &@ great need for area rather than figures from a city as a whole. In the questioning by Senator Ribicoff this point was elaborated upon and it was stated that i information had been available concerning the situation in the Watts area of Los Angeles, the riots could have been avoided. Senator Ribicofr said that when a census was taken of Los Angeles the bad figures from such areas as Watts were offset by the figures from more affluent areas. Senator Ribicoff pointed out that Mr. Cohen from the Department of HEW had used figures which dated back to 1961 when he testified before the committee and that government agencies cannot cure social ills without up-to-date statistics which point definitively to the location of those ills. Senator Ribicoff and Mr. Scammon both agreed that a mid-decade census is necessary. Senator Ribicoff mentioned that the Office of Economic Opportunity is planning to take a special census in 1968 in standard metropolitan areas to complile pertinent data on such statistics as the median family income. -Mr, Scammon laid the blame for the fact that a census is taken only every ten years on the Budget Bureau. He said that the costs involved are so tremendous that the Budget Bureau would not agree to a more frequent census. Method of taking the census Senator Ribicoff asked whether or not the method of taking the census is important. He pointed out that a census was conducted in Wetts where questionnaires were mailed to the residents. He questioned whether or not people at these levels would be interested enough to return the comple forms. . Lena bea Lack of data on adult male Negroes Senator Ribicoff also pointed out that in the last census between 15% and 20% of adult male Negroes were missed entirely. Mr. Scammon replied thet there was a slippage in less affluent areas of cities, but he did not know whether Senator Ribicoff's percentages were entirely correct. Advantages of a five-year census Senator Ribicoff said that almost all grant programs are based on the number of people and their needs. - He claimed that we must weigh the advantages of a five-year survey in relation to these programs. He said that a five-year census would be better for decision making by such administrators as the Secretary of HUD. Central location for statistics. Senator Ribicoff also asked whether there should be a central place for the gathering and keeping of statistics, rather than allowing each Depart- ment to have operations of its own. Mr. Scammon said that a task force headed by Congressman Gallagher recommended setting up a central bank for statistics, but that a big concern of the Task Force was the right of privacy of individuals in responding to questionnaires. Senator Ribicoff contended that where the information was merged, the problem of confidentiality was lost. Problems Senator Ribicoff said that the problem of taking an urban census has been to get people to do the work. It was also pointed out that in problem or foreign areas of a city, the census takers must be familiar with the area. in order to gain the confidence of the people who are interviewed. Spending in. cities Senator Kennedy asked through the Chairman whether it is possible to determine how much the government is spending in each city to rebuild. He wants to know how we can get better figures. Mr. Scammon said that this information should be available from the Census Bureau or through the Subcommittee. , Senators present: ibicorf Javits
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 18

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  • Title: Box 22, Folder 18, Document 18
  • Text: Point jor HUD to Ponder The coutroversy between Montgomery County and the Department of Housing and Urban De- velopment holds a much broader interest than the rezoning of three square miles in the Washing- ion suburbs. We do not, of course, wish to mini- mize the importance of nullifying the butchery of planning by the old Montgomery County Council in its lame-duck rampage. But this is an interesting test case which is certain to have an important bearing on the relations between HUD and local governinenis in all parts of the country. HUD must necessarily invest its matching funds for the purchase of park land and the protection of open space in accord with the standards that Congress and the agency have prescribed. It can- not be expected to assist a county which makes a farce of planning and zoning protection. At the saine time, however, HUD must avoid usurpation of the powers of local government and the use of pressure in deciding local issues. In the case at hand, we think HUD went over the line in applying pressure at a moment when the unfortunate situation in Rockville seemed to be righting itself. Unquestionably its intentions were good. But unless its pressure can be relaxed, the result may be to defeat its own purpose. Sen- ator Brewster and numerous local officials have pointed out to HUD that the net effect of its pres- sure on the new County, Council to cancel its predecessor's last-minute rezoning decisions may be to throw the entire controversy into court on the issue of intimidation. A significant precedent for such suits is readily at hand. The grant of an exception to the Soviet Union to permit the construction of an embassy- chancery in Chevy Chase was upset in court some months ago because the State Department had brought pressure on the District's Board of Zoning Adjustment. HUD officials should realize that any specific zoning change which they impose upon unwilling local zoning authorities is highly vulner- able to legal attack. @ HUD needs to have assurance that the reckless zone-busting policies of the old Council in Mont- gomery County have been abandoned. It needs as- surance that proper safeguards will be adhered to in areas for which Federal aid is sought. But these assurances appear to have been given not only by statements from the new Council but also by its vigorous action to wipe out the effects of the rezoning spree, so far as that is possible. The grand jury investigation into possible irregularities and abuses aifords-further evidence of the new atmosphere in Rockville. In view of these vigorous efforts to undo the wrongs of the past and to adopt sound new poli- cies, we think HUD should withdraw its freeze of Federal funds for the Maryland suburbs before the Council decides the rezoning cases which it has reopened. HUD could again suspend the matching funds if the final policy which emerges should prove to be unsatisfactory. But if it insists on turning the thumb-screw while the Council is sitting on these controversial cases it may defeat iis own purpose and greatly embarrass the cause of proper development of the National Capital suburbs. The Washington Post - Nov. 28, 1966
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 29

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  • Title: Box 22, Folder 18, Document 29
  • Text: DRAFT:6/2/67 RECOMMENDATIONS The Task Force recommends a number of specific proposals designed to offer incentives for the integration of Negroes with whites, to raise the level of social services to the poor within the central city or to create a more stable middle-class society within the city. Naturally there is a great deal of overlap between the objectives of each of these recommendations. None of them are pure "integration" or "up-lift" or "civilization" programs. We have made some judgments on the practicality of each of these recommendations. They are divided into those which might be possible under present social circumstances and those which depend on more fundamental changes in the attitudes of the American people. Employment is the most meaningful, direct and permanent means of providing the poor American with an opportunity for full participation in society. The following recommendations regarding employment are intended for the short run, say the next five years. 1. The major problem with federally espported manpower programs is fragmentation between Cabinet agencies and within Departments. This proliferation of manpower programs, often with a special target group for each program, only compounds the difficulty of any city or agency has in designing and implementing a comprehensive and comprehensible employment and training effort. The Task Force recommends the consolidation of presently separated manpower programs into a single comprehensive manpower grant. This move would allow development of sufficient local 2 manpower programs under the aegis of a single agency to absorb the important functions of recruitment, selection and processing, training, placement and follow-up of the poor. A first step would be the . consolidation of those programs administered by the U.S. Department of Labor including institutional training, on-the-job training, neighborhood youth corps, concentrated employment program, and the employment service. Strong incentives for cooperation with vocational rehabilitation, and OEO employment operations should be explicit in the legislation, 2. In the absence of significant consolidation nahaven tbe o tans; the Task Force recommends an exnansion and refocusing of the on-the-iob training program to vrovide higher subsidies to private industry to under- take the trainins of the poor. It has become clear that without the close cooperation and participation of private industry that permanent and meaningful employment will not result from even excessive employment and training expenditures. Reimbursement for training cost should be doubled and perhaps quadrupled and the 26 weeks presently allowed should be expanded to a full year. OJT should provide for a greater staff for job development and for counseling and follow-up after placement in a job training position. 3. OJT is most relevant in the development of conmercial and manu- facturing jobs for the poor in the area of the central city. In order to compensate for the decline of these jobs in the city the Task Force reconmends an expansion in public employment - the Task Force recommends an expansion in the new careers idea in public employment such as embodied in the Scheuer amendment to the Economic Opportunity Act. This program combines the advantages of providing entry level employment for the poor with meaningful grading in work and professional training. When operated successfully it serves the goal of enrichment as well as that of assisting in the creation of a more stable middle class in central cities. This recommendation also takes into account the dramatic expansion in service related éuployient in the public sector. 4, The Task Force is impressed by the number of employment opportunities lost to central city residents because of their lack of access to the newer centers of employment in the metropolitan area, The HUD financed demonstration in the Watts area of Los Angeles has indicated the important relationship between deficient transportation to those sites and the willingness and ability of area residents to accept employment and training. We recommend an expansion in the number of such projects in major metropolitan areas which would include either new mass transit routes or subsidized fares. 5. The Task Force reconmends a joint effort by HUD and the Department of Labor to negotiate the national model arrecment for employment with the building trade unions which would permit Iarse scale slum rebuilding experiments to make greater use of slum labor. We recognize that this the implenentation of this reconmendation would not solve any significant proportion of the employment problem but it would have useful symbolic value in the ghettos of central cities, It is becoming increasingly apparent that integration of economic classes is a critical factor in educational achievement. The recommendations of the Task Force reflect this relationship. 1, Any program of Federal aid for elementary and secondary school construction should offer incentives for facilities designed to increase the integration of students. For example, "bonus" funds would be avaihble for educational parks within cities, suburban exhange schools - and for consolidated school districts. In addition, funds for the modernization and replacement of older school plants in central cities. should be offered. 2. To help increase the mobility of the ghetto child and to make possible a variety of new educational institutions, we recommend a program of educational subsidies for low-income children which would be administered as scholarships for use at any approved elementary and secondary educational institution, Those funds which did not have the effect of integrating “poor children with affluent children, would be available for compensatory educational programs in the central cities. Presumably, some parents may wish to have the "scholarships" aid in the creation of new institutions which might be operated by universities, corporations or neighborhood groups, The Task Force recommends the following program(s) to assist returning servicemen who come from low-income backgrounds, (TO BE FILLED IN LATER - IDENTIFIED AS A GAP) | GAP - HOUSING RECOMENDATION GAP + OTHER EDUCATIONAL RECS There are a number of recommendations wihich the Task Force feels are clearly beyond the capacity of the American political system at the present time, either because of their outright integrating objective or because of institutional defects not likely “6 be resolved in the immediate future. These include: 1. A-program which would operate much Like the GI Bill of .Rights which would place entitlements in the fhands of the poor to maximize personal choice in selecting educatiq@nal, training and employment assistance. The funds could be used by the individual to gain certification in regular educational finstitutions or for training on the job with the employer receivimg reimbursement for his training costs. The great advantage of this approach is in avoiding the seemingly endless tangle of referrals, delays, and ‘insensitivity encountered in the present, fragmented system. 2. A program of bonuses tied directly to the degree of integration achieved in a school district, up to 25% Negro enrollment. Such a program would focus very clearly on integrating currently all-white suburban districts. 3. An expanded housing subsidy program sshich would grant or loan funds to Negroes for down-payments on homes outside the central City, CC. ccrsescceene 4. The development of metropolitan-wide institutions which would be responsible for opening housing and exxsployment opportunities for central city Negroes. To facilitate increased housing for Negroes, the Federal government might institute a revolving development fund which would be available to these institutions. etc.ee.e.
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 30

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  • Title: Box 22, Folder 18, Document 30
  • Text: June 2, 1967 MEMORANDUM To: Task Force Members From: Richard C, Leone Downs, MacInnes, Frederic and I had a long and rambling session with Assistant Secretary of HUD Charles Ilaar and his deputy. The following two portions of our discussion may be of interest to the Task Force, 1. It's quite clear that the metropolitan development plans of HUD do not take the ghetto and dispersion into account, The reasons for this are not a lack of interest or understanding of the problem. It is simply that the metropolitan programs themselves are ''a weak reed" to carry the heavy burden of integration. Our discussions brought out the unremarkable fact that we would be likely to lose our metropolitan programs if we attempted to force integration through the use of them. 2. It is generally agreed that a more promising route for approaching the metropolitan aspects of integration is to the use of the states or providing the cities with special leverage on suburbs. To discuss only the state example here: it appears much more likely that a political executive responsive to pressures from Negroes and indeed to pressures in general will be more likely to work on the kind of problems we are interested in. We should be thinking here of the urban governors of the large northeastern and midwestern states who are undoubtedly somewhat responsive to the problems of central cities, These areas include a large proportion of the cities we are most concermed about. In short, our feeling was that placing the responsibility for some of these movements in populations (even by the most roundabout means) would be most likely to have a payoff if we depended upon political executives, I think that one of the principal advantages we've seen in our discussion of metropolitan approaches to the problem goes beyond the feeling that metropolitan-wide solutions are rational, Some of us have seen the metropolitan unit as less responsive to the anti-intcgration pressurcs = just as the courts are less responsive than the Congress. The problem, of course, is that the courts exist and metropolitan bodies do not, This has led us in turn to suggest that in round "one" we might create such bodies working with the "winners" such as water and sewer grants, etc., and, then, in round ''two'' ask them to take on some of the tasks of integration, My reaction to this is based largely on the experience with authorities in the New York Metropolitan region, They too have taken on the winners but no one has yet figured out a way to force them to take on some of the losers (the commuter railroads, for example), This is not meant to say that we should leave our metropolitan development corporation, metropolitan services corporation, etc., out of the final report but that we should think about them a bit more in the perspective of what are the most effective and promising ways of building something larger than a city and to the integration p blem. ) | ecretary
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 21

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  • Title: Box 22, Folder 18, Document 21
  • Text: Laity ea JK I = lousk j é Fe jAuoo DA TAs ty REET Rina SOprrATien/? So iM i A RY =" wuool [OunA SGD ULIE UNITS hu Dp REMTS 2 af RPT. Nou. vi ReAT OS AaquisitioN AND. Fanning Started = I [lt S vz ae RAKES , } i a =" — ey ; = b- FRA CommiTMewr ReteiveD tos 1 }.6- BR] 3b , 38 3 he a ConsTRVGTioN STARTED. —. éfes i-BR | 12 "TT + Sy ’ ; Fay Lae TFiRST BUILDING ComPie TED - jeles - aR pe gb a ; He ig i : ae tS - = -“ = : ‘ * nie 4, aii ; Sorimare> Phoszet. Comenerion 36S | |, 3- BR hip [cf a . ; “i Hoe : y 7 u-BR] by 1 49 -"les ; zy : > 5 ? a 7 rf : J 14) CoMPLeT ED AND OceuriedD To DATE: 5 ee / ithe pie iO Bu piw ES = ior “DID UNITS ‘TOTAL Us9 Avee aT re pk © Tndiudes gia. f, “DEVELOPMENT Cost Over ATA Trem Ai MOUNT >. d. CenstRverion . "5, Conreaeror’s Fez” Aeenvrecrs Fer FINANCING AND Crepying LEGAL pvp ORGANIZATION 490,317 Sito 456 Tbs 209,025} 456 GUS 34a | fib 116,000 246 Sewpeced f ACMTAL Tyee OMe ; ; 17534 VACAW vy A heowivo — =e = _ — = CirreECTI Ve maar {sss Or BRATING- ‘e "4b it Vey bey fete LSS Ure page 12 | bat LAND (Tal wding fa lovsfi in) 1 $46 eco ; LG43 18, Tee Te7AL Pe 4a les
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 26

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  • Title: Box 22, Folder 18, Document 26
  • Text: June 2, 1967 MEMORANDUM Tos Members of Task Force From: Richard C. Leone The attached papers are not ‘meant to be improvements on the Ylvisaker draft of May 15, 1967. They are simply attempts to include more material for discussion on June 8. Work on other proposals is going forward. Mike Danielson and I are working on a revised structure (really two parts = race and income segregation and a related section of fiscal and institutional capacity). We hope to have most of these in detailed outline form at the next meeting. The enclosed, of course, are confidential. heseutive Secretary
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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Box 22, Folder 18, Document 28

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  • Title: Box 22, Folder 18, Document 28
  • Text: DRAFT: LEONE 6/2/67 The overriding problem of our cities is segregation by race and income. There are no urban solutions of any validity which do not deal directly with the questions posed by this segregation. The facts are these: 23% of the total population of our central cities is Negro, and 35% of these Negroes have incomes in the poverty range. Within five years, assuming present population trends and allowing for current levels and even greater effectiveness of ameliorative public programs, the proportion of Negroes to central city population will rise to 28%, with a constant percentage remaining in poverty. By 1978, both proportions will be 35%. By 1983, our central cities population will be 44% Negro, nearly two-fifths of them poor. These are percentages of the total population of all our central cities. By 1973, at least ten of our major cities will be predominantly Negro; by 1983, at least twenty, including Chicago, Philadelphia, Cleveland, Detroit, etc. To repeat, these are our projections of which will happen if (1) present population trends continue, (2) there are no sudden and surprising changes in public attitudes, and (3) current governmental policies and levels of spending remain in force. The Task Force believes that a significant change in (1) - despite the notorious unreliability of population trends = is unlikely. We believe that changes in (2) also are both unlikely and unpredictable. Given these uncertainties our report focuses on (3) - current governmental policies and level of spending -. We recognize Government action is only one element in the process of urban decline. And, while it may not be a sufficient condition for turning the tide, it is certainly a necessary one. The sheer magnitude of the problem is staggering. Our population models tell us that simply holding the size of central city ghettos” to their present size will require movement of approximately 600,000 Negroes a year into predominantly white suburbs, Such a figure would represent from ten to fifteen times the present rate of Negro out- migration. Our crude cost calculations for providing a minimun acceptable level of social services in all central city ghettos indicate Federal expenditure patterns of staggering and unlikely proportions. We believe that to alter these projections significantly, quantun leaps will have to be taken in public policy and levels of spending. Yet without a massive effort disparities between white and black, affluent and poor, city and suburb will grow larger. The probability for potentially dangerous confrontation which divides American society along these lines will continue to increase. We do not presume to calculate how high that probability is but we are quite sure that it is high enough to be cause for urgent concern, It is apparent then that segregation by race and income in our great metropolitan areas is outstripping whatever we are now doing to offset it. Yet the Task Force recognizes that American society in 1967 is not prepared to pay the costs of a fully integrated urban society, We know that integration will not be possible in the life of this Administration, but we suggest a place to start - a line of policy which will build towards a future breakthrough. In summary, the Task Force identifies as a problem of the greatest national urgency the growth and poverty of central city ghettos and the related race and income segregation in urban areas, 1) 2) 3) We believe that this situation already provides a driving force in urban decline and that its importance is increased by the unequal pattern of urban development. We are convinced that a dramatic confrontation between white and Negro, affluent and poor, growth and decline already is building in most of our urban areas, In the absence of state, Federal and local action on a wide front accompanied by enlightened private activity, these problems will grow larger, more dangerous to American society and increasingly difficult to solve, We therefore recommend a series of strategies designed to: Increase individual access to jobs, education, income, housing and other social services. Increase racial and income integration in metropolitan areas, Increase the proportion of middle-class population, especially Negro, in central cities, Increase the ability of new immigrants to adjust to urban life. Priorities 1. The specific proposals based on these policies, indeed the policies themselves, may often seem to be in conflict. We believe that these coiitradictions are more apparent than real, and that the very limits of our present ability to achieve any of the above goals on a large scale makes it imperative for us to move in several directions at once. While it is clear that a large scale of effort is required we believe that the first stage mist focus on experimentation and refined efforts in many areas of present activity. While a truly integrated and stable urban society is our ultimate goal, we believe our ability in the short rium to attain massive integration is quite limited. We, therefore, place an especially high priority on those policies designed to create a larger middle class with a stake in the city. We seek methods of increasing stability as the proportion of Negroes in cities continues to increase, As a minimum, we believe that it is a matter of the highest national urgency to attempt to "integrate" ghetto populations into the mainstream of American life by raising their income levels and the level of accessible social services. We have ordered our recommendations in response to a crude attempt at cost effectiveness - feeling that some attempt at systematic ordering was better than none at all. 6. We have seen no value in asking the President to spend his urban resources, political and financial, on proposals which are unacceptable to American society in 1967; we of course urge him to continue his leadership in educating the American people to the necessity of accepting our central cities ghetto residents as full participants in American society. Only such a development can offer hope for our cities and the people who . live in then. We intend our proposals as far as possible to be consistent with the following principals: 1, Federal assistance should be tied not to institutions but to individuals, 2. Federal assistance to state and localities should be designed to strengthen the role of political executive wherever possible. 3. The administration of prograns should be carried out at the lowest level possible and with the greatest flexibility possible. 4, Programs designed to up-grade ghetto life should also make a contribution to integration - if possible. 5. New institutions should be created only under the most unusual circumstances, Proposals We have divided our proposals into two sections. The second are those which are in some ways nost desirable and ambitious but which seem to us to be only long-run possibilities, The first are meant to be the first stage - perhaps about five year - developments in urban policy making.
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 15

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  • Title: Box 22, Folder 18, Document 15
  • Text: THE NEWS AMERICAN Thursday, Nov. 24, 1966 MARIANNE MEANS... oT i Part Yi ISL AGILOTLODD 2 Was OUTLET LDN The Ghetto Plic oft at Cabimet Level Should the urban Negro ghetbos be rebuilt or ghould their residents be scattered to the white suburbs? The sruggle among high ad- ministration officials tor an an- wer to that question has been wense sinee a heated argu- nent érupted in the White ‘House office of Joe Califan ;Many weeks ago. = Bureau of the Budget Direc- © Se “y tor Charles Shultze set aff the wey lense exchange when he began MEANS discussing the urban crisis be fore neatly a dozen cabinet and sub-cabinct members assembled beneath Califano’s stark black and grey abstract paintings. Shultz pre- sented @ Est of 15 suggestions for improving condition in the cities. SOME OF THE PARTIOMANTS in that hich- powered session were chayrined that Shultze failed to include a proposal tackling what they consider the biggest urban provlem of all — mn- employinent, Seerctary of Labor Willard Wirtz observed testily that the problem of the cities is centered upon the plight of the povery-stricken Neurov. Ghellos. He pointed out that the unem- ployment rate among Negroes is twice that of whiles, and stressed he believes providing jobs in the ghettos is the key to helping the cities. Then-Attorncy General Nicholas Katzenbach and then-Agssistant Secretary of Commerce Eu- gene Foley (Katzenbach is now in the State Department, Foley has gone into private life) echoed Secretary Wirtz, They added their own pleas for new programs to attract industry and job-producing projects into the ghettos. One official present, however, intorjected that he opposed sucn efforts to rebuild the slums until conditions were improved for the poor, un- educuterl Negres of the rural south. He said he preferred trying to resettle slum Negroes. “If you make the urban ghetto livable all you'll have is the Mississippi Negro moving North and reducing the arca to a sltun again," he said. _“You've got to face the fact that ‘he ghetto is here to stay and‘make it a decent place to live,"" Poley protested. The meeting, as often happens in govera- ment, didn't settle anything. It is, however, a dramatic illustration of the painful but sceret process now going on inside the White House as the administration prepares for 1907. PRESIDENT JOMNSON has long been con- cerned about the problems of the urban centers, where 70 percent of the population lives, and has repeatedly indicated that city problems will make up a large share of his 1937 legislative program. In asklition, his interest in the cites must certainly bave been reinforced by the warning of this month's election, in which the -GOP demonstrated impressive gains in the nor- mally Demooratic big city vote. ~ (Although that same election seemed to indi. eate a miational atmosphere of entrenchment which. foreshadows difficulty for the administra- tion in Congress if its programms for the cies are deemed too expensive or too visionary). Without much fanfare and largely without public notice the White House has set about in several ways to work on the problems af the cities. Passage last season of the Demonstration Cities Bill, was of course, a small but important hoginning. A special task force has been as- signed to produce new ideas for the cities which would be included in administration measures. AND THAT CABINET-LEVEL group, which meets weckly in Califano’s office, acts as a watchdog over the presently exising programs in an effort to see they are fully utilized. Meanwhile, the Justice Department is plan- ning shortly to conduct a landlord-tenant confer- eace in the capital. The conference will bring together state and local officials and lawyers from across the country io discuss procedures ‘ which’ might be adopted to protect slum tenants. A major slum problem is the failure of land- lords to make essential repairs upon their avellings. Tenants, who often cannot read nor write, seldom mow the identity of their landlord anc have no way of press ring him into action. ene
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 10

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  • Title: Box 22, Folder 18, Document 10
  • Text: fi tL ERARINGS BSFORE THE SUECCILITTSS Cl EXECUTIVE REORGANIZATION OF THE SENATS COLAITPSS CH GOVERNMENT OPERATIONS Afternoon Session: BRUCS P. HAYDEN, Vice Pre President, Mortgage end Real Estate Department, ‘Connecticut General Life Ss Insurence Comvany ,Mr. Hayden defined the conditions under which life insurance corporations and other businesses could increase their participation in the urban redevelopment process. The extension of Govermnent financial assistance programs to profit ventures as well es nonprofit organizations and the effective exercise of the planning and coordinating function on the part of Government were described as necessary to the achievement or greater business involvement in the rebuilding of the cities. The main points raised in his testimony and during the questioning period were the follow- ing: 1. The Weakness of Nonprofit Ventures Mr. Hayden testified that development efforts undertaken by nonprofit concerns usually result in failure due to a lack of knowledge and experi- ence. The tendency to limit Government financial support to nonprofit organizations is thus undesirable. 2. The Gathering of Housing Costs Mr. Hayden stressed the importance of reviewing the divergence between housing construction costs and general price levels which forces builders to tolerate low quality work. The continu2tion of reliance upon easier financing arrangements will prevent a soluvion of the costs problen. : canizati f the Attack uvon pa folems 3- The Organization of the Attack upon Urban Probl Mr. Hayden stated that an agency should be created with the responsibility for making a total systems approach to the problems of urban housing. Such an agency could be organized along the lines of either NASA or COMSAT. JAMES W. ROUSE, President, The Rouse Company > Mr. Rouse described the steps taken to plan and finance the Columbia project which involves the development of an entire new city within the next 12 years in an area midway between Washington and Ealtimore. The experience of the Rouse Corporation and the Connecticut General Life Insurance Company with regard to Columbia can be applied to the reconstruction of the central cities according to Mr. Rouse. The main points raised in his testimony and during the questioning period were the following: t 1. The Need for Concentraticn of Financial Resources upon a Single City Mr. Rouse suggested that all urban renewal and demonstration city funds should be utilized to accomplish the total and successful renewal of a single large American city. The country needs to be convinced that urban problems are capable of solution. 2. The Place of Profit Considerations in Urban Redevelopment. Mr. Rouse declared that the construction of new cities and the reconstruc- tion of old ones so that the real needs of their people are satisfied will be a profitable enterprise. Once the market success of well-planned development projects is established, the solution of the nation's urban problems will be possible.
