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Box 7, Folder 9, Complete Folder
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- Item Type: Text
- Title: Box 7, Folder 9, Complete Folder
- Text: DISCUSSION PAPER
. Chicago Conference
Mobilizing Urban Coalitions
Chicago Circle Center, University of Illinois October 17th, 1967
Introduction
With any new national effort such as that being undertaken ~y The Urban
Coalition, it may be expected that organizational structure methods will
continue ~o undergo change.
For this reason The Urban Coalit ion is under-
standably :following a flexibl e course of action.
The ideas set forth in
this discussion paper may be expected to undergo fur t her change a s they are
subject to continuing review by both national and local leadership .
The
views of those interested in The Urban Coalition are invite d and we lcome .
Goals
Base d upon the Statement of Principles , Goals and Commitments adopted at t h e
August Emergency Convocation, The Urban Coalition's program may be restated
as follows:
1.
To encourage the Congre ss to respond affirmatively to the n eeds
of the cities .
2.
To encourage public concern with the needs of the c it ie s o
3.
To stimulate gr eat e r private initiative a nd effort in dealing with
the problems of the cities, including both investme n t and technical
assi s t a nce.
4.
To stimulate gr e ater support' for and interes t
meet such needs as:
in ongoing efforts to
--job d e v elopment and manpower training programs
--open housing efforts
--urban renewal and reconstruction
�Page ·Two
)
--anti-poverty programs
--programs to overcome educational dispariti e s .
Methods
Among the methods tha t may b e followed by The Urban Coalition are the
following:
1.
Be supportive, not op er ational.
It is e x pected that Th e Urban
Coalition will suppor t o ngoi ng e fforts at both the loc a l an d n a tional lev els.
rt may stimulate new under takings.
It will coopeiate with s uch majo~ n ew
efforts as th e $1 billion inv e stme nt allocation of the insur anc e industry
for center city development.
2.
It will give support to loc a l u rba n coalitions.
Stimulat e inte res t in successful e x amp l e s of actio n .
Thr ough it s
Task For c es The Urban Co a lition will identify, work with , and public iz e
successful effort s to e xpand employment, e x tend lower i n c ome hou s ing a n d
equa l housing opport unitie s , new educational pro g r a ms a nd th e like .
Task Forces hope t o s e rve as c a t a l y st s and conv enors .
The
They wi l l serve a s
c l e aringhouses o f l oc al a c t ion.
3.
Work with the mass media .
Thr o ugh its Ta sk F orce on Communicati on s
and Public Suppor t and thr ough co un te rp a rt comm i ttees at t h e loc al lev el ,
it is h oped that the mass media can te encouraged to fo cu s gr e at er a t te ntion
on the n eeds of c ities .
Br oad public understandin g of the n eed for greater
re s ource s , of the c omplexit i e s of the p r obl e ms invo l ved and the need for
urgent action are es s ential if the g oal s of The Urban Coalition are to be
achieved.
�P~ge·Three
4.
To coordinate a national legislative campaign.
The Urban Coalition
has called upon Congress for action across a broad front to meet the urban
crisis.
Interpreting and emphasizing the need for national action is as
~uch a local obligation as it is a commitment of the National Steer ing
Committee.
Discussions with members of Congress is as much a hometown
affair as are appearances before Congressional comm ittees.
Structures
The National Steering Committee at the present time consists of thir ty-six
members.
They are broadl y representat i ve of business, labor , local govern-
me nt , religion, civil rights and education.
It is expected that two addit-
ional member s of the Steering Committee will be sele cted by the Council of
Urban Coalitions.
As loc a l coalitions are formed they wi ll b e invited to
designate two r e pre s e ntatives to serve on the Coun~il a nd thro ugh this
Council provide the National Steer ing Committee with advice and guidance on
matters of national concern .
The National Ste ering Committee has establishe d
seven Task Forces a nd it i s e x p e cte d th a t
c ounterpart units.
guide line s.
local coa lition s will d e v e lop
These are ide ntif i ed and discussed in the attache d
Under con s i der a tion for futur e d e v e lopme nt is the establi s hme n t
o f a Council o f Urban Ec o nomic Advi s o rs to assist the Coa lition in a n a l yzi ng
the ~mp act of Federa l economic, fisc~l, tax , and budget a ry p o licies of cit i es.
A secon d Counc il o f Un i v ersi t y Urba n Studies Cent ers i s b eing contempl ated as
a mea n s o f channe ling the b est r esearch i deas con cerning urban deve l opment
into the discu s s ions and p l ans of b oth t he National Steering Committee and
�Page Four
)
and local coalitions.
Further additions and modifications ~n the organization
and structure of The Urban Coalition may be expected as experience is gained.
*
t
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�~ - r n .,,0
-- --
.~ P. r.nL.A1
CITY HALL
October 11, 1967
A'I:LANTA. GA. 30303
Tel. 522-4463 Area Code 404
IVAN ALLEN, JR., MAYOR
R. EARL LANDERS, Administrative Assistan t
MRS. ANN M. MOSES, Executive Secretary
DAN E. SWEAT, JR., Director of Governmental Liaison
MEMORANDUM
To:
Mayor Ivan Allen, Jr.
From: Dan Sweat
Subject:
Report on Urban C oalition Meeting,
October 9, New York City
The meeting of the Steering Committee of the National Urban
Coalition developed into quite a stalemate on the question of
whether or not public policy positions should b e taken by the
group.
Most Mayors pr esent - Lindsay, Cavanagh, Graham and
perhaps Naftalin, as we ll as some Civil Rights , Education
and Religion representatives felt the urgent necessity for
the Coalition to communicate a policy position to th e C ongress
on such pressing matters as the Welfare Amendments,
Poverty Bill, etc.
Business representatives, noteably Frederick Close and Gerald
Phillippe, felt any p olicy statements is sued as a Coalition on
controversial l egislation would jeopardize anticipated support
for the Coalition by Business.
They were greatly upset by the Coalition's statement on the
Clark-Javits Amendment to the Poverty Bill.
After a two hour debate the committee voted to adopt a policy
whi ch states: 11 The C o alition shall take public policy positions
except where a substantial or intense disagreement emerges . 11
�r.
Mayor Allen
Page Two
October 11, 196 7
-What this all amounted to was a stalemate on the question of
whether or not the Coalition, as an organization, will lobby
for urban legislation.
I feel that it is imperative for the Congress to have an idea of
the thinking of a group as potentially powerful as the Urban
Coalition, but can understand the problem of the business
representatives, who really cannot speak for any business
except their own.
The Committee adopted a budget of $100,000 for the period
August 1, 1967 - January 31, 1968. (Copy attached.)
It also heard reports from the Task Forces on Local C o alitions,
Communication, Reconstruction and Urban H o using, Equal
Opportunity in Housing, Educational Disparities, Private
Employment, and Legislation.
The Private Employment Task Force noted it planned to
consider setting up pilot meetings in three cities, including
Atlanta to consider methods for establishing priv ate business
coalitions.
The next meeting of the Coalition is scheduled for December 18,
possibly in Detroit.
DS :fy
�BUDGET AUGUST 1, 1967 - JANUARY 31, 1968
Salaries:
Professional Staff (7)
Clerical (5)
Employer Contributions
$43,000
11,500
1,500
$ 56,000
Program Expenses:
Conferences and meetings
Mailings]
Publications and printing
Consultant fees
$ 3,000
2,500
8,000
5,000
18,500
Operating Expenses:
Office Rent
Furniture Rental
Equipment Rental
Telephone and Telegraph
Office Supplies
Insurance
Travel
Subscriptions
$ 4,600
3,600
600
1,200
1,500
250
5,200
50
17,000
August Convocation
TOTAL
8,500
~100,000
�-;==-,---= ,,...----===== -;;;:..
-- - -
Vol.
No. 9
•
June 1968
@UD@[jlj [J]I}ffe@[J]U
MUll11it=MlliioJ;1!0[•~
Published by The Urban Coalition
•
•
Federal Bar Building
•
1815 H St., N.W., Washington, D.C. 20006
Executive Committee-Sets Urgent Priorities
"We owe it to his
memory to end inaction • • •"
Tax Increase Supported
To Finance New Programs
The Executive Committee of the unincorporate d Urban
Coalition met on April 8, four days afte r the assassination of
Martin Luther King, Jr., and adopted a set of high-priority
legislative recommenda tions keyed to the national crisis.
Immediately following th e Executive Committee session,
Chairman John W . Gordner, accompanied by Andrew Heiskell and Whitney Young, J r., held a press confere nce to make
the actions public.
The Executive Committee placed the highest importance
on passage by the House of Representative s of the Civil
Rights Act of 1968, with fair housing provisions. The bill
passed the House by a vo te of 229 to 195 se veral days
later. It had pre viously passe d the Senate.
The propose d suppl emental appropriatio n for th e Office
of Economic Opportun ity a lso rece ived urg ent e ndorse me nt,
but was defeated in the House.
The Committee called a cross-the-board cuts of Fe d era l
expend itu res " irrc tional by d efinition and strong ly opposed
the m.
Expend itures should be raised
The Executive Committee o f th e unincorporate d
Urba n Coa li tion, mee ting on April 8, pre fac e d its
sta tement of urge nt leg islative goals with th is
tribute to Dr. Martin Luther Ki ng , Jr. :
"The Re vere nd Dr. Martin Luther King , Jr. is
no longe r among us to cha /1-enge ·o ur conscie nces
and to press us forwa rd toward fulfi llme nt of a
ust society. W e owe it to his memory and to o ur
socie ty fo e nd inactio n in the fa ce of urg ent
national nee d s.
" The le adership a nd organizations w hich work
togethe r as The Urb an Coalition mo urn the loss
of Dr. King as a courage ous national le ader and
as a m e mbe r of our Steering Committee. W e
here a nd now renew our pledge to p ursue act;on
at b oth the national and communify level appro priate in character a nd scale to the crisis confronting the na tion."
If Congress rise s to its re spo nsibil ities, the Committee
said, " it will incre a se, no t cut, ex penditures for esse ntial
program s such a s jobs, ho usi ng, e ducatio n, a nd community
se rvice s."
To finan ce such a program t he Committee urged the
adoption of a tax increase, " pending t he accomplishme nt
of the re orde ring of prio riti e s and the reorie ntation of our
reso urces in the lig ht of urban needs."
The committee reaffirmed Coalition support for a public
service em ployment program to create one million meaningful
jobs, and p ub lic and private ho using prog rams to produce
one mi ll ion units ann ually.
The ne w ly incorporated Urban Coa lition Action Coun cil
is a ctive ly seeking fulfi ll me nt of a ll these legislative o bjectives
(see page 2).
The Report of the Pre sid ent' s Advisory Commission o n
Civi l Disorders wa s stro ngly e nd o rsed , with t he p ledg e that
" The Urban Coa lition will g ive t he hig hest pri ority to bringing
it to the attention of leadership at a ll levels of both t he
p ublic and private sectors."
�Legisl ative Goa.ls O ut li ne d at Press Conference
ACTION NOTES .
The Urban Coalition ho s moved into new headquarters
1n th e Fed e ral Bar Building, 1815 H Street, N. W., Washington (20006). Main offices occupy the sixth floor of th e
building . The new telephone number is Area Code 202,
3 47-9630.
* *
A new booklet contain ing the major addresses given
a t th e Na ti onal Action Conference on Equal Housing Opportuniti e s in Chicago in January has been published by the
Urban Coalition Action Counc il and is available on request.
* *
Th e Steering Committee of The Urban Coalition and
the Policy Council of the Urban Coalition Action Council will
meet at !eparate sessions on June 10. The first meeting will
be gin at 7 p .m. in the Tudor Room of th e Shoreham Hotel.
Local Coalitions have no w been formed in 33 cities, and
several others hove e xpresse d act ive interest . The notional
Coalition is placing new e mphasis on assistanc e to the locals,
hopes 100 will be e stabl ishe d by th e end of th e year .
*
During the period of widespread unrest following the
Chairman John W . Gordner talks into o n array o f television and
radio mi cro p hones at press con feren ce co il ed to ex p ress u rg e nt leg is·
Action Council Is Created
To Carry Out Legislative Program
On April 8, 1968, with the appro val of the Executive
Committee, tw o separate and distinct corpo rations- The
Urban Coalition and the Urban Co alition Acti o n Coun cil
-were created to carry out t he objectives of the un incorporated, voluntary group previously kn o wn as t he
Urban Coalition.
The new OT9onization5 will operot ·n- complete ly
different areas. The Urban Coalition Action Council
will be concerned with legis lative activities, and The
Urban Coalition with non-legislative programs.
The purpose of creating this new corporate arrangement was to facilitate financing by making it possib le to
secure tax exempt status for the Coalition under Section
501 (c)(3) and for the Action Council under Section
501 (c)(4) of the Internal Revenue Code. These exemptio ns have now been secured. This means that contributions to the Coalition are tax deductible. Contributions
to the Action Council ore not.
John W. Gardner will be chairman and chief executive officer of both corporations. The Steeri ng Committee
of the former unincorporated Urban Coalition will serve
as the Steering Committee of the new Urban Coalition.
The some individuals, acting in separate and distinct
capacities, will serve as the Policy Council of the Action
Council.
2
lotiv e goof s. Also participating we re Steeri ng Comm ittee Me mb er
W hitney Young, Jr . (le ft ) and Co -Chairman An drew Heiskell .
Gardner Calls for Million
Public Jobs in Two Years
Chairman John ·w. Gardner oppe ore d b e fo re o Senate
Labor Subcommittee rec ently to urg e pro mp t approval of
a pu b lic se rvice e mploym e nt bill.
He gen e rally endo rsed S. 3063, the me asur e und er con sider_ati o n, :-hut no ted tho. its o.bjectiYe f o.ne_mi llion pub lic..
se rvic e jobs would not b e rea ched un til the thi rd yea r ofter
e na ctme nt.
"It seems to me ," G o rdne r sa id , " that this pace should b e
acce lerated so tha t 500,000 jobs a re mad e availabl e t he first
yea r and a tota l of o ne mi llion the seco nd yea r. We a re in
a peri od of great urge ncy a nd should stretch b o th o ur fiscal
and administrative capacity to the utm ost."
He cited a rece nt study mode for the Urban Coa liti on
which shows that at least 141,000 persons cou ld be employed
" almost overnight" in 130 cities with popu lations of o ver
100,000. Projecting the st udy to include smaller cities, loca l
governments and non-profit organizati o ns, he added, makes
it likely that jobs could be found for 500,000 persons within
six months.
All public service jobs, Gordner emphasized, should be
meaningful and socially useful-not dead-end, make-work
projects.
He said a public service employment program should
apply to rural as well as urban areas.
assassination of Dr. Mortin Luther King, President John son
called on the Urban Coalition to ploy o key role in efforts to
reduce tension . In response , Chairman Gordner wired the
officials of loco/ coalitions asking that they bring together
th e leadership cf the ir communities to e xam ine local tensions
and needs , and support the pending Civil Rights Act of 1968.
*
In re ce nt issu e s, th e Wall Street Journal, Business We ek ,
and Agenda Magaz ine hove carri e d in -depth articl es on th e
work of th e Coalition. Re pri nts o re a vailable from Coalition
he adquarters.
Publishers Contribute Part
Of Profits From Riot Report
Bantam Books and The Ne w Yo rk Times rece nt ly con tributed $10,000 fr om th e p rofits fr om the so le of the
Bantam ed ition of the Report O f The Na tiona l Ad viso ry
Commis!ion on Civi l Rights to th e Urban Coa liti o n. Prese nting th e che ck to Cha ir ma n John W . Go rd ner a re
Tom Wicke r (left) , W ash ingto n Bu re au C hief of the
_ Times, and Ba ntam Books Presi d ent Oscar Dyste l. Wicker
wrote a speci a l in tro d ucti o n fo r the book .
New Staff Members Join the Coalition
in recent week s ·severa l staff mem b e rs ha ve joinea
the Urba n Coalition and a re no w at work in th e new
he adquarters at 1815 H Street in Wa shing ton . They
includ e:
Sa rah Collins Ca re y, an a tto rney, serve d a s consulta nt to the Na tion a l Ad viso ry Com missi o n on Ci vil Disord ers an d wa s asso ciated with the Wash ington law fir m
of Arnold a nd Po rter. Mrs. Carey is a grad ua te of Rad cli ffe Coll ege a nd re ceived her law degree fr o m G eorgetown University .
Margaret Carroll, a graduate of Lawrence Co ll ege,
worked for the past seven years as a researcher, writer
and editor for the Congressional Quarterly News Service .
D
John Dean , former Regional Administrator of Office
Economic Opportunity programs in the Southeast, is a
aduate of Howard University in Washington, D. C.
Brian M. Duff, a former Washington correspondent,
ca me to the Coalitio n fr o m NASA, wh-e re he was Directo r
o f Special Eve nts in th e O ffice of Public Affairs. He is a
g raduate of the University of Michigan .
Herbe rt M. Franklin, former director of the Busine ss
and Devel opment Center of Urban America, Inc ., and
Deve lo p ment Admin istrato r of the city of Middletown,
Connecticut, is a graduate of Harvard College and
the Harvard Law School.
Peter Libassi, former special assistant to the Secretary
of HEW and director of that agency' s Office for Civil
Rights. Libossi is a graduate of Colgate University and
Yale Law School.
Richard S. Sha rpe, former Peace Corps Volunteer
serving in Ethiopia, was recently Research Assistant, Cen ter for Studies in Education and Development at Harvard. He is a graduate of Wesleyan University and the
John F. Kennedy School of Government at Harvard.
3
�Gardner on local coalitions
"No One Segment Can Solve the Probl e m Alon e"
Speaking at the Convention of the United Auto
Workers recently, Chairman John W. Gardner discussed
the importance of broadly based local coalitions, and
areas of activity at the local and national levels. The
following is an excerpt from his remarks:
"The need for collaboration is most dramatically
apparent in the cities themselves. No one leadership
segment can solve the problem alone . City Hall can't
go it alone. J he business communitYS_an't solve th E:._citi_s__
problems singlehand edly. All must collaborate.
" Because of this need at the local level, our national
organization set out immediately to form local coalitions.
We now have 33 and we hope to have 100 by year's
end . As in the case of the national, each local organization includes representative s from a variety of leadership segments in the community-the mayor, business,
labor, minority groups and religion .
"Now I still encounter le ading citizens who say,
'Why try to get all those people into the act? Why
don't a few of us g e t togethe r qui etly, and try to solve
some of these problems?'
" It's a reasonable sugg e stion, but hope lessly oldfashioned. It won 't work for long in any modern city.
We won 't re -establish stability in our cities until all
significant lead e rship e le men ts g e t tog eth e r, until we
bring into the same conversation all the peopl e who
exercise significant powe r- or veto powe r- in the community.
"This includes ghetto le ad e rship. Nothing is more
important to stability in the citi e s than the cre ation of
ew1 11;1,0 11H1m t,~
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Federal Ba r Building
18 15 H Stree t, N .W
Wa shington, DC 20006
31
open , continuous and understanding communication between wh ite and black communities. This must be a
prime task of any coalition.
" Such communication is not easy. It requires hard
work and patience and imagination on the part of every
" person involved . But it is necessary. Indeed, there is
no alternative, unless we are willing to see our cities
torn apart.
We Must W ork _ aJ All Leve l!.__
"At both national and local levels the Urban
Coalition will work toward the solution of our urban
problems. We will be concerned with unemployment,
housing, education, race relations and many of the other
problems that plague the cities today. We will try to
make the public aware of those problems. We will try
to bring the nation's best talent to bear on them . We
will support constructive efforts to solve them.
" We will seek to supplement and not supplant other
efforts. We consider every organization constructively
engaged in these matters to be an ally and we will hope
to work with them and strengthen them where possible.
"The purpose of the coalition is to enable all of the
segments of our national life, represented by those various leaders, to act together toward solutions to the urban
crisis .
" I would e mphasize the importance of the coalition
principl e . The woods are full of spe cialize d organizations inte reste d in the urban crisis. Our distinction is
that we bring together le ad ership el e ments t hat do not
normally collaborate in the solution of public probl e ms ."
- - - -BULK RATE
U. S. PO STAGE
PAID
Washington, 0.C.
PE RM IT 43234
-
�r
The Race Problem:
"What Are You Going To Do About It?"
An Address
At the Opening of the Fund-Raising Campaign
for the
"University of Community Involvement"
on April 1, 1968 at
New Rochelle Hospital
New Rochelle, New York
By
SIDNEY P. MUDD
A Ci tize n of N ew Roch e ll e
President of N ew Yor k Se ve n-Up
�What we need is men of good will. Men who truly care. Men who want to
help in the solving of the problem. Men from the white community, men from the
black community, and women from both. Can we find one-hundred such in New
Rochelle? Can we find fifty? Can we find twenty? What would we call them? It
makes little difference. Call them the "Committee of 100," or whatever else. The
main thing is to call them together.
Once called together, once engaged in dialogue, once exposed to the hopes,
the problems, the needs of the city, as it strives to be what all of us want it to be,
I can envision no problem that its members, as true men of good will, could not
resolve together. It is the togetherness, the mutual respect and actual understanding that is so obviously lacking now and so obviously needed. And it will take
the leadership that only such a committee can provide to do what is needed to
be done .
Who can qualify for such a committee, for such leadership? I do not know.
I do know that they must come from among the recognized leaders of the city as
it now exists, so that, by their good example, others who respect them will be
moved to follow. They must be leaders who want to contribute of their special
talents to the good of all. In the final analysis they must, I believe, be able to
answer "yes" to the three questions that I ask each of you now :
1.)
If you have a child in school in New Rochelle at present or hope to have
one there, be it a public school or private, at whatever level, grade, highschool or college, are you content to have a Negro child seated next
to yours?
2.)
If you are in government, in professional life or in a business are you
content to have a Negro as a fellow-worker, a fellow-executive, and, if
qualified, as president of your company?
3.)
No matter where you live in New Rochelle, in any house, on any street,
in any section, are you content to see a Negro family move next door
tomorrow?
How many men and women can we find to answer yes, and mean it, and live
by it, and lead others to follow them? I do not know . The answer is locked in the
heart of each of us.
But that is what it will toke. It is that simple or that difficult, d e pending upon
what is in our hearts. You will be asked soon to be such a leader. Let there be
no embarrassment if you cannot accept because you cannot truthfully answer
"yes" to these three questions. You will at least have been honest with yourself .
Since I have proposed this self-examination to be made and answered
privately, it seems only fair and proper for me to answer publicly . I do so now,
humbly in the presence of so many better men than I, answer " yes" to these three
questions .
Is this the impossible dream, is there not enough love in the world, is my life
so busy that I am unable or unwilling to hold out my hand to my ne ighbor?
Perhaps if only a few re spond it will be the impossible dream . But, if enough of
our leaders are willing to try, with the help of the God, Who made us all, nothing
is impossible .
I place this in your hands. I commend it to your hearts .
�On the 19th of March, just o ne day short of two weeks ago, I was aske d if I
would talk to you today, he re in New Rochelle Hospital. Although, like yours,
my life and my schedule are filled almost to the brimming, I acce pte d immediately.
I acce pted for the strongest of all re a so ns: my conscie nce told me to acce pt. And
happily I found myself in full agreem e nt wi th my conscience. I would be less than
fair wit h you, if I did not te ll you why .
When those fleet in g moments of reflection permit, I suppose that ea ch of us
on occasion talks to himse lf. On such occasions two voices wi thin us seem to be
engaged in a d ialogue, voices that as k questions and give answ e rs . Som e times the
questions go like this :
" How well do you think you are doing with your life ?"
" You say that. you are very busy, busy with earning a li ving, busy with various
outsid e acti vities, perhaps a host of them, but are you aware that you could do
more, t hat you could do be tter?"
" Now, pl e ase take a hard look at your life from the vie wpoint of what surrounds it and answer this:
'Wh a t is by far the g re atest problem of your tim e in your nation, in your
city?'"
" Yo u know very simply, ve ry clearly and ve ry quick ly wh at th e answe r is.
It is the problem of race . Th e crying, hurtful, gna wi ng , frustrating probl em, which
exists because one man 's skin is white and anoth er man 's sk in is black ."
An d as yo u menta lly nod " yes, yo u are ri ght, " there follows, as always it must,
that awful, final question , that qu estion which strips you of all the trappings of
your life up to t hat moment:
" What are you going to do about it?"
Please note, d e ar friends , how this question is ask ed of us . Conscie nce is not
content to know how we fee/ about it. It stu bbornly wa nts to know:
"What ar e yo u going to do about it?"
I said t ha t I would b e le ss than fair if I did not tell you why I am here today .
a m he re b e ca use of t hat question. I want wit h all my heart to do something,
to ma ke so me contribution , small as it may be, to the p eacef ul and happy solution of t he most important p robl e m of o ur lifetimes together, he re in th e city for
w hich all of us sha re so d ee p an affectio n. I address you wit h th e greatest of
confi d e nce, on a man to man basis, because I know so many of you and have
count less re aso ns to be sure of t he goodness in your hearts.
Sp e cifically, we are he re today to muster support for the idea and th e financing
of an infant enter prise call e d, ra t he r unusually, the " Uni versity of Community Involvement." Is t his an e arth-s ha ki ng mo ve me nt to date? Is it going to so lve the race
problem in New Ro ch e ll e ? Ha s it b ee n without controve rsy in th e past? Certainly
not! But the a ll -i mportant t hing is that it is a b e ginn ing . A community-beginning,
impe rfect as it may b e, toward the final, searching question:
" W ha t a re you going to do a bout it?"
The "University of Community Involveme nt" is not even dire ctly positioned as
a program only for the Negro community. It may have, by past circumstance and
realistic fact-facing, been forc ed to lean that way, but that is not what it envisions.
It is ideally directed to black anci white, poor and rich, young and old. It is called
a "university" for a valid reason: its classrooms are the city streets and city buildings, where living together under love and under law are the subjects taught; its
students are the youth of our city, be they black or white; and its faculty are the
civic, government and business leaders of the total community. What it needs most
of all now is a board of trustees, whose attitude is to support and guide this first
small step toward the answer to the question which our consciences ask . In proof
of what I have said, le t me read the very first line written about this evolving
organization : " 'The University of Community Involvement' is in the business of
shaping Human Attitudes." Let me repeat: the business of shaping human attitudes.
Now, friends, it is on the subject of " attitude" that I most earnestly want to
open my mind and my heart to you and to ask you to search your own hearts and
minds, as we consider together the number one probl e m of our nation and city,
the problem of race .
Let us suppose for a moment that we could stand far e nough removed from
the problem so as to view it objectively and without prejudice. Hard to do? Very
hard . But just suppose that we could. Certainly God do e s. Le t's at least try it
together .
The first reflection we might well make would be to wonder why in the world,
when God came to make Man , by far the gre atest of all in His series of created
things, why in the world did He make some men wh ite and some men colored.
(And parenthetically, He made many more colored than He did white.) Didn't He
forese e that this was going to lead to trouble? Then w hy did He do it? Not one
of us knows, not even the most brilliant among us . All we know is that He permitted men to be that way .
Th e second reflection that we might make would b e that, eve n considering
the many shadings of re ligious b eliefs, there emerges a very basic formula for
solving th e probl e m: love God above all e lse and love your neighbor as yourself .
Now from our hypoth etical, unpr ej udice d and objectiv e point of view, knowing
th e probl em, and knowing th e basic formula above for solving it, it really
be com es quite si mpl e to point out thre e steps, which, if tak e n e arn est ly and sincerely by me n of good wil l, wo uld solve the problem in the only way it will really
ever be solved .
The three ste ps should com e as no surprise to any thinking man or woman,
white or black .
l .)
Gi ve th e Ne gro th e full ri ght and th e full opportunity to ha ve the sam e
education as the white man .
2.)
Gi ve t he Negro the full right and th e fu ll opportunity to hold any job
in any company for which his education and ability qual ify him .
3 .)
G ive the Negro the full right and the full opportunity to live in any ho us e,
o n any street, in any city, whic h he can afford to occu py .
You wi ll note, I b e li eve, th e inter-relationship of these three esse nti al steps and
the reasonabl e ness of the ord er in w hich th e y are liste d .
In pre paratio n for talking a nd thinking with you to day, I felt it not only important but essenti al to ch e c k my thoughts against those of several men of acknowledged im portance and compete nce in our city, both white and Negro. Th e
time with which these me n favored me was not a brief matte r of minutes. The
averag e time spe nt in th ese conve rsations was a good two hours . I pause for a
mom e nt to thank them sil e ntly for their generosi ty to all of us . Whatever good
may come from our bei ng together he re today will b e, in the greatest part, due
to their generous help and e ncouragement.
In e ach of the conversations with e ach of thes e lead ers, there was comp lete
agreement that the thre e ste ps call ing for e qua l education, e qual e mploymen t,
and equal hou si ng rights end opportuniti es we re basically sound. But it is most
enlightening and important to know that, whe n the point of view of the Ne gro
leaders was ex presse d, our threefold c:nswer took on a fourth dimension . Please
listen carefully to this fourth dimension.
The Negro, with too few exceptions, does not feel himse lf worthy of th ese three
equalities. How strange this is, how foreign to the way the white man thinks and
feels . It was explained to me in this way. Three hund re d ye ars of approximate
slavery, generation upon g e neration of a master-servant re lationship, lifeti me after
lifetime of grinding poverty, of ignorance, of brain wa shin g that what was white
was good and virtuous and powerful, wh il e what was black was evil and menial
and weak have had th e ir effec t, may God forgive it. They have made t he black
man believe that he is, in fact, inferior and thus un wo rt hy of the white ma n's slowly
emerging best inte ntions .
The Negro is trapped, so he believes, in a gh etto soci ety unt il he is shown that
there truly is a way out. He nce the despair, he nce the indol e nce, hen ce the crime,
hence the ang er, hen ce the riot, hence th e ever-increasing polari zati on into a
white society a~d a black society, two Am ericas, and , in a smaller sense, two
New Rochelles. No city, no state, no empire in history has ever been abl e to exist
thus in peace. Not eve n Rome whe n it ruled the w hol e world. It is the obligation
of the lead e rs of the black man and the w hite man to disprove t hi s myth of unworthiness and apply in its stead the obvious and only true soluti o n which we
have discusse d above : the three equalities th at make a man a man .
Since we are only human beings who live in a p ra ctica l wo rld , let me be as
practical a s possi bl e in co ncluding these remarks to you. I am going to ask you
and many other lead e rs in New Rochell e to give of your substance and of yourself .
In plain er words, I am asking for your money, but, more importantly, I am asking
for your he arts.
In mon e y, the minimum need is for $30, 000, to b e contributed by Ap ril 15.
This wi ll und erwrite the impro vement, the exte ns ion and the applica tion of t he
Community Involvem e nt program thro ugh the full summer ahead . This is to be
raised by and from the business and social commu nities of New Rochell e both
black and w hite. I con sider this sum desirable and e nti re ly re asonabl e . W e ought
to b e able to over-~ubscribe it in five min utes right here in this room. It won 't be
don e that way; it will be done by di rect contact. I know you will give it. You a re
both too generous and too practical not to .
But I am much more interested in w hat is in your hea rts. In the fina l anal ysis,
that is the only place the answer can be found to the qu e stion we b e gan wi th:
" What are you going to do about it?"
�EPILOGUE
Subsequent to the · occasion on whi ch these thoughts were expressed, the
citizens' committee to which they referred was formally named
"The Peoples Assembly
New Rochelle, N. Y."