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
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  • Record Updated: April 30, 2021

Box 22, Folder 18, Document 31

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  • Title: Box 22, Folder 18, Document 31
  • Text: To: Members of Task Force From: Richard C. Leone anclosed are major portions ize that some of thes ind work on between now and ft and should have a Lac ara copy for our meeting in Wash of the draft report. € ave still in a crude form ‘put they should give everyone something to think about Thursday. We will be revising cleaner and perhaps more refined ington. —
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021

Box 22, Folder 18, Complete Folder

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  • Item Type: Text
  • Title: Box 22, Folder 18, Complete Folder
  • Text: "· The Department of Housing and Urban Development and The Office of Economic Opportunity CONFER ENCE ON HOUSING FOR, THE POOR Ma y 23-24, 1966 Wa s hington Hil ton Hotel Washington, D.C. �., ti Agenda for CONFLmENCE ON HOUSING FOR TIii~ POUR Department of Housing and Urban Development and Office of Economic Opportunity May 23-24, 1966 Washington, D. C. Purpose: The purpose of this Conference is to evaluate the feasibility of providing several million additional standard housing units within the next five years, at prices the poor can afford. We are seeking from this Conference (1) a summary of what we do and do not know about how the poor are housed, in physical, economic and social terms; and (2) identification of alternative programs or combinations of programs and implementation strategies, that might make decent housing available for the several million poor households that would otherwise occupy substandard or overcrowded units by 1970. Program Monday, May 23, 1966 9:00 a.m. Opening Remarks Sargent Shriver, Director Office of Economic Opportunity Robert C. Wood, Under Secretary Dept. Housing & Urban Develop. 9:15 a.m. Conference Procedures Dr. Morton J. Schussheim Director, Office of Program Polky Dept. Housing & Urban Develop. Mr. Alvin L. Schorr, Deputy Chief, Research & Plans Office of Economic Opportunity 9 :,30 a .m. Statement of Problems and Its Dimensions Professor Charles Abrams Columbia University (The number of units and poor people in need of better housing; the extent to which rehabilitation and/or clearance are required; the costs involved; present locations of substandard units; composition of occupants by race, age, size and family composition; the national goal.) 11 :00 a .m. Social Issues Pr o fessor Nathan Glazer University of California (The questions of deghettoizing the poor and particularly the nonwhite poor; the supplemental educational, counseling and back - up services required; the problems of a means test and establishing priority criteria; the attitudes of poor and non - poor to this housing; the difficulties and oppor - t un ities of relocation . Should standards be reduced , e . g . no air conditioning ; room sharing; smaller room size ; etc • . . ) 1:00 p . m. WNCH �2 Monday, May 23, 1966 (Cont'd) Technological and Land Use Issues 2:30 - 5:00 Richard J. Canavan National Association of Homebuilders (The ~ype of housing required and its location; the availability of land; architectural and city planning concerns, the technological problems and opportunities of a large-scale building and rebu i lding program; the abilities of existing or proposed institutions to implement the program; prospects f or cost reducti on.) Tuesday, May 24, 1966 9:30 a.m. Economic Issues Pro fessor Chester Rapkin Uni versity o f Pennsylvania \ (Alt e rn a tive mean s of fi nancing the pr ogr am; the effect on the economy o f a multi-b i llion do llar program; the effect on the total housing industry and constr uction costs; a c ceptable standards of space and quality; the effect on the values and cond i t ion of e xisting housi n g a nd n ei ghborhoods; e ff ici encies that mi ght r esult from a r eeva lu a ti on of the e conomics of the hous ing i ndust r y.) 12 : 00 2: 00 - 4: 00 LUNCH Program Issu es Dr. Lou i s Winnick Pub li c Affairs Program The Ford Foundation (The t ypes of programs to me et the objec t ive ; possi b le expan sion or red ire ct ion of exi s t ing programs and t he inv ention of n ew kind s of programs; possible number of units to be dev eloped; ~he phasing and possible mix of programs over a several-year period.) �List of Invited Particip~nts Conference on Housing for the Poor Mr. Charles Abrams Professor of City Planning Columbia University Mr. Nathaniel Keith Consultant , Mr~. Ruth Atkins Community Representatives Advisory Council Office of Economic Opportunity Mr. Saul Director National Mutual Mr. Richard J ; Canavan Staff Vice President Builder Services Division National Association of Homebuilders Honorable Sherman Maisel Board of Governors of the Federal Reserve System Dr. Robert Dentler Center f or Urban Education Honorable Arthur Okun, Member Council of Economic Advisers , Mr. John Eberhardt National Bureau of Standards Professor Chester Rapkin Institute for Environmental Studies University of Pennsylvania Professor Bernard Frieden Departmen t of City and Regional Planning Massachusetts Institute of Technology Mr. Nathaniel H. Rogg Executive Vice President National Association of Homebuilders , Mr. Robert Gladstone, President Robert Gladstone and Associates ' Dr . William G. Grigsby Institute for Environmental Studies University of Pennsylvania Klaman of Research Association of Savings Banks Mr. Arthur Levin Potomac Institute Mr. Albert M. Cole President, Reynolds Metals Development Corporation , Professor Nathan Glazer University of California Dean Burnham Kelly College of Architecture Cornell University ' Dr. John R. Seeley Chairman, Department of Sociology Brandeis University Mr. Miles Stanley National Advisory Council Office of Economic Opportunity Dr . Louis Winnick Public Affairs Program The Ford Foundation �~ Housing Poor Families The Problem. A program to house all the nation's poor in decent housing at rents they can afford contains two distinguishable elements: i) how to improve the housing conditions of those presently living in sub- • standard quarters; and 2) how to lessen the.financial burden of those who live in standard quarters at the price of devoting an excessive burden of · their income for housing. OEO has e.stimated that upwards of 4 mi·llion poor families and poor unrelated individuals in 1964 lived in housing that was dilapidated, lacked ~lumbing facilities, or was overcrowded •.!:/ The number · who overpay for standard housing is harder to estimate but is large. For example, in 1960 rent-income ratios were computed for 5.7 million families with incomes under $3,000 . 4.4 million of them were paying 25 percent of their income or more for rent. An ad ditional .5 million were paying be- tween 20 and 25 percent of their incomes. In theory, housing needs of poor people should decline because of anticipated declines in the proportion of families who are poor and because o·f continued upgrading of the total housing stock. Between 1950 and 1960, however, poor families received only 2.5 million standard units out of a ~t overall increase of 19 million . That is, families representing 30 per- cent of the total in 1950 and 20 percent in 1960 showed 13 percent of the 1/ The incidence of housing characteristics in 1960 was applied to 1964 data about the poor population, producing a total of 4.1 million in such units in 1964. If one proceeds alternatively from the housing stock itself .and the rate at which improved housing stock reaches poor families, an estimate as high as 5 million poor families in substandard housing would be produced. �,, I 2 net ove_rall increase. Moreover·, in some' places and for some groups' "natural forces" may exacerbate the problem in the years just ahead. Low ! income f families presently living in substandard housing are less mobile and have more deviant characteristics than thoae who were able to take advantage of • the filtering process during the 1950s. And such forces as zoning and sub- division controls are likely to present new impediments to the distribution 1 · downward of _standard housing. That . the current welfare system --- an ex.am.~le ~ of the pure income approach to housing --- has not produced larger results :is another argument for seeking substantial approach to the supply side of _theI equation. Obviously, some improvement will occur naturally and one must assume ( too that cash income maintenance programs wi ll meet i ncreasing portions of _/ family income de ficit s. Reasoning fr om 4 mi llion families and indiv iduals in s ubstandard housing in 1964 and add i t i onal millions pay ing more than the y c an affor d for st andard hous ing, one may e stimate the object ive more or less a t wi ll . OEO has es t imat ed that the ob ject i ve should be pi t ched I J to the expec t a tion tha t the me di an i ncome of families who should be reache d would be $3, 000 ( f or a f ami ly of fo ur ) . From th is base, one must de t er- mi ne an overall objective within t he target date of five or six years. Developing a Program. In a pproaching the developmen t of a program it is necessary to judge what may be built and what may be reclaimed. Such { an approach represents.more than simple economy. It allows room for famiU.es that may wish not to give up thei r homes and provides a pattern for contintled •• I · • I> I II I ( 11 •,' �.- .t 3 maintenance of the housing supply. In the decade from 1950 to 1960, some- thing less than one-fourth of the net increase in standard dwellings represented rehabilitated units. On one hand, there has been considerable reduction in the stock of housing that lacks plumbing facilities and is comparatively easily rehabilitated. On the other hand, new aids are available for rehabilitation and new effort is to be invested in it. tt is, in any event, necessary to make some assumption about the proportion of standard housing that would be secured by rehabilitation and the proportion that would be built new. Similarly, it is necessary to make judgments about the geographic distribution of additional standard housing. Although substandard housing is disproportionately distributed in rural areas, some number of the people now using it wi 11 be seeking housing i n urban areas. Finally, plans for a substantial program should include consideration of staging a buildup of the construction industry. For example, a net increase of 1 million units a y0ar might be built up to at the rate of 200,000 or 300,000 each year for several years. The supply of housing for low-income families can be increased either through government incentives to "the private sector or through direct construction by public housing authorities. Incentives to the private sector include -subsidization of land costs and reduction in the cost of bon:owing building capital (low interest loans or subsidized interest rates). I'. , .. ,. · 11 · • Use of �., 4 these aids provides an attractive incentive to private builders (and rehabilitation contractors) while permitting some control over the allocation of benefits and rentals or sales prices. However, these forms of assistance are not sufficient to produce housing in the $50 a month range. poor fam:1,.lies must also be subsidized. To do this; A program of the JJ1,B.gnitude being described might be fashioned entirely out of two elements rental or purchas.e assistance and interest and land subsidization. The obverse side of these assistances are conditions as to beneficiaries and uses. Obviously, Jll,S.ny variants of the two elements are possible and alternative programs may be fashioned as well. Related questions that would arise include the uses and place of code enforcement, the type of research that might be most productive, the special ne.eds of rural areas, the niethods. of assuring desegregation, and related needs for providing public and social services. l' ' �I STATEMENT ON URBAN DEVELOPMENT CORP. One area the Federal government has neglected in its effort to make lower cost housing av~ilable is the use of technology and other innovations to help reduce costs. .. Therefore, the idea of establishing an urban .,development ~orporation to create a large enough "market" in the field of rehabilitation so as to induce innovations is an attractive one. ~ I I The need to explore all ways of encouraging rehabilitation of sub-standard housing is great. However, there are a number of uncertanties and risks involved in launching a UDC program. To begin with, it is unclear to what extent i echnological and institution j innovations can reduct costs. Furthermore, the economic feasibility of the program, and therefore the assumptions on the degree of financial support needed, is highly sensitive to such factors as acquisition costs, rehabilitation costs,and mortgage terms. In addition, the program cannot be started small. I I It must be launched on a large enough scale to create the necessary "market" for innovation. Therefore, the program must have top-flight leadership, and it must have a firm commitment on the availability of 22l(d)(3) below-market funds, FNMA special assistance, and rent supplements. Given the proposed 30,000 unit target for the first two years and given the need to operate on a scale of around 10,000 units in any city, it should be understood that the program will have to be --- limited to a small number of cities. i I / �, It should also be understood that no matter what cost-savings may be achieved through innovation, major subsidies in one form or another will still be required to meet the housing needs of \ the poor. Recommendations The Task Force therefore recorrnnends: 1. That a program along the lines proposed by HUD be inaugurated to test the capacity of UDC to stimulate technological innovations. 2. That the UDC should seek to encourage and to assist-through · training, technical assistance, loans and otherwise-- the formation · of competent and qualified local non-profit organizations to help carry out its mission. 3. That firm commitments be made on the availability of sufficient 22l(d)(3) below-market funds, FNMA special assistance I funds, and rent supplement funds to meet its program objectives. I I 4. That a clear understanding of the relationship of the UDC to existing local agencies concerned with housing and urban development be worked out before the program corrnnences . 5. That careful consideration be given to explor}t'\ith those most concerned possible political acceptance• of a UDC program involving new construction as well as rehabilitation. -- �,• .·• " ' .. .:..J -~. .;..,,....,~ -~ --'--L_ · - -~~ - - - -- i =·- ' 1_ __. ' Subcommittee on Exe cutive Reorganization of the Senate Committee on Government Operations Afternoon session - November 29, 1966 . Witness~ Richard M. Scammon , Vice - President, Governmental Affairs Institute , Washi ngton . 1 th' . Scarnmon testified on the need for a mid- decade Census, or an inter - censal urban Census. He said that although the 1960 Census is out - of- date, obviously the 197q census count won 1 t be ·available for five years. A big factor in the obsole scence of data is the increased mobility of the population . According to . Ya- . Scammon, there is a great need for area data rather than figures from a city as a whole . I n the questi oning by Senator Ribicoff this point was elabo:::-ated upon and it was stated that if information had been available concerning the situation in the Watts area of Los Angel es , the riots could have been avoided . Senator Ribi coff said t hat when a census was taken of Los Angeles the bad figures from such areas as Watts were offset by the figures f:::-om more affluent areas . Senator Ribicoff pointed out that Yir . Cohen from the Department of ~:EW had used figures which dated back to 1961 when he testified before the com.~~ t te e and that government agencies cannot cure social ills without up- to - date statistics which point definitively to the location of those 'ills . Senator Rib i coff and lfir . Scammon both agreed that a mid- decade census is ne cess ary . Senator Ribicoff mentioned that the Office of Eco nomic Opport u.,."li ty is planning to take a special census in 1968 in st andard metropolitan ar ea s to complile pertinent data on such statistics as the median family income . - Vir . Sca.m.~on laid the blame for the fact that a census is taken only every ten years on the Budget Bureau . He said that the costs involved are so tremendous that the Budget Bureau would not agree to a more frequent census. ' Method of t aking the ce nsus Senator Ribicoff asked whether or not the method of ta..~ing the census is important. He pointed out that a census was conducted in Watt s where questionnaires were mailed to the 1·esidents. He questioned whether or not people at these levels would be interested enough to return the complete d forms. Lack of data on adult male Negroes Senator Rib ico ff also pointed out that i n the last censu s betwe en 15% and ~.r. Sc a~.mon rep lied t hat there was a slippage in less afflue nt areas of cities, but he did not know whether Senator Ribicoff's percentages were entirely correct. 2Cf/o of adult male Negroes were mi ssed entirely. ) I· �d-~--=·__________ u_ · --·--~~-;'_______ . -'---- - ;~ _.,_\,.;. ,; L?16:57, 29 December 2017 (EST) __________ . --- ---· ·--- : ... 2 Advantages of a five-year census . Senator Ribicoff said that abnost all grant programs are based on the number of people and their needs . He claimed that we must wei gh t he advantage s of a five -year survey in relation to these programs . He said that a · f i ye-year census would be better for decision ma.~ing by such administrat ors as the Secretary of h'UD . Central location for statist ics. Senator Ribicoff also asked whether there should be a central place for t he gathering and keeping of statistics, rathe1· than allowing each Department to have operations of its own . ifi r . Scammon sai d that a task forc e heaaed by Congr essman Gallagher r ecommended s et t ing up a cent r al ban.~ for statistics, but that a big concern of the Task Force was the right of privacy of individuals in responding to questionnaires. Senator Ribicoff contended that where the information was merged, th~ pr.oblem of confidentiality was lost. Problems Senator Ribicoff to get people to forei gn areas of in orde~ to gain said that the problem of taking an urban census has been do the work . It was also poi nted out that in problem or a city, t he census takers must be famili ar with the area . the confidence of the people who are interviewed. Spending in.cities Senator Kennedy asked through the _Chainnan whether it is possible to determine .how much the government is spending i n ea ch city to rebuild . He wants to know how we can get better figures . Mr . Scam..'llon said that this information should be available from the Census Bureau or through the Subcommittee. Senators P_!esent: Ribicoff Javits �. ------ - -- - -~ - - -~·.•, _ _ __ _ j_ _ _ _ . Hea:ci ngs before the Subccmmi tt ee on Executive Reor gan i ze.t i. or:. o f the Senate Govermr..ent Ope rations Corr~tlittee Afternoon session : Witness : Novembe r 30, 1966 Judge GE!org e Ed,·re.1·ds, U. S . Court of Appeals, 6th Circui t , F orme r Police Co~.missione r of the City of Detroit; 1962 and 1963. J udge Edwards outlined for the Subccmmittee the p::.·oble!ns of law enfor c ez:-.ei1t in the large citi es of the U. S . with examples drawn la1· ge ly f:r ora his o~-,n. experi ences i n the city of De t::.·oi t . The J"G.dge emphasized tl":e prob l em::: of the Negro co:r,!nuni ty and the fac t that the a ttitude s of Negroes to,-, ards Ls:w enforc ement are the product of the ir early environr.1ent mainly in t he South. J udge Ea.war ds said that r.1ost crh--rie is cc:r.r.li tted by Neg::.·oe s and inflicte d. [ on othe rs of their own race . He said, hc,;ever, that the large r::2.jority cf · Negroes are i n favor of l aw enforc e1-::ent and want to see it i::1~roved . The Judge made the followi ng sugge stions : 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16 . Fi nd out more facts in regard to c o;·:iplaint s about police brutality . Transfer trouble:nakers on a police force and those who use bru.tali-::.y . En d in,restigative arr ests . Increase police in high crime prec i nct s . Fe ci.e r e.l government must help loc a liti es co:n"':Jat organized c rime . Professionalize policemen by upgradic·g their stan dards throue;h bette::.' trainin g . Prorr,ot~ Negroe s on an eq_ua l basis with uh i {;es . Ban polic e dogs in raci al d.err.or2str at ions . I ntegrate p:)lic e t eams . Ra i se the pay of po l ic emen . Hir e more polic er.ien . Coordinate l aw enforcement agenc i es . Esta"':Jlish a i'iat ional Police Tr aining College . Est ab lis h hi gh l e vel board..s within police de:partn,ents to i nvestigate charges a g ai:1st policerr.en . Federa l grants -i n - i i d should b e made for police training . End the autonor!lous :-iature of l aw enfo:r·c e ment bodies . Witness : l Robe r t Coles , M.D., ~ese a rch Psycl: iat ris t , Es.rve.::.·d Un i versity Health Servic e s . Dr. Coles is a child psychiatrist w:'lo ,,;orte d exten s ively i ri the So·t.1t h e.n.i studi e d the effect of racial ten s ion on J:egr0 child.::.·en . He stated th~t t he young Hegro children who fir st att e::-ided white schools i n the S01;.to. and ,_.;~-:o h ad to er2du.re mar:y torments and ant agonism siowed a great stre ngth of chara ct e r. He said that i t was a puzzle::;e nt to him that st::.·e s s yr odu2e s ;-:,c-r-:: str ength of character tha,, an envil·o,Jn-21;_t of lu.."\.-ury 01· midcile clas s tr""r: q_uili ty . Eo1.-rever , the Doctor poi n.t e d out that afte::.· the 2.g2. , of twe l ve , unde :cpr i vileged c hildren b egin to r eali z e that ob e d i ence to the Bibli c2.l teac h in g s of their child...hood will r2ot pay off. P.ft e r thi s re a liza~ ion t'::le �, l ---::--- 2 . l s l urn ym.rt:·. .".·=;rgoes 1·:i1at psycnia trists c all " death of t h e t ea::-t . " 'I:'rseY then oui te ·· "=D b e co:ne a nti - so c i a l a nci. turn t o a. l i fe of c:::.- ~,e or deli nq_uen c;-r . .::'b..e Doctor pointed. ou t tr..at sor~e d e linquents do ,,,.co:1g b e c 2.u s 2 they c an f L . i. ::oth i ng r i ght , nothi ng signi f ic ant and ch a l le r..g i ng t o do . Main questions raised. ·oy the Su"!:l co!!~:i.i ttee : 1. Rac};:et ee:..-ing i n shEn hous i ng . Senator Kerille(\}r ask ed J udg e Ed,,:-2.rd.s whe the r orgc.nizeci crir.-.e pla.y s a ~ c._.., i n the creat ion and. continuat io r.. of slur:: housi ng con cii tion s . The Juc'. ge s a id that i t probabl y does and Sena to::.- Kenne ci.y tol d the Ch 2..iri,1an that h e t hinks the Subcomnlittee shoul d expl ore thi s ~ossib ility . ! ' 2. Defense by citi e s a gain s t riotin ~ . Senator Ri b i coff aske d the J 1.;.ci.ge Hhat a ci t y c a :1 do to d.e fend i ts e lf a gainst r i oti ng and at wha t p o i n t the nat ional Guar d s:-::.ould. b e ca l l e d _in. The Judge s a id t h a t all of his suggest ions HO"'c1ld help :prever.t r iots , bu t once the ri ot had. c e gun i t c ou1d. be coun-c e1.