It will be thus incorporated in the state of New York and any gift to it will
be tax deductible. Checks should be drawn to " The People s Asse mbly" and mailed
to the above address.
Particular emphasis should be placed upon the important fact that "The
Peoples Assembly" in no way seeks to intrude upon the activity of any othe r
committee, commission, or body, be it governmental or private, in the city of
New Rochelle.
Its objective is to provide a community-wide gathering of men of good-will,
who are dedicated to the peaceful solution of community problems, and , above
all, those which spring from our difference of race.
" The Peoples Assembly" belongs to 2lJ. the people of New Rochelle. It seeks
without prejudice the happiness of all. May the God Who made us all guide
it to that accomplishment.
�To_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Name
lb~
Telephone No. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
D
Wants you to call
0
0
Returned your call
0
0
Is here to see you
Came by to see you
L eft the following message:
/717
d.
-training, and hiring, and all that is necessary .to the full enjoyment of the free enterprise system-and also to its survival. We . believe the sickness of the cities, including civic disorder within them, is the responsibility of the whole of America. Therefore, it is the responsibility of every American to join in the creation of a new· political, social, economic, and ·moral climate that will make possible the breaking of the vicious cycle of the ghetto. Efforts must be made to insure 1he broadest possible opportunity for all citizens and groups, including those in the ghetto, to participate fully in shaping and directing the society of which they a're a part. This convocation calls upon the nation ·to end once and for all the shame of poverty amid general affl uence. Government and business must accept responsibility to provide all Americans with opportunity to earn an adequate income. Private industry must greatly accelerate its efforts to recruit, train, and hire the hard-core unemployed. When the private sector is unable to provide employment to those who are both able and willing to work, then in a free society the government must of necessity assume the respo.nsibility and act as the employer of last resort or must ass ure adequate income levels for those who are unable to work. Emergency Work Program This convocation calls upon the federal government to develop an emergency work program to provide jobs and new training opportunities for the unemployed and underemployed consistent with the following principles : - The federal government must enlist the cooperation of government at all levels and of private industry to assure that meaningful, productiv7 work is available to everyone willing and able to work. - To create socially useful jobs, the emergency work program should concentrate on the huge backlog of employment needi:; in parks, streets, slums, countryside, _schools, colleges, libraries, and hospitals. To this end an emergency work program should be initiated and should have as its first goal putting at least one million of the presently unemployed into productive work-at the earliest possible moment. - The program must provide meaningful jobs-not dead-end, make-work projects-so that the employment experience gained adds to the. capabilities and -broadens the opportunities of the employees to become productive members of tfie permanent work force of our nation . -Basic education, training, and counseling must be an integral part of the program t-0 assure extended 0 ~~ortunities for upw,!rd job mobility and to improve employee productivity. Funds for training, edncation, and counseling should be ma_de availal:ile to private industry as Well as to public and private nonprofit agencies. -Funds for employment should be made available to local and state governments, non-profit institutions, and federal agencies able to demonstrate their ability to use labor productively without reducing existing l~vels of employment or undercuttin& existing labor standards or wages which prevail for comparable Work or services in the area but are not less than the federal minimum wage. - Such a program should seek to qualify new employees to become Part of Jhe regular work force and tbat normal performance standards are met. -The operation of the program should be keyed to specific, localized unemployment problems and focu ed initially on those areas where tl)e need is most apparent. Private -Employment, Assistance, and Investment All representatives of the private sector in this Urban Coalition decisively commit themselves to assi t th.e deprived among us to achieve _ful.l participatiQn in the economy as self-supporting citizens. We pledge full-scale private endeavor through creative job-training and employment, managerial assi tance, and - �basic investment in all phases of urban development. The alternatives to a massive and concerted drive by the private sector are clear. They include the burden of wasted human and physical potential, the deterioration of the healthy environment basic to the successful operation of any business, and the dangers of permanent alienation from our society of millions of citizens. We propose to ini,tiate an all-out attack on the unemployment problem through the following steps : - In cooperation .with government, to· move . systematically and directly into the ghettos and barrios to seek out the unemployed arid underemployed and enlist them in basic and · positive private training and employment program s. We will re-evaluate ou,r current testing proceclures and employment stand ards so as to modify or eliminate those practices and requirements· that unnecessarily bar many persons from gainful employment by business or access to union membership. - To create a closer relationship between private employers and public training and emergency employment pTograms to widen career op-_ portunities for our disadvantaged citizens. To this end, we will proceed immedi ately to promote "Earn and Learn Centers" in clepressed urban areas that might well be the joint venture of business, labor, and local government. - To develop new training and related programs to facilitate the earl y entry of under-qualified persons into industrial and commerci al employment. - To develop large-scale programs to motivate the young to continue their education. Working close ly with educators, we will redouble our efforts to provide parttime employment, training, and other incentives for young men and women. We also pledge ou r active support to making quality education really accessible to deprived as well as advantaged young people. - To ·expand on-the-job train ing programs to enhance the career adva ncement prospects of all employees, with particula r emphasis on those who now must work at the lowest level of job· cl assifications becau e of educational and ski ll deficiencies. We pledge to mobilize the man- agerial resources and experience of the private sector in every way possible. We will expand p art-time and full-time assistance to small business development. We will strive to help residents of these areas b'ath to raise their level of managerial know-how and to obtain private and public investment funds for development. We will work more closely with publi<.:: agencies to assist in the management of p·ublic projects. We will encourage more leaders in the private sector to get directly and personally involved in urban problems so that they may gain a deeper understanding of these problems and be -of greater assistance. We pledge our best efforts to de~elop means by which m ajor private investment m ay be attracted to the renovation of deteriorating neighborhoods in our cities. We will explore and en~ourage governmental incentive.s to ·expedite private investment. We will develop new methods of combining investment and managerial assistance so that the residents · m ay achieve a leadership position in the development of their areas. llousing, Reconstruction, and Education This convocation calls upon the nation to take bold and immediate action to fulfill the national need to provide "a decent borne and a suitable. living environment for every American family" with guarantees of equal access to all housing, new and existing. The Urban Coalition shall, as its next order of business, address itself to the development of a broad program of urban reconstruction and advocacy of appropriate public and private action to move toward these objectives, including the goal of rehabilitation and construction of at least a million housing units for lower-income families annually. T his convocation calls upon the nation to create educational progran;is that will equip all young Americans for full and productive ~articipation in our society to the full potential of their abilities. This Will require concentrated compensatory programs to equalize opportunities for achievement. Early chi ldhood education must be made Universal. Work and study progra ms must be greatly expanded to enlist those young people who now �drop out of school. Financial barriers that now deny to youngsters from low-income fa milies the opportunity for higher edu_cation must be eliminated. Current programs. must be increased suffi ciently to wipe out adult illiteracy within five years. This convocation ·calls upon local government, business, labor, religions, and civil rights · groups to create counterpar t· local coalit_ions where they do not exist to support and supplement this declaration of - principles. · This convocation call~ upon all Americans to apply the same determination to these programs that they have to past emergencies. We are con:!ident that, given this commitment,. our society has the ingenuity to allocate its resources arid devise the techniques necessary to rebuild cities and still meet our other na-_ tional obligations without impairing our fin ancial integri~y. Out of past emergencies, we have drawn strength and progress. Out of the present urban crisis we can build cities that are places, not of disorder and des-pa ir, but of hope and opportunity. The task we set for ourselves will not be easy, but the needs are massive and urgent, and the hour is late. We pledge ourselves to this goal for · as long as it takes to accomplish it. We ask the help of the Congress and the nation. .,. �1 - �REPRINTED FROM THE NEW YORK TIMES, THURSDAY, DECEMBERS, 1968 'Exiles' From Government Heading National Urban Coalition By JOHN HERBERS Special to Th< New York Tlme5 WASHIN~TON, Dec. 4 Some of the ablest innovators and mechanics of the New Frontier and Great Society are to be found two blocks from the White House in the offices of the National Urban Coalition. This private agency has become the vehicle for the special talents and persuasion of John W. Gardner, the former Secretary of Health, Education and Welfare. The kind of ferment. and excitement that pervaded the Government in the Kennedy Administration and early part of the Johnson Administration is present to a degree within the coalition, which occupies two floors df an office building at 1819 H Street. Many on Mr. Gardner's staff of professionals are, in effect, exiles from the Government and have transferred their hope for a better society from the public to the private sector. A Commitment Sought They show less optimism about the possibility of quick change and less self . assurance than was evident in Washington in the days before the big city riots. But they are finding America to be a little wiser about its urban predicament and are moving to achieve a national commitment in that area. The force that Mr. Gardner has assembled in the last seven months has two main objectives: To organize a massive lobbying effort to obtain the The New York Times John W. Gardner legislation that the coalition considers essential for the cities and to activate local leader.ship, especially the business community, through local affiliates. Mr. Gardner said in an interview that the coalition's annual b\ldget at .the national level was $3.5-million but that the overall cost, including that of 39 local coalitions, would be ,a bout $20-million. The money is provided \)y ccntributions from individuals, businesses and foundations. Three years ago President Johnson described the adverse forces faced by Negroes in the slums as a "seamless web" that would yield only to a total attack The coalition itself is moving in several areas, if only in small ways. School Aid Disputed ·For example, its education qivi'sion, headed by Dr. James Kelly, an associate professor at Columbia University, is supporting with funds and research a lawsuit that ·could radically change the method by which most states allocate school funds, so as to give inner-city schools a larger share. The suit, brought by the Detroit Board of Education against the State -of Michigan, charges that the system of appropriating the , same amount per child in both rich and poor districts is inherently unfair to the slum child. The case, now in a state court in Detroit, is expected eventually to be decided by the United States Supreme Court. Other "problem solving" projects are under way in the fields of employment, education, housing, economic development of the slums, legal services and health-all under the general heading of program development. The coalition was founded by a group of private citizens in August, 1967, after the nation had been raked by riots. It brought together business, religious, labor and civil rights leaders in an effort to reorder national priorities in the urban crisis. Its stated objectives was to bring about expanded Federal �THE NEW YORK TIMES, THURSDAY, DECEMBERS, 1968 efforts to provide jobs, an adequate income, decent and nondiscriminatory housing and improved education for the poor. There was considerable skepticism about what it_ coul_d accomplish, and for a time 1t appeared that the coalition would disappear for lack· of leadership, staffing and coordination. Mr. Gardner became its chairman the following spring and has been steadily building his staff. "The staff was assembled from two sources: persons who had worked with Mr. Gardner in government and those who beat on the doors to get in ," according to a coalition spokesman. · The latest high-level official to arrive is George A. -Silver, who had been deputy assistant secretary for health and scientific affairs in the Department of Health, Education and Welfare and who will head up a health program for the coalition. Dr. Silver was an idea man for the Government ("it would take several trucks to haul away my unused memos," he says) and hopes to be the same at the coalition. Health Crisis Seen In an interview amid packing boxes in his new office, Dr. Silver said there was a crisis building in most communities regarding health services, -due in part to ,a lack of understanding among the classes of people and professional groups involved. He hopes to build "communications bridges" between them. Following is a sample of others who have joined the staff: M. Carl Holman, formerly deputy staff director of the United States Coro.mission on Civil Rights, and now the coalition's vice president for program development. Bryiµi Dliff, who was on the public affairs staff of the National Aeronautics and Space Administration and is now vice president for communications. Lo~ll Beck, who was on the staff of the American Bar Association antl is executive director of the Urban Coalition Action Council, the coalition's lobbying arm. A visitor gets the feeling that if Mr. Gardner were to leave, the coalition might fall apart. This is due in part to the fact that he has the respect of liberals because of his commitment to Federal action, and of conservatives because he is a Republican with a wide following in the business community. The emphasis is on getting business leaders and others with "clout" in their communities involved. John Dean, a Negro who had been southeastern director for community action programs under the Office of Economic Opportunity, is overseeing the formation of local coalitions in the same area. It is a slow, difficult task, he acknowledged, but the first step is to interest business and other community leaders in establishing a coalition. The blacks, he said, are no longer interested in meeting just with the white liberals who mean well but have little power. "They want to meet with the people who can get something done," he said. Mr. Gardner believes the greatest failure has been at the community level, As Secretary of Health, , Education and Welfare, he was assured by his own staff and other leaders in some communities that there would be no riots just before the riots broke out. In some cities white leaders still do ·not know who the real Negro leaders are. Performance Varies "We have talked a great game of community leadership, but we haven't lived up to it," he said. "The Federal Government can only give the communities the pieces [in grants 1and program s], and it is up to them to put the pieces together." The performance of the local coalitions has varied widely. Many are still in the formative stage. Th e Minneapolis Coalition is cited as the good example. It' has sponsored such things as "Anti-Racism Weck" for the education of suburban whites. White leaders ventured into the slums and were exposed to such remarks as: "Did you see wliat the honkies did? They raised $5-million for the Minneapolis Symphony." Stephen Keating, president of Honeyw~ll. Inc., and chairman of the coalition, withstood outrage and in sults· in "confrontations between the powerless and the powerful." But cities like Minneapolis, New York and Detroit are exceptions. Some cities whose Mayors are members of the national steering committeeChicago, P:ttshu,·gh and Phoenix-did not even have coalitions as of last month. Mayor Richard J. Daley of Chicago has said his Democratic organization provides the same service, and in cities like Atlanta progressive leaders who have traditionally met in private and decided what is best for the community are reluctant to give up that preroi;:ative. Because of the coalition's emphasis on private initiative, Mr. Gardner is hopeful of having the cooperation of the incoming Nixon Administration. Members of the steering committee are to meet soon with the President-elect, and Mr. Gardner already has held meetings with several of Mr. Nixon's advisers. He is pleased with the list of persons he has been told Mr. Nixon is considering for the Secretaties of Health, Education and Welfare and Housing and Urban Development. But there is skepticism within the coalition about the use of tax credits, which Mr. Nixon has proposed in an effort to enlist private enterprisr in rebuilding the slums and providing employment. Mr. Gardner says the proposals must be made more specific and studied carefully before his organization will decide on their merit. NEW SYMBOL of Urban Coalition makes "U" and "C" the links of a chain. Sandgren & Murtha, Inc., designed it. �THE NEW YORK TIMES, THURSDAY, DECEMBER 5, 1968 N ew York Coalition Scoring Its First Dramatic Gains in Slums By SYLVAN FOX A grimy foundry in Harlem changed ownership recently, and with the transaction, all the 'talk about giving Negroes a " piece of the action" took a small but profound step toward reality. The foundry, at 402 West 126th Street, was sold by its two white owners, Frieda Boga-rod and Ernest Kruezer, to the Harlem Commonwealth Council, a Negro economic development corporation. Behind the sale lies an important part of the story of what the New York Urban Coalition is all about; fo r it was with t he help of the coalition-a group of some 160 business, labor and community leaders who believe life in New York's slums can be improved by private e,ffortthat the deal was accomplished. The story of the coalition also 11ies in the help it gave to a Negro man who wanted to open a shoe store in Harlem. And it lies in the dedicated activities of the city's street academies, which seek to salva•g e high school dropouts from lives of ignorance and degradation. Not An 'Illusion' It even lies in a little vacant lot on 118th Street and Park Avwue, which in a few months will become the fi rst of dozens of miniparks created with coalition aid. "We're not under the illusion that the private sector can turn the city around," said Saul Wallen, the president of t he New York Urban Coalition, as he reviewed its first-year accomplishments. "But we can have an impact." Except for the trumpeting of its slogan - "Give a damn" -the coalition has operated quietly during the year, possibly because it did not seek publicity for its first tentative steps and avoided controversial areas until this week. But on Monday the coalition purchased newspaper advertisements strongly backing school decentralization under the headline: "If it works in Scarsdale, it can work in Ocean Hill." The text of the advertisement included a decentralization resolution approved by the group's board of directors after some vigorous private debate. Officials of the United Federation of Teachers said yesterday that the union was preparing a statement "rebutting some distortions" in the advertisement. A Dramatic Step The sale of the Acme Foundry to the Hal'lem Commonwealth Council is, perhaps, the most dramatic tangible step the coalition has yet made toward changing things in the depressed black and Puerto Rican communities. The Harlem Commonwealth CouncH was organized 18 months ago' by Roy Innis, now the national director of ~he Congress of Racial Equality and a fil'm believer in black economic development. Mr. Innis is also •a member of -t he New York Urban Coalition, w hich is the local arm of t he National Urban Coali,tion. His simultaneous role in both groups made it natural fo r the Urban Coalition and the Harlem Commonwealth co·uncil to cooperate, and when Miss Bogorod and Mr. Kruezer informed the coalition they wanted to sell their fo und·ry, the w heels were quickly set in motion. The ,price the foundry owners !tad set was $45,000 .p lus about $70.000 ·in cash on hand, accounts receivable and inventory. The coalition marshaled the needed assistance to complete the deal. Allen Herzig of Kidder, Peab9dy & Co., the investment banking firm, did a financial analysis of the foundry. Stuart Goldman, a WaH Street lawyer, handled the legal work involved in the purchase. The Abex Corporation, a manufacturer of control i:quipment and the owner of several foundries, agreed to provide technical aid and ar.ran-ged for the new president of the foun-dl:y, Rozendo Beasley, to attend a training course given by the American Foundrymen's Society. Loans Are Granted Through the efforts of the coalition, the Morgan Guaranty T,rust Company lent the Harlem Commonwealuh Council $50,000. The coalition's Venture Corporation-one of two economic development corpora~ tions it has established to help black and Puer.to Rican ·business enterprises -put up $20,000, and the Episcopa'i Diocese of New York provided a loan of another $20,000. Under its new ownership, the foundry employs 27 persons and does a gross business of $500,000 a year. But Negro ownership of the plant, while an important step, is just the fi rst, according to Mr. Beasley, a dynamic, mustached 33-year-old business administration graduate of Michigan State University. When the foun dry has paid off its $95,000 debt, he explained, 'the Ha~lem Commonwealth Council plans to sell shares to Harlem residents at a price they can afford to pay. "Our aim is economic development," he said, "spreading the equity within the community. That's what we're shooting for." THE N EW YORK TIMES, T HURSDAY, DECEMBERS, 1968 As a corollary objective, he ing number of high school munity Association, which has been working on a neighborsaid, the Harlem Common- dropouts. wealt,h Council hopes to prove Recently the New York Urban hood rehabilitation program. that Negro businessmen can run Coalition moved in, convinced The community association an en teiiprise so successfully ·businesses to invest in the edu- bought the lot and commisthat investment will be at- cation of high school dropouts, sioned plans for the minipark. tracted to other black-operated and won pledges from 15 com- It is expected to be completed businesses. panies of $50,000 a year each in early spring. These are a few of the coa"A lot of fi nancial institu- to support a street academy. tions say the re are no busi- Twenty-three are now in opera- lition's activities. There are others. In the South Bronx, the nesses in ghettos worth invest- tion or soon to be opened. New York Urban Coalition has ing in," Mr. Beasley said. "We 'Beautiful Communication' given the United Bronx Parents, wan t to prove that is wrong. A lot of financial institutions say Among the companies re- Inc., $50,000 1:o conduct a there isn't enough black mana- cruited by the coalition t o sup- training program, now in gerial talent available in the port street academies are Mc- progress, on school decentralighetto. We want to prove this Graw-HiH, American Ak lines, zation. After serious internal wrong, too. Pan Am, International Business debate, the coalition strongly "Our main function is to get Machines, Time Inc., Celanese endorsed the ,program. Col'poration, Sinclair Oil ComNews Jobs Filled in there and make dough." Cooperation between the Har- pany, Union Carbide, First NaLast summer, with coalition lem Commonwealth Council and tiona.J City Bank, Chase Man- financial help, 20 Negro and hattan Bank, Burlington Mills the New York Urban Coalition Puerto Rican young people athas also led to the establish- and American Express. tendetl a course in radio and At the McGraw Hill Street ment of a shoe store under television journalism at the CoAcademy on West 64th Street, Negro ownership at Lenox Avlumbia University Graduate enue and 134th Street. The five teachers work with 30 School o-f Journalism. All have 'rru-Fit Stride Rite store, which youngsters. McGraw-Hill found been ,placed in news jobs. ls owned by Al Jackson, opened the site for t:he academy, proThe coalition has committed vides teaohing mater-ial, puts up $150,000 in September. for four h ousing ,projthe money that is needed to Mr. Jackson, who had 'been run the school and conducts ects that needed money to go the manager of a Miles shoe regular conferences with mem- ahead with their construction store in Harlem, was chosen bers of the academy staff to plans. It has provided $20,000 from among eight possilble discuss the work ibeing done to the East Harlem Ski•lls owners whose names were sub- there and to sound out the Training Center, whioh is conmitted to the Green Shoe Com- teachers on how educational ducting a training program in pany by ' the Harlem Common- materials and textbooks can be vhe printing t rades for at least 200 Negroes and Puerto Ricans. wealth Council. The Green improved. The coalition has obtained, in Shoe Company put up about 90 "We've become, in a sense, conjunction with the National per cent of the needed investa laboratory for them," David Alliance of Businessmen, ment, Mr. Jackson the rest. Rathbun, a 26-year-old teacher The New York Urban Coa- at the academy, said of Mc- pledges of 19,000 jobs for hardlition helped Mr. Jackson refur- Graw-Hill. "There's a very core unemployed, and already bish the store, provided Jegal healuhy, beautiful kind of com- has filled 9,000 jobs. The National Urban Coalition assistance in the p reparation of munication." was formed in August, 1967, by his tax and insurance papers At 118th Street and Park a .group of private citizens who and is providing managerial 1 and technical assistance through Avenue, a sma:ll lot lies vacant. were convinced that private Next to it stands an a1bandoned business, laibor and community its Development Corporation. five-story building slated for· leaders could make a significant Companies Back Academies demolition. In a few month:;, it contribU'tion to improving life Another aspect of t he New is hoped, the site will be trans- in the nation's slums. John Gardner, the formr r York Ul'ban Coalition's wol'k is formed into a minipark. Again, the New York · Urben Secretary of Heal~h. Education evident at a street ·academy at 259 West 64rh Street, where 30 Coalition has been the catalyz- and Welfare, heads the national youngsters who have dropped ing agent behind the project. organization, and Mayor Lindout of high school are getting Last summer the Ama:lgamated say and Andrew Heiskell, an education. Clothing Workers of America ohairman of Time Inc., are coThe first street academies gave the coalition $40,000 for chairmen of its steering committee. were established by the New the construction of miniparks. York Urban League several The coalition turned about years ago to dea1 with the $27,000 of this money over to problem created by the grow- the Upper Pal'k Avenue Com- (cont. back page) �THE NEW YORK TIMES, THURSDAY, DECEMBER 5, 1968 (continued) Slow, Substantial Gains The New York Urban Coalition was or,g anized last October with Christian A. Herter Jr., vice president of the Mobil Oil Corporation, as its chairman, and Mr. WaHen, a labor mediator, as its president. At first, progress was slow , It still does not come at breakneck speed, but Mr. Wallen attribut.es this to the organization's "democratic character" and to the complexity of the problems i-t conf.ronts. Yet there have been some substantial gains in this first year-both of a tangible and an intangible nature, Mr. Wallen says. "One of the major accom- plishments," he said as he sat the other day •in his 35th-floor• office at coalition headquarters, 60 East 42d Street, "is maintaining a continuing dialogue between blacks and Puerto Ricans, business and labor. We don't have anything like that anywhere else in the city. "_And we've built an organizat10n and conducted a publicrelations campaign that articulated the concern of the white estaib'lishment about ghetto problems. "A year ago, when the coalitfon was founded, it was an idea. Now we're starting to emerge." The coalition, which has 48 full-time clerical and professional ernployes and about 100 volunteer workers, r.aised $4- million in a fund drive this year. It hopes to raise between $6-rnil'lion and $IO-million next year, Mr. Wallen said. A third of its income has been earmarl;{ed for Mayor Lindsay's sumn1er program. But short-term racial peace is not the main objective of the New York Urban Coalition. "I can't say we can take any credit for keeping the summer cool," Mr. Wallen said. "As a matter of fact, that isn't even our purpose. "We hope to involve the private sector in some of the basic problems of preventing urba·n blight, and that's going to transcend the summer. It's a long-term, long-pull proposition." Businessmen Are Urged to Join 'Frontal Assault' on Cities' Ills Special lo The New York Timcs PHILADELPHIA, Dec. 4 - chairman of the Urban CoaliThe nation's urban problems tion, an organization of busiare too great to yield to "hap- n_ess, labor, civic and civil hazard and limited solutions"; r!ghts lea?ers formed to help they require a "frontal assault find sol_u~1ons to the problems _ of the c1 ties. that will not work without busi- Mr. Heiskell was the speaker ness participation," Andrew at an alumni dinner of the UniHeiskell, chairman of Time versity of Pennsylvania's WharInc., said in a speech tonight. ton School of Finance and Businessmen, Mr. Heiskell Commerce, held at the Bellevuesaid, must find ways to intensify stratford Hotel. He was fy their interest, broaden their awaTded the Wharton ~old perspectives and enlarge their Medal, pres~.nted annually s1_nce commitment to the nation and 1_950, for personal contnb~its people. t10n to _the progress of Amen. . can business." Businessmen, he said, ca~ no Mr. Heiskell told the group lo?~er affo1:d to be _spe:1ahsts. ~hat perhaps the single most Our society, which 1s now 11:npormnt thing corporations largely urban," he declared, could do was to encourage the '.'will not continue to function young men who work for them 1f those of us in the priva~e "to find out about the problems sector do not become pubhc of the community and to bemen as well." come as expert at some aspect" Mr. Heisk~ll Is chairman of o_f them as they are at producUrban America, Inc., and co- t1on or marketing processes. The Urban Coalition 1819 H Street, N.W. • Washington, D. C. 20006 �Prepared by ,.._m:llma The Housing Staff of The National Urban Coalition \ �An Agenda For Positive Action: State Programs in Housing & Community Development November 1, 1968 A Report Prepared by the Urban Coalition's Task Force on Housing, Reconstruction and Investment �Preface and Acknowledgements On July 9, 1968, the Urban Coalition Task Force on Housing, Reconstruction and Investment met in New York City. At that time the Task Force members discussed the potential role of the states in helping cities meet urban needs. The discussion soon revealed that a few -states had begun innovative programs, many of which show promise of bringing better living conditions to an increasingly urbanized population. The Task Force accordingly requested the staff of the Urban Coalition to draw together and analyze legislative actions that had been taken, and which cQuld feasibly be taken, so that states considering enacting housing and community devel~pment programs might have guidelines for action. This report is the result of that survey and analysis, and was prepared with the goals of the Urban Coalition in mind. The Task Force reviewed and commented on the paper in draft form and at its meeting on .September 23, 1968, approved its publication. The report is intended to enable those in each _state responsible for administering, recommendmg and drafting housing programs to ask relevant questions and to be aware of possible patterns for :state involvement. The paper describes an assortment of weapons in the armory of state action which can be combined to achieve overall objectives. The Task Force believes each of the tools described in this paper is worthy of serious consideration. It further believes that no · recommendations for state action in housing and community development can be deemed complete without their consideration. _Although responsibility for the judgments in this document remains with the Urban Coalition ~ousing staff, helpful suggestions were received rom many sources. Chief among them were Seylllour Baskin, Esquire, of Pittsburgh ; Ralph Brown and Michael Herbert, Department of Colllmunity Affairs, State of New Jersey ; Joel Cogen of Joel Cogen Associates, New Haven; Mrs. Glenda Sloane, National Committee Against Discrimination in Housing; and Stephen Ziegler, Esquire, of New York City. Each attended discussion meetings and critically reviewed the draft in detail. Helpful advice, assistance or critical comments also were advanced by: S. Leigh Curry and H. Ralph Taylor of HUD; Stanley Berman, Esquire, of New York City; Peter Paul · and William L. Slayton of Urban America; Professor Daniel Mandelker, Washington University Law School, St. Louis; Richard Blakley, Illinois State Housing Board; Eugene Rossland, National Bureau of Standards; James Martin of the National Governors' Conference; Stephen D. Moses of Boise-Cascade Corporation; and Warren Lindquist, Associate of David Rockefeller. In addition, representatives of the Task Force co-chairmen supplied support and guidance from the inception of the study: Thomas Hannigan for Joseph Keenan; David Cohen for Walter Reuther; and Richard Dowdy for David Rockefeller. Jack Davies of the Chase Manhattan Bank and John Kolesar of the New Jersey Department of Community Affairs provided valuable aid in redrafting some of the material. . Helpful advice on presentation of the matenal was received from Commissioner Paul N. Ylvisaker, Mayor Jerome Cavanagh and James Rouse, members of a special Housing Task Force Subcommittee which reviewed the fin al draft. . Citations were checked and expanded by Stuart Stiller. Two reports previously published : "The States and Urban Problems," a staff study of the National Governors' Conference, and a preliminary report ("Action for Our Cities-Part IlHousing" ) of the States Urban Action Ce~ter, Washington, D. C. , stimulated Task Force thmking at the outset. �Table of Contents and Summary of Recommendations Page v Page Introduction II. Increasing Housing Choice I. Increasingcthe Supply of Low- and Moderate-Income Housing 1 2 2 3 4 5 6 6 6 ii Program I: Seed money loans, technical assistance and grants. 7 Interest-free seed money loans and technical assistance to limited-profit and nonprofit developers of low- and moderate-income housing; grants to nonprofit developers of loW· and moderate-income housing. Program 2: State-developed housing. State-developed low- and moderate-income housing. Program 3: Below-marketinterest-rate mortgage loans. Below-market-interest-rate mortgage loans to limited-profit and nonprofit developers of low- and moderate-incorne housing. Program 4: Interest-free loans to developers. Program 5: Construction loans. Program 6: Land acquis ition and write-down. Program 7: Rehabilitation housing acquisition and write-down . Program 8: Property tax abatement. Program 9: Administration. 8 9 Program I: Comprehensive fair housing law. A comprehensive fair housing law establishing a strong enforcement agency. Program 2: Metropolitan area housing information centers. Financial assistance to nonprofit metropolitan area housing information centers to aid families in finding decent housing. Program 3: Priority assistance for integrated housing. Priority assistance to developers . which have affirmative plans to locate, promote and manage their low- and moderate-income housing projects to achieve integrated housing. III. Improving Building Codes Interest-free loans to limited-profit and nonprofit developers to enable them to fall within federal cost limitations on JoW· and moderate-income housing. Construction loans to limited-profit and nonprofit develop· ers of low- and moderate-income hou sing. 10 Program: Model building code. A model building code embodying performance standards for permissive adoption by communities; a building codes appeal board ; aids for building inspection. IV. Improving Relocation Assistance 11 Financial assista nce for acquisition and sale or lease of hous. rket . mg sites for low- and moderate-income housing at ma value or less than market value. Program: Uniform relocation program. A uniform relocation program to assist communities to pay relocation expenses and to provide relocation services to families and businesses displ aced by state or local government action. V. Equalizing Landlord-Tenant Relations Financial assistance for acquisition of substandard housing and its sale or lease at market value or less th an market value for rehabilitation for low- and moderate-income housing. . Reimbursement to communities for abatement of normal ' or moderate-income b 0 us· ~roperty taxes on public housing mg; ~~yments to cover extra public service costs incurred b)' localities on account of this housing. Administration of low- and moderate-income hou sing as· sistance programs. 12 13 13 Program I: Means to secure code compliance. Permit a tenant to institute a housing c~de enforcem~nt ~roceeding, to obtain specific relief for inadequately mam~arned premises, and to withhold rent to secure code compliance. Program 2: Evictions. Prohibit "retaliatory" evictions. Program 3: Private obligation to repair. Require that every lease pledge that premises are fit_ to live in when the tenant moves in and that the landlord will keep them in good repair. iii �Page Introduction 13 Program 4: Public housing policies. ~equire local housing authorities to give reasons for evictmg tenants and establish a "Board of Tenants Affairs" for public housing. VI. Enhancing Community Development 15 Program 1: Financial assistance for community development programs. 16 Program 2: Urban Development Corporation. 17 Technical and financial assistance to communities to draft proposals for federal program grants. Eliminte ~onstitutional prohibitions, if any on the involvement o pnvate enterprise in urban affairs. ' Program 6: Zoning and planning reforms. 18 A Decent Home and Suitable Living Environment Program 5: Constitutional reform. 18 guarantees to owners of residential property and small Lo~n b usmesses. Program 4: Assistance to obtain federal grants. 18 ~n ~rban Development Corporation with state-wide aut onty to combine state and private resources for the improvement of metropolitan areas. Program 3: Loan guarantees. 17 Provide a substantial portion of the required non-federal share of federa~y aided community development programs a_nd a su~stantial portion of the cost of non-federally assisted projects. AC .. _omm1ss1on to review and assess modern techniques of zonmg an~ land use regulation and to recommend legislation to moderrnze the state's zoning enabling act. Program 7: Improving design quality. · o f structures mvolving . Excellence in the d es1gn the use of nd ta~e fu s or c_redi~ and the preservation of public buildings n areas of h1stoncal or architectural significance. VII. Developing New Communities 19 Program: Aiding the development of new communities. 