· ac tec. on l y by qu ick o:cgan~z a tion and gre a t r,,ob i l i ty of sub st antial forces on t he sic'.e · o f the l aw . He said that t he f orce us ed mu s t b e ove r Ki.1el.:1.i ng a ,:d di s c i ~.)lined . He be_l ie v e s that tne Nation a l Guar d s i2ould be c a lle d. to a riot sc ene whe n ' police gur, i'ire i s n e eded . 3. Cu l ture o f p-.:> ve:rty . Se nator Ke n ne ciy a s}:e d Dr . Co l es whe t her th e r e is 2. cu l t uyc of -;:iove i't y i n the U. S . 'I·:1.e Docto r 1-epli ed that h e does not t :ii ~ '- t ha-'c we reJ.lly h ave a cult u re of povert y because pe op l ':! a:::e no l onge r i so:'..a teq. due t o th e exis tenc e and ext e ns i ve n e s s o f a rr.a .ss r::edia o f corr.:,;c:.>l i c a t i ons . Throug:1. TV a n d othe r me d i a p ::: a c-c i c a lly e v e ryone i n this country is a,.-ra:::-e of t:C-1e oppo:ct w1iti es wh i ch ex i st o:r at l e a s t t h at ther e i s a nett e r i-,2:y to live a l t hough the a tt a i ma.ent o f t h a :, l i f e i s not p o s s i b l r, . lf. B'J.ss i r. g of schoo l chi l clren . L Although D~ . Cole s thi rik s t hat the Eosto:1 e:>..--pe rin e r:t i n bus s i ng c hilclr2n t o t he s u'::mrb s h e.s b e en qui te suc c e E:s lul , Senat or Rioico ff i ::,pli ed t=-,c:. t i n hi s y i e1·r the ~;1oney. ::-: i ght better be spE:n t iri~yrov::.. ng s l ~-:--:. c: 0.ucc..t i on gener a lly . Se nat o:r Ri bicof~ sai d t h a-'c h e d i ci r.o t th i nk t hat the p l a ci r.g of very poor chi l dren in school s ':-:i t h a f f luent an d well fe d c hi l ci:::.· en was p s y cholog ically goo ci. for t h e u nd.e r :;,:ci vi l ege d. c h i l d . 5. Rehab L!. itat i on o f sl'.ll-:i. d,:e l lers . ~ a r.ybocly c cJ.:-, cha::: 6 e i: gi ve n s01:·.2~:1. i r.g t o rf aepll l i b8.edcre on . Ser.atc:c Rib i coff a ::;ke d ,·,het ne r there i s ar..y h o-::;e fo:::- t ~12 :::ost -vio l e nt rr1ert::> e r s of sllt7t c o:r_~11u1~i ti es . 1I·i-.:. e :8:> ctor· t hat i n ::i s op i n2.on Ee c ited as ar~ exar::.p le t he a1itob io z;ra~!.i.;y c f lv:s.l col.2:-. X ,.,;10 1-:e.s f r cr:1 a r.::, st u~:foTt.1.L;.f.t = far:1ily and ·w!".1 0 t ur ned a~-ra·:l ::'ro~n c. li f e of C!."'i 143.215.248.55e to b e ccr...e a l ea.:Iei-· o �. - -·--·--- .... ---······ - --- ----- ----- -- ---· L?_;-;_:i,~ 3 6. Mea!1s ,;: ·, ~h ; n g There ,.;.·. slurn cl:.i J.fu·en . general ciiscus s ion of wl:.e t:ie r the vast amount of 1rconey beir_z ~catio!1 today is payi ng off . Senator Kennec..y '.·ras v e ry int e. ::.· e s"c e c.. i n findi ;;. _: ~-2tter ways to help slun c h ilfu·e:, . spent o :-, Senators present : Ribicoff Kennedy �. - - - - ·-· · - -·- .' ·- ··· · - · . . : .. . i _ _ ____ ! J n... ~~ ....,__ . , ~ I~~3>' _., __:., . ITEM.S OF IllfrEREST RELATED 'I'O lfiJD RAISED _t{J: h-.:. . - !ill/1.RHTGS OF RIBICOFF SUBCQl.f:•.ffl'TEE ON EXECUTIVE REORGANIZATION ~m ., - • st-...:~ December 2; 1966 J ~1ES M. HESTER; President, Ne'., York University Mr. He ster evaluated the contribut i ons which New York University and similarly situated educational institutions are malcini to the improve~ent of urban conditions . _The shortage of available financi2.l r esources creat ed by a lack of sup:9ort from public sources was s een· as the major obstacle to the broadening of the uni versity role in u rban affairs . l. The I mprovement of Research on Urb211 Problems President Hest er stated that the effectiveness of university research int o urban problems was limited by the need to proceed on a projectby-proj ect b asis . The availability of fu.~ds ade~uate to finance lo:1g term programs would l ead to an increased university r esearch contribution. 2. [ The Heed for Greater Univers ity Participation i:-i the Ad:-r.in i stratio:1 of Federal Government Pro1; r a:ns Affecting the City Senator Ribicoff stressed that the soluti on of urban problems depe:rJ.d.s upon the :i;:_ecruitment of oual ified persons to carry out proGrams which Congress ha s authorized . Unless the University can i nc:::·ease its supply of such personnel, t he objectives of recently enacted l aws will not be r ealized . President He ster replied that N. Y. U_. was fulfill i ng its responsl;)l..Ll-v~to the city within the fr amework of existing finaYJci al resources . GEORGE STEill~LIEB, Professor , Rutgers Uni ve r sity Uroan Studies Cer.te r Mr . Sternlieb maintained t hat federal programs aimed at alleviating subst an.dard housine; conditions have not achieved t heir obj e:cti ves because f eder al hous ing policy has not t a1~en into account the r ealities of the urban ghetto situation . The primary er:1l1hasis i n urb a.YJ r ehabilitation should be on the r esponse of the persons. li vi:13 in slum conditions to the mea sures desi gned to help the:n . 1. Public I e;norance o:f FRI\. pro~r2cr.s !'fir . Sternlieb declared that the sm3.ll ghetto lane.lord usc:ally doe ::; not know that FHA a s sistance is available. The a110.rc;1e ss of FriA p rograms is lir.iited to l arge proper ty owner s . . �" . ,----J - , ·- --- - - ~.. .___ ___ ;., ··· 2 2. The I moact of FilA. stande.rds on Urban nehabili tat ion !tr. Sternlieb emphasized that the adoption of more sensible fina..'1cing arrangements in the field of low incor.i~ housing was ir,,perative . A property 01-mer in the ghetto who sought to bring his parcel up to FHA sta.'1dards would comrni t "econo!!li c suicide T11e FHA st2.ndards were uescribed as completely divorced from the housins market and the capac ity of the neighborhood to sustain such housing . 11 3. • The Need for an Increased Emphasis on th·c: Promotion of Hor:ie 0',mership Mr . Sternlieb maintained that the e::qJerience with the public housing program indicated that better pnysical facilities will not produce by themselves a corresponding improvement in living conditio~s. The G~etto [ resident will not support m·ban rehabilitation unless it promis e s to lead to some typ e of home ownership. 4. The Desirability of Greater Administration Awareness of Urban Froblerns Senator Ribicoff criticiz ed the failure of execu-tive departments generally to concern themselves with t he condition s that their progr2.:r.s are designed to affect. He declared that the testimony of ~rr . Sternlieb would enlighten Secretary Weaver and his associates in the Cabinet . LEES. STERLING, Executive Director, Arr:erican Property Rights Association, New Yor~ City Mr. Sterling testified that the abolition of rent controls ar..d the compulsory re - education of welfare _rec epients would be a large step toward the solutiqn of New York City' s housing problem. He de"'-anded that New York City rec,::ive no demonstr ation cities money until r ent control imd welfare abus es were abolished. ,· �l •• r. !- _, ---- ·- - ~- -- - - -~- ~- ,-~ -;-'--IJ;-_-___-_ ~---~~--------~_.__~\ ;;~i{,._._i_ .~-::'='·'~ - - --....,..--c.... · ..:. - . " ~ ITEMS OF D .TTEREST RELATED 'I'O EUD RAISED Nr !illJ\RiiXGS OF RIBI COFF SUBCOI,ii.U'FrEE OilT EXECUTI VE ru.--ORGAi'EZAI'ION De c e mber 5, 1966 ( mor ning ) CONS'l'.ANTINOS· IX)XIADIS J President , Doxi a dis As sociation . Vrr . Doxia di s ma intained that t he cri s is of urba:., s o ciety c oul d b e ·' a llevi ated only t hrough an appro ach b ase d upon systematic k.nowledGe of hu man _settlements . The gre at defe ct of existi ng urban develo:p;nen-;-, p rograms according to 1-ftr . Doxiadis i s t hat they h ave a n i mp act on a l imite d segme nt of the totality o f urba n existenc e . Ti1e s e effor ts c onfine d t o a singl e area c annot produce a f f i r mitive r esults bec ause the problem of mas s tra." lspor tation or t he d ilerr.ma of the c e ntral cit y are integrally r elat e d to the broader p atterns o f humon s ettlement. The main points r ai s e d in the t e stimony and d~ring t he questioni ng p e riod wer e the following : . •j .I j I I -i .l I I - 1. .! The Fa i lure of Feder al Government Progr ams to Sol ve Urba:1 Pr ooler::s . I ·: Mr . Doxiad.is stated tha t t he public hou s ing and u r ban r e t'.ewal p:•: : h ave riot pre ve nted a worsening o f t e e ur b a n s itu ation . The d e:::~;:·___ _ c itie s progr a m was de scrib e d as "a · small beginning in t he direc·:.; i o;: o::· · c oord i nat ed ac tion , s mall in size and small as c ompared t o t !'le a r e as i t mus t cove r . " . .i . ,i ., 'I l 2. The 11ee d f or Avo idin·g Incre sed Pr essu re on Urbe.n J1.re.e.s Mr . Doxiadi s sue;gested t h2.t t:.1~ cri s i s of the cit i es ~ight be 2.ggravc:cted by a substant i a l incre a se in f e d eral ex_penc1i tures for urb&.n d e ve l o:;:irr,3nt . Ari e a s ing o f the p re s sur e o f exi s ti n[!; cit i es t hrough the c onstru::::ti on of n ew urban c enter s s hould b e cons i d e red . i ! 3. Feder al P-.cor;rar.-1s as a M8 chan:i_sm fo r Accuirinr; I ncreased !(r,owled;,2 o f Ur ban Pr obl ems Mr . Doxi adi s s t r essed t h a t an awarene ss of t h e i nt e rrela t e d chan1c te r of urban p r oblems should l ead t o a n i nten s i fied s t udy of s oci al , e c onorr.ic , an d po_l i t i cal p a tterns pre va i l i r.g in u r ban areas . He urge d that c;ov::::c:.:.:::e:t::.:. p r o2:ro.ms should b e u til i z e d to p:t ovide increased knowl edge of these ::i:3."./c,:.::::·:·,::; . l~. Th e Preserv at ion of Ouen S-93.ces Mr . Dix i a di s declared t hat t he c onstruct j_on of public facili tief. in s electe d areas would cnc ourac;c persons and b usi~esses to l ocate t~~m s e l v es i n a manner which would s erve the int ere::;ts of an enti:ce u rba:'l r e 6 ion . The c o:-iservat ion of open l ar,d b y the government is thus n ecessa:cy t o the creation of an infrastructure of p'J.blic faciJ.ities whic:, wou ld m8.ke po s sible orderly ur':)an deve lop:~!2nt . 5. L T11e ResoJut;_on of ti1e Urb2.,, Cri sis D2µ2..rids lJ:,on a Li n i t&.'c icn o;._~ Co~·.~:·.u:1 i_ .J~y J..u~·.o;·Le, ::~:,,- .M:- . Dcn:iadis called for ov-2rall f-::!o.cre l govern~r,ent co:1t:::-o~ ;:,;: 'c:~,2 ]='-';·, . .::;:·:~,. of' t'r...t:-c::.!1 st:t"tle t.:i:::"t . '"J:i1t..; .:.cnLi:1l10:~i cn o~· c o~1::riu[.1ity a ~ ~v.:1c.:1:· . .,~.t -~·1 1.--..:: ..._..~ v. to its owi d2ve lor,,.2::-.t \-; ill :9rc::1-iat t ::1e:·e wouid necessa1·il:,· be ex-.9e1·ts 2.v:1.ila-ole o:c on call. He said that the key t o t he ·,,l-wle p:c-oblen; of ,r,:oviding lo,.; i n c o:ne housing is to demonstr2.te the p ra".!t ic al c 2.:p3.bili ty 0£' sa.'-< :in~ public plmming compatible with :9r :!.sate plannine; a:1d builo.i::J.G · ' . ' Kr. Reuther s aid that h e is very e!1thl,siastic a':)out the Demcnstrat i ons Ci t ie s Bill. .However ) he criticized Congr ess ' attitude to-.,·a rn ·ct Le appro:;iriation o:;: n,oney for don;est i c programs . He thinks ti~a t these prograo,s s hould be fu..rided a...½.ead of tic:2e ; so that the :Oe:92.rtrne:ot::; ,-,ill k n ow what mone y is available and have the money in tb1e to pl a.., 2.::e::c.ci . He thinks long term c ommi tt:n2nts should be mao.e for c.or,11:: sti c proc1·a::is as ,,e l l as for mili t_ary progra:ns ar;d i'or,=i g n aid. While c ri ticiz ine; pre s ent practices of 12nd use in cities ; suggested that a l ar.d b2.nk should b e c reated to help l oc.3.l p r ovi d e· l a,nd for low and r.1oderate inco,:.e housing . :-re s a id could. l earn a lot from Great Eri tain . He also pointed. out no slu~s in Swe e.e n . 1·~ Reuther con:::,u::1i tie. 3 thc:t the U . S . th~t t her e &:-·::; Mr . Reutl:.e r · c ont ended t hat the only way to r ed1_;_ce the cost of ouj_lcling hou ses is to appl y modern ; advar::ced t ec:hriolo~y 2.s i.t h e.s b een e.:ppl i ed t o such .fields as space ex-plo::.·atio::1 . Ee believes t ::-,2.t a ho·.1s-:: uorth $16 ; 000 according to present standards could b e developed. an-:: 3old ::·o::: $8, 000 if i ndustry i s sccn-m how to do i t b y research ins'ciG2,tcd by t h e gove r nment or a private :::i.on - profi t cor·::;ioratio;1 . [ 11.r . Reuther was h igi1ly c ritical of t he present s~rstems of r.~s s t~ ... ,,sus :r'c.?,:~j_c,:1 in this country. rie s ai d that t he _c ar i ndustry ':iill e ver;tuaJ.ly uffe:c fn:;:.1 self- s tra.'1gul at ion o n the high,-rays . Fie thinks it i s ri diculous for a p erscn to c arry a ton and. a h a l f of rcetal with nir,1 to wcrli: everyds.y . Ma in que stions r a i se d by Subcorm;ii ttee : 1. Fa1~t icii;>ati on by private inc1.11str:y in r eOuilC.ir..f- ci ti.es . l-1r . Ri b ::.coff 2.s~ed i-!D.lter Beuther whe:::. ratio \-:culo. b e de s i :rE..ble :o:cp art ici.p:i.tion by private indus t r y 2.:.1tl go\rey_~:.!e P-t i :r1 r ebuilf~inG 2i t i er, . Mr . ~e utr..er replied that he t hcc:::;_lt the mi:-i. irau:1 ratio s h ould oo $1 o::: gove:rr.i~G2nt mo!1e:>' for e--..rer:/ ·~5 of private fu.r. c~.s used . ·I 1his \·.:-a s the r 2.-:.i.0 p r oposed by Davi d Rockefeller. 2. Tee.chin;::; mi c r s.,, ts t o live in the c:i.ty . The Cnairt,1EL'1 aske d w:io t eaches the farm p e o::;ile h ow to live i:1 c.itio s 21c. how to e:void tur-ning hrn.l :::- ins into slu'.'1 ~2ss . He c laice d thi s i s o;t.:::::, the gli ght of public housing in r.-.2.r!y cities . r-:r . Re uther :;aic. t nat t:--,:: w1fort-..1r).ate thi.Dg is th a"c most new city d,,•ellers leE..l'[", i'l'O",. tt:.e :;::,20::_:iL, ,. -:: .::Xnv·.-i tic l ec.. st. abou"~ l:r_;·.., to li\~8 ~n a . : . : ~~y . __. . :::. :.(~ "'.:11.::.J.:, : .::c·:22;.-- : :1:.:~ .-::)_·;~, b e cr6aniz e d from the slutT!s to co ba c~ into the sJ.u~~s e.2:.d st':.O\·! -.9co~l.e >o-·:· �.. -..c--- .. - --~ - -: __ __: J .... c. ........... _ ..a~~':.l ;~~-·--- - ---- --- ---- -· ..... - J': . ~ ~ ..,.., to live £j_nd ta..~e ce.r-e of rel12..bi.litated fu""'ld nei,.;:- housing. [ Senator Ribicofi' seid t11at ~atc :r Oil .,_, i;1 vne he r~r ings will becomes a. 3. Se:nator RibiGoff a·skecl ho·w i s the govern:nent org.:Lu.ized to tc..~:e caJ."~ ot the pro1)lems of urban -~~r.-1·2 ric 2.. . t·T . Co::P,-ts_:_y.. said t!-:at t !1.e so --1e!·1:r~er!.lc 1 s r ead::r for a ne\; Eoover Cc:.1~·;1ission . }Ie m2.de t 11e :£'oll0'".-.ring su3ge st :=-.0:1:: Y(n.ich wo"'..lld in his opinio:1 str~::Gthen the go-,.:""e:!."'nt1ent ' e. c.bi l i t~.- to de cJ_ ·with tl1e urba!:t crisis: 1 b. Group functions together as was done in t.he D:!fer1se :r2r, urt~n·:::rrt a~1.Q Coordinate from above:: . cutting of pro ::::rai:13 Con':! by the Burer·.u of the I,~d ge t . would pl(lll &:c.d de·-;elop :;:>rogrc.:.1s f:c-0:1 •,·/ hi cl1 _t-ll·.-: i>::--c s!.d/:~n t cov.1. ,:: select the rcost useful . T.he a.dv~tr.\ced. I>lennj_ng futh~·t.ion of t ~:,~ execut:L-:1,~ br:~nch s hould :1ot. co6e u n d\-::j_... ~~he Eu.re au o f th e 5-J d{: :·: ~~ bec au.se it s}1ould be done o·J.t front nn1 n.\')t t e l1ii1d clc st.:d Cl.Oi..:i ~·s . 4 d. , }'u.r1d a.'1ead so t hat. tl1e a,;encies vron 1 t have to b es for r::or~~\ Y 2s.c h ,rea.r . e. Create a rnecha!1:i.st;t ( su.c~1 a s a l oc2.l coordinat o2.. ) i.Ihicll -:: sx! .Jv.-::.~u:: all the tool=· avails.Ole and fit thern t O th2 !le eds o f ~.oc2.l. corrll--nuni t i es J:"CrtC..er than --~:"ice v e:csa . a genius at i.:.he loc a l 1 evel federal pro grc~c.s . ... J, no1.; to k110\\i how -c. o t ak e ad·..- ::. .:i.1 tn~_; ,-- of 1 R.ole of l abor i.n r e\ri sio!"l cf t:1e c:Lt~--- . Ee :::.aicl t b..: .:.t eleven · \.1..ni cr:i s c..r c ~)2r tici~)2.ti:) .~~ . .:.::-::l cre a .J(:. e Q a cotins.il 2.::-id have do:·~e cu~:-i e.x citi nc; t l1in[;s e. s hoJ.O.i.n-~ .::! l sr_;:::-:·- 2 2uJ.d build i ng p l ayt; ::'ol:;.n ds . Se nato:t Ke:--~11eCy wl;.:.o .·tas not present ask8d t h.~cu_-.30.. · -L~e Che.i 1·tt~2.n -..:~ ::;t:.};e; ~· !1:r. F:-~ ut~er \-.1:1.s in favor of Co:·:~~rJ..;] :i.ty· DeveJ.o~:tn8nt Cor i:. or-2..tions c.t "Lt .~: 1 �. . ---- --~~---- - .. --- ---·- - - - -------·- -----' ~ ~ -~--'--·- -1. . c ~---~ r-.._,_-- -:1 ('"3~ . 4 l ocal level . ff:Y . Reut:1.er said he is very much in fa,,-or of theL'l . :S:e ,:e..,ts a N2:tional Corporation to work with the total probler.! and t o 02 bc:.c~ed u p by local corpo2:·at io!1s . 6. National Nor.:profit Housing Corp orc.tion . Senator Ri.oicoff said that the only person· he could think of ".,ho would be capable of a ssemblins the r.ecess ary leve l of representation fror, foun c.ations , u__--i.i versi ties , l abor , fin2.nce , ir::dustry and ot::ie:::- fields to participate i:1 t he n2.tional c or pora .:.ion 1 would be t he Pre side nt . The Senator said t!lat he h opes t he President will consider ti:-1is :_;;ropc s2.l . 0 7. Ho':-r to avoid continua tion of c. ,,.;e lfare sta te . J Consres s ma..11 J ames Scheuer ( D - N. Y . ) who was present at th:; h e ari ngs asked Mr . Reuther hm; third genera tion. wel::'Etre famil ies 8Ld :9:.·ec.ictc.':)2..e drop - outs c 8.J.'1 "be avoi ded . l/,r . Rc1.:the r said that tne recc:r:8 2nci.at icns made by tr..e ~ e s idec1t ' s Cow:1i. s s i er:. 0:1 .114cr..2.t i 5m s:1ould be i tr:_pl e,~,entcc,. "'1 - e pror:-"""" S' 7 E: '·'n e - r,-,on l- ..:...~n.:.!."l:, -s C.~~a" ... ,...o•,-.. - Sa '-:- d. . -'-hat ,,c,, H • C • -;--.1.:0".UJ.. _ ':'~C.. . ,r. J,..:,,... o• ---~ e ,.., e ,.....~1-,,... c. :_:.-, ,.0. ~~ • ••c,. W.: • d;., _.v -o :..- :_··.~, ince n::c i ve s 1 sucn as e arning out. s i de mon e y . He t.!1.lD:~s tna t a re c i :,ne:Tc s:-,01:.:..d. be allowe d to do this without loosin8 his welfare ::;:,ayment so tha t the person will aspire to living on a hit:;her pla.ri.e . · l., ! . J.. ~ •• l.,~ _ \".~ l., • TI Mr . Re uther said thc.t a.ri.other wa y to avoid a welf are state 8..."ld put people to work is to have a s t.,_nd2.rdi zed c o::-;:;,'J.t. e:::-' z ed e;n:::,7 o·-::::cr.,. n.:- · At p re sent 1 Mr . Re ut h e r clair:12d 1 ttie :.:"i 1· c,y e;1 c,rei:criect s--ca--:, 2 syste:,,s 2.·'.·-= obstacles t o the setting up o f efficie r:.t c ctT::_:iut ers ,:hich c ould m2."'.:.ch :.::-.. une,·a:;,loyed p e r son to a job withi n a r.:att er o -: r:,i nutes . i,'..r . R2u t h e r s aid t hat the whole p e :!: son 1 his hobbi es a s we ll 2.s h i s ski lls , is n o".; ta:~e n i nto account u..r1 c.er the p r e s e nt S'.:. at e systecns . 8. Missin p; e l ement in the s J.uc:-1s . Conbressr.1an S~heuer asked what i s ti-!e missi;:r.t3 element that has no-r, ce .:::n u sed to h e lp the cit y and ,-:heth e:..- this ele,:1e ::1t i s r.10:ce suLoidiz e c1 :10L,s :.:-.f/ ' Mr . Conwa y s a id ti1at on e r e a s on the gov e r nrr.8:1'-:, h as not h e l p e d · enou gh 5.:.. subsidi zing h ousing i s that in t he. o e:;i.nnin c; EBJ,'A was a f i n2.11e:ial i r. st~.tt·.~-:'..r.,.'.:. macle avai l abl e fo r p riv at e i r.dust,:y . He said that the A;;,e,~cy '.-ia s n ot :;,0oj:::. , o r i ented. Change in Witness s che dule : An t hony De cha".lt , Presid ent , ::-Io.t icna.J_ Fc.rrr.e:r:s lin ic::-i '., i l l not t e stify c ::-. Tuesday Deceuber 6 . D~-. ;-/ill iac!l Dcebele , Gre.c:.u 2.te School of D:::sie;n , Harvard Un i versi t y w2.s shLfted f r o:n \·lcdr:esda y t o 'I \ .:.esd.8.:f L:,s-'.:.e.s.d . I,Ie l vin Thom1 Ne.ti o r.al I ndian Youth Council n B.s been 2.dcle d. ·co tbe li s t fo:::Monci.ay , December 12 . M<::r:i'.)e rs pre sent: Senator Ribie:off Coc~ressr:!a..'1 J ames H. Scheuer , ( D-:'TY ) �I ITK.~S O? I !"'U'2~S-~} ~Cl.)/l!~l; ~C; · }0)~ R:\ISE!D ;.\'r }f.SP:.Rif\TGS OF RIBIC ()?:f' su:::!C:-=-~ii·:?~~- c:-; E(_ECU-:r·rv~ RSOl~GJ:.~TIZ..6..:J~'I0:·-1 December 6, 1966 ( Morning ) BAYARD RUSTII'J , Exe cutive Director , A. E.i,ili_p ·· Randolph Institute Mr . Rustin e.ttrioui:,ed r ecent :nEJ.r2ifesta tions of r a cial conflict to e. n at ional sh or cage of jobs , educational opportu.,.'1.i ties , 2.nd housin; 1 which c reates the fee.r tha t j\iegro advances will prove detrimental to w:C.ites . He urged the adoption 0£' the proposed 11 freedc:;i budget" so that sc2. rcities i n the fields of e;u.ployr.ient , ·housing , 2nd educe.tion ce.n ce elimins.ted . An econo~ic and sociolocica l ana lysis of r a cial prejudice and e.lienation c ompels the concl usion tha t progress can be achieved only tbrou--3;h a L'l2.ssive n2.tional commitment to t he :i.r.iprove;rrent of urban concli tions . The IT:.atn p oints r a j_sed in the testimon y 2.c1d the questioning period were toe following : 1. The Effect of tl, e Eousin3 Shortage on n~.ce Relat:i.ons Mr . Rust:i.n stress e d t:1. e ir:1port,2.nce of ass uri ne; all inco,':le grou:9s effec"-:.i ,:e a c ces s to tte housi n3 rr,a r~ e t . He pointed out that the existence o:f h oi.;.s i n~ scarcities l ea ds wni·t.cs to support re st rictive prac tic es 2nd f'orces r{e[,;ro-2 s to l j_ve in substanda rd hous i n.3 . 2. The Fa ilure of t he 1,:::1 r~-cet ?-'.e cha:1.ism Mr, Rus tin support e d the view of Profess or G3.lbr2 ith t ha t socia l and estbe~ic values should have prior:i.ty over fin anc i a l c ons iderat ions in urba n develop:nent . A . FrlILIP RAJTDOLPrt , President , A. Pnilip R-2.ndolph Institute Mr. Randolph ana lyzed the probl em of winnins politica l support for the 11 fr eedor:i bud2;et " appro::'. ch to urban prob l en s . He decl a r e d t :C.at 2. c caJ.i t ion of libe ral el ements could b e fanne d with s,Lfficient stre: Ds;th to ·,ii.n appro,:a l for t he expenditure of $185 billion of r edera l fu"lds .. over a period of ten yea rs. Th e r:12. in poi n";:,s r ai sed in the testiJ:iony and cluri:!:lg the ques tioning period 1-:e re the followin g : 1. Tne ~ i'fect of Fe der2.l Hou.sin~ Polici es Mr, Ra ncJo1:Jh asserted tte~ FeC::e1-e l prog r-2.2s have subsidized housinsi; fer persons i n the r:i iod1 e and D.p~e r incc,,:e gr01...r;_:is to the neg;::1.. ect of t he :poor. The fli ght fro:n the c entra l ci ty to suburbia ha s bee n nac.e p ossible l-i;yFedere.l e:·c-peudi tures , whJ.le a nuch s ~,a.ll e r c:..:ilOUci ::, has gone t o provide t h e p oor wit:1 hi 6 }1-rise se;rese.ted bousin3: projects. ?-Ir, Rs.ndcl ph noted tD.2..~ t!:is cc~cli.lsic~1 ~. ,~::.s se-'.: foi-t,':: i:--! tl!e :re;:01.,. ~ cf tI":2 1,.;}1ite }Ic-usr:: C::r:_~~2:r2:-.~c: on Civil ~ights . �,I . . .. 2. 2 The Heed for Planned Soc~al. Ir..·,;estr,1ent Mr. Randolph advoc a ted the adopU.on of a program of planntne: social investment in urban develop,ent rather tha n a counter subsidy for l ow-income ,- · housing . �:; _.,; __.~(.....;:.: __ --~- -- ·_: _:,-, ... . _ _ _ ... _ ! ·. . su1,:~~!ARY O:-F' E:~Ar:r:;Gs EE?0!--3 StJ2,:;c1-:2·-J143.215.248.55;'l-; ~;E OI\I ~8XECUI' IV3 ~-:£:C1RGAT:IZ..D/?I C-i~ . 0? j,iflE SEi.'T A'I '~ CO!,:.MJ.~. I '2:S 01] It{T~CV'I'~Vi PJ~ORGA~:IZAT ~:or.; Stibj2ct : \r!i tness : Geru.ld I..J - PhiJ.lippt.::, Sh-=.irr_r.e. n of t!1e 503.rC. o:f t !1e Ge ne:~ 'aJ_ Electri_c Co~rJnt1y l"~ r . PhillJ.ppe se.icl that GE !~eis 300 , 000 e:--i~r l oy·ees j_n the TJnj_tea. S ta tr~s } I.'10st of v:[101r! wo~ck and 1i,_...e i :--1 cities. He said tr13.-t , 3.s u con se (luc~ t! ct":: ; 1 his c o:r.r. any 5.s deeply cor1ccrned v;ith the ,,,tell - b e ins of cities ar!d the people who J.i ,.re nnd \.,:ori-: ther,2 ~ .1.·, ... }!e: tol.d the Subcoi'~nr:ittec tf.:at ti"Jc .re:i10di e -.-; 1-:-e \., .., .; pro"b1er:-1--.-s of the ci t:Les :-;~ust. cc!"..:c; t:---;rou3h tte c:cer~.t :t . ~,.e. j c.~1!:.dr;~ c:-Z' public and private r esourc es to ucl::i.eve wr.a t ne:Lther c~:::-1 concc:d.