21 VIII. Centralizing Administratio n of Housmg . and Community Development Programs P rogram: A centralized Department of Housing and Community Affairs. References iv New ~ommunity development corporations with eminent domam powers; deferral of property taxes during development ~eri?d; state approval of new community development plans m lieu of other land use regulation. ~C~binet lev~l Department of Housing and Community a'.r~ res~onsible to the Governor, with responsibility for adm1mstenng a broad range of community aid programs. At its Emergency Convocation in August 1967, the Urban Coalition called upon the nation to t~ke bold and immediate steps to fulfill the nat10nal goal to provide "a decent home and suitable living environment for every American family" with guarantees of equal access to all housing, new and existing. This goal requires a national effort vastly larger than anything done in the past. The Coalition set an objective of building or rehabilitating one million housing units a year for lower-income families. The National Advisory Commission on Civil Disorders later recommended construction of an average of 1.2 million units a year for lowand moderate-income families over the next five years. The Housing and Urban Development Act of 1968 set a goal of six million units in the next decade-an annual average of 600,000 units. These goals exceed by a wide margin the current annual rate of production of less than 100,000 housing units for low- and moderate-income families. Why State Action? State action must be part of any national program to provide the housing to meet the very real needs and expectations of millions of Americans. The states have abilities and legal authority unavailable to the other levels of government. If these resources are withheld from national programs, the federal government, the cities and the private sector will be seriously hampered in carrying out their roles. If the states apply their authority and abilities creatively, they can enhance the effectiveness of the other partners in programs aimed at providing a decent environment for the residents of our communities. States have authority to assist cities in modernizing governmental patterns and to amend laws that impede new programs for urban progress. States have great flexibility to experiment with a wide variety of instruments and incentives closely tailored to local conditions and requirements. States, moreover, have the capacity to respond directly to urban problems as they arise, and to work with cities in supplementing federal and local programs and to adapt them to the individual challenges each city faces. A few states have already enacted their own housing and community development programs covering a wide variety of problems. But these programs are not as well known as they should be at a time when many states are seeking new avenues through which -to enlarge their assistance to local communities to improve the quality of housing and community facilities. The Purpose of This Report. This report on possible state programs has been prepared by the Urban Coalition's Task Force on Housing, Reconstruction and Investment as a guide for those in the public and private sectors concerned with greater positive action by the states to assist cities in housing and community development. The programs for state action outlined here are designed to meet problems which fall into eight categories: V �I I I. II. III. IV. V. VI. VII. Increasing the Housing Supply Increasing Housing Choice Improving Building Codes Improving Relocation Assistance Equalizing Landlord-Tenant Relations Enhancing Community Development Developing New Communities VIII. Centralizing Administration of Housing and Community Development Programs Programs in each of these categories are prefaced by a brief statement of needs and potentials in the area. And federal programs are related to state programs where a relationship exists. The programs cited are designed to spur swift and effective action. This report does not envision establishing at the state level another set of complex administrative requirements alongside the existing federal regulations. To the greatest feasible ex tent, where states supplement or relate to federal programs, the federal appro val should be the principal criterion to obtain the additional state aid. Duplicating and possibly conff,icting state requirements may only delay or frustrate needed action. Cities have built up a body of experience dealing with federal aid procedures, however complicated these rules may be. States must master the same procedures before they can work effectively to improve them. A state administration truly intent on helping cities thro ugh these programs will develop its own experienced and capable staff. It will, consequently, -find its voice significantly strengthened in shaping -the course of federal action. Strong voices are indeed needed, because in the last analysis increasing the effectiveness of federal efforts, backed by the far larger potential financial resources of the federal government, will prove crucial. States should join with their cities in working to channel these resources into urban needs. Except for a suggested commission to revise complex laws for zoning and land use, no proposals are made that require extensive research. A suggestion is advanced for centralized state administration, but with one exception, no at~ tempt is made here to deal with long-range con~titutional or fiscal reforms. Though such organic and fiscal change is unquestionably vital, to maintain a sharp focus this report concentrates on specific measures which can be readily taken. Indeed, most of th e measures described are already being undertaken in some form in one or more states. In ~an_y states constitutional li mitations may make it difficult to enact some of the provisions vi described here. States with restrictive constitutions are, however, already undertaking many of these programs by the use of responsible and imaginative legal counsel, financing devices and careful draftsmanship. Before a sensible course of action is piscarded because of assumed constitutional difficulties, the statutes of other states should be carefully e?(amined for possible solutions to the constitutional problem. The primary objective of the majority of these programs is to attract greater federal aid-to bring in several federal assistance dollars for each state assistance dollar. A number of the programs also act to attract wider private sector involvement and to overcome legal and political impediments to swifter and more effective progress. In many cases, state assistance can be seen substantially to improve the scope and efficiency of federal and private programs. No model legislation for these programs is included since such legislation must necessarily be drafted to fit the circumstances in each state. However, citations to existing state programs and other relevant sources are given in the references at the end of this report. These citations are intended to be illustrative rather than exhaustive. The staff of the Urban Coalition is prepared to provide further information and assistance to those interested in carrying out any of these programs in their states. E ach state is urged to review these suggested programs carefully within th e fra mework of its own needs, priorities and resources. The programs outlined here could be combined or considerably altered to fit particular circumstances, and there is still certainly a great need for experimentation . Each housing and community development project, moreover, should be related to an ongoing local or metropolitan comprehensive planning effort. Ideally, each state should seek to combine new concepts and existing programs into a well-coordin ated and effective effort. It is a time to decide. It is a time to act. To justify the role of the state as an innovatora laboratory for imaginative approaches to urban problems-state leaders must dramatically increase state assistance to urban communities. Enactment and adequate funding of a com· prehensive state housing and community de• velopment program which in some measure includes the specific programs described in this report would dramatize an important commit• ment that states could make to their own people. I. Increasing the Supply of Low- and Moderate- Program I Income Housing Interest-Free Seed Mo ney Loans and T echnical Assistance to Limited-Profit and Nonprofit Developers of Low- and Moderate-Income Housing; Grants to Nonprofit Developers of Low- and Moderate-Income Housing. , Federal and state low- and moderate-income housing assistance programs rely heavily upon . nonprofit housing sponsors. * Nonprofit housing sponsors are e1the_r bro~dly-based housing development corpo_rat10ns _aiding or sponsoring a number of ho~smg proiects in the community or individual proiect sponsors, such as churches, charitable foundations , se~tlement houses, labor unions, fraternal orgaruza. tions and other civic-minded groups. As landlords or as organizers of cooperatives, these groups are likely to follow enlightened policies. As sellers, they are likely to help lowerincome buyers adjust to homeownership. Th_e social motivation of many nonprofit corporations, moreover, causes them to undertake t_he_bften risky, tedious and difficult task o~ bu1ld~g or rehabilitating housing in inner- city . or gray areas " where many private profit-motivated de' will not enter. velopers Experience has shown, however, t_hat to? many nonprofit groups are long on social dedication but short on money and skills. Thus, ~he difference between good intentions and hous'. ng in place is often assistance to nonprofit housmg corporations in the forms of: -seed money loam, (advances from a revolving loan fund needed to cover initial costs, such as preliminary architectural fees, engineering fees , site options, tenant surveys, market analyses, and legal an_d organizational expenses during the project development stage, which are recoverable from the proceeds of the FHA-insured mortgage ) ; . - grants for administrative costs, social services and other necessary expenses whic~ are important to the success o~ the organization and the project, but which may not be recoverable fro m the mortgage proceeds; -interim fina ncing ( construction loans needed when private construction loans are not available as described in program 5 below) , and - technical assistance (expert aid needed to train personnel, develop projects, se_cure project approval and oversee construct10n). • A used ;,, this paper references to 11011 profit deve lopers or n~npro{it sponsors include nonprofit cooperatives as well as ot er non profit entities. �/ The availability of grant money is particul arly important to housing development corporations. These broadly based nonprofits need start-up and operating money that will not be recaptured from the proceeds of housing project mortgages. Seed money loans interim loans and technical assistance might also be made available to limited-profit housing developers in need of this assistance. The federal Housing and Urban D evelopment Act of 1968 (hereafter the 1968 Housing Act) provides similar assistance to nonprofit developers of low- and moderate-income housing. It directs the Department of Housing and Urban Development (hereafter HUD) to provide information , advice and technical assistance. It also authorizes HUD to make 80 percent interestfree seed money loans to nonprofit corporations from a small, newly created revolving fund. It creates a government-chartered, nonprofit, private corporation known as the National Homeownership Foundation to encourage private and public organizations to provide increased homeownership and housing opportunities fo r lowand moderate-income fa milies. A state assistance program, however, would provide an additional and more flexible source of aid to developers of low- and moderate-income housing. A state program could be used to give encouragement to the form ation of limitedprofit and nonprofit housing groups within the state, when federal assistance is not available. A state program, moreover , might put more emphasis on making non-recoverable grants, rather than recoverable seed money loans-the thrust of federal aid. Grants, rather than loans, are needed to help finance housing development corporations and pay fo r the extra costs of housing low-income people, such as the provision of important social services. Program 2 State-Developed Low- and Moderate-Income Housing. Developing housing for low- and moderate-income families requires a great deal of expertness. The services qf a lawyer, real estate agent, builder, banker and administrator at a minimum are generally required. In many smaller communities it is difficult to find people who are both qualified and willing to render these services to a housing sponsor. Thus, as a logical alternative to state or federal technical assistance to help local groups become qualified to develop housing projects, the state may wish itself to develop either public housing 2 or moderate-income housing. It should only do so where there is no functioning local p ublic housing authority or moderate-income housing developer to build the housing. To produce public housing, the state would establish a public housing authority which could provide the necessary public housing anywhere in the state. R ecent changes have added great flexibility to the federally assisted public housing program. A public housing authority can now lease as well as bu ild or purch ase housing, and can sell the housing to its tenants. State-wide public housing authorities are eligible to receive federal public housing assistance. To build moderate-income housing, the state could create a nonp~ofit housing development corporation to develop this housing anywhere in the state. The corporation generally would serve as developer of the project. It would only serve as sponsor (i. e., the owner and maintainer of rented housing) in the absence of a local group which could serve as th e sponsor. In developing either public hou sing or moderate-income housing, the state would act in close cooperation with local public and private groups. And the state would not itself construct the housing; construction would be done by a private contractor under the " turnkey" system. Program 3 Below-Market-Interest-Rate Mortgage Loans to Limited-Profit and ·Nonprofit Developers of Low- and Moderate-Income Housing. States may use their power to borrow cheaply through the issuance of tax-exempt bonds to finance moderate-income housing projects at mortgage interest rates several percentage points below commercial rates. On long-term mortgages (usu ally forty years) , this lower interest rate can be of substantial assistance in reducing the cost of housing. New York pioneered this assistance with its highly successful "MitchellLama" program. F ederally assisted moderate-income housing programs also aid the production of housing by reducing interest rates. The FHA section 221(d) (3) program, for example, provides fin ancing at a three percent interest rate. Nevertheless, at least five states have enacted their own belowmarket-interest-rate programs to supplement the federal programs. There are many good reasons for states to establish their own below-market-interest-rate housing programs. Com prehensive Program. A state agency may find it difficult to undertake a comprehensive Substantial reasons still remain, however, fo r program fo r encou raging the development of moderate-income housing without itself being states to make supplemental loans to developers able to assist in the mortgage fin ancing of this to enable them to qu alify fo r federal assistance housing. Without its own below-market-inte_r<:st- when they otherwise would not. The FHA and the Housing Assistance Adrate mortgage program, the important decIS1on (HAA) continually have under conministration of whether to fin ance a proposed housing projproposals for housing projeots which sideration ect would be made exclusively by th e Federal or fo und infeasible because have been slowed Housing A dministration. proposed costs exceed maximum fe~er_al ~ost Flexibility . M any FHA programs can only be limits. In many cases federal cost hm1tat1ons used to assist housing developers in communisimply may not adequately re~ect lo~al cost facties which have enacted . a "workable program might, for. extors. Costs per unit for a proiect for community improvement"- an overall plan ample, exceed the federal maximum by as little of action for meeting problems of slums and blight, and for guiding community development. as five to ten percent; yet, as the ~evelo? er This "workable program requirement" greatly spends perh aps months redesigning ~1s ?roiect restricts the use of important FHA programs in to bring unit costs in line ( often sacr~cmg demany states where such a program has not been sirable design features in the process)'. m~reases in construction costs during the redes1gnmg_ peadopted by a locality. A state program would not riod might well consume wh atever other savmgs be subj ect to this restriction. The FHA allows a maximum six percent book were managed. This tedious proce~s causes many units of badly needed housing to die on the draftreturn to limited-profit housing developers. To . il encourage greater participation, a state program ing boards. State assistance can remedy this and s1m ar may allow a greater maximum return , such as the cost problems. To reduce th~ t~tal fed_eral morteight percent return allowed under the New Jergage assistance amount to w1thm m~x1mu~ fedsey program. . eral cost limits, the state could provide an mterL essComplexAdministration. FHA processmg est-free loan to the developer of up to t~n percent of moderate-income housing proposals is comof his cost to supplement his FHA-msured fiplex and generally time-consuming. An adenancing. R epayment of the state loan would ~e quately staffed state program may be able to deferred until after the fed eral mortgage loan is simplify its rules and regulations and thus spee~ . processing time. And based on its own expe~I- ·paid off or refinanced. The state loan is secured by a state lien on the ence, it may be able to suggest .improvements m project. T he loan is subordinated t~ the FHAFHA regulations. insured mortgage. It becomes a first hen af~er the Experim entation. States may wish ~o i_nnovate with their own programs, such as Ilhno1s, M as/" . M sac/111setts and N ew Jersey also sachu setts and New Jersey are doing with "rent • To lower rents, II m o,s, b -:;-' programs to pay the di ffe rence ~~"~\ ~om_e family can afford to pay skewing." Through rent skewing, rents in a 143.215.248.55,~e:~a~;:etd : :~:,,,~~n! state-assisted pro1ects. and the ren s o n ' may wish to delay initiating rent supmajority of apartments are raised slightly_ to Other states, howe'r~[· they see how two new sections of the plem ent programs un 1 •• low larger reductions in the rents of a mm~nty · A ct are adnumstered. b 68 H 19Secti;:s143.215.248.55(b) allows f';deral rent supplem ent payments to e of apartments. R ent skewing allows a wider . . t made t_o st~~6't/if~r,~::;0 ;,~;t~;ew fe deral interest reduc tion pa?;range of tenants' income~ in a hous'.ng f roi ec Sect,onb de for state-assisted housing. These payments_ w1 I m ents to e ma b t ee n normal rents on a state-assuted th an would be possible without skewmg. ma~e up the dlfferenc{ ,:h;; ,. tenants can afford to pay ii they u- pro1ect and the re nta_ s ·ncome for rent . Tir e paym ent cannot ex- P rogram 4 Interest-Free Loans to Limited-Profit and Nonprofit Developers to Enab le Them to Fall Within Federal Cost Limitations on Low- and Moderate-Income Housing. Federal programs have almost excl u_sively assisted housing by reducing fin ancmg costs through mortgage lo ans, mortgage in_surance and interest subsidies. T he 1968 H ousmg Act ex~ pands these programs. Due to th e ex istence of substantial federal ass istance some states ~ ay not wish to engage in the same form of assistance. ( As desc ribed in P rogram 3 above.) pay 25 percent of 1•.e~ 'vo11ld lower the effective interest rate on ceed an am ount w uc , 'd I om the rentals to less than one perthe project mortgage pa, r cent. . . f state m ortgage loan and federal rent Th ese comb1'.1at1ons :eduction payments give pro mise of lwussupplem ent or mtere~t in state-assisted housing. Ing families of low m co;"e ver that in many cases the state Jt does not appear, ,owe t ~ e loan and the federal in terest below-mark et-interest-ra!lel m ar bg ·,g,e to reduce rents below the . . tance w, com , . d reduction ass1s I the m ortgage were FHA-msure at amount _they would be di ti e fe deral program , and not statemarke t-mterest rates un er 1 1 1 arket-in terest rates. . 