·vc:..:,;.. ~.r do a lone . 1•·! r . F.:1illippe pointed out th 3. t t ndus·try contrib1.1tc.: f~ to the p :tcbl e-.~s of th e cities t!:-ircugC tlle disposal of u_'fl-,;:2.nt e d \·;=1.::., tca £1~1::l. t. :rn:t'.:Cic conges ti en ., resul t,j nt; f ror:1 r11c':..rer:.: ent o.t i ndu.ztry r.s go·ods e.~tl 1::c c.1;1 .~. 0 ~'1 the othe 1~ h and ., it1c~t:stry is a r~a. j 0 r vie t i !'J of thc~:3(~ ;::.a~:~:2 p ·~·ol·J_::: ~:-.; .'3 ·t.eca1.1se it, suff ers ad6eci cos t ~~ frc,l:.! traff ic con;~es~icr:1, 2i1. p ol.11.r"c .lo:1 , \·tater ~pollution e.nc1 v.::.nd.2-..lisrn . f-1r. I'hilltppe listec3 t he rl1:l j o:r· c o!:.tribut io:1s 1:)e j_ r:c r;r-:::!2 b~r G ~~ t o teln t~nnrove c:i.tie s : P-.:c,<: u.::tio~1 of h i&,::'; - p c rf or:-r:.:-} ~1ce ec;._'..:.~r~~:e:ni.. f'c:.. . f ast tr-ar:s i t tr2. i n r. , rr.:. ;1u.fa~t·u.re of GtO=-:!ic -~~c ,. .#c'!r·::d ;~en.e:c.2. ~j_ ni; p12d ::.s -{ii~~e d~-c143.215.248.55,_.,;~1143.215.248.55;~$ t~~/143.215.248.55e,~r143.215.248.55 16:57, 29 December 2017 (EST)'c·!~~e ~:~ 143.215.248.55 16:57, 29 December 2017 (EST):~t;:: ~~::~~:143.215.248.55 ~!;/~z i ;·-:; Irf:o~por.:1.t0 cl.J }#J a v e f oy-.·. n~d Ge!l.e:ra.l L e~J."c.::. n::: Cox-po;.. .at ion cs 2. ·,~oir1 J.:. vent ure to f urthe r -t.Le ec:u.c o. t.ion oi· dis:1.G·,.re..at.e.i:::cd pers c:•nn . GE ha s t entat ive pla ns t o c r eate ent ire143.215.248.55 citi~ s . A CC·l~.ri~ur-Li t :,r Syster:--:.s Deve.lo;:tent DI \-~s:i.oL t as 1. Ch:i.n~; es i n· the bt:.ild :i n[; proct.::~1s tL1rC) u.t;h t he 2.1:1:~,:.ic at icn of r c~;,2;_j_ :_,-·e:L a~d e n~ i nee:ri r.ig t o c~esi~.:-.1 eJ.ect1,o -:1~tec:.1r~ nica l e o1!~·9c!11::~~rt.s t ~·.:D.-t. de lj_ver b~::tte r IJerforr;-~~1 r.:cc and J. o~·:e:c - i~1 - p1.:1.ce costs. 2. Util:L zi~3 a. r.; yste:-:~s pler:n i.1:.c ap::,_ :cco c: h to a t~ ~iel~1~) n e ·,.r p:cvto:.y-,::·,r; cc~:r:21-1.ni t..i_es 1::..:r..:';e eno·1 ch to s··,._,_ppo r~ a fciJ.. c.:c;;1p.l{?.J ,:2:1t o:::· mtmicipal ser•...-j.c es ,. �, 2 Mr . Ph illippe s a i d that wor~c by GE scientists and i n f orma ti on spe cis.l is t s has led to c ont ra ct s f or s tudies on appl ying sys t e ms analys is t ec hn ique s to ov era l l u r ba n pla nni ng ; to inte g rated polic e , fi re and ar.!°bulanc e c ommunication networks e tc . He sugges t ed t ha t t here be mo re and b ett e r c orrmur1 i c a tion 2.nd coopera t i on. b e t ween bus i nes s l ea de r s and political l ea dc::rs i n see}:ins t h e sol u U.0;1s to u r ban p roblems . He t hen des cribe d di ffer e nt pro j ects in wh ic l1 his c ompany h as pa rticipated. He al s o sa id t ha t r.iore ext e n s i ve re sea r :::~1 is n ee de d into the dem2. nds of th e city . GE i s wo r k ing to disc over h o w i t ca n effe ctivel y apply to cit y p roblems what ,,a s l ea rn e d through its part icipat ion in sys t ems development for t he de fe nse a nd the s pace prog r an:s . TEMPO , a GE c e nte r in Santa Narb3. r a , Ca li f ornia , h as a n expe rimentc.l program with th e City of De troi t to int r oduce prog rar.1 pa c k2. Gi n.s a nd budge t ine; t echn iques l ea r ned t broue :1 its c ost/ eff e c ti vene ss work on De f e ns e De pa rtment problems . It i s a lso working wi t h the Uni versi t y of Minnesota on an expe r i ment a l city pro 6 r am to b e b uilt n ea r Minneapoii s . On e big c ompl a i nt wh i ch .Mr . Pb illippe ma de c once r n inG present c ondi ".:, i oYJ.s wa s tha t b u i l dine; c odes or hous ing c o·des , ele ct r ica l or plurr.ci:r..g c ode s do n ot promote e f f ici e n cy i n c onst ruct i on and e.r e , i n f a ct , ins t i tut i o:1:.11 i nh ib i t ors to eff i ci e ncy in r ebui l di ng our u rba n areas . He a l s o c r i U. ci zed p r e sent gove r nme nta l policy i n r e 6 a rd to the di st1·i ou ti on of pa t e nt ri ghts t o i n v e n'.:.i ons a ri sing out of r e sea rch a n d d ev l'! l op me nt carr i e d on by private i ndust r y , but fi nanced i n whole or in pe.rt b y the Gove rn.rne:1t . He s a i d t hat pre sent pol ic y disc ou r age s p a r t ici p3. t :i. on b y p ri vate i ndustry . He approve d of f a nning ne w type s of c omb i ned publ ic and p riva t e co r po r a t ions gea r ed to r.1ceti:1g urba n ne e d s , b ut di d not f a vo r a COJ,·'.SAT type of corpo ration . He b el ie ve s it would b e b ette r t o ha ve an a£en cy 1 ik e 1-TASA, wi t h a n acc e pt e d ob j e c t i ve f or the ~e ne r a l p ublic . Ee s a id u~is i s a socia l probJ. e:r. a nd s hould b e k ept i n t he n onp rof i t a r ea . · In hi::; op inion , r e habili t at ion a nd low- i ncor.1e h ousing i n g e nera l are not a t tra c t i ve t o p r ivate i nves tors . Be s a id tha t Thoma s Paine , t he ma na ger of GE I s TEMPO o r ga nj.zat l on , is urein~ c r eat io:1 of a n Urba n De ve lov 11e nt Corpor a ti on t o buil d f i ve millj_on ne ,r h ous i ne; rn1 i ts in s L ;:,1 area s over t h e next de ca de a t an es tima t e d cos t of son,e $50 bil li on . �·~ _.._ _,..., _---.c _-~---- ~ ~ ~ - ...-: •:. . ,} l·litness : Fi1il i p }1 . Ha ll e:-1 ., ?1·2s::_ dent , I,·~3·ur:i. ce :Fe.2.k r,;E:dico.l IT\.t:.16. , pj_tts btlr[)! , Penns.yl v2niH . Mr . H:--ill e~ told t11e Stlbco11:;:d.tte;~ th::.t tho:::! poteD ti2.1 rol. e for tf::;; sn1alle:r f'oundnt.ions i n th·~ Un:1.tcd Stn tes 11~'"~~ :r1ot yet ~et:::!J. t a ~~}2d in relation to the urban condition . He sugge s ted th2. t the ~lul)cor:!.."11itte i::: or t-;o::ne otbcr app rori:r:i.atc .::.c r~ n c~/ shou.J.d co:i.1.vent:; at l~b.e nGtJ.ona.l level a. ;,. O·rl,: ing confe~cc:nce on the c~. -t ,:;is in t'b e c:Lt ies ) invit:i.nc as r:i.n n)r of the sr;:a l lc:1. fo unda.ticr:s 2-s c ou1.. f~ b e i::-1.:~er ested and induc ed in"'co a.ttendi112; s u..:!h a session . In i~·r r . l!n1 le~ 1 s opin:tor~ ) by u:t J.l:i.zinz its freedorn ·to a,c-~ in S\l~J ~_·, cr~_,j_·:1,:. and initJ.ati.ng sol.utior.ls to the 11rbc..:r1 p~obJ. e~-:ts -;,:b ic h n re r : :-! s: :143.215.248.55 :-:;.~~ ·::. to action l:;y ex:i. stin.::; r;ublic a e enci(!S end i n~;t itut.j.on.s, the ~--c.~c:c\t ~_c ;·; ca n IJOint out r;rove:n pu.ths for soc :i et~,r to folJ_c~v . Senator Ri b:i.c of:t ...,. a s vr: 1...y inte1·es t t~ q. J n ;.:fly 1Gcn li t.ic~s 1-:c :·:.:p e.nt1q u.:.:. te d -ouil d in.:; cod~s . }Ie s a i d :.r.o t n(~n rly eveI.'Y w1-;.:.:-;r.~s~1 so f a r s.i.:t·1.-~~-"~1 o::-. GE fi~·1 0J. l~l ad:nitted. t~.r.lt his co.~.~pany '.-.r o uld ncr~ ·be i n~:(.::rrj~;t~:·. i i n l ocat i ~1; in such areas bec8.t.1se of ·the foll c·,\ri:-1i di 3 a _d-:tc.1 11 t :! .; ..;:-; :. 1. \-!01.Ud not G 2. ~·Tou..ld 11ot" Oe clos e to s1.1p~lies and n~a teri:3.ls . 3. ? he clir:--.8.te wo1..D.d nc,t be c.ttractt~re becaus e of rio·~sJ l a ~·C.:: st r i.fe , etc . 5. It is too h8.:rd to 38t goods in and o·,,t t)2-c 0.use of tr,~ff'::.c c ongesti_on . 6. r..ri..n:J. 0 c entr8.l to a 1r2 .rket fer the proQuct . costs are too ~j_gh ana. 1 2.r ge enough arc.-·.f3 \·tO"l.Jld r~0i.·, : .::: a Yo.ilnb1e . . (IIe s a i_d t h:J.t Gl~ :ts not inte.res t.~C. ir-.. c o~ t :':'. .r_:;c- - t~y;~ indust. rJ'" wJ:d.ch i s ca rr:i.:::d on in the c:ro-.:.. :~e d cou.:ntr~_.. of ~ ·c:;.):·.. ~1. ) 1 -:-:: J,!:r . F·hilli1_"")pe sc.1,:i.d tr~at, GE ·ha d a 30 -y2ar-ol.C! :;1lc.nt in Q. Gb et tc1 area ,..r ·tich it iv·as r ecen~:.ly fo:i.---ced to scJ..l "'oc:::a·J.se of' tt:~e u:.r:-e.r:--.~i~11:~:-8;;·.:..3 ~nc1 h:?.. :rdch i ps , He would not n:·ui:ie the: loc f.i 1::.:Lon , · End r,old ;::,:~:ea t·.o.:.' 1{enned~/ t.b a t he 1.-.1oulcl t ell. hir!l -::he 1 or.;(1..-tio~1 in pri ve te. Ee 3~·.. j_~ tba t sc:nc of' the t h in_ss . ,.,;l:i.c}1 :1 ~H1 h2.y.,y,2 nE: d to the pJ.2:-r~~ \:e~·e \i ·:·:.:.-y ur:u.smJ_ and thRt }J e had su.r:·ert:d TJerso::a l unple£::.s.: ~.:1 t, e _v~pe:ci e ;~ e: ~. . :: ·w hen visiting t he p1ant . /tl th ouch Se~at,or :{enned;/ c o::i ..~ '::ndec1 t11n t t ·l1·2 r ~~ wcuJ_d t ,-:-~ a n unta.pped rna rkc.:~ for \.TO:cke rs B.!~d cooC. s .in Stlci1 an 2..r~~.:::. -~ t te C~n:·-:.:i. l"'J::.:~ r:. o f GE s e c r:1cd unconvinc ed and ~..ro ~1ld r\ot e-c;r2e t!:2.t 1:.is C·::.:-:--~·1_)a.~1:.· · r ml gh t be interest ed in locat inc in such an area . ·I Rib.coff and V ~ . �/j//1,, I •I (,,' , I ,.-, -1 . t.,,:...<> (., _ I , ;:· /,< (, -· v (/ }-7.c'.\.?J:l·:GS :S:220?2 T::..:; SU~:8C:.: .J:'='.!:';:';::':: on K{ECU?IVE PEORG.-~IIZATIO:,J OF '.!'EE sr:=·~.\'I'~ c c:.:-=:TI':Z::: o~r GO'JERI'J-ZJW OP'.a.::R6.TIOHS ' ,,.- Afternoon Session : -~ BRUC6 P. F.AYDEH; Vice ?:resident; ::ort 6ase 2.nd Real Estate J?epart.ment, i Colli'1ecticut Gene:r3.l Life Insurance Company Mr. Hayden defined the c onditi on.sunder which life ·insurance corporations _and other bus inesses could increase their participation in the urban r edevelop:nent process. The ex.te~1sion of Gove r!l.ment financial assistance programs to profit ventures as. well as nonprofit organi zations and the effective exercise of t h e planning and coordinating function on the part of Gover.ruaent were des cribed as necessarJ to the achieve;:;ient of greater business involvement in t h e reouildir..g of the cities. The main poim;s ·rais e d in his testiraony and during the questioning period were the follo wing : 1 l. The Weakne s s of :n orrnrofi t Ventures Hr. Hayden testified that d eveloprnent efforts unde rtaken by nonprofit conc erns u sually r esu.l t in f a ilure due to P. J a ck of knowledg e and experi ence . The tendency to l init Gover Th7ent fi"'anc i a l support to nonprofit organizati ons is thus m1desirable . 2. The Gathering of Housing Costs }Ir. Hayden stressed the importance of r ~.?~e?in~ the divergence between housing construction costs and gene:r2.l price levels which force s builders to t olerate lmr quality work . The contimstion of r eli ance upon ea s i er fina ncing arrangements will p revent a soluti on of t he costs probl em . 3. The Or ganization of tl"e Attack uuo!1 Urron Problems Mr. Hayden sta t ed t hat an agency should b e c reated with the r espons ibility for mak:Lng a tota l systems approach to tbe problems of urban housing. Such an agency could b e orga nize d along the lines of either NASA or COl-.SAT . JAMES W~ ROUSE; President; The Rouse Company irr. Rouse descri bed the steps taken to plan and f inance the Col umbia project which involves the de velopment of an entire new city within the next l 2 years in an_area midway b etween Washj_p.gton and Bal t imcre . Tbe expe rience of t he Rouse Corpor ation and the Co;:1ne cticut Gener"--1 Life Insurance Ccnpany with r egard to Columbia can b e applied to the reconstruction of t he c entral c ities ac cording to 1-il' · Rouse. The ma j_n points raised i n hi s testimony and during the questioning period were the following: ,,. �l. 'I , The Need for Concentratic~ of Financial Resources upon a Single City Mr. Rouse suggested that all urban ·renewal and -demonstration city funds should be utili zed to accomplish the total and successful renewal of a single l arge American city. The country needs to be convinced that urban problems are capable of solution. 2, The Place of Profit Consicerations in Urban Redevelopment. Mr. Rouse declare d that the construction of new cities and the reconstruction of old ones so that the real needs of their people are satisfied will b e a profitable enterprise. Once the market success of well -planned development projects is established, the solution of the nation's urban problems will be possible. <, �,_ \ I 1I . J, 11/\._.,. /,J /_ •• , /\ ·I (} ~-· tA / v, ~J Afternoon S e ssion : December 6, 1966 WITIIESS : Lee Rain1,,;c1ter, Pro fessor of Sociology and /mthrop 0 log y, W2.shinc_:ton University ( St. Louis) SUBJEC'l' : Poverty and Deprivation in the Crisis of the A."llericDn City Professor F:ainw':iter told the Subcommittee that until we make really s i gnificant head~a y in solving the poverty problem ( and thereby also the probl en;s of race and ~thnicity ) it will prove irr.pos s:i.ble to plan urba n enviromr.ents in a r 2.tional wa y, in a way tha t is useful and sa ti sfyins to urb3n populations . He sta rted by desc._:ribing one particular lowe r c l ass Nc t:: ro crn:unun ity wh ich , with a d ozen colleaz;ues , he studied int e nsively for th e pa st 3 y ears . Thi s i s the Pruitt-Igoe Housins Proj ect in St . Louis. Built in 1954 , th e project was th e fir st hi gh-rise public h ous:i.ns in th e ci ty . It cons ist s of 33 e leve n story sla b sha p e ~ building s f csigned to provide housin~ for about 2,80 0 families . At present, it houses about 10,000 t~e 0 r oe s in 2 , 000 }1ouseholds . i·Thnt s t.a rtr~ d out H S a pYcced:::nt-o:r·eak in3: pro jec t to i: np r ove the live s o:; the poor in St . Louis , a proj e ct ha il.ea n ot only by the loca l ne~spepe rs b ut by Arc r::itec turo.J. Fon.::,(, h2s b e c oue an em'oarrassmen!.; to a ll c on c erned . In th e l ast f e ~ y ea rs , t he proj ec t h as a t all ti1nes ha d a va c a ncy r a te of ove r 20 p e rc ent . News of crime and accident s in the proj ect nakes a r e 6 tLl r, r appe2.n:1.11c e i!1 the ne·.1spa pers , e.nd the words Pruj_tt -I g oe ha ve b eco:;1e a househ old term for t he worst in ghet t o li ving in loue r class Ne.:;ro h on,es , as we ll as in the larr;e r c orn.mun i ty . Prui t t-I goe , :i.n Professor Rai:l'.,8.ter ' s opinion , CO!1denses j_nto one 57-acre t:r-a ct a ll of th e probl e::;s a nd diffinilties that ari se frorn r ace and pove rty, a. nd al l of the impotence , indiffere r,ce , 8.n:l host ility with whi.cl: our society has so f a r deal t with th es e problems . Processe3 that are srn-,,e tines beneo. th the surfa ce · i n l ess virnle r.t lowe r class slums arc r e2 dily appB-rent i n Pru i. tt-I 6 oe . Because PruJtt - I g oe exists as one k ind of Fe de~ n l Gove r n~e n t r esponse to the probl ems of pove rty , t he f a il u r0 o f that r espor,se ,,,ill pert2.ps be of pa. rticuJ. ;:;,r int. ere3t to the Co1:u:dttc e , Professor nai ff,·T~tter s a id . P1·ofcssor Ra inwa t e r brouz.)1'..; out:, tl-:e follo·.1i .n 6 facts in. r eca rd to . Prui .J~ t-I g o 2 : 1. All tr~e wh i te s h e.v e !,:ov e c1 O'.J.t. and th e po p'Jla t io;-1 is no·,i a ll I:egro . 2. ·. -.:L.s, s :.- . '·. ··. :: ..; .:. -~..., .' ; ., .... ' �2 I 1; . ~:r.F.:! ·te1:e.l:.~s t:i~::.e:-~::·:~ c· · -... ~..; ::·-:y~-:i:: j 1>~Gpl e ) e.!~c . 5. 'I'e nents , tl-,e:r0fore , Frosram . h:;.,..-2 ~ t h ings out of wi ndo·.,rs., hur~:i :1; j2.,J.ndiced Yiew of t he :publ i c Hous i ng P1~ofe3s or Raj_1!-,ia.t e2."" 22. id tfl~.: - i1f2 r1ust s tart with a.n unde rst2.ndi r.g c f ',!hy l c ·, rer c le.s::; ::. i.r'e i s tn5s '...'e.Y . He beli eve s the lower cla s ses ac t - this wa y b 2cD.us e ci:f L ro probl ems : 1. ! ~a bil i t y t o find ~ork and adequate pay . 2. Beca u s e of lc1 ck of fi n?. .!1c e s , tr:ey live a mong other indivic.;.~el s simi l a rly s i tus. ted , ind i v :Ld uci.l s wh o , t he expe rien c e of their daily live s t es che s t hem, are da nc;erous , difficuJ_t , out to e x pl o i t or hurt t hem i n p e tty or si g n i f ica nt w2.y s . And the y l earn t hat in t h e ir c or:-;:iuniti es the? c a n expect bcil y p oor ai'1d i n fe r ior se r v i ce and protect i on f r om such i nst i t u tions as tte p ol ic e , t h e CO\u-·::.s , t he s chool s , the s a nita tion depa rtment , t h e l andlords and tr:c rne r chc1n'.:, s . Professor R2.i,1wG t e r c o,1tem1ed tl1a t effort s to sol ve t he . gen eral proble ms of u rbc1n rr.a,;'?.;cment will forc ·, e r be f rus trated , o r a t l east much , m1,;.ch rr.ore c os t l y without 8 solut i on to the p :: :oblcrn of p overty , bot h u :c'c6.n and r ul'al . He p:t :iposc j c hannel i ng nation'3. l incc;:;c ( po.rt i.cul arl y the yearl y i ncrem2nt in nntion':l.l j ncor,1e ) to f am ilies in the lm.rer thirty to f or t y p e r cent, of the popula tion so tha t a fami l y i :icomc: f l oor i s estab lishe d which i s n ot too far b e l ow the med i a n i n come for Americ a n families e.s a ,,,hole . Professo r Ra i nwa te r t h inks that there are 1::asic 8lly t ·,,o stra.tc 6 i es i mpl i cit in the va r i ous p roBra~s and s ugges ted pla ns for d oing some thi ns about pove rty . One , by far t he most entrenched a. t pre sent 2 might b e c a lled the ser-,,ic e s strat::bY , an d the ot.h er the inco1::e stra t e 0 y . In hi s opinion , t he p r oblem with the services appr oach is t h a t to a. conside rable extent j_t c a. n:ies t he l atent assu..r.iption either t hat the p oor a r e p ennan cn tly p oor and th e refore must h a ve spec ia l s e rvic es , or tha t th e p oor c a n be chanzed (by l ea r ning productive skill s , b y l earning how to u se the ir r,,oney more wi sely, by developinc; bette r at ti tudcs , etc . ) whHe the y are s t ill poor and that once t h ey ha ve c hs~ged the:{ will th e n b e abl e to c1ccor.1:pli s h in ,:e.ys t hat wiJ.l do a:.ra y with their poverty . ., ·r. . �, A s econd pro':Jle:;; , ::e 132.icl , witr: t !~e s ervices a ppro::1 cl1 is that the priori ty of ne~ c1s of tte pvOl' is c: s. tei:;Ol'ice.lly est.2.blished when the service pro6 :car.:s a re set u~ . An ex::rn,ple he descrj.bed j s tha t ti-:e Federal puoli c housi ng program prov ides 2. service to eac:1 !",cus e;10ld in Pruitt -I goe in the fo rm of a subs i dized a p?. rtr::ent t.}·.~t c c sts ab out $545 a year . This amotLrits to a fifth of t he ~ean f auily incoxe of the tena nts in the project . It is v e ry l i1,el y t !'.!3.t fr c::·:; t:'1e point of vie'.r of the needs of n,any of the f amil ies who live in Pruitt-Igoe t ha t $5!f5 could be put to much b etter u se . The Professor said the.t those ec:ono:dsts who h ave pursw,~d thi s line of thinking in studying t~e probl em of pove rty have suggested the inc ome s t r P-Y'O -..:: since t f1es e e ~·e by f c. r the raos t. sti y~a t.j_z j_ n _s _"k1ov er t y p rog ~2.;:1s . n ow 5n exi s t ence . Mr. Kot l e r d e sc ·rib ed t o t h e S1..tbccr!,;;1itte e tt e 2cti viti es 2 2·,d 2cco::,pli s tme ;i.ts o f t.:,e 2:cco p ro j e ct j.n Co j_l1.::,1.,u s , Oh io . He [; 2 ic1. tha t th e s ucce3s r - .- ~ . .:: -~. ·- -- . ---·--·· - -- --::- ::. ~ -~~ .-_..~ -: _  : -_· '..·, ·" · , ·--:-~-····-------- ---=---~------ . . - ,,. -_ ·.· ·.". ,_ .- ._'· .-·. .·.. . ·.:: , ~~:=-=:. :- c :-::::·_--_ ,;·, , -:-. -al.• • ..,. r - ~ i - 1- ·-- r . 1·~- ,-~0/: - - - - - : __, - - - - ~--·- .... - - , - ·· - · , :.-::.::·..:-:-: ~··=:-_.1- 1:..: ·::.i.. .L/ s-:~ ·c:.~:· -.~:.~·::: · ...., .. �I 4 pri ~:c i-~2..l asent o f c :~e.n~·:,e tc1 ·r·2t;L:..:. .i.C:. our Sl:..,111~s i n to a l ege.l co:r_;-n1..1-nity o f c,Llture J freec. ,,~ _. 2:1('. ~:!"0spe1,i·:y . 'i';;e nei 6 hborhood mus t becC-r:ie a le~2 l cc~::nur1i ~ ~: Oi-. s~1.f' :-lelp e!1d sel.f' - 50,._.rer:iing de cisions r..r i th the suffic j_ e:-it c2 pc, :::i.ty '_;o rele te '.:.o c t o.e:c organjza::.ions ) publi c a~d private ) for t~e !~sourc es and tecbnicel assistance required to b uild a bett er city . <;._ t-'. r . Kotler made the ::'ollc·.-1in.::; reco:rJnen.c1a ti o:is : 1. 'J:he Federe.l 2. The i ndependent nei &;hbod:ood corpora tions of a c ity should become d ele[;ate agencies of the existing Corr::nunity Action 0rc;a niza tion . 3. The neit';'hborrwoc1 corporations wouJ.d use the Federal f t.mds to s ub contr2. ct t o p1'i v21te industry to rebuild the c ity . 4. An P.lte r no.tive is fo :r t:-1e neiGhbor~1cod corporst ion to beccrr;e a d elegate a 6 ency o:f the l oc2.l ho . J.s ins a Ltthority . Goverffir:ent ce.n assist the forrne. t i on of ne i ghbor}1ood corpo r at i ons by fundin ['; thei r a d;i;in i s trati ve costs and p ro~r ar.'! ope r at i ons . 1 WI 'I'NESS : '\-1:Lll i mn A . Doebele ) ,Jr . 1 Profe ssor of City and Reciona l I~anning ) Assoc i at e Dee n for Developme nt ) The Giac1uate School o f Desii:;n) Ear··13. rc1 University) Ce r;,bric1L~e) I-1:;.ssach:...lset ts . Professor Doeo e l e rr:3. de the follo wi nc; rec o,::rc1e nds.tions : 1. ThStt it r equest the S e cre te, ry of the De pa 1·tme nt of H.01..1.s ing and Urba n De velop~ent to initiate at t he earliest poss ibl e opportun ity } i n cooperat ion with app ropri a te profe ss i o11a l o rgan i zations and u nivers it ies ) a c o~r.prehens ive study of rr.a npower resources in the field of urba n affairs ) r el a tinB t he s ame to t he ne e ds of both the publi c and pr·i va t e s e ctors J and t he r e quire;;1ent s not only of ex i stin[; pro 6 r a ms ) but those conte1:1pl a te:d or like ly \-,i thin t he nex t dec a de . 2. Tha t th e current $500 ) 000 appropri a tion fo r :fello~ships for gra du':l te study i n cor::m:.m i ty pla nni r:g and nll i e d fi elds ) first provide d for i n tL e Hou s j_ng Ac t of 19611) o ut not fllnd e d unt il thi s y ea r ) b e irr.:n'= dj at e l y increa s e d t o at leas t $10 mill.ion p e r y ea r) a nd e:,:tcnde d to c ove r u r be n s tudies in 1;_s ny fi e ld s and at ma ny l eve ls of tr2 inine; . 3. Th 2 t sinc e th e ~ os L critica l s h o rta g e of pe rsonn e l is at the t op pol icy p os i t i ons ) a spec i a l f un d o f $5 mill.i on per year for 5 y e :3. :!."'S be appropi~i a t e c1 for t h e purpose of E.~:'lot j_~~ t h~ este.:)J. j s~r'.:e"'1t , e.-S s e l e c te d u~:i. v ers i t:i e s, of t::ro--_r 2 :-:1s cl es_i r=: ~cd -~~-c~t{_;-:;_(;~c·~,~:;_;t~::c~:~~-c;:143.215.248.55 16:57, 29 December 2017 (EST):~'.143.215.248.55 16:57, 29 December 2017 (EST)c~~ ~~:.[:';-~,'-~-~~ o~l ~·;:c::: -~ . ": - �5 I an ~:J_ .:., . -~.- of t:~e r:ctv2:~,:.:eG. ~-:.:.:::: ~::·:·:==_---:-, ::-:~·e>_::r2 ~.s of leedi~~ school s of b :.t:=:: ::::. ::~s 2~ct-;:i:1is t:.·?143.215.248.55.G::--:_! •.-=: --:!2·:.. :-i~1 }i:·c:[; rc.:--:s ._of t}1e ~"i'Jc,:.1rc'.-,r ~·?ilson Sc }-_c·.:-l -st Prf1!.c etc.:1 7..!~i';/ ers :L:.:: ) t: _:; i;eir,1s.n J?ellows}1ips , e.!1d the n eu }:c :1~1ec1~,i- Ins t:i. tu~e e.t Hct1~ve, rd . ,.;. _ l~·: Th-?.. t. a1:. equive.l er!~ s;J;·1 Ce cr;~~·-J p:::.~i =?. t~d for the pu.rpose of doi~g r ese9 :;-·cli and es ta'8l:-..2::-,icl=:; p ilot v2·0,;:ra;n s relat ing to th e tr2. i nin,-:=; of intabitents of slar a r e ~3 ~o p9~ticip~te effectivel y i n the actu9 l r e~_u~_ld ing o! t}1et r o~.r~, en . .ti r o!·:..:·;;er.t . 1 I 5. '.i'ha.t 2 su:,1 of n ot l ess than ~;20 r::illion per year be rr,ade available ~----- --to -an -·approprirrte "C~:~3rtn:ei.i:, c1- e. ns.tion~l cc~1nc il, for · di strib1..1-- -tion to univers ities and other r esea rc h organizations for s tud ies to increase as r a pidly as possible our bas ic 1u1derstanding of the na ture of u rba!1i zat:i.on and nrban a r eas . 6 . Tha t a separate sur:i of not l ess than $250 milli on per yea r be este.bli s :-.ed under the adrninist r2. t.ion of cne or several Fede r a l De pa rtments f or the . c onstructio~ of l 2r~e - scu l e e xperimenta l u rb~n enviror~:ents, to t est and ev2.l.ue.te , 1..:0: :1,; th2 ;ne~.h ods of the social and m,tura l sdences, tbE:__effects o[.:_-u--::::·Lc1e- r2ns_e 0~ poss ibi.lH:i.es \,h ich are nm, technolo;:-:ica lly feasibl e but cannot be bailt beca use of fi nancial , l c Ga l or other constraints . In reply to a c_;ues t,ion by Sen3.tor Ken ne c.y , tr.2 Professo r s2.id that be \, Oltl d put a priorU:,y on his firs t r eco:r::1;enc12 tion , the second sug[;est ion next , a1fd tben m Enoer fi vc 2s third priori t:, S er..!?,tor Kennedy ,:as very i rnpre::,sec1 · with _the p1·o~e.ss or ' s r ecomrrienc1a tions to get nore informa tion e.bout urc a n enviromaents·, since this j_s one cf the r easons the p roblems }~a.ve not bee :-1 solve d at thi s time . 1 • 1 Ma in questions r a ised by Sena tors Ribicoff and Kennedy ( the only n:embers present ): 1. Pru:i.tt-I g oe p~blic housing project j_n St . Louis . S e na tor Ribj coff aske d Profess or Ea. inwa ter ,1hether there were any a dvant2,ges at e.11 to living in Pruitt -Igoe , an d the Profess or r epl ied that the t ena?.1ts were pl eas e d wi "'ch U1e interiors of tr,e ape.rtments , but tha t the world tha t be s gro'.m up arot~?.1c1 the project and 'Id thin i ts bounda ries is \..'h2tt e;ives th e project j_t s ba d name . Ribicoff \o:as inte r c:-:;ted in whether thi s p r oject sheds e. ny li ght on public h ous j_ng in 0 e neral. Th e Professor s a id that it s:!10·,:s that public hous ing s hould b e buHt a t s ca tt ered s it es m i d in s nm l l settl e1,:ents . Sen':l ·i;o:· ?j_oi~:off b:cc,i:rat\on prepares for L°ti7. f:f .: · .' ' %~iii'-\ .· _/:.,-;- '·-?r·i SO:ll,E OF THE PARTfOTT'J\:\'TS in that hig,h- Z powc•rwl St':S.'i'ion we-re chug--rin<·d t;hat Shul tze failf'r:I to includ by llie warning of this montJ1's eJC'Ction, in which tlie . GOP di:monstrated impressive gains in_ t11e nol·· m al ly Democratic hig city vore. • (Although tJ1at same e.lection sePmed to ind: c~:te a n;lfionul nbn0c---phe•re of entrench ,'1}ei;t which . for,'shadows difficulty for the admin istration i n Congress i f it:; progrnms for tile cit ies are deemed t:oo expensive or too visionary). Witllout much fanf:lre and largcly ,,ithout p ubhc notliec t11e White House has se t about in scv0ral ways to work on tJic problems o£ tne ci ties. Passage la~·t ::;Pason of the Demons trabon Ci til's Bill, was of coiu-:;e, a small but importa nt b eginning. A special l~ k foi;ce has been assigned to produce new ideas for tlie cities which oould be included m adnunistratioo measures. · AND THAT CABINET-LEVEL group, which meets weekly m Califano's office, nets e..s a watchdog over tlle presently exisitng programs m an effort ro see tJ1ey are fully ut:i.ful:xl. Meanwhile, t"ie Justice Depar!:zl".ent is pbnnjng sho1tly to mnduct a landlord-tenant co!"Jr:rOn e official present, however, int ~rjected th a t c.1ce in the capi tal. The conference will bring he opposc- an<' hav.c no wey of pi-ess• 1·ing 1'.im Wo action. job-pro r.llJ2.! tal into sl um rehabilitation received i,f?ong endorsc,nc~~Ltoday as the . Sc:nate Govc::·nmen t Operations s ubcom mittee began · a second r ound ... qfl, ca1:in;;s on what has be:en _, ;1llcd, . U,e,. ' c_i:isi,( ~n _t]1e . ci ties..': .·. . , ; .':·· :· ··....i :·;:., · , ._.;~ ·: ~:-11· Sena'tor\Jacr;b K _J a vit~. 'N°cwf. Yorl, Republican , ~ subcommi t- , tee member, said he was '.'encouraged by 1:ecent reports that the J ohnson Administration had such a plan under study.· Senator Abrnham A. Ribicoff, t he subcommittee chairman, decla red tha t the task cf providing decent housing , in slums was "not going · to be solved ·by Government-alone.", · He indicated that ··he would listen sympathetically to any proposal involving- a joint pu blic-private assault , on g hetto h ousi,ng. . · ·· · ' ·.. · A Tc1itati ·c Proposal Th~ Adn1inis t r ation's Lci1 tativc ' proposa l, developed over t he/ l;i.s t six months and re fined by til e Dcparlmenf of H ow-:ing and Urban Developmen t, calls fo r , creation of a na ti ona l, nonprof-1 it, semi-public _~.!1-Df'vel_Qp.Jlli;nt Corpornt1ll11 lha t, its sponsor~ hope, would attract heavy I private irwestmcnt · in t o ~!um r ehabilitation by p roviding . variet y of F ederal incentives and guarantees. . 'I11c substance of the plan was 1 disclosed in The New York Times on Sunday. ·· ' E ven thoug h ., no member of the s ubcommittee ·would comm it himself to · it specific approach, today's hearings indicated ·a lively interes t in the / pla n on the par t of ·!Irr . Ribicoff , and Mr. J a vits, a s well as t he 1 committee·s ·lcad witnes., , Da, ·id ! R ockefeller, New York fi na ncier Mr. Rockefeller, p resident of t he Chase ?v!anhattan Bank, decla red tha t . " urilan r ehbiilita tion is primarily a t ask for p r i~ vate enterpris e." But,- in rcspon to sustained r1ucstionin g ·from 1fr. J a vits, he conceded tha t ·business would be r eluctant to make heavy_ capita l· .otttlays j n slum a reas ··beca us e the · ris k' was grca.t a nd the prof/t re-, turns poor , ._. ,_ al .r.olc a s Cont_ractor , However , the Xew Yllr!, ' ba nker also decla r ed t h:i.~ busi- l n r..ss would nrobably be abl e to provide substa n t ia l clp as a ··contrncto,·:' acting fo · the Govern men t-which is one of t he roles f or bus inc.s s envisioned the propos;1,l · P. OW under study in the Adminis tration . U nder th e pla n, the ,Ur;;an Dcvclopmcn_t Corpora.Lion would /• h elp acquire rundown hou~in;;u sing money from pr l\·atc sou r- I c:cs such as ban ,s a nd fnunda-1 lions as .well a:-; Governm ent fun ds-and Lhen invite i:1dustr y to rcha.bi ifate it · chea ply and efficiently . ·· · · In this wa y, the r cpc,rt describing the p·lan wasy, the cor poration would "fuse the presently fra;;mcntcd purchasing p·ower" of the Government with t e nrnnagcrial a nd technol o~ical capacity of "Amen. ca n industrial or;;anization." The progra11's sponsors have said tha t n either n ew appropriat ions ·nor new le;:;islation oould be imincdiately requir ed. T he plan, in its fin ai form , r ecommends as a first step the purchase and rehabilita ti o~ - of · 30 000 units in se,·era l c1L1cs, requii·ing about _ HOO -million. E arlier versions of t he pla_n predicted that · ih 10_ · years . it· could providc..,...assummg 1mt1al success-5 mil lioa· ·cha bilitat cd or newly b..:il t. s um un its at ,an aggregate . cost of S?0-billion. Appear s ' Pessimistic ?11:r: R ibicoff urged :).1:r. Rocke feller·, who .at t imes app ear ed pessii11istic a bout a,i"akeningbusiness enthusiasm ·for la rgescale. investment in slum s on anything other than a contractual b?.sis, to examine not the obsta'c lcs to redevelopment but the "hopes and the possibilit ies.'_' · . H e ., u;;;:;e.:;tccl U1a t busmes s, especially ·t he construct1on · 111dus try , woul d find in sl um re h abil itat ion J n enormous mar ket for suppiies 1·a n,:;in;:: from floorin "' m aterial to dis posal uni ts. Mr. Rcickcfcllcr a lso h ad kind words fo r loca l · r r.development pla ns such as tha t envisioned by S enator Robert F. Kennedy in t he Bed,or cl-Stuyvesant a rea of Brooklyn. The Kennedy plan ca lls 'for t he establishment of a n onprofit corporat ion t o engineer the· r ehabilita tion of Bedfo rd-S tuyvesant · housing. Th. New York banker described th e approach as "mo t hopeful." He a lso exprc-ssed considerable interc,-t in ll[r . J avits',, sugg estion that the Go".ernmcnt h elp industry fon11 a technological consortium similar to the supel'sonic transport pro::ram . The New York R epublican pointed out that t he Governm ent wa.<; currently pou ring lar;:;e sums of money into the aircraft industry in Lile quest for a successful super~onic line. He ,q1;::r:estecl. Rlld ~rr. Roc-kefeller ag1:;,ed. that some k ind of " broad - scRle m a nagement group mi~ht be established . with Go\'emm01,t. help a nd - put.. to work d,~,·bing a nswers to iltE; - . , - ··-. - ~ ....-.....- ., ,. · .:, . 0 · · �Poirt lo r .i-D /U ll to Ponder The co nt roversy bct\reen _,M,ont m nic ry C'.J.ll.Ult.Y an the Department o, Housing and Ur ba n Developme 1t h olcl s a much broader interest than the rezonin g of three squ:-ire miles in the Wash ingi on suburbs. We clo not, of course, wish to minimize the importa nce of nullifying the butchery of planning by the old Montgomery County Council in its lame-cluck r ampage . But this is an in teresting test case which is certain to have an important b ea ring on the r elations between HUD and local governments in all parts of the country. HUD must necessarily invest its matching funds for the purch ase of park land and the protection of open space in accord with the standards that Congress and the agency have prescrib ed. It cannot be, exp 1-cted t o assist a county which makes a farce of planning and ~ou,i_ug protection. At the same time, however, HUD must avoid usurpation of the powers of local government and the use of pr essur e in deciding local issues. In the case at hand, we think HUD went over the line in applying pressure at a moment when the unfortunate situation in Rockville seemed to be righting itself. Unquestionably its intentions \\·ere good . But unless its pressure can be relaxed, the result may be to defeat its own purpose. Senator Brewster and numerous local officials have pointed out to HUD that the net effect of .its pressure on the new County Council to cancel its predecessor's last-minute r ezoning decisions may be to throw the entire controversy into court on the issue of intimi dation . A significant precedent for su9h suits is r eadily at hand. The grant of a n exception to the Soviet Union to per mit the construction of an embassychancery in Chevy Chase wa s upset in court some months ago because the State Department had , brought pressure on t he District's Board of Zoning Adjustment. HUD officials should realize that any specific zoning change which they impose upon un willin g local zoning authorities is highly vulnerable to legal attack. HUD needs to have assu ra nce that the reckless zone-busting policies of the old Council in Montgomery County have been abandoned . It needs assurance that proper safeguards will be ad hered to in areas for which Federal aid is sought. But these assurances appear to have been given not only by statements from the new Council but also by its vigorous action to wipe out the effects of the r ezoning spree, so far as that is possible. The grand jury investigation into possible irregularities and abuses affor ds~ further evidence of the new atmosphere in Rockville. In view of these vigorous efforts to undo the wrongs of the past and to adopt sound new p oli, cies, we think HUD should withdraw its freeze of Federal funds for the Maryland suburbs before the Council decides the rezoning cases' which it has reopened . HUD could again suspend the matching fLi'nds if the final policy which emerges should prove to be unsatisfactory. But if it insists on turning the thumb-screw whi1e the Council is sitting on these controversial cases it may defeat its own purpose and greatly embarrass the cause of proper development of the National Capital suburbs. The Washi ngton Post - Nov . :2-S, 1966 �n7 P: ,{ ..,. .·.·. .I. l V .._ ., ..,_..., .. -,-r,, ... -~ ' . J' _.__ .. '•••n r· V ··. ,.t . ' ···t : . ~. t<ld_-Ta_w !enements aret·~~t~estions" the wisabove the ex1stmg floo r. worth r enamllutmg. Peter L . Q..QI\:) 01 rt:, uvaun:; t.ne tenedirector for 1:1J6iR oii:!.h~r"Easc Side, This seemed to symbolize the Abeles, housin c~~us . an: ong- hou.,:Sin_g __ex- ~ -f.i0L!,_tor.J:m= .t.~!]nJ)- Th_ey_ cover l:i5 per ce t o!their per~s on'""'insfan r c1ITtb!ll_ta- !2JlV~~'~ 1~iz2g-E:~J'~~ the bmldmg lots and front. on tion"-that i t is a prom:smg currcnc expern ~ b!.lk.,'j_aid he streets only 60 feet wide. experiment that has produced = -================,--- - - - -=--- -"""'"' some, but by no means all , of the answers to the problem of renovating slum housing. ]\[orcovcr, t:1e experts beJicYc, it should be only the berrinnin"' of an intensified refearchO program to !ind better technical and financial tools to produce decent housing in the ountry's slum areas. \rr. Rice noted that many const. uction materials had been ·tested in the fi rst building. The -tenement now cont2.ins vinyl .f loors that require n o r efinish·n"' for 10 years, ceramic bath!i·o~m tiles that stick together i\vithout liquid cement and wallb oard that is so tough that workmen had trouble cutting holes in it for electric wiring. E:.;:pandablc windows t at adapt to the irregular shapes of the old window frames have ·been installed. Garbage chutes lead into a Swedish device that compresses the refuse, disinfects it, and even sprays it with perfume. Two one-bedroom and one three-oedroom apartment will be buit on each floor of the tenement buildings. The average development cost will be about S13,000 an apartment, Mr. Rice estimated, as opposed to about $23,000 for new construction. "There is uch a tremendous need for better housing in New York that it is worth r ehabilitating these tenements," he said. He asserted that the cost of demolishing the city's 43,000 old-law tenements - those built before 1901, with minimal standards for ventilation and sanitary facilities - would be pro-, hibitive. Housing experts a re debating 2. �I • • .. • , �l, 1tJO . -. , ~ );.'k@,-1. •· --~ ~-=-·· . i.-,..~ l , .l_e i_.;· _____ _ ---'--==··-=··..;~ , ' . _···- ...... -143.215.248.55 -~ -- -=-=•= ~---~-···' ' ~- ·-...._.,.,___ _ __ ~j _ . -··.. - .,, ' ·, I - ,,. li4 S,:~i3e1 KrI ~I 1\ t'i ii- ir/1 ,,r,;/ ·Ql. R~oJ i!'<-'i 1..,\iJ1·r.s APT S 1·z;:: -SR. . 0 .' Le N :ii"'f-:J~·r, c/J C' -:}TA 9-:r'l:j) : F"if<.,;·, BviJ.."J>11uc:;-- Goi~'\Pi-r.:ri:.:j) ~s-n MAT ii)> JJi~oJ'2c.:r l/i:-5' \ w/0~- .--, 61( 1·;>,v •if I,\I , ·- I ANJ> oec.-uP;L?"J) - - (30 i I\ B To 'J)/\TG' .. , l;. i ,-j ',(; ':')- 5((- loMPJ..l='flDAf . . ·') ·, - BR 't!. ~i'-'1PlGT£j) I ~, I '1( I; /,t 1 ') /~IJ.'i) .'-lv. :;;-: lJNJ r-.:.. . ,/ ·r +; ·7 II I \~t:IJ' ~ 1\ )-; ('. ,_,-- ~ ,: I I .i I' < ' - -~. J '6 .'T T..;.. : . ·r ~S'6 i" ,:,' ' ,1 ~i ,: It_; ./ ?,) 4 l-. "'i ! <·;. 1f ) /Ci ! ,, ~qq ;- 'f 1u: f) ?' I ' . j ~ !U-.:.- ti) I to · Ri)1,.·i">; )J<.;.c, - iort -~;) ;() , J,v i,S LL ,. . R ' :' ' Tc'iAL AVe. '(A.G ;!! ~ r I I.! C·~ i D'2 vG1~0 r Mf1v·r Cosr' S, r..vi:-11 t· ti Ai lci-Jr~1,i·rc\'~s 1-i::i1 Ar-.r..1HTEC rs (,'~!( AMOV,V'T T16M C.,c,}l O r ::r: A·1, AJ r. ji q':!D/b1 ·7 '1) . 'j 1 i.dl I '640 I'{;£: 'Zo9, o~t5 : F"t21; ,t . .. iI 4ib LE~AL.. I le,, coo 246 L...Atvj) i (r~·d:;.,L,i Riio~1,;,9 r..-r/i L ~ '1 {j I. q43 {)('() p4i3}1b t::ss: ,Vr'.C./l-Nq /1L1.v.:J1i!JC.:.1.: -Z )L~-i ~f.5"l t4ls',34-9 OR~AN l-ZATION K.c.JJTJ1l. T;.;,:,,;,vti: ~+t -~;,\Jl"tNi'..,/ N r!: /IN.'!> Ct:?.f.. i IN.(; (\Ny St11izJ).;;.c:y 8,y:-:> ,: ,_:, 01 . It ,_ r) J L..,N._t..:. r 1 . i , l'l'ti .~Cc 13. i.J.11 ' 11li1!e& ... r 23, TO : All Member of the T s FROM: the draft sub-cammitt Attached Dece Force r l port. 1966 �Dictated but not read A PILOT P (X;R.A.t\.l TO P RO::-lOTI..: HO:-IEG:E-.:ERSllIP .1~- iO:'-!G SLUl'-I RESIDS:;:-ns by Anthony Dmvns The desire to own n home is a bas ic par t of our tra dition. Today 62% of Amer ican f amilies h ave ach i eved tha t des ire. Yet the re are still millions of f ami lies who wou ld J. il~e to own the ir m-Tn h omes~. but c annot. arr angements. They are too poor to do so und er present financing J\t l eas t, ha lf a million such househo ld s now r ent sub standard h ou s ing in our metropolitan area s. A chance to mm a de cent home of their m-m mi ght hav e a profound effect up on their att i tuc es towards soci e ty. Instead o f f ee li no like fru strat e d and he l pless transi e nts floa t ing a l ong in th e po re rty and filth of t he slums , they c ou l d b g in deve loping a chanc e o_f contro l ove r . the ir a;-717_ destiny. The y cou l d gradual l y build a stake in the ir commun it i es , alld wou l d l earn how t o u se ar'.d b enef it fro:n l ega l and politic a l i nstit uti ons they no 7 rega rd with hos tility. Furthermore, providing th e l m-r- income h ou sehold with h ome-owner hip assistance would no, be g iving them the same advnntage we a l r eady ext end t o mil li ons o f middle-income and up per- income households. These h ous ehol ds now r eceive a l arge subs icly i n the form of f ederel income tax deduction for the int er es t and pr operty t axes pa id on the ir home s . Thi s subsidy amounts to at l east $1. 7 bilU on per year for j ust the wea lth iest 20% i n the form of al l public h ousing pnymcnts, we l fare payme nts ~ and t ax deductions c ombined. Cl e ar l y, t ax de ductions aren ' t much he lp t o f amili e s �2 with littl e or no t axab l e inc o~e . Sc simple j ustic e demands tha t we encourc1ge h ome owners hip fo r th em in some oth e r way mor e suit ab l e to the i r n eeds, Th ere fore, we r ecomme nd ena ctment o f a pi l ot program of aid to l ow-income famili es to h e lp th em achieve home owne rship. This program should conc entra t e up on slum dwe ll er.s because the y nou h ave at l east an opportunity to mm de c ent h omes, and bec auf;e it Hou l d h e l p i mprove s l um l iving cond itions in genera l . The pr og ram shou ld ass i s t s l um r es id ents either to move out of slums by buying h o:nes e l sewh ere s or to ac qu ire ownership of new l y r eha bilitated ui1its in ne i ghb orho ods whoch will be u p-gr aded t hr ough a wid e variety of oth er progr ams to o -- as in the ~Jode l Citi es Program. This h ome- m,mer hip program wo uld he lp l m-:~lncome famil i es buy sing l e-family ·houscs s · individua l unit s in multi- fam ily c ond om i niums , or apartment bu il dings ,~1 i ch th ey op er ated as r es i de nt l and lord s - - r ep lacing absentee l and l ords , ~10 had neg l e c ted t he i r prop-rties. Seve r a l types of aid would b e i nvo l ved in thi s program . First , th e slum hou s i ng units i nvo l ved would be su bstandard one s r ehab ili tated by a pub l ic agency or a non-pro fi t group be fore be i ng so l d t o n ew owne rs. Second, b e l ow-market- r ate l oans shou ld be us ed to fina nce owners on a n o-down payment bas i s. Third, potentia l ·o·,mers should reciev e advanced t r a ini ng in th e sk ill s of minor ma i ntenances f inanc ing , and oth e r r esponsib ilities of owne rshipo Fourth, new owners from t he l owest- i ncome groups would need a monthly h ous i ng supp l ement sim i lar to the rent supplement but app lic a ble to owne rship payment s. Fifth, so;ne t enant s i n r es id ent- l andlord bu ildings t-:ou ld receive r ent supj_::-le.;nents. Sixth, owners should receive follow-on couns e li ng about financin 6 , and repairs. '-·· �3 Seventh~ th e publ i c agency r unni n g the prog r a:11 would agr ee to buy b a ck the housing invo lved duri ng a fi xed pe riod in c as e the owne rs c ould not car ry the r e quir e d burdens. In our opinion ~ thj s i s a program s o lidly in the Ame ri c an t radition, and we ll worth trying. '- - �Dictated but not read DRAFT SUMMARY ON LANDLORD-TENANT by Julian Levi I. Archaic landlord-tenant law and principles, once appropriate to an agricultural society, must be reformed and modernized to meet the need of industrialized urban America. Ancient legal doctrine construing a lease as a conveyance of an interest in land rather than an agreement leads to the holding that the obligation of the tenant to pay rent is independent of the duty of the landlord to repair and maintain the premises. The sole remedy thus available to the tenant to secure his rights is limited to his vacating the premises and then granting termination of the lease or himself repairing the premises, financing the cost and thereafter creating a set-off against further rents. Such limitations, while onerous to all tenants, are intolerable in their application to poor people. within their means is minimal. Their choice of accorrnnodation They cannot finance repairs nor often even gain access to parts of the premises requiring repair. While state and local governments prescribe minimum standards for housing accorrnnodations, outdated legal practices thwart the poor in direct assertion of their rights. �r------'-"'=---- - - - --- - 2 II. Reformation of landlord-tenant law is a state and local government responsibility burdened with consequence to the national welfare. While appropriate solutions may vary between jurisdictions certain broad principles must be applied throughout: A. State and local enforcement of building, health, and safety codes must be streamlined and improved. Administrative flexibility and fact-finding must be fostered and the power of local courts strengthened. The obligation of code compliance must be a prior charge on the property itself and all rights within rather than merely a personal obli gat ion of the owners. / B. Compliance with law must be a basic part of every agreement and every right. Obligations of landlord and tenant alike as provided in building , health and safety codes must be construed as creating independent rights enforceable by direct legal action. Determination of such issues in the court room must be facilitated. C. Public funds must not reward illegal conduct. Appropriate rent withholding procedures must be developed for the welfare tenant. Appropriate actions must be taken in all public acquisition to the end that prices paid disregard values achieved from income derived in property operation contrary to minimum building, health and safety codes. �3. While these responsibilities are local, the Federal government can and has assisted: (1) the establishment of neighborhood l egal centers in slums by the directive of the Office of Economic Opportunity who are maldng a major effort to help te nants secure the ir rights to safe and sanitary housing : (2) the convening of a conference by the Attorney General to develop new procedures to insure that the rights of tenants are fully and effectively enforced; (3) the appointment of a commission to make a comprehensive review of codes, zoning, taxation and development standards. III. Practices and activities of the Federal government while indirect, inept, enforcement of fire prevention, housing, building, and sanit at ion law as a responsibility of local government can be of decisive i mportance: (l) Section lOla of Public Law 171 qualifies federal assistance upon the appropriate local public body undertaking "positive progr ams" and "workable programs" for community improvement through the "adoption, modernization, administration and enforcement of housing , zoning , building and other local laws, codes and regulat ions relating to l and use and adequate standards of health, sanitation and s afety and building , includi ng the use of occupancy of dwellings." Administrat ive regulations heretofore issued by the Secretary of Housing and Urban Development should be clarified to direct specific enumeration and attention to the appli c ation and enforcement of local codes and ordinance s related t o life, health and safety throughout the locality and to demonstrate increased effort and progress in s uch enforcement. Such enfor cement of minimum codes shall be required as protection of li f e and health of occupants irrespective of whether a basically sound and stabl e are a is to be created. The Secretary of Housing and Urban Development can further -l<· * �- -~ - ---- ---~ -· - - - ---·- - - - - --- -- - 4. implement the purposes of the legislation through the development ·of major uniform statistical reporting whereby a yardstick