11 assisted at b e O H- m 0 m ent m ay not exceed the T he federal interest"i:e!~~f'~teJ' t~ pay under the mortgage" amount a m ortgago~, Id b! obligated to pay if the m ortgage and the am o unt he ,!vo~t ti e rate of one percent. To the ex tent we re to bear inte~es! ~ ' federal assistance com es into play . this one percent l1111k1tat1? 1t1 orenst-rate m ortgage loan wo uld simply .1 re below-m ar e t-Ill e I t ,e ., a f d I b itli• by lowering th e am ount the mortgagor 'i,, reduce the e era ·"'., the absence of the state below-market"is obligated to pay. 1 the federal government would make interest-rate mortgage ,oa,b,, . of FHA -insured market interest higher payments on t ,e rate morgage. as,s 3 �financing of federally insured housing for lowand moderate-income families. This action was instrumental in clearing the backlog in Illinois in 221 (d)(3) housing. As of October 1968, $288 million were allocated to qualifying banks in proportion to ,their outstanding loans. Additional sums for time deposits have been made available where needed by banks to meet special public needs. Those varied needs have included programs other than housing. The Illinois plan involves no sacrifice to the state of earnings on its investments, or greater risks of loss. Where this state stimulus is not possible and construction financing is difficult to secure, states might make or participate in providing interim construction loans at below-market-interest rates to developers of low- and moderate-income housing. A state could borrow its loan money through the sale of tax-exempt bonds and establish a revolving loan fund. Since construction financing is short-term, such a revolving fund would have a rapid turnover. Thus, a limited amount of money could finance a large number of projects. No net cost ,to the state would be incurred, and a state could in fact earn a sum on its Joans sufficient to pay borrowing costs and the costs of administering the program. FHA-insured mortgage is paid off. (FHA has indicated approval of this type of state assistance since_ t~chnically it does not constitute currentl; proh1b1ted secondary financing.) The state loan is well secured. Even were the improvements on the property to be depreciated completely by the end of the FHA-insured mortgage period, the land would still remain to secure it. The small state loan brings high returns. If the state w~re, for example, to finance ten percent of the proJect cost With its supplemental loan, the state loan would call forth ten times its amount in private and federal investment. Program 5 Construction Loans to Limited-Profit and Nonprofit Developers of Low- and Moderate-Income Housing. The recent tight money situation and the general shortage of long-term mortgage financing in some areas have hampered the development of low- ~nd moderate-income hom;,ing. Despite a commitment on the permanent financing by the federal government and in some cases FHA insura~ce of the interim construction loan, conventional loans have often been unavailable to finance the construction of housing in the interim period before the permanent financing takes place. When interim construction financing is available for lo:V- and moderate-income housing, the ~eveloper is often required to pay high rates thus mcreasing housing costs. ' The shortage and high cost of short-term construction financing can thus be a substantial bottleneck to the production of large amounts of low- and moderate-income housing. State authority to invest millions of dollars of cash resources not immediately required for expenditure provides leverage to encourage banks to meet public objectives. In January 196 7, the sta:te of Illinois announced a Sta~e Investment Program to forge a new partnership between the public and private sectors-between public treasuries and private ba~s._ The_ program was implemented through adm1mstrat1ve action by the state treasurer. Under this program deposits of state funds are made in banks agreeing to make interim financing available for construction of low- and moderate-income housing. Working with FHA and several banks in the Chicago area, the state agreed to deposit, at competitive interest rates about $90 million in those banks which in tur~ were willing to invest equivalent sums for interim 4 Progra1n 6 Financial Assistance for Acquisition and Sale or L ease of Housing Sites for Low- and ModerateIncome Housing at Market Value or L ess Than Market Value. .. A state program of assistance for land acquisition can: (1) increase the incentive of limitedprofit developers to construct low- and moderate-income housing; or (2) help assemble large housing sites and, where justified, lower the cost of housing by writing down the cost of the land through its sale or lease to a nonprofit housing developer at less than fair market value. (1) Increasing the incentive of limited-profit developers to construct low- and moderate-income housing. Nonprofit housing sponsors alone cannot build or rehabilitate six million houses in the next five years. The private developer can produce a large share, either by building "turnkey" public housing (public housing developed by a private developer rather than the local public housing authority) or by operating as a limitedprofit sponsor developing low- and moderateincome housing. Since 1961, when FHA assistance for moderate-income housing began, 42 percent of its projects have been built by limitedprofit sponsors and 58 percent by nonprofit sponsors. As a limited-profit sponsor the private developer is allowed a regulated return before taxes on its equity investment in a housing project. In FHA programs this is usually six percent. With the benefit of early writeoffs and other favorable investment factors to which a developer is entitled under the law, he can substantially increase his after-tax return above this amount. Yet even with the favorable rate of return presently allowed under the law, only a small number of units of low-r,isk, moderate-income housing projects have aotually been built by limited-profit developers, principally at times when other construction business has been slow. To increase the incentive for a limited-profit developer to build low- and moderate-income housing, states could leverage the federal program by financially assisting communities to purchase land and to lease it to a developer at favorable terms without loss to the states or the municipalities. Land purchase and lease frees the developer from investing substantial capital in land, which cannot b_e depreciated, and substitutes an annual rent on the lease which is a deductible expense, thus increasing his after-tax return. Such land purchase and lease would also lower the cost of housing by enabling lower sales prices or rents. States may be able to obtain the money needed to help municipalities purchase and lease land by floating state-guaranteed, tax-exempt bonds which are repaid from rent receipts under the lease. The financing is analagous to state financing of industrial parks. (2) Assembling land and ·reducing the cost of low- and moderate-income lwusing . The increasingly high cost of suitable land in metropolitan areas is a major factor in boosting housing costs beyond the reach of low- and moderate-income families. The federal government does not provide financial assistance in writing down land costs for housing except in urban renewal area , which, for the most par·t, have been in the central city. Section 506 of the 1968 Housing Act, however, now allows federal assistance for "write downs" of open land in declared urban renewal areas for low- and moderate-income housing. But designating urban renewal areas and receiving federal funds is a long and cumbersome process, involving more than writing down land costs for housing projects. Additional state assistance to communities 5 �j assembling and developing land for low- and moderate-income housing outside of urban renewal areas would give substantial aid to the large-scale production of low- and moderateincome housing. By use of the community's eminent domain powers, large tracts of land could be assembled. With state aid a municipality could sell or lease the land at less than market value to nonprofit developers where the write down was to be reflected in lower rentals or sales prices. Program 7 Financial Assistance for Acquisition of Substandard Housing and Its Sale or Lease at Market Value or Less Than Market Value for Rehabilitation for Low- and Moderate-Income Housing. Systematic rehabilitation of housing in the core or "gray areas" of cities is an important part of the nation's housing program. The federal assistance needed to clear these areas for the development of new housing is greater than is likely to be made available in the foreseeable future. Even if the money were available, •the dislocation and disruption involved in clearance and reconstruction would weigh heavily against total reliance on c;learance as a renewal instrument. Of the six ml'llion standard houses that the Department of Housing and Urban Development sets as a production goal, two million ( one third) are intended to be rehabilitated structures. Housing rehabilitation could be increased greatly if the states were to help municipalities purchase substandard houses and resell or lease them to nonprofit developers which would rehabilitate them for sale or rental as low- and moderate-income housing. With state aid a municipality could sell or lease the substandard houses at less than market value where the write down was to be reflected in lower rentals or sales prices. In addition, a judicious use by a locality of its power of eminent domain would enable a systematic rehabilitation of all declining properties in a neighborhood or on a block, rather than the rehabilitation of only those houses which are on the market, as is now generally the case. This systematic rehabilitation has a greater effect in upgrading entire neighborhoods. Program 8 Reimbursement to Communities for Abatement of Normal Property Taxes on Public Housing or Moderate-Income Housing; Payments to Cover 6 Extra Public Service Costs Incurred by Localities on Account of This Housing. Under the federally assisted public housing program,communities are required to abate real estate taxes on the project. They receive a payment in lieu of taxes of approximately ten percent of the rentals of the project. This reduction of tax income to communities has proven to be an important barrier to the production of public housing. State payments to make up the difference between what the public housing pays in taxes and the normal tax bill would help communities to provide needed public housing. On the other hand, local property taxes often account for between twenty arid thirty percent of the rents paid by occupants of FHA-assisted moderate-income housing. These projects are usually taxed as though they were conventional apartments even though the rental income they produce is limited by FHA. State payments to communities to reimburse abatements of normal local property taxes on federally and stateassisted housing would be a potent device to lower rents. An additional barrier, even if full taxes are paid by or on behalf of low- and moderateincome housing projects, is the higher cost of public services for occupants of higher density housing, e.g., schools, playgrounds, social services. State payments to communities in excess of local taxes to meet these extra costs would provide an inducement to communities to accept low- and moderate-.income housing. This inducement would assist in locating low- and moderate-income families outside central cities, closer to places of expanding employment. Gearing these payments to an industrial development program would help relieve labor shortages which increasingly inhibit economic growth of outlying areas. Program 9 Administration of Low- and Moderate-Income Housing Assistance Programs. States administer housing assistance Programs one through eight in varied ways. A pattern of clustering programs designed to encourage the construction of low- and moderate-income housing-seed money loans and grants, technical ass istance, construction loans, tax abatementaround the core program of making belowmarket-interest-rate loans to developers has, however, emerged in several states . These programs are then either administered directly by the state with the below-market- interest-rate loans being made from a housing II. Increasing Housing Choice development fund . Or they are administered by a separate public benefit corporation, sometimes called a Housing Development Authority or Housing Finance Agency. State constitutions may well dictate this choice. The important factor in administering these programs is to assure that one responsible agency has the authority to combine them imaginatively. For example, a state seeking to increase the production of low- and moderate-income housing and homeownership by low- and moderateincome families, might administer each of the first eight assistance programs described. The state could make seed money loans or grants and give technical assistance to help establish sponsors. . It could help finance projects by makmg construction loans and permanent mortgages to developers. And it could make additional loans to lower the costs of projects which exceeded FHA maximum cost limitations. Where sponsors did not exist it could develop projects itself. It could assist. communities in purchasing and leasing housing sites or houses for rehabilitation. The sales or leases could either recover fully the state's costs or, if needed, could assist the project by recovering less, i.e. , by writing down the land. ·. f It could help to reimburse commumties or abated taxes where needed. And in addition to the first eight programs, the stat~ might be given some unearmarked de_monstration funds to devise new ways of meetmg its housing problems. For example, using demonstration money, the state might: -make equity loans to developers of ~ooperative housing to enable moderate-mcome families to purchase their houses on a cooperative basis with a minimal down payment and liberal financing of the balance Program 1 A Comprehensive Fair Housing Law Establish. over a period of years, or - establish a rent assistance program to fill m ing a Strong Enforcement Agency. gaps in federal programs whereby houses The landmark June 17, 1968, Supreme Court would be purchased or leased by ,~ e state decision, Jones vs. Mayer Company (20 L.Ed. and then leased or sublet to low-mcome 2nd 1189), interprets an 1866 Civil Rights law families at reduced rentals. (guaraillteeing to all citizens the right "to inherit, To fin~nce loan-type programs, such as seed purchase, loan, sell, hold, and convey real _an? money loans, construction loans, below-m~ketpersonal property") to prohibit ra~ial discnnninterest-rate loans, and purchase and leasmg of . land, the state would issue tax-exempt bon~s nation in the sale or rental of bousmg. The Jones decision, however, is not a substi(guaranteed by the state where the state constItute for a comprehensive fair housing law . .It tution permitted). Grant programs and other ~scovers only racial discrimination and not_ dissistance would be financed by state appropnacrimination on the grounds of religion or national tions. 7 �origin. It does not deal with discrimination in the provis,ion of services or facilities in connection with the sale or rental of a dwelling. It does not prohibit advertising or other representations that indicate discriminatory preferences. lit does not cover discrimination in financial arrangements or in the provision of brokerage sources. Nor does it provide for administrative assistance to aggrieved parties or enforcement. And although courts can fashion effective remedies to enforce the 1866 statute, ,the statute contains no provision expressly authorizing a federal court to issue injunctions or to order payment of damages. The 1968 Civil Rights Act, on the other hand, covers these specific acts of discrimination omitted in the ·1866 s,tatute and fashions administrative and legal remedies as well. The remedies, however, are not strong enough to provide adequate relief in many cases for those who suffer discrimination. The Secretary of HUD may investigate complaints. His powers, however, are limited to conference, concilia-tion and persuasion. He may not issue an enforceable administrative remedy. For enforceable relief under federal law, the aggrieved party must himself generally go to court. (The Attorney General may bring suit based on a pattern or practice of discrimination or a denial of rights to a group of persons that raises an issue of general public importance.) The 1968 Civil Rights Act, however, invites strong state action to gu arantee fair housing. Section 81 0 ( c) provides that wherever a state (or local) fair housing law provides rights and remedies at least substantially equivalent to rights and remedies in the 1968 Act, the federal government will defer to the state in its enforcement activities. Thus, in enacting a comprehensive state fair housing law and in establishing a strong state fair housing agency to secure the constitutional rights of raci al and other minority groups, states would be filling the gap in federa l legislation and taking advantage of the priority extended to state legislation by section 810 ( c ) of the 1968 Act. A strong and comprehensive state fair housing law should : -establish an enforcement agency with adequate staff and appropriations to enforce the law; -empower the enforcement agency to receive complaints fro m citizens, from appropriate state officials, and to initiate complaints on its own motion; - ban all discrimination on the grounds of 8 race, religion, or national origin in the sale or rental of all property, including: -refusal to sell or rent, -discrimination in the terms or conditions of a sale or rental, -use of advertisements or applications which express or imply any such discr-imination, -discrimination by real estate salesmen or brokers, or -discrimination by lending institutions; -empower the enforcement agency to use temporary injunctions on sale or rental during its investigation of a complaint; -empower the enforcement agency to conciliate, issue cease and desist orders, require appropriate affirmative acts to cure the discrimination ; -provide penalties for a failure to comply with the enforcement agency's orders; -subject the enforcement agency's orders to judicial review, and -empower the enforcement agency to carry on appropriate research and education programs to eliminate hous.ing discrimination. ment, state and federal grants. There is presently no regular source of funds for the support of housing information centers. States might make grants to help establish and operate such centers. Progran1 3 Priority Assistance to Developers Which Have Affirmative Plans to Locate, Promote and Manage Their Low- and Moderate-Income Housing Projects to Achieve Integrated Housing. Racial integration of housing projects or neighborhoods rarely occurs without deliberate measures by developers. Low- and moderate-income housing must be located in areas where housing for these families does not exist in great numbers. The housing must be affirmatively marketed with minority communities not accustomed to considering housing so located. Rental projects, if they are to become and remain integrated, must be managed with ,this objective always in mind. A state can encourage developers to locate, market and manage projects with the objective of achieving integration by giving priority on its state assistance (Programs one through eight) to developers with affirmative and practical integration plans. Program 2 Financial A ssistance to Nonprofit Metropolitan Area Housing Information Centers to Aid Families in Finding Decent Housing. In most communities the existing supply of decent housing for low- and moderate-income families is not limited to the central city ghetto or to its gray areas. It is often found in other p arts of the metropolitan area as well. The lack o f information on available rental and sale housing throughout the metropolitan area, however, is a substantial barrier to the movement of families out of declining neighborhoods of the central city. F amilies in the housing market need help in finding housing they can afford, convenient to their jobs, and located in good school districts. A nonprofit metropolitan area housing information center would list available housing, i nteres t low- and moderate-income families in moving to areas with which they are initially unfa miliar, escort them on inspection of houses, ed ucate the community to the need for providing more housing fo r low- and moderate-income families and undertake other associated activities. The Metropolitan Denver F air Housing Center, Inc. is the principal example of a housing information center providing these kinds of services. It is supported by private, local govern- \ ,I 9 �Ill. Improving Building Codes P rogram IV. Improving Relocation Assistance A Model Building Code Embodying Pe,jormance Standards for Permissive Adoption by Communities; A Building Codes Appeal Board; A ids for Building Inspection. Program In most states, communities enforce differing and generally outdated building codes. This profusion of outdated codes has tended to raise building costs by perpetuating the outmoded and uneconomic use of building materials and building techniques and by restrieting the natural play of economies of scale in the construction industry. Higher building costs, in turn, unnecessarily restrict the availability of decent housing for low- and moderate-income families. States might assist communities to improve their building codes and building codes enforcement. Specifically they might: - authorize the development of a state model building code utilizing to the greatest extent possible performance standards for permissive adoption by communities. (To maintain uniformity the state should specify that the code would be automatically amended when state amendments were adopted, and that communities might only alter the model code upon specific approval of the administering agency) ; - establish an appeals board to hear appeals from decisions on the administration by communities of the state model code or other codes adopted by communities; - require that state and local government agencies utilize the state model code for public construction; - require that the state model code be used for federal or state-assisted nonpublic construction ; -establish professional qualifications for building inspectors, train and license them; - establish minimum staffing requirements for community building inspection departments; --offer building inspection services to communities which do not wish to maintain their own building inspection departments . 