of comparable muni cipal performance may be established. (2) The Secretary of Housing and Urban Development can t ake exist- ing regulations to the end that mortgage insurance ava~lable through the Federal Housing Administration for property acquisition, rehabilitat ion and improvement must be conditioned upon code compliance. At t he same time mortgage insurance and grants under section 312 can be promoted and expedited . Special personnel can be designated in each insuring office of the Federal Housing Administration with the specific assignment of coordinating the insuring activities of that agency with city building departments and community organizations to the end that division of property financing for complete rehabilitation to meet code standards be gre atly expedited. (3) The Secretary of Health, Education and Welfare can by admini - strative regulation require that each local authority participate in administration and disbursement of relief funds available in collaboration with appropriate local authorities systems of housing inspection and certification to the end that appropriate withholding of rents where justif i ed b e undertaken. (4) All departments of government concerned with property acquisi- tion wherever federal investment is involved can r equire t hat t he acqui sition public authority demonstrat e and certify t hat no part of the award granted or payment made represents values achieved by operation contrary to local codes of building , health, and s afety. (5) All department s of government dealing with the audit ~d verifica - tion of rea,l estate and mortgage as sets can re quire certif i cati on as to the vroperty concer ned no complaints are pr esently pendi ng by any l ocal authority charging violat i on of local minimurn codes, building health and safety. �, TV• At this time property owners in deteriorated or declining city areas assume that the municipality either cannot or will not enforce the building, housing, health and sanitation l aws an assumption based on experience and occasions supported by federal statement: "Characteristic of a typical slum area is the overcrowding of housing units well beyond the l eve l s permitted by local codes. Any effort to enforce the occupancy standards of the code would have as its immediate consequence a massive displacement of the families occupying the overcrowded units. This might be acceptable if it were coupled with a concurrent program to make available to such families decent housing at prices they can afford. Unfortunately, the latter tends to b e far slower and more costly than the carrying out of code enforcement. In many cases local courts have recognized this consequence and, as a matter of public policy, have refused to permit enforcement action. "By its v ery nature, a program of code enforcement requires propoerty owners to make substanti al investments in repairs and improvements in order to avoid prosecution. Unless that investment is coupled to an increase in rental returns or property values, the owner is likely never to be able to recover the cost. But since we are still dealing with a seriously bli ghted area, neither the increase in rerit~ls or property value s is likely to occur. The present tenants usually cannot afford hi gher r entals, particularly if occupancy is reduced and there are fewer wage earners to pay the rent. Tenants with higher incomes usually cannot be persuaded to move into a still bli ghted area. The value o f the property in a private sale cannot be expected to increase unless the rentals increase nor would the repairs or improvements add si gnificantly to the property v alue in the event of a future public comdemnation. �"It has been argued that rigid code enforcement in deteriorated areas will so depress property values that new purchasers will be able to afford to make the necessary repairs without increa sing rents. In fact, this does not happen on any broad scale. While our understanding of the factors which motivate owners of slum prope rty is very limited, a recent study does cast some light on this. The large ,sophisticated' owners of slum property usually have so little of their own money invested that any feasible reduction in cost of purchasing could not equal the cost of needed repairs. On the other hand, the small 'unsophisticated' investor is usually incapable of taking advantage of any such economic effects. .In sum, it is our belief that concentrated code enforcement by itself in badly blighted areas would result in more turmoil than improvement of housing conditions. But to say that this one approach will not work is not a satisfactory answer to a very real and pressing problem. Although we have not yet arrived at anything we regard as an adequate solution, it would be extremely valuable to present some of the problems and possible approaches in order to bet broader consideration." "Staff Report Housing and Urban Development f orwarded by the Secretary to Senator John Sparkman, Chairman Subcommittee on Housing, Senate Committee on Banking and Currency, July 26, 1966." The assumption becomes an unful fi lled prophecy: A. Property owners reduce expenditures for property maintenance and repair wherever possible. B. Tenant and community morale collapse. C. Constructive community leadership is denied creditabil ity. �-I If it be assumed that power of state and local government to regulate housing condition in order to preserve life, health and safety is a prior charge on all interest in property, then the equation as to the feasibility of property repair to minimum st andards is simply whether the gross rent roll will cover current operating expense, current taxes, and principle and interest payments to cover the cost of repair. Antecedent mortgage commitments as well as the equity investment are irrelevant to the issue. Where mortgagees and property owners, contrary to existing assumptions, are convinced of this contingency, their conduct concerning property repair and maintenance would be altered significantly. In this circumstance it would not be ne cessary that public action be asserte d a gainst ea ch property in a given neighborhood in order to r everse the prior assumptions . A formidable case ex ists therefore for s el ection of a few neighborhoods in which after complete inventory of structure condit i on, ownershipj mortgage debt, and pri or hi story of code enf or cement, an experimental program be undertaken by the appropriate local public , author i ty, working i n collabora tion with the loca l communi t y , i n whi ch a•numb er of t he poss ibl e sanctions we re enumer a t ed we r e emp loyed. The e f f ort is a ttrac t ive i n: (1) pres enting a new att a ck upon the syndrome of community decli ne and coll apse; ( 2) of fering promise of reduce d publi c expend itures by i mpos ing costs upon non- conf orming pr operties; (3) gene rating i ncreased v olume compli ance with minimum codes and standards. �ADDENDA TO THE SUMMARY REPORT TO PRESIDENT Nei ghborh ood centers 1. Su bstitute the word " commu n ity 11 for " ci ty" where it appears . ( Purpose : t o i mpl y a broader universe than just the local gove rnment .) 2 . As a pos s ible a lternative to h a v i n g t h e d e monstra tion c a rri e d out b y t he federal i nter - agenc y group : Have one or all o f the f ederal agenci es provide a "pool" or an 11 e a rmark i n g 11 of funds for the de monstration, but establish an indep e ndent Advis ory Council to c arry the prog ram out 9 or to recomme nd to the a ppropr iat e a g e ncy or a g enc ies h ow it should b e c arried out. ( Que stions: would legi sl a tion b e r equire d? would the imp e tus for re concilin g differing req u irements a mong the fe deral a g encies be lost? would the leverag e ne c essary to g et a p propriate state and local a g enci es t o par ticipate be lost?) Home own e rshi n by the poor 1. Ins e rt t h e f ollowing af t er t h e 2nd par agraph: The pro gram should b e v iewe d as a mea n s of ass i s t i ng p e opl e and a c h i e ving huma n v a lue s, r a t h e r than as a d e vic e for i mprovi ng b u ilding con ditions a n d maint en a n c e . It s h ould als o avoid 11 l oc k ing " pe opl e into bad i n vestments, financial burdens t h ey c a nnot manag e, and slum ghetto es only. �June 2, 1967 MEMORANDUM To: Members of Task Force From: Richard C. Leone The attached papers are not ·meant to be improvements on the Ylvisaker draft of May 15~ 1967 . They are simply attempts to include more material fo·r discussion on June 8. Work on other proposals is going forward. Mike Danielson and I are working on a revised structure (really two parts race and income segregation and a related section of fiscal and institutional capacity). We hope to have most of these in detailed outline form at the next meeting. The enclosed, of course , are confidential. d l ecut ive Se cre t ary �CONFIDENTIAL 6/2/67 DRAFT L\1TRODUCTION America and its conuntmities are changing with tmsettling rapidity. t~st of this change has been healthy; and most of the problems it has caused tend to evoke their mm solutions. This country - despite its transitional strains and its freely-voiced compla:ints - has an i.rnmense capacity for self-correction. There is always a temptation - and a pressure - to over-react: to give equal ear to every complaint, to chase off after every problem, and to wind up with congeries of programs ,~hich may slow up rather than _ accelerate the nation's natural and long-run capacity for self-correction. Evidence is accumulating that such has already happened in the federal govenunent' s response to urban problems over the past twenty years. These have been years of improvisation, and probing. have been constructive. On balance, they But neither in scale nor impact have they caught up with the dimensions and force of the nation's urban trends and developing problems. The time has come to move from improvisation over a wide front, and in sorretirnes contrary directions, to an effort a) lvhich is aimed at selected problems of transcending ir.Jportance; b) which 1s of a scale large enough to make a difference; c) which is not dissipated by conflictD1g policies and administrative arrangements; �. 2 d) which offer powerful incentives to state, local and private initiative, ancl thereby move toward a "steady state" of continuous problem-solving; e) which begin to erase the public's skepticism -- its growing feeling that public programs are not to be taken seriously, that 111ore is promised than will ever be delivered. The Task Force believes that the first priorities for public action m urban An,erica are related to the grmving disparity between city and suburb. -· A disparity which is expressed in the segregation between white and black, the gap between income in central city and in suburb, the uneven economic growth in our metropolitan areas, and in our capacity for response to the problems of central cities. Today too many of our central cities have become the political jurisdictions and geographic areas in which accident, design and even progress have housed an inordinately high proportion of our problem people and an outsized share of our problerrLc; of public policy. The Task Force on cities decided early in its deliberations to focus on these urban disparities. W e have identified t wo major approaches. The first is a straight- fonvard discussion of urban segregation by r ace and income and some recommendations intended to alleviate its ef f ects . The second involves a s eries of re commendations - some modest, some sweeping - intended to increase sharpl y our abilit y to deal with urban prob l ems creativel y, rez!X'ns ivel y, and on a l arger scal e t han i s presently possible. �... 3 We also have found it convenient to acld three smaller sections to our report; on :innovation, the model cities program, and an agenda for future study. While we recolillnend that Federal action in these areas be altered, refocused and expandey for our r:1ccting in W shir.gt:on . Execut ive Secret ry �L TABLE OF CONTENTS 1. Letter of Transmittal 2. Introduction 3. Problem Statement 4. Strategy for Meeting Problem I. (?) Increasing our knowledge of solutions to _urban problems II. Federal action to strengthen state and local ability for meeting the problem III. oi urban disparities Focusing and increasing the level of Federal. assistance directed at urban disparities IV. Reforming the administration of Federal urban pr?grams to provide simplification fl e xibility and decentralization V. Increasing the prospects for integration in metropolitan areas �-·· ·- --- - . . . . _., .· -· .... ·-· - L 11 . - .. _e::~2..·c11:., - ; chc:::.~gc it rnc.ny st:-ains a..::.d its f rce1y voiced. co::-,-,Jlrd..i7.ts socie:ty. i£ ~;~0s£::1:. prvo !.cr.:s ., . ~. -~·.:...::: -· ·.:.o -:, · ,-.-, 4. • .l. V ·'-.--.. '-· '-' of s : ~l e., ... 1 c.,., .J ._ tre::ds of c:r.!.C.. o:-:-.1r1ot1s fl ares ' . - ·- · ... t; . �- - ----- ---·----- - -·· - - - -·--- - -- - - - 11 2 · vr, .L . . . 2.21C :."2 2.S l~g, ( · /"...). -- '-' .. .. ""I ~·:2 J__:_ ~ - :. ~- i., . ',:;. -.___ -( , ;:, ,., . ./._ re l a:~ed ~c. o',~--:-"'!· ~--,·· ·_·. ",.--.{ - ~ 1..1 - - - -1·.'··-~:, 1__· r___1-, -,_ _, -- .-=-., ,-'.) -J."":-.,_- ,,c: (="-1.. -1 _-:,;.;.~_' -:-i..! _,·--::: ....,c:.:.,;_ ..:::--r ··,--- .-..-, .·- _;,_\..)~ .:: ,_ .. ..'_. ..:.._ .)\:: ,... --, _ _. _~ .... - ·"" _,, ....,_ .. . . . c:::_, .::'...... ......;..,.>.:.:; £:. :.:·_·.s .sJ:c:.rply CL:.:'.' c: •-. .... ......._. _._., ._ ___ ... -. ..•. -\,-. .., -,-. - - -. ,,__ .... ~.!. ._ ....... ..:; �-- :.--· ··--· . --~ ...__ ·--- --~------ -· .. . -- ---- .. _. ,. . · - - .. , ·- · ·- ·.. j doing be~~t~r ~ Ou.Y fccus -ss •;- ;-... , '".,: '-'~ .:.\.• ~- �,. .. -- -· - -- - ·- ----- ·· - -- - '. 1:. c c-:.~2. lhe:c e are no urb2.n solu ticns of ar...y va li2:.ty ,.~hicj:. c:i ~--..8t '-- ---~'-------- deal d ~rec t ly w:th the que s tio~s pcsed by this se~re~ at ion. 7he racts are th2s e : of th es e Negroes h ave i::·,,::.:::_~e:s c 2~t ~~ 1 ci~ies is ~eg~o , and o:: E.::1.2 liorE.tive pub l i c prog ra::is, th e prop ortion. of Negroes ·- -· _. __--.t::..-a l city ~C)Llat ion wi ll rise to - - --- , ,·,i t h a _ _ _ _ _ percentag~ By 19'i8, be ::·__ pro :Jo:::-t i o;:1s will be 3y 1~33 our c e~trel city popula ti on wil: j e The se a re ? er c enta2;e s-o f the total po~ulatio~ of ail By 1973 \_; •,:. .:.L.._ .i..:... le ast ten of our ma jor citi es wil l be ?re~c~ 143.215.248.55 16:57, 29 December 2017 (EST)t!y Xeg ro ; by 1983 , at l east t w2nty, inc l uding Chi c ago , Philad el143.215.248.55 16:57, 29 December 2017 (EST) Clevc.~3:1.c, Detroit and Eel t i more . s~~c e A=er 1can ~ i nori t y g r ou~s t r a ~itio~ally have sough t and won I~ s c:-:".e cases their asc.er,_dency was ~ur ~2~o rt discuss e s this se g r2 sa tio~ as it affects Nesroes. =ri_ -:·.2ny ci l.:i~s, of co:.: :::- s2, ·:.-:-2 c~-: .::. ~2.:: 2::.:-:- i :--:; to a p::.--01.) l c::-:1 \·~~-..ic~-: ~n~:cl2s N~ ~=ces and ~ex ~ca~ A~2~ ic 2~s c:~ ~egrc es a~d PL ~~to S~:~~s. ·.2 ~-:. 2..v2 i-::.cJ......:C:2:. ·:.:.'"i ese:. :;:: 0·0. :>:; :. __ c:.:.::-- cos ·.: c s..~~ :;-...:::..s.-c.:"..o:~s (s2e b2::..cr~~·? .:.. :.:_:,2 -:::2--:-._y of t~:2::.r ?:: c·.)~2::-.s - =- J~., ~~--..cc.-:-:2> po.:.::- 2:c·.~c::.~i...J:12. ~ subst::.:iC.c..rcl hou s :.·_·_--· . · -._; :.1 bi::-t:Ci. ::- 2. :: es , s-::8 .. - a:-c2 _. ;·=-- ~ ..;-r,_r ..,:::-:: c.:--..J~, - •-..;, - V �- - - -·- ··---- --·--··- --·--··- - --·-- --- -- ·--- - -- - - -- -~- _,..:,..... _'·:: 2 e:--: peri2llce b.as bee::i a hea ltl1y 011e for ou:r- pluralis ;i :ic politic 2 l ·sys :: e:-;: . G.ispers:ion ~e groes . We therefore ~esr ttEt th e ____ r"\ ~-- 2~1ci CGETI 72 S .! ::, - in c 1~v li~e a~d ~c ~i tical pr ob&~i lity of this con f rontEtio~ is but we are c ertain that it is h i g~ 2nou3h to b e a cause for concern. Its pe;tential d an3 e rs li e· in t :,e follcw ing: 1. The growin3 d is affection nnJ aliena tion o f Negro ghetto r2.s ic 2nt s 2.nd incre as ing ..ii li tancy ,,nich r esLl ts, to gether with i~crea sing viol ence in citi es . 2, The still po:-1e rful fo:::- c e o f ot::t - rnigration by whit e :r,ic:c:..c- fro:.:i 4. city. The in~b ility o~ raoderate ?O litica l l ea~ership t o respo~c t o th e pressu~es o f larg e r a~d l a rger poor populations . �__ - - -- -i- - - - ---·------ - - - -----_,,__ _____________ ____ -- -----·- ,. ! 3 Of t:.e ~ eg:r:oes ,-1ho live ci~ies not only because it i s ~or&ily ri ght and not only because of Th e c. e:-::.::..:-_-.:s o:E uh ict-. u lt :;_ ,,i.s.te ly 1:-1i ll t est seve::.-ely t he_ v alu2s o f Ar:-.er_ic.sn s oe: i c.'.::y . Integra tion> 1r it does notiing else, ~ay help to r educ e : 2nsions . - ·- l&rger integr a tion w~ich -:.:.:st cc::ie i n. the futu:c2 . ~oce~s t e ll u s t ~a t s i ~ply h o l d~n~ the s i ze of c e n:~nl citv ~~e t:os 6JO,O0O ~egroes a year i ~to predcmi~an: l y ,~i~e su~urb s. Ct..:.t --- ~~ g r- c.t i C:l ., Cur c r~2e cost c a~c~lctio~s fo~ prov id i ng ev e~ rc1i2ir:-_;_.:_m .scce:_:,tabl e level or 2 soci&l se:..-v ic s s 1n all centr-21 city g'.ic::t to s i ·c.dica te f e deral expenditure:: ?at:t e:c11s cf georr:etric c..r:.d un l ike ly Ev2~y avc il sb l e in~ic&t o r of he deterio r2t in ; c o~~etitive posi~ion _L �1. , L·r o~ tt e te~tr~I c~tv (th2r2 are o~ c ourse subst anti a l dif~er~nces descriptive of Los Anse l cs ). citi es are l agging beiind t~c rest of the nation by a S pe ci fical ty: ~etail 2sta blish~ents by 95% for th e rest of t he ~ation, b~t by only 41% i n citi~s . - ?2r ca? ite inco2e chang es in city relativ2 to suburb. - ?rcdict eC: joo c--...- ...~1.:. r. t. st : ~. 3 ~ ~ r 143.215.248.55s or public a ttitudes . Su ch c t a~g e s , ho~ever , a r e b ot h u ~lii2 ly ~. :e r e c: ogn.iz2 �5 It is a pparent tha t s egr esotion b; r a ce and inca~e i n our to c ::'fset it . sore than laws and fed e ril polici e s , but we suggest t~e place to In sur;i:r.ary, t he Ta sk Force icec1t i fi2s 2.s n p::cob l e!:: of . th G g ::- 22.test n2t icnai urgency U1 e :;rowt:::. a,1d ? Ove r 'c.y of c e:-,tral c:: ·.:;: .) W2 b eli e v e th.=-.t this situa tic1n al:::- cady p::-.· ovide s a driv in,; =o::c e i n u rban dec l ine and t h at it s effect is - increased 0y t :.,e u:1~c,u2.l patteri'. o:: u r tm1 d2velo?cent . 2. ) '.,J2 E.::.- 2 co, ,vinced tha t e. d rc.r,,a t i c co:-if :cont at ion b et~veen ~ l r e e.dy i s bui lding in ~ost of ou r urb a n ar e as . 3) ~n the absence of st2. t 2; fec2ra i a~d loc a l 2.ct ion on a th ~se prob l ems will grow l ~r~cr , mor e dangerou s to Arncr ic rn soc i e t y 8~d i ~creas i ng ly c i ff ~cult to solv e . ·/.: �6_ We therefore recommend a series of strategies designed to: 1. Increase individual access to jobs, education, income, housing and other social services. 2. Increase racial and income integration in metropolitan areas. 3. Increase the proportion of middle-class population, especially Negro, in central cities. 4. Increase the ability of new immigrants to adjust to urban life. 5. Increase the ability of all levels of governments to deal with these problems. Meeting th e goals will be costly and difficult. It will require, in our judgment, a well 6rganized process of innovation, focusing resources at scale , moving towards increased flexibility and strengthening th e position of mayors, some governors, urban universities and others who can be counted as · urban alli e s. Our strategy for urban chang e and the recommendations which flow from it is designed to overcome five critical limits or present abilities for meeting urban goals. �, 7 1) Capacity is limited by difficulty of effecting metropolitan integration directly. 2) Capacity is limited by city and state fiscal and administrative weakness. 3) Capacity is limited by the dispersion and low level of Federal assistance to cities. 4) Capacity is limited by Federal procedures, program practices, centra~ization, an~ inflexibility. 5) Capacity is limited by the state of the art for solving urban problems. The five sets of reco~me ndations which follow are intended to outline a strategy which will increase significantly th e ability of Federal, state and local governments to respond to the problems posed by urb an segregation and disparities. �L , I. Increasing race and income integration in urban areas The Problem Of all the problems the Task Force has addressed, none is more vexing than the question of devising effective strategies to integrate metropolitan areas. We nonetheless believe that the highest priority must be given to integration. Without it, ghetto families will be denied the opportunities enjoyed by the urban majority; they will be forced to live in the least attractive housing at increasing distances from the growth sector of the urban economy; and the problems of a disaffected minority will be concentrated in the ceritral cities. Although improving the standard of living is absolutely essential if ghetto residents are to move into the mainstream of _Americ an life, it is illusory to beli eve that enrichment alone will guarantee int egra tion. The residential patt e rns of every American city and metropolitan area document the fact that income does not provide Negroes with the sam e freedom of choice . that other Ame ric ans enjoy in th e urban housing mark et . Equally important, the dec entralized political system of the metropoli s employs l and us e and ot he r public controls to limit sev ere ly hou s ing opportuniti es in s uburbia for a ll lowe r income families. A prime imp ediment to the dispersion of th e ghetto is th e fact th at larg e numb e rs of city dwell ers and s ubu rbanites are oppo se d to resid en tial inte gration and integrat e d education. In th e �6 2 central cities, the opponents of integration usually have more influence at City Hall than the residents of the ghetto. In the suburbs, the Negro has no political voice; and the local political system employs a variety of devices to satisfy its constituents' desire to exclude Negroes in particular, and lower income families in general, from their neighborhoods. As a practical matter, an integration strategy must encompass the metropolitan area. Given the projected ghetto growth rates and the likelihood of Negro majorities in a number of major cities, integration cannot be accomplishe d within the confines of the central city. In fact , an integration strategy which excludes the suburbs would only serve to hasten the exodus of white families from the centr a l cities. Anothe r r eason for d ev e loping disp e rsion strat eg ies in a me tropolit an context is th e fa ct th a t th e hou sing marke t f unc tions ove r an entire metropolitan area. Operating within a local rath e r th an me tropolitan cont ext, federal housing programs , especially tho se aimed at th e di sadv antaged, h ave don e littl e to foster disp e rsion. In fact, more oft en than not, these programs hav e encoura ge d r es id enti a l s egrega tion. · Few me tropolitan a r eas h av e governmental arrangements which would permit th e dev e lopment and implementa tion o f a me t r opol itanwid e int eg ration strategy. Ev en fewer are popul ated by a significant numb e r of s ubu rban ites who have demonstrated a po s itive interest in an integrat e d metropo l i s . In s t ead, most metropol i t an �3 areas are governed by highly decentralized political systems. Local governments of small scale control the vital parameters of community life - the schools, land use, and the tax base. Highly responsive to their relatively homogenous clientele and sensitive to threats to local autonomy or the tax base, most suburban governments show little interest in assuming any . responsibility for the general welfare problems of the metropolis. Efforts to create metropolitan governments have been spectacularly unsuccessful. Moreover, political realities and the procliviti es of white middle class reformers have led almost all me tropolitan governme nt plans to focus on service and physical resource problems. The Task Force knows of no metro proposal that gives s e rious attention to the problems of th e ghetto. Nor is there any evidence that the few metropolitan governments creat ed in the past two decades have used their broad e r jurisdiction s to attempt to foster th e integration of th e metropolis. Federal efforts to encourage metropolitan planning and coordination also have avoid e d the policy ar eas most like ly to affect the pattern of residential segr ega tion. Substantial progress ha s b een ma d e during th e past few years tow ar d securing regional approach es to transportation, air pollution, and water s upply . Con sp icuously absent fro m this list are l p r o grams that mi ght b e u sed to promote integration, s uch as publi c hou si n g, re nt s u p pl eme nt s, a nd a id to e duc a tion. Th e �4 sad truth is that the emerging metropolitan institutions are concerned almost ~xclusively with the problems of suburban development -and white middle class families in cities and suburbs. Unless there is a radical change in the outlook of these planning and review agencies, they are likely to widen the gap between city and suburb. Finally, open housing legislation has had minimal impact on integration in the metropolis. In the absence of nation al legislation, there is a bewildering variety of state and local fair housing codes . These nearly always exempt the most common form of suburban housing - the single fimily dwelling. Another major weakness is the cumb e rsome, case by case approach based on . individual complaints, a proc ess which requires l ega l sophistication and/or support which usually dweller. is unavailable for the ghetto The federal government 's r e cord in this area is also unimpr essive - neither FHA nor VA have move d aggressively to secure maximum impact from the 1962 executive orde r banning discrimin ation in hou s ing financed by federally guaranteed mortg ages. Rec ommendations 1) National performance standards (s ee Section IV) should stress int ~g rationas an int eg ral aspect of general developm en t programs. 2) Inc entiv e gr ant s ( see Se ction IV) should be u se d to to encourage genera l d eve lopment p rograms for e ntire �5 metropolitan areas which would tie federal support for suburban improvements to ~rogress toward ending the racial and income imbalances between cities and suburbs. 3) Some form of incentive grants, particularly for metropolitan areas, should be tied specifically to housing and education programs which foster integration, such as scattered site public housing, educational parks, etc. 4) Section 204 of the Demonstration Cities and Metropolitan Development Act should be expanded . to cover programs that affect housing. 5) All federal hou si ng pro g r ams should place a strong emphasis on disp er sion, including the relocation policies in urban renewa l. Federal mortgage policies should be developed to e ncourag e the construction of lower cost housing units through relating down payments, interest rates, and the repayment periods to the cost of the unit. Such a policy should includ e the use of subsidi ze d ~ortgages where appropriate. 6) A compr e hensiv e national fair hou s in g act with the broad es t possibl e coverage should be e nacted. An exe cutive ord e r should b e is s ued prohibiting se g re ga tion in all forms o f ho~ sing assisted dir ec tly or indir ec tly by a ny federal agency. The order should b e positiv e ly enforced, using th e techniques d e v e lop e d in the federa l government 's efforts to e liminat e job dis c rimin a tion in al l form s o f f e d e r a lly financ e d employm e nt. �6 7) The federal governme nt should stimulate the creation of and provide fi~ancing for metropolitan development corporations which would undertake to provide integiated low-cost housing outside of ghettos. The federal government would pro- vide initial working capital and extend long term credit from a national revolving fund. Such corporations would accumulate land for integrated housing, provide assistance in job location for out-migrants, and aid suburbs in preparing effective education programs for new resid e nts. 8) Because job opportunities are likely to open up faster than hou s in g opportunities, we recomm e nd a pro g ram of transportation assist a nc e with the following ch a racteristics. a) Re sponsiv e to ch a n g in g loc a tions o f both jobs and work e rs. b) Focused on initial p e riod o f "job findin g " and "job holding." c) Tr a nsfer a bl e from on e individual to anoth e r d e p e ndin g on n ee d . d) Non-co mp e titiv e with the private ma rk e t . Wh e r e such tr a v e l is r e lativ e ly concentrat e d, this d emand can be me t th r ou g h sub s idi ze d public transport a tion . For mo r e disp e rs ed tr a v e l from gh e tto r e sid e nc e s to suburb a n job s, l I sho r t term pub licl y - ass i s t e d a utomobil e l ea sing ar r a n gem e n t s will be ne e ded . �7 9) The Administration should realize that the greatest potential fever for change in this area is the courts. The Task Force urges the Administration to hasten the inevitable Supreme Court rulings which will ban de facto school . segregation and the employment of land use controls for social, economic and racial discrimi~ation. Given the revolutionary impact of these anticipated rulings, it is not too early to begin contingency planning to assure their speedy implementation with a minimum of public disorder. �II. Federal action to strengthen city for meeting the problem of urban disparities Problem Implementing the strategies for urban chan$e discussed in this report depends ultimately upon actions taken by state and local governments. We assert that strengthening the positions of governors and especially mayors will be of critical ·importance in this process. Their ability to deliver services is seriously limited by administrative weakness and fiscal strain. Yet they are the only public officials with the potential authority •1:I! I: necessary to effectively manage the large-scale attack on I I urban problems which we believe is essential. They too - and I our population projections indicate that this is certainly true of mayors - will be under increasing pressures to respond to .J 11, the fre_quent, now almost steady state, urban crisis of :11;· J :~verty . an d segregation. ll'l!'i 1,111 1"' The administrative problem breaks along the follo wi ng lines : - Fragmentation of program responsibility among semiautonomous .agencies, often -reinforced by their counterpart s at the federal leve l, bypasses and weakens the position of mayors and gove rn ors. - State and l oca l officials are under di rect and close pressures to deliver and their high political mortality rates indicate that delivery is enormously difficult in the present system. I •-- ' ·t1;. ,11 r! 1, 11 ·1,I " I I I �·1 2 - State and local government is in a disadvantageous competitive position for directing talented, imaginative staffs . The political executives management problems are compounded by the lack of personal staff; there are few institutions analagous to the executive office at the state and local level. - Possibi l ities for a meaningful decentralization to federal field offices are severely limited by the realities of political authority in the federal system and by present congressional-bureaucratic arrangements in Washington. - Local officials must conduct an enormous numbe r of negotiations with truncated federal agencies to receive any aid. At the same time the cost of urban services is on the rise .. We can expect increasing per capita costs for social services and we ·can expect an increasing proportion of ci t y dwe l ler s to require them. The cities thus are caught in a process of cumulative deterioration whic h can be r eve r sed on l y by s hif ts ,1 i n t he r esi dence o f poo r people or h i ghe r i ncome by city r es i dent s. The pr ob l em i s par ti cu l a rly a cu t e f or l arge cities. During fi s cal year 19 65 , f or exampl e » muni c ipal expenditures per capita were appr oximately three times as hi gh for cities with populations exceeding 1 million as they were for communities ·I' with populations under 50,00 0 . In short, we see the following as critical limits on cities t o pay their own bills: - Cities are under increasing demands for social services while their revenue capabilities are increasingly inadequate to pay for even existing levels of serviceso �,'I 'Ilji' I I I I lj :, ,,, I li 'jl ~ Social service costs are rising more rapidly than costs in the economy. - Some cities are already in danger of becoming almost exclusively by peop l e who can simply not a ff ord to live elsewhere and whose need f or services is very great. - Problems of ra i sing additional revenue within juri sdictions such as cities are i mmense, due in part to the high mobi l ity of resources between stat es and local it i es i n the federal systems. Cities are forced to rely heav ily on property and consumption taxes, both of which are highly re gressive in nature. - The dependence on property· taxation on hous ing f or c i ty revenue s may be a positive de t riment t o providing mo r e standard unit s £ or the urban poo r. Re commendati on s 1) Re gard les s o f pas t fai lures t he popu l a t i on pro je c tions and trends we fore s ee clear l y ind i c ate t hat most mayo rs and ma ny urban governors, o f n ecessity, will be increasing ly resp on sive t o the problems o f ci ty ghetto s. Th ey can be the 11' 1 1,1 .I Pr es i den t's mos t i mp ort ant al l ies i n fulfilling our nat i onal urban go al s. They mu s t be the f ocu s o f any mean i ng f u l decen t rali zat i on of the f ederal s y stem . 2) In add i t i on to the fi scal flex i b i lity and d e cent ralizati on recommended below, we u r_ge that presen t aid programs operate through the political executive and not semi -autonomous bureaucracies. �4 3) To build toward a capability similar to that of the federal executive office, w~. recommend direct gr-ants to mayors and governors for staff assistants o~ city problems. 4) _ To increase the competence of state and local govern- ment personnel we recommend increased federal assistance for training and continued efforts in the direction of inter-governmental exchanges of personnel. 5) Legislation should be promoted permittirig state and local governments · to waiv·e . federal tax resumption of securities ,. 1· 11 •. in return for a federal grant equivalent to the federal taxes collected on the . interest from such securities. Some estimates indicate that this could result in an added .6 to 1 billion dollars per year. 6) · iI', Ii Ji I., Federal assistance to cities should be significantly increased; and the existing impediments to the effective use of federal aid at the local level should be eliminated. The components of this recommendation are presented in detail' in .Parts 111, ·1v, .-and V .- below. ~- 1 I ' ... , ., ' �DRAFT:LEONE:6/19/67 III. Focusing and increasing the level of Federal assistance to cities The Problem 1. Many of our present programs fail to reach the central city poor with enough resources to make a difference. 2. Simple extension of present programs - leaving effectiveness aside - to reach the central city poor would cost in manpower, education, health, housing and legal services ____ billion dollars a year. 3. Unless we reach a scale of sufficient size we will find as we have found in the past our efforts are dis~ipated by trying to reach too many people, in too many cities, with too many programs. 4. Policy responsibility at the Federal level must be focused in strengthened urban agencies. Recommendations The following programs are meant to focus resources on increasing urban integration and enriching the lives of those who remain in big city ghettos. In each program area, we have attempted to order our recommendations in terms of some rough priorities and time phases with employment having the highest overall priority . �L 2 Our expertise in the following program areas is limited. We have listed only recommendations which seem to us to be most relevant to an overall city strategy. Our suggestions are in no sense exhaustive. We hope to: Overhaul existing programs and redirect existing resource commitments to increase their impact on the ghetto. Increase commitments in the most critical program areas for implementing broad goals. Develop new approaches to tackle those aspects of ghetto enrichment and dispersion not affected by existing programs. Tie Federal assistance to disadvantaged individuals where appriate. 1. Employment A. The Task Force recommends the consolidation of presently separated manpower programs into a single comprehensive manpower grant. This move would allow development of sufficient local manpower programs under the aegis of a single agency which would absorb the important functions of recruitment, selection, and processing, training, placem ent and follo w-up of the poor . This st e p �,, 3 would include consoli dati on of those programs administered by the U. S. Department of Labor including institutional training, on-the-job training, neighborhood youth corps, concentrated employment program in the employment service with the Vocational Rehabilitation and OEO employment operations. B. In the absence of si gnificant consolidation programs, the Task Force recommends an expansion and refocusing of the on-the-job training program to provide higher subsidies to private industry for training of the poor. Reimbursement for tr aining costs should be doubled and perhaps quadrupl ed and the 26 weeks presently allowed should be expanded to a full year. OJT should b e provide d with a greater staff for job developmen t and for counselin g and follow-up after placement in a job training position. C. In order to compensate for the declin e of manufacturing and commercia l jobs in the city, the Task Force r e commends an expansion in public employment throu gh the n ew car eers idea as emb odi e d in the Scheuer Ame ndment to the Economic Opportunity Act. New careers provides entry level employment for the poor with meaningful upgrading in work and profes~ional training. �4· D. The Task Force recommends an increased number of demonstration projects - of all types to test the important relationship between deficient transportation to work sites and the willingness and ability of city residents to accept training and employment. E. The Task Force recommends a joint effort by HUD and the Department of Labor to negotiate a nation a l mod e l ag r e ement for employme n t with th e build i n g tr a de unions, which would permit lar ge -scale slum rebuilding e xperiments to make gre a ter use of slum resid ents. We r e co gn ize th a t th e i mpl ement ati on of this r e comme nda tion would not solve any signific ant proportion of the employment problem but it would h ave useful symbolic v a lu e i n the ghe tto s of ce ntr a l c ities. The De p a rtm ent of Commerce should be involv e d to reach similar agreemen t s wi th employe r s in the c onst r uction industry. F. As a l on g-run possib i l i t y, we su ggest a p r o gram whic h wou ld operate much like th e GI Bi ll of Rights wh i ch would pl a ce e ntitl ements i n t h e ha nds of th e p oor t o maximi xe persona l ch o i ce in selecting edu cational, t rainin g and employment assistance. Th e funds could be u sed by the · ind i v i du a l to gain c ert ification in regul a r educat ion a l institutions o r f or training on the j ob with the employer receiving reimbu rsement f or hi s trai ning c os ts. The great �s advant~ge of this approach is in avoidi~g the seemi~gly endless tangle of referrals, delays, and insensitivity encountered in the present, fragmented system. 2. Education A. Any program of Federal aid for elementary and secondary school construction should offer in_c entives for facilities designed to increase the integration of students. "Bonus" funds could be available for educational parks within cities, suburban exchange schools and for consolidated school districts. Funds should also be included for the modernization and replacement of older school plants in central cities. B. We recommend a program of educational subsidies for low-income children which would be administered as scholarships for use at any approved elementary and secondary educational institution. "Bonus" funds could be available for schools which are integrated or are experimental. C. 3. Sizer recommendations (see paper) Special recommendations for urban veterans A. We give the strongest endorsement to Department of Defense Manpower programs, such as . "Proj e ct 100,000" and "Project Transition" . �l, 6 B. We recommend a stepped-up outreach activities in the Veterans Administration to trace those with the greatest need for assistance at the point of separation and especially after separation. C. We urge FHA and VA loans to servicemen and veterans to finance proposed or existing individually owned on e -family units in pr~ects containing five or more units. D. We recommend that VA be given a special mandate and the capacity to assist ghetto v e terans in obtainin g such urban skills as planning, social service work and community developm e nts. 4. Incom e mainten a nce and we lf a re A. Any well conceived strategy for the city requires substantial increases in consumer demand. City dwe llers ne e d a sustain e d and substantial upward movement in payme nt lev e ls for (1) unemployment compensation (2) we lf a re p ayme nts (3) minimum wa ge B. The present welf a re syst e m must be alt ere d t o make i t a mo re e ffe ctive instrume nt in de ali n g with gh ett o depe nd e nc e . �7 (1) Altering AFDC man in the house requirements to permit (2) Altering outside income requirements to eliminate the in-effect 100% income tax rate and thus encourage C. We should move towards having a l~rger proportion and perhaps all welfare payments at the Federal level. Continued reliance on localities and states for a share places an added strain on their frequently regressive tax systems and inhibts the development of more r e asonable national standards for welfare. S. Public Facilities A. We urge greater use of the location of public facilities - both Federal and Fede rally support e d as a lev e r in s e curin g a ctu a l int eg ration, op e n housin g and employment opportunities. Those facilities which can be located in cities, especially community colleges and hospitals, should b e consid e r e d a part of overall dev e lopm e nt and city enrichme nt pl a ns . Public employ me nt for low-income groups should be related to any n e w facilit y - includin g those in th e suburbs . This n ew f ocus o f re spo ns ibili ty s h oul d b e come a ma jo r conc ern d f t he Se c re t aries o f HEW an d HUD . �-,, 8 B. The Department of Housing and Urban Development should be given a primary role in coordinating all Federal urban capital investment as part of national integration and enrichment strategies: 6. Housing A. To achieve integration there must be continued emphasis on compliance with desegregation guidelines in housing financed through the Federal mortgage programs. This is especially important in suburban developments which will account for 90% of the new housing ov e r the next 25 years. The flow of resources into financing housing is affected by interest rates, alternative investment opportunities, and oth e r forces, some of which are greatly influenced by Feder a l policy. B. Lower interest rates to stimulate a ~inimum annu a l construction rate in housin g should be a national objective. Th e eff e cts of low interest rates on the supply of low- and moderate-housing "swamps" the effects of Federal "housing progr ams" as such . C. Investme nt inc e ntiv es such as t a x credits and d e pr e ci a tion sch e dul es should b e a p pli e d t o hou s in g in th e s ame way th a t th e y a r e a pp li e d to oth er c a pit a l goo d s. �9 Every mechanism for maintaining a constant flow of investment into housing should be explored by the Administration. These might include the issuance of longer term certificates at higher interest rates to attract the investing power of pension funds and insurance companies. Certificates-should be issued by the Federal National Mortgage Association. D~ The Task Force recommends expanded use of devices such as leased,scattered site public housing rehabilitated through use of the "turnkey" approach with purchase options for the tenants. E. Homeownership incentives for central city ghetto resid ents simil ar to the Veterans' Administration's no-down payment programs should be offer ed . F. The Task-Force recommends that the multi- family mort gage operations be separated ;·from the present Federal Housing Administration which would then b e charged with insuring only single-family mortgages. In the absence of such surgery, we believ e th a t the age and inflexibility of most FHA officials renders any alternative recommendation unworkable. �10 7. Special Recommenda tions on the Community Action Program_ a) The Task Forc e believes the community action idea is a major innovation in Federal programming and reflects the emphasis on demonstration and experimentation which is critical for increasing our problem-solving capacity. The Community Action Program should be retained within an independent OEO with its charter for flexible and innovative programs. b) A first step toward employing performance criteria in distributing scarce CAP funds should be taken. These crit e ria should include the CAP's innovative capacity, its ability to coordin a te other relevant agencies and to op e rate its own programs. c) Demonstration funds should be incre a sed accomp anied by ti ghter research controls applied to projects. d) Guid e lines to insur e CAP participation in Mod e l Cities plannin g and execution should be promulgat e d. ~) Th e dev e lopment of commun i ty action agencies as parts of th e local politic a l and gove rnm ent a l s y st em should be encour age d . �n - IV. Reforming the administration of federal urban programs to provide simplification, flexibility and decentralization The Problem The American federal system is being slowly strangled by the complexity