10 A Uniform R elocation Program to Assist Communities to Pay R elocation Expenses and to Provide R elocation Services to Families and Businesses Displaced by State or Local Government Action. Communities cannot be rebuilt for public objectives without uprooting families and businesses. The public has the obligation to compensate these dislocated families and businesses for the costs of dislocation, and to see that they are relocated in suitable accommodations. Unfortunately, famil ies displaced by public action are often those with the least freedom in the housing market- the poor, minorities, large families and elderly. Special government efforts therefore must be made to relocate these families successfully. States might establish a uniform relocation program for families and businesses displaced by state and local government programs. It would give financial assistance to communities in making relocation payments and providing relocation services where federal assistance is unavailable. To reduce inequities in the treatment between families displaced by federally assisted activities and families displaced by state or local activities, to the extent possible there should be uniformity in the relocation assistance offered to fa milies or businesses displaced by any public action- federal, state or local. Federal urban renewal relocation assistance includes : - relocation payments to families and individuals which may not exceed $200 for moving costs and property loss; -relocation adjustment payments totaling up to $1000 over a two-year period to fa milies and elderly individuals to assist them to relocate in standard accommodations; -an additional payment to owner-occupants of residential property acquired for an urban renewal project ( in lieu of a relocation adjustment payment) to enable them to purchase a replacement dwelling within one year. (This payment would be that amount not in excess of $5,000, which, ' when added to the acquisition price paid for the owner-occupant's borne, equals the average price for an adequate replacement home in the community, and - relocation payments for moving expenses and re.imbursement to business concerns or nonprofit organizations for property loss, up to $3,000, incurred in their move. (If no property loss is claimed, reimbursement for moving expenses can be made up to a maximum of $25 ,000.) Such payments are covered in full by a federal relocation grant made to the appropriate local agency. If the moving expenses of a business concern exceed $25,000, the locality may elect to reimburse the excess costs through a local cash payment which will be shared by the federal government through a relocation grant in the same percentage as other urban renewal project costs. State-assisted relocation agencies should be required to: -establish a single central relocation agency to offer services to all families needing relocation in a metropolitan area ; - formulate a single reloc-ation plan covering all foreseeable relocations by all government programs; - see that displaced families are relocated in . standard housing that is decent, safe and sanitary ; - relocate families to the greatest possible extent practicable outside of declining areas of the community; -provide for temporary relocation of displaced fa milies in decent housing where permanent housing is not immediately available; -pay the expenses of moving the displaced family or business and fix payments to cover other expenses, and - provide social services to relocated families with such needs. 11 �V. Equalizing Landlord-Tenant Relations The law governing the relationships between landlord and tenant in the Anglo-American system has not changed substantially since feudal times. Historically the law viewed a lease, not as a contract recording mutual obligations, but as a conveyance of an interest in land subject to conditions. Consequently, the law as formulated by the courts does not adequately, with some recent notable exceptions, reflect the new aspiratiions and economic realities of an urbanized society. An updating of these archaic laws" not only will tend to reduce tensions in our cities by responding to the just claims of tenants, but may instill greater respect for law -in general and provide greater incentives for the maintenance of property by ,those who occupy and own it. At the same time, responding to the valid claims of tenants while ignoring the legitimate interests of those who own and finance housing would not be productive. Landlord-tenant relations have attracted legislative attention recently in Illinois and Michigan. The Illinois Legislative Commission on Low-Income Housing, in a 1967 report entitled "For Better Housing in Illinois,"examined many of the inadequacies in the laws governing landlord-tenant relationships and the enforcement of housing codes in that state. Revisions of these laws were recommended in ways which may be applicable to other states. Five laws that significantly equalize the rights of tenants have recently been enacted in Michigan. These laws and similar provisions in other states are the basis for the following guidelines. Program 1 Permit a Tenant to Institute a Housing Code Enforcement Proceeding, to Obtain Specific R elief for Inadequately Maintained Premises, and to Withhold R ent to Secure Code Compliance. Anti-trust laws, securities laws and other modern regulatory measures have commonly provided for private as well as public enforcement. By contrast, although the tenant is a critically interested party, the enforcement of housing codes has been heretofore generally a two-party affair between the public enforcement agency and the landlord. Tenants have not been allowed to initiate or control enforcement proceedings. Yet their critical concern is justified in view of the fact that in many instances the proceedings can lead to the abandonment of the building, the eviction of the tenants, or a major increase in rent; and the failure to take action would result in the continuance of substandard and often intolerable conditions. 12 The Michigan law makes housing code enforcement a civil rather tha'Il a criminal matter, allowing a tenant to begin court action. The law also creates a variety of court actions that may be taken against landlords, including injunctions or orders permitting the tenant, a receiver or the city to make necessary repairs. The repairs can be paid for out of rents withheld in an escrow fund or by a lien on the property when the landlord is at fault, or by an assessment against the tenant when he is at fault. In Connecticut, state law authorizes municipalities ,to create repair receivershipt with the state advancing the cost of the repairs until rent receipts replenish the fund. These rent receivership or rent withholding measures are also a housing code enforcement technique. The state of New York, because of its dense patterns of urbanization, as long ago as 1930 allowed New York City residents to pay rent into court rather than to the landlord when a certified code violation exists. The court retains the rent, and evictions are stayed, until ,t he violation is corrected. To stimulate prompt remedial action by the landlord, the law was amended in 1965 to permit the tenant to arrange for heat, electricity, janitorial service or make repairs and apply to the court to have bills paid out of the rent on deposit. Another method of rent withholding, applicable to New York City tenants, permits onethird of the tenants in an apartment to bring action against landlords when conditions in the building are dangerous to "life, health or safety. " The court may appoint an administrator to collect rents and use them to remedy defects. Rhode Island, Pennsylvania (limited to Pittsburgh, Philadelphia and Scranton) , M assachusetts and M aryland (limited to Baltimore) have recently enacted similar measures. In a rela,ted problem area, some states (Illinois, New York and Michigan among them) have enacted legislation suspending the legal duty of a welfare recipient to pay, and the right of a landlord t? collect rent for housing in violation of applicable housing codes. Program 2 begin eviction proceedings without giving any reason. A few courts, however, have begun to rule that retaliatory evictions violate the tenant's constitutional right to petition for redress of grievances. The Michigan law enables a tenant to resist an eviction by contending that it is in retaliation for exercising lawful rights, such as complaining to public code enforcement authorities. In addition, the new law reverses the general common law rule that the breach by the landlord even of an explicit promise to make repairs does not excuse the tenant from payment of rent. Thus the tenant may withhold his rent until the landlord makes the repairs he has promised. Program 3 R equire that Every Lease Pledge that Premises Are Fit to Live in When the Tenant Moves in and that the Landlord Will Keep Them in Good R epair. The common law provides a tenant with little assurance that his dwelling will be comfortable or even habitable. No duty to repair is imposed on the landlord and he is under no duty, in the absence of express agreement to the contrary, to maintain or repair the premises. This rule is so firmly entrenched it is widely felt that specific legislation is required to override it. In o rder to correct some of the injustices of the basic rule, courts long ago adopted the fiction of a constructive eviction-which permitted the tenant to move out without payment of further rent if he lost the beneficial use and enjoyment of the premises through lack of beat -or light or some similar gross defect. The right to leave, however, is an empty one for the slum dweller. The Michigan statute, accordingly, specifically places upon the landlord the duty of repair during the term of the lease, and the duty to comply with applicable health and safety laws, except when the disrepair or violation has been caused by the tenant. Presumably, the courts will construe this to give the tenant the right to sue for damages, consisting of the difference in the rental value of the premises as they are and their value if in the condition warranted by the landlord. Prohibit "R etaliatory Evictions." The term "retaliatory eviction" refers to an eviction undertaken in retaliation for the tenant's complaint to municipal authorities of violations of housing and health regulations: W~ere landlords have resorted to this practice it has not been challenged. This may result from the law prevailing in most states, where a landlord may Program 4 R equire Local Housing Authorities to Give R easons for Evicting T enants and Establish. a "Board of Tenants Affairs" for Public Housing. Local housing authorities are instruments for local, state and federal housing policies. Such 13 �authorities are created by the state, subsidized by the federal government, and their members are appointed by the cities. Unlike the private landlord, the local housing authority is not motivated by profit. The admission and eviction of tenants is the source of most controversy in public housing practices. Because of the silence of most state enabling statutes and the special concern of the federal government with financial aspects of subsidized housing authority operations, the local authority typically sets its own admission and eviction policies. These standards may not be published, or if published may not be clear; they often relate to the "social desirability" of prospective or existing tenants as determined by the management. Nevertheless, tenants seeking to resist their eviction from public housing projects have found the courts frequently an alogizing public landlords with private landlords, or using other rationales to avoid reviewing the merits of such cases. Although there have been exceptions to this rule, the results of most cases leave local housing authorities with power legally to evict, or refuse admission to anyone, without cause. Corrective regulations aimed at " upgrading . . . outmoded management policies" addressed to procedural problems have been issued by HUD. Section 3.5 of the HUD Low-Rent Management Manual ("Procedures Prescribed for the Operation of Federally Aided Low-Rent H ousing" ) requires a local authority to adopt and publicize its admission policies, but does not prescribe policies beyond those imposed by law relative to income, age, disability, race, etc. Section 3.9 prohibits evictions witho ut giving the tenant notice of reasons and affording him "an opportunity to make such reply or explanation as he may wish." Although these rules are intended as mandatory by federal officials, it is not clear that local authorities view them in the same light. In the absence of an adequate supply of decent low-income housing, the refusal to confer, or the withdrawal of the benefits, of a dwelling in public housing constitutes substantial injury to a potential or existing tenant. It is within the pu rview of the state to prescribe the manner in which housing authorities deal with applicants and tenants. The ingredients of a policy reflecting commonly accepted standards of fairness might be: - applicants for admission to public housing should be apprised with in a specified period of a determination of ineligibility and given a right to appeal to a body other than the management; - the reasons for an unfavorable decision 14 should be clearly and concisely stated in relation to precise standards of admission; - leases should be written in simple language and effective on a self-renewing basis terminable (for a cause other than exceeding income limitations or nonpayment of rent) only for conduct injurious to other tenants or substantially injurious to the project; - evictions should be permitted only for good cause with the opportunity for a fair hearing; and - rights of privacy of tenants should be respected and harassment in the form . of fines , charges for repairs, threats of eviction, etc. , prohibited. The Michigan law adopts many of these principles. Another essential ingredient of a soundly administered public housing program is an increased effort to involve tenants in the management of projects. This may be done through the creation of representative tenant organizations or the representation of tenants on the local housing authority board. The Michigan law creates for public housing in the City of Detroit a " board of tenants affairs ," one-half of which is composed of elected tenant members and one-half by appointees of the mayor. The board may veto rules and regulations of the authority and acts as a binding board of review on decisions of project management or the authority with respect to matters such as denial of admission to or eviction from public housing and rent increases. A similar Rhode Island measure creates a board of tena~ts affairs for each city in the state with a public housing project. One-half the board is elected from among tenants occupying housing proj ects, the others to be appointed by th e mayor from residents of neighborhoods in which the projects are located. Thi s board advises the housing authority on tenant welfare, may veto authority rules on admission, occupa ncy, and eviction policies, and sits as a board of review for individual compl aints on these matters. VI. Enhancing Community Development Housing without stable neighborhoods served_by adequate community facilities will not provide long-term values to our cities and their people. States can take important steps to enhance the environment which supports new and rehabilitated housing. Just as an expanded supply of well-designed housing requires the stimulation of private initiative and assistance to local units of government, balanced community d~velopment cannot take place without a contmuous partnership between government on all levels and private groups. Program 1 Pro vide a Substantial Portion of the R equired Non-Federal Share of Federally A ided Community Development Programs and a Substa~tial Portion of the Cost of Non-Federally Assisted Projects. The federal programs to aid local comm~nity development require contributions to project cost from non-federal sources. These are often in the form of cash but usually in the form of non-cash items ·such as staff services, parks, schools or other facilities related to the project. Increasingly, the ability of many localities t_o utilize these programs is dependent upon their ability to finance the non-federal share of a . project. Connecticut has recently implemented comprehensive community development legislation which, among other programs, extends state financial assistance to localities in the form of contributions to the non-federal sh are of _fe~erally assisted projects. In some instances this kmd of help has spelled the difference between federal funding and no local program at all. Connecticut, for example, fund s one-half of the local share of fed erally assisted urban renewal projects, demolition of unsafe or uninhabitable buildings, construction of neighborhood facilities, and open-space land acquisition. The state contribution to the non-federal share of urban renewal projects actually began in 1955 and has contributed materially to the flow of federal urban renewal fu nds to cities in that state ever since. A Connecticut city need supply only one-sixth instead of one-third of net project cost. As a result, one dollar of city funds (supplemented by one state dollar) generates four federal dollars instead of only two. The form of state assistance was inaugurated in Pennsylvania as early as 1949, the year the federally assisted urban renewal program was enacted. Neighborhood facilities, in particular, embrace a wide range of horizon-expanding centers 15 �for persons of low- and moderate-income. These centers house health, recreational, social service, civic, educational, cultural and youth activities that can give residents a sense of identity, community pride and participation. In Connecticut, the state pays half the non-federal share of the cost of building these modern-day settlement houses, and there have been proposals to extend state aid to non-federally aided neighborhood facilities. In Connecticut, a special state program also assists the development of child day-care centers for disadvantaged children by funding two-thirds of the operating cost to the locality ( or an antipoverty agency) . The state normally relies on the application approval by the federal authorities in allocating