of contemporary intergovernmental relations. Cities and states are fighting a losing battle to extract · maximum advantage from a bewildering variety of federal assistance programs. Administrative shortcomings seriously compromise the prospects of many of the imaginative federal programs developed in recent years. The Task Force has grave doubts about the capacity of this over-burd ened system to manage the new efforts needed to move th e ghetto resident into the mainstream of American society. By accident rath er than design, th e federal governmen t has created an extremely categorical, fragm ented, and complic ate d approach to urb an programming. Each program area t ends to develop its own set of sp ec ific program goals and controls, a clos e r e lationship wi th a specialized clientei"e, and a narro w perspectiv e on th e problems of cities and suburbs. Because the feder a l government seeks to achieve general policy objectiv es through highly detai led pro gram controls, most federal programs are characterized by an ov ercen tr aliza tion of detai l , administrative rigidity, long delays in processing applications, a multiplication of required cons ents , a failure to inno vate , and a lack of responsiv e ness to speciali zed loc a l ne ed s. Cities L �2 confront delay and confusion in the funding of their programs; they witness an inability of federal agencies to work with one another in making sense of federal programs in urban areas. The burdens of an already overloaded system of intergoverrimental relations have been multiplied by the rapid expansion of federal domestic prqgrams during the past seven years. Most of the new programs are categorical and involve detailed federal program controls. In an effort to advance laudable national policy goals, such as metropolitan coordination and highway safety, additional detailed requirements have been imposed on existing programs. The net effect has been to complicate further the bureaucratic maze that stands between federal resources and .urban problems. The Task Force is especially concerned about the failure of the federal government to build sufficient flexibility and opportunities for state and local discretion and innovation into the federal aid system. Many of the problems of large city ghettos are quantitativ e ly and qualitatively different from those of the poorer neighborhoods of smaller cities . Solutions to many of our most vexing urban problems are neither obvious nor universally applicable. Yet relatively few fed e ral progr ams permit the d eve lopmen t of locally-determined str ateg ies for cities and metropolitan areas. In its str ess on local innovation and flexibility, the Model Citi es Program represents a welcome departure from the �L 6 3 rigid programmatic approach. By emphasizing systematic planning and coordination of federal categorical grant programs, Model Cities seeks to reduce overlap and dupl{cation of effort. But constituent-agency relations, formula grants, inflexible requirements, and specialized administrative practices tax the ability of any city to tie these many disparate strands into an effective program. In addition, Model Cities program standards are added to those required by the component programs without any compensating simplication of the process whereby a~plications for assistance are approved. Innovation, flexibility, and coordination are easily stymied by a process whose practical effect is to pyr am id requirements, multiply consents, and increase the time lag in bringing r e sources to bear against problems. The Task Force is impressed with neither the record nor the potential of existing instruments for securing interagency coordination of grant programs, such as Bureau of the Budget intervention to resolve interagency conflict, interagency committ ee s, the me tropolitan expediter, and HUD's convenor order. Th e Administration's experience with the community action program and the neighborhood centers unhappily indic ates that substantial coordination cannot b e achi eved at th e federal level withou t substantial ch anges in the grant-in-aid me chanism . The massive effort need ed to overcome the problems pos ed by the ghetto will be financed l argely by some form of federal �,, 4 grant-in~aid. To the degree that such grants are programmatic, the Task Force is convinced that it is absolutely essential to streamline and simplify the distributivi mechanisms. Instead of extending and expanding categorical aids, the Administration should stress consolidation, decentralization, and flexibility. In the opinion of the Task Force, however, fragmentation, administrative complexity and rigidity, overcentralization of de tail, inadequate coordination, and lack of innovation are endemic to the programmatic approach. Even the most imaginative reforms are likely to have only a marginal impact if grant programs continue to multiply at th e ir present rate. Of course, this growth rate would be accelerated if all the Task Force's recommenda tions were transl ated into ind ividual grant programs. An increased fed er al commitment to urban problems and a national effort focused on ghetto def iciencies requires a substanti al reorientation o f roles and responsibilities in th e federal system. The Admini s tration b egan this task with th e development of th e Poverty and Mode l Citi es progr ams . The Task Force believes th e time has come to expand the application of these conc ep ts through th e developme nt of a highly fl ex ibl e , loc~lly - based s yst em of grants-in - aid which substitutes general purpos e assistance for progr amma tic gr ant s and n a tiona l p er formance standards for detailed program c ont ro l s. It should a l s o b e not e d that the r ec ommend a tions h av e b een design e d to p e rmit th e partial applic a tion of th e s e concepts. �s Thus, the implementation of these proposals may be staged over time, with the most promising program areas selected for initial treatment. It also will be possible to retain _federal program standards in those areas where such controls are deemed in the national interest. Recommendations 1) Application, processing, and revi ew procedures should be streamlined in all non-formula grant-in-aid programs. The goals of internal program reform should be: (a) to simplify application procedures through the development of standardized methods; (b) to r e duce sh~rply the time between application and approval or rejection of a grant request; (c) to reduce multiple cons ents; (d) to check the trend toward pyramiding requireme nts; and ( e ) to employ standardized revi ew and audit procedures . Responsibility for the implementation of this recommendation should be lodg e d in th e Bureau of th e Budget. 2) Gr ea ter u se s hould be made o f earmarking of grants to facilitate the fundin g of programs lik e Mode l Cities and community action which cut across pro gram and agency lines . This dev ice should be u sed to enh ance the focu sing of fed e ral res ou rces on ghetto problems. 3) Whenever possible, new grant programs should b e merg e d with exist ing programs . Con so lidation of r e lat ed grant pro grams, along the lin es of the Partnership in Health Act of 1966 , s hould be giv en high priority. Gr ant consolida tion reduc es the numb er �L 6 of separate negotiations which any jurisdiction would have to carry on in order to design relatively comprehensive local programs. 4) Provision should be made for consolidated applications for two or more related grants administered within a single department. Such intra-agency grants would permit a state or local agency to deal with a single representative of the appropriate department wh en applyin g for r e lated gr ants. Impl ement a t io n o f this r e comme nd a t ion r e qui res the e s tabli s hmen t of an intra-agency grant office within each department, prefe r a bly in the off ic e of the s e cret ary. The intra-agency gr ant off i ce woul d r e c eiv e and p roc ess the a ppli cati on for an i n tr a-age n cy grant, coordinate th e revi ew of the application with th e appropri a t e ag enci e s within th e d e p a rtmen t to insu re th a t pro gram s t and a r ds we r e be ing me t, and a ct as the f ina l gr a n t in g authority, subj e ct to appropri a te r ev i ew at the d ep a rtm e nt a l leve l . 5) Pr ov i sions s h ould b e made f o r c on so li dated app l ications for two or mor e related grants administered by agencies in two or mo re de p a rtments. Such in ter- a ge n c y grants woul d p ermi t a state or local agency ~o deal wit h a sing l e federal agency when t he federal grants needed to finance a compreh ensive project are adminis t ered by t wo or more depa rtm en ts. Imp l emen t ation o f this recommendation requires the d es ignation o f an agency to rec eive application s for inter-ag ency grants, to coor din ate th e review of the application with the appropriate agencies to insure �~ - - - If 7 that program standards are being met, and to act as the final granting authority, subject to appeal by the appropriate departmental heads. The Task Force believes that the inter- agency grant coordinating function should be assigned to the same agency which is designated as the principal federal urban agency, as recommended in Part III above. Legislation to implement this recommendation would not authorize the waiver of statutory provisions such as eligibility for -grants, matching ratios, or program duration. 6) Performance standards should be substituted for detailed program standards wherever feasible. Standards should be simple, general, quantifiable where possible, and applicable to a wide variety of contexts. Performance standards should relate to general societal goals rather than to specific program objectives. Thus, a housing performance standard might be the proportion of substandard dwelling units, not the number of public housing units. National performance standards should focus on the urban goals of integration and enrichment. 7) The substitution of performance standards for program controls should be accompanied by the pooling of funds in existing grant programs. An essential first step in pooling is the establishment of functional pooling arrangements which permit L �8 the unrestricted use of funds in a general functional area, such as housing, manpower training, health, or transportation. In housing, for example,public housing, urban renewal, and rent supplement funds would be pooled, to be employed by the appropriate local or state agency to implement a comprehensive housing program. All programmatic restrictions would be removed. from the use of pooled funds; thus, funds derived from the public housing program might be used to finance .rent supplements, rehabilitation, code enforcement, or some other locally devised strategy designed to overcome housing deficiencies. 8) Where federal funds are functionally pooled, the basic requirement for eligibility should be a comprehensive program 1n the functional area which relates local deficiencies and needs to the ~ppropriate national performance standards. Comprehensive housing, manpower, health, or transportation programs should be developed by the appropriate local or state agency. Comprehensive programs would specify local deficiencies in terms of national standards, set forth program goals to meet the national standards, and indicate in a general way the projects to be undertaken to reach the program goals during the life of the comprehensive program. When all funds functionally pooled are from programs within a single agency or departm ent, th a t agency or departm e nt should approve the comprehensiv e program and monitor its impl e mentation . When functional l y pooled funds are drawn from two or more departm ents, the principal federal urban agency recommended �,, . 9 in Part III should approve the comprehensive program and monitor its implementation. 9) Provision should also be made for the pooling of federal funds across functional lines. Unde r this type of arrangement, some or all of the federal aid flowing into a neighborhood, municipality, county, metropolitan area, or state would be pooled, with all programmati c restrictions removed from the use of the pool ed funds. Eligibility for general pooling should be based on the preparation by the appropriate local or state unit of a general development program based on national performance standards. General development programs would be similar to the comprehensive functional programs discussed in the previous recommenda tion, except that their scope would be substantially bro ader . General dev e lopment programs would b e approved by the principal federal urban agency recommended in Part III, which would also monitor the implementation of the general development program. 10) To facilitate the preparation of compr e hensive functional programs and general development pro grams, federal technical assistance and pl a nning aid should be expanded. In the case o f compr ehens iv e function a l progr ams involving two or more a ge nci es , and in all instances of general development program prep a ration, technic a l assist an c e and planning aid should be funn e l e d throu gh th e p r incip a l fe de r a l urb an age ncy a s r e commend e d in Pa rt III. As a first step toward implemen tin g t he previou s recomme nd a tions, t he federa l governmen t s houl d f ina nce the prepar a t io n of a �, 10 number of comprehensive functional programs and general development programs by a variety of local and state units. 11) The federal government should initiate a program of . general purpose assistance to local and state governments. We recommend that two types of general purpose grants be developed deficiency grants and incentive grants. a) Deficiency grants are general purpose formula grants designed to provide supplemental federal assistance for local units, the ma gnitud e of which would be related to need and capability. An equalization formula to accomplish this purpose would be based on population, per capita incom e , tax bas e , tax effort, and perhaps other measur e s of social, economic, and infr as tructure d ef iciencies. Defici en cy grants could be used by the r e cipi e nt local or state unit for any public purpose consistent with a general developm ent program. Eligibility for deficiency grants would be det e rmin e d by the princip a l f ede ral agency recommended in Part III through its approval of a general development progr am. Given th e magnitud e of th e gh e tto probl em , th e Task Force r e comme nds an initial outlay of$ for defici ency grants, which would provide$ billion per gh et to dwell er. b) Inc en tiv e grants are gen e ral purpose grants distributed by the principal federal agency recommended in Part III. Incenti ve grants could be used to suppl eme nt pool ed �, 11 funds ·or interagency grants. The availability of general purpose agency grants should enhance the ability of the principal federal agency to promote inter-agency grants, pooling arrangements, and comprehensive functional and . general development programs. A significant proportion of incentive grants should be used to stimulate the prepara- · tion and implementation of general development programs which give high priority to ghetto problems, especially integration. �1 L I V. Increasing knowledge of solutions to urban problems The Problem The Task Force believes that if this society were ready to commit the resources required for its cities, new technologies and knowledge could make our efforts more effective and relevant than is presently possible. We emphasize the advantages of the Federal government as a funder, controller and evaluater of demonstrations and experiments - an advantage which is readily apparent in the aerospace industry. This advantage is presently being dissipated by fragmentation of problems by agency mission, lack of long-term financing of experimentation and basence of sensitive feedback mechanisms to influence policy-making. In addition, the efficiency of our efforts to solve urban problems may be limited by . the small scale of our programs and even demonstrations. Recommendations 1. The flexibility and emphasis on innovation characteristic of the Model Cities Program should be exploited by conc e ntrating resources - as far as possible on 4 or 5 cities and/or metropolitan areas capable of implementing we ll-structured and cont r olled experiments. To achieve this wo uld require at least the following: �- - 2 -- Assignment of responsibility for the design and evaluation of the experiments to the new Assistant Secretary for Research and Development in DHUD. -- Informal allocation of resources from a ge ncies other than HUD, (for example, project demonstration monies in HEW and Labor) for use in the selected cities. -- An aggressive Federal role in providing technical assistance to thes e. "key" cities'. 2. The creation and fundin g of an institute for basic urb an r e search, along the lines of RAND or IDA in th e de fense area. The institute should be Federally funded, independent of day-to-day departmental control and able to und e rt a ke long-term research projects. · Initially, the institute would not undertake operation or fundin g of action projects, but would concentrate on basic rese a rch into urban economics, data collection and analysis, etc. 3. A stren gthen e d and be t t e r-financed demonstration and exp e ri me nta t ion rol e for DHUD and its Assist a nt Secr e tary for Re se a rch and Deve lopment . This should includ e th e abilit y to fin anc e long-t e rm proj e cts ind ep enden t of f isc a l year r es trictio n s and deve lo pmen t an d a c ti on p ro j ec t s in fi e lds other than h ousi ng. A h i gh premium should be p l aced on j oint funding with o ther agencies for projects cutting across several service sectors. - - L. �L 3 4. The evolution of a developmental orgariization which can undertake large-scale investments in new systems, such as new housing ideas. This institution might be developed by the Assistant Secretary for Research and Development in DHUD. It should have the funds, flexibility and authority to underwrite construction of new types of schools or hospitals or houses on a scale large enough to make a difference. This agency also could expend the developmental work done by OEO in basic manpower and health iystems, or combine them with the physical elements of a sector. The first target of large-scale development should be constructing more efficient and flexible low-and moderate-income housing. 5. The capacity of local and state governments to undertake research and development should be increased with the aid of positive Fed era l action. Subsidies to regional or urban universities are one means of achieving this; financing of research staffs for governors and mayors is another. Federal programs, such as Model Cities and Community Action, which stimulate innovative and experimental action projects should be expanded as the best hope ' for building local development capacity. �L I - 4 6. We believe the natural advantage enjoyed by the Federal government for financing and evaluating research and development should be strengthened in all departments. Within department, R&D otitputs should feedback to the Secretary to insure that R&D projects affect on-going programs and policies and open new directions. Responsibility for monitoring government ~ wide urban R&D activity should be centralized either in the Executive Office or in HUD. Without centralizat i on, th e r e sults of r e sear ch in one a ge ncy are not like ly to become inputs in the policy-making of another. �
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: December 29, 2017

Box 22, Folder 18, Document 9

http://allenarchive.iac.gatech.edu/originals/ahc_CAR_015_022_018_009.pdf
  • Result Type: Item
  • Item Type: Text
  • Title: Box 22, Folder 18, Document 9
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Oo te Oe et et Og Oh wo a oO sya) oo ae cle 4 a 4 eqdeel O 49 ed ei ctw aed ob is eR ss * co bor fa Qad OD AUT O So Heo ougd kh + i fi 42 Ww wi G4 & OC oo q rl ae o oy oi (2 eet oO wo i ro “a 9 a Soo. av oo 7a. oO 4 gael G ao by 4 «t HH @ @ Ry om CGedad Hodges aaopoh Ss aD a a > 8 ie ? BAS ae ae Fey Ce ee Oe 7; os a e “I "wu ae 4 . a Q ert Woe «iTS O) ft u 5 o ‘Ss MGW ¢ oO BO HH OOS HDA ae Hoo mh + ui a wm SHOP BAAad BOovoO eS BH Be oR wow A oO: eT aa place cost Tull complen rein rea reo ¥ ‘ le né io ws - oS oe ay ri bo Buty ec THENCE 1 “Lt C eno rf me = euMirs AS ter p ] =, 4 oe «. deliver bk Mr. Phillippe said that work by GE scientists and information specielist has led to contracts for studies on applying systems analysis techniaues to overall urban planning; to integrated police, fire and ambulance communication networks etc. He suggested that there be more and better communication and cooperat between business leaders and political leaders in seeking the solutions: to urban problems. He then described different projects in which his company has participated. He also said that more extensive research is needed into the demands of the city. GE is working to discover how it can effectively apply to city problems what was learned through its participation in systems development for the defense and the space programs. TEMPO, a GE center in Santa Narbara, California, has an experimental program with the City of Netroit to introduce program packaging and budgeting techniques learned through its cost/effectiveness Work on Defense Department problems. It is also working with the University of Minnesota con an experimentel city program to be built near Minneapolis. ‘ One big complaint which Mr. Phillippe made concerning present condivicns was that building codes or housing codes, electrical or plumbing codes - do not promote efficiency in construction and ere,in fact, institutional inhibitors to efficiency in rebuilding our urban ereas. . He also criticized present governmental policy in regard to the distribu- tion of patent rights to inventions ae out of research and develop- ment carried on by private industry, put financed in whole or in part by the Government. He said that present policy discourages participation by private industry. He approved of forming new types of combined public and private corncora- tions geared to meeting urban needs, but did not favor a COMSAT type of corporation. He believes it would be better to have an agency like NASA, with an accepted objective for the general public. He said th is a social problem and should be kept in the nonprofit area. In hi: opinion, rehabilitation and low-income housing in general are not attractive to DELUGE investors. 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Tt hk 5. are nouch arge € ts are too high and le a COS = - Lan ro % n the crovied coun rl < On a a OYPaen sion, Loca 8 a ord am vet wa wl bs pa G} ps = a ma eS) 5 4 a 4 enat ithourh Ses ped mar A or Kennedy ¢ tw, UnvEeD seemed unconv nm ry of G R f
  • Tags: Box 22, Box 22 Folder 18, Folder topic: Task Force on Cities | 1966
  • Record Created: April 18, 2017
  • Record Updated: April 30, 2021