its own contribution to the locality, thus avoiding unnecessary paperwork by municipal officials. In New Jersey, the state, in addition to providing one-half of the local share, allows a flexible formul a (up to 100 percent) for contributions to the local cost of federally assisted urban renewal projects to the extent they are devoted to public uses. As a prerequisite to aid for community development programs, Connecticut requires localities to prepare a Community Development Action Plan (CDAP). The CDAP is a community's survey and estimate of its problems and the physical, economic and human resources for dealing with them. T he state provides three-fourths of the cost of preparing the CDAP ; some of these costs to the state, with respect to CDAPs for communities under 50,000 are in ,t urn funded by HUD. It is vital, however, for a state to assure that these planning requirements do not become a substitute for or an inhibitor of program actions. The Connecticut Community Development Act, moreover, permits state aid to many projects that do not receive federal funding. In such cases the state provides two-thirds of the cost of the project. A state which participates in the funding of federally assisted projects should retain this flexibility. Some deserving applications will not receive federal funding fo r a variety of reasons. The state may wish ,to help localities that have sought federal fund ing but have not been able to obtain it for reasons unconnected with the merits of the project. Pennsylvania, for example, has launched an ambitious open-space land acquisition program financed by proceeds of a $500,000,000 bond issue. This pays for one-half of project cost to the locality. Although Connecticut only makes grants for specific programs set forth in its statute, states 16 might consider making a portion of their grant money available in block grants to cities for programs which do not fall within established categories of federal or state assistance. This will encourage ·1ocal initiative and will help meet individual locality needs. Program 2 An Urban Development Corporation with StateWide Authority to Combine State and Private R esources for the Improvement of Meiropolitan Areas. There are many factors inhibiting private, profitmotivated entrepreneurial participation in city renewal efforts on the scale demanded by current needs. Profit-motivat¼d entrepreneurs are used to assuming normal business risks. They are less accustomed to the political and public relations risks associated with publicly assisted programs. And they are disinclined to shoulder the additional commitment of personal and fin ancial resources occasioned by protracted negotiation and processing which often lengthens the development period. One way to bridge the gap between public control over land use and private entrepreneurial initiative has been indicated in New York. The state has recently created the New York State Urban Development Corporation (SUDS) . SUDS is empowered to draw upon the combined talents and resources of the state and private business to work with local governments to produce development and redevelopment projects throughout the state. These projects are intended to include balanced combinations of housing, light industri al, commerci al, recreational and cultural developments. As requested by agencies of the state or by cities, the corporation is to consider implementing projects within ex isting state and city programs. The corporation board of an urban development corporation similar to SUDS could be onehalf comprised of public officials and one-half chosen from the private sector. Initially, the corporation could be funded by the state through the issuance of tax-exempt revenue bonds. Conceivably, the corporation would eventu ally genera te sufficient earnings to cover operating expenses with o nly investment capital furni shed by the state in the form of loans at a rnte approximating that of the state's cost of borrowing. The corporation would plan projects and assemble the land, through eminent domain if necessary. In New York, SUDS has ultimate authority to override local building and zoning regulations. Although SUDS has extensive statu- tory authority in these respects, it is likely that it will oper-ate most effectively and perhaps exclusively in communities where local governmental and planning bodies are cooperating with the corporation. Rather than tie up its capital in the actu al development of a project, the corporation could encourage private developers to undertake this work. The corporation could also act as a developer itself where necessary. In such instances, after the project was completed, with long-term financing in effect and the project fully rented or functioning according to plan, the corporation would undertake to sell the project to a private investor or investors. The proceeds of the sale would be applied to the retirement of state loans to the corporation. Pursuant to conditions to be defined, some portion of the proceeds could be retained by the corporation. In some instances, the corporation might find it necessary to take back a lease in order to relieve the investor of the operating or supervisory burdens of ownership. Conceivably the corporation might eventu ally cause various real estate investment trusts to be organized. Projects would be sold to the trust with a lease-back by the corporation. If feas ible, this could be a method of mobilizing and channeling substanti al amounts of priva te capital into investments to which it would ordin arily not be attracted. Direct investment in real estate and development requires experience, sophistication, and fixed amounts of equity money, with the ·a dditional diffic ulty, especially in the case of residential real ~state, of responsibilities to tenants, legal, public relations and political hazards. However, purchasers of the real estate investment trust certificates could enj oy the benefits of real estate ownership and be substantially free of its hazards. Progra1n 3 Loan Guarantees to Owners of R esidential Property and Small Businesses. Private initiatives are necessary to reh abilitate the economic life and physical fac il ities of blighted communities. But often th ese are not forthcom ing unless th e addition al risk of inve tment in deteriorated areas is reduced. When needed capital, or bonding capacity, is not otherwise a~a ilable, states might provide an urban development guarantee fund to guarantee loans made by conventional lenders to owners of resi dential property and small businesses. A loan to an owner of residential property would have to be intended to provide housing for persons and families who could not obtain safe and sanitary accommodations provided by the unaided operations of private enterprise. A business would qualify for a guaranteed loan if it were unable to obtain adequate financing to maintain a stabilized work force or increase job opportunities by virtue of (a) its location ; (b ) its net assets ; or ( c) its doll ar volume. The New York Urban Development Guarantee Fund loans are to be used for the purposes of construction rehabilitation, or refinancing of properties a~d, in the case of small business pr_ojects, for equipment, stock in trade or wor~mg capital. The monies of the fund are den ved through the sale of debentures and from gifts. The fund is empowered to invest funds held by it and to charge a premium for its guarantees. In the event of default, the fund would pay to the lender the net amount of the loss. Program 4 Technical and Financial Assistance to Communities to Draft Proposals for Federal Program Grants. The increasing complexity of application requirements fo r some federal yrograms, eve~ those whose ultimate objective 1s frankly expen1:1-ental, has outrun the staff resources of many small er communities. The federal "Model Cities" progra m, for example, is intended to demonst rate how th~ ~nvironment and general welfa re of people hvmg in slu m and blighted neigh borhoods ca n be substanti ally improved through the orchestrati~n of federal, state and local governmental and pnvate efforts. Cities must submit proposals fo r planni ng grants. T hese proposals are to analyze the social, economic and physical problem~ of the model neighborhood area, what the city proposes to do about t~em, ~n? the strategy and adm inistrative machmery 1t mtends to employ. Under the program, cities with approved planning grants will become eligible fo r s~e~ial grants supplementing assistance under_ ex1stmg federal 1rrant-in-aid programs. T he reqwred nonfederal 0 contribution to every federally as isted project or activity carried ou t as part of an approved model cities program serves as the " base" fo r computing the special supplemental grant. The special grant may be up to 80 percent of the total non-federal contri bution. The development of a model cities or urban renewal proposal places a demand on the financial and techn ical capabilities of many localities. To help them obtain the e grants, the state might: 17 �--l I ( a) assist in drafting proposals for federal grants for communities which request technical assistance, and (b) make grants to enable those communities which wish to draft their own proposals to hire competent staff and consultants for this purpose. The stategic injection of assistance in this manner can help to enhance the flow of federal dollars to communities within the state. The purpose of this kind of assistance, however, should be the development of local competence to handle these administrative tasks in the future. It can be applied to a variety of federal grant-inaid programs. The New Jersey Department of Community Affairs has been particularly active in helping communities with Model Cities applications to HUD. Pennsylvania, through its Department of Community Affairs, provides similar help with applications for federal assistance for a broad range of programs. HUD is authorized to make grants to states to provide technical assistance to communities under 100,000 in population. A state program as described here, organized as a special technical assistance effort, might be eligible to receive a 50 percent grant from HUD to cover its cos ts. Program 5 Eliminate Constitutional Prohibitions, if Any, on the Involvement of Private Enterprise in Urban Affairs. A concerted attack on the problems of urban housing and community development requires a public-private partnership. New legal and financial tools and interrelationships must be devised to permit states, local units of government and private groups to marshal their resources in ways not foreseen years ago. Some state constitutions, however, specifically prohibit the use of the state's credit for private undertakings or contain provisions which have been interpreted as precluding tax abatement and other desirable public-private cooperative arrangements. The Advisory Commission on Intergovernmental R elations, a permanent, bi-partisan body esta blished by Congress to study relationships among local, state and national levels of government, has recommended the following constitutional language to facilitate general cooperative efforts between state and local public agencies and private enterprise : Notwithstanding any other provision of this constitution, the state, its political sub18 divisions, and any public corporation may, as provided by law, where a public purpose will be served, grant or lend its funds to any individual, association, or private corporation for purposes of participating or assisting in economic and community development. These basic constitutional changes are important. It is nonetheless vital to recognize, for example, that a program of state aid to localities for urban renewal under existing constitutional provisions can go far ,to bring about a constructive public-private partnership. Program 6 A Commission to Review and Assess Uodern Techniques of Zoning and Land Use Regulation and to Recommend Legislation to Modernize the State's Zoning Enabling Act. The period of rapid urbanization since the war has proven the inadequacy of present zoning statutes to control urban sprawl. The American Law Institute is presently drafting a Model Land Development Code to overhaul antiquated state zoning enabling statutes and provide much needed new tools to communities for shaping urban development. States should authorize the establishment of a commission to review and assess modern techniques of zoning and land use regulation and to recommend legislation for modernizing the state's zoning enabling act. A legislative committee of this nature is now at work in Connecticut having the benefit of a report on th at state's plan~ ning legislation . It is drafting specific measures that may have applicability in other jurisdictions. The prime objective of such a review would be to introduce greater flexibility into typically rigid requirements which inhibit imaginative and progressive land use for community development, and to eliminate the use of zoning powers to undergird economic segregation in residential development. Program 7 Excellence in the Design of Structures In volving the Use of State Funds or Credit and the Preservation of Public Building,r and Areas of Historical or Architectural Significance. Stimulation of massive increases in needed housing and community facilities will not achieve durable improvements in urban life unless conscious and unremitting attention is paid to the quality of the structures and public spaces and their sensitivity to the needs of people. Design quality is not a matter of style or pa- tina or the application of cosmetic effects. It goes, rather, to the heart of the process by which space is shaped. Delay, inadequate fee arrangements, resistance to innovation, imprudent concern with short-run savings at the expense of long-run viability-any of these will drive superior talent away from design responsibilities in subsidized projects. Great architecture, it has wisely been said, requires great clients. The state, in its manifold direct and indirect role as a potentially "great client," should impress all those who deal with it or serve it as functionaries with ,t he understanding that excellence in the end product is a keystone of .the state's housing and community development policies. The creation of a State Council on Architecture is one means of implementing these objectives. Such a Council has been created in New York to: -encourage excellence in design of all buildings constructed by the state or under supervision or with assistance of any state agency; -stimulate interest in architectural excellence in public and private construction throughout the state; -accept gifts to further its objectives; -obtain from other agencies of the state necessary cooperation and assistance; -make grants to municipalities to rehabilitate structures of historical or architectural significance for public purposes. Whether a council or some other instrument is created is secondary to assuring that what is designed, who is involved in the process, and how the process works is sensitive to user needs and community values as well as the normal economic structures. Even in purely economic terms , costs of managing, maintaining ( and protecting) a structure may be sharply reduced by appropriate design in the first instance. The responsibility for analyzing and changing the manner in which public funds are employed in designing community facilities from capital budgeting to maintaining the end result-must be centralized and highlighted. VII. Developing New Communities Program New Community Development Corporations with Eminent Domain Powers; Deferral of Property Taxes during Development Period; State Approval of New Community Development Plans in Lieu of Other Land Use R egulation. States can participate directly in solving urban problems by encouraging the development of new comunities on raw land outside of existing urban concentrations. New communities offer opportunities both for alleviating the problem of overcrowding in the central city and for overcoming the ugly patchwork sprawl on urban fringes . By providing a wide range of housing at varying prices, including low-income housing, new communities give promise of economically and socially integrated cities. Through comprehensive planning, new comi;nunities can provide for orderly urban growth using the most desirable locations, timing their development to correspond with area-wide or regional development plans or objectives. Internally, new communities can use land more efficiently, thereby cutting costs and providing better public services. They can br~ak away from conventional thinking, devel?p~ng new arrangements in such fields as bu~dmg codes, land use controls, zoning regulations, public services and governmental structures: . New communities offer unique opportumttes to enlist the talents and energies of the private sector in the inevitable expansion in the nation's metropolitan areas. They offer 'large-scale investment opportunities and new markets. Moreover, they offer a dramatic chall~~ge to ~e private sector to demonstrate its a~1hty to ~mld new urban environments in a settmg relatively free of the many constraints which hamper private initiative in existing cities. A first step in undertaking a state new community program could be to inventory land now owned by the state which may be deemed surplus to its needs. It may be found , fo r example, in many states that thousands of acres were purchased in the last century for penal or mental 19 �institutions and hospitals in then rural areas which are no longer required in the light of mod~ em medical or penal practice. Such land could be retained by the state, but leased to new community developmeat corporations. To help fin ance approved new communities Title X of the H ousing and Urban Developmen~ Act of 1965 provides FHA insurance of mortgages fin ancing land and improvements for new communities. T itle IV of the Housing and Urban D evelopment Act of 1968 provides a federal guarantee of debt obligations of private new community developers. These provisions should ease the financing difficulties of new community developers. S~ates, however, can remove three other major barners and thus stimulate the development of new communities within their borders. F irst, they might charter new community development corporations which would be authorized to use the power of eminent domain to assemble _large tracts of land necessary for the construction of new communities. S_econd, they might defer local property taxes dunng the development period of the new communjty by temporarily reim bursing developers for local property taxes paid, as an interest-free loan to be repaid when the property is sold, but not la~er than the end of a stated deferral period. Third, they might provide for state approval of new community development plans wpich would supersede local land use regulation that would otherwise apply to new com munity tracts. In many areas where new communities would be located, largely rural local government is unable t~ respond effectively to the needs of new commumty developers. Direct state action is ~eede~ to speed development or, indeed, to make it ~oss1ble. State authority would then be relinq~1shed to the government of the new commumty, once it was established. A state land should not be leased eminent domain powers granted , the deferral of local property .taxes made, nor state approval of new commumty development plans given unless a state finds that: - the development of a new community will make a substantial contribution to the economic and social development of the area in which it is situated ; - the site ~elected fo r the new community is sound with regard to projected population trends, the availability of land required , the absence of undesirable topographical or geological features, and the availability of transportation; - the proposed new community will have a 20 sound economic b ase and sound land-use patterns; -adequate provision has been made for local self-government; - adequate provision has been made for all necessary public utilities and facilities including those n eeded for education, he;lth, transportation, open sp ace, sites for industrial and residential uses, a central business center, and cultural and recreational facilities, and - adequate housing is available to meet the needs of families of a wide variety of income levels, including a substantial number of families of low- and moderateincome levels. VIII. Centralizing Administration of Housing and Community Development Programs Program A Cabinet L evel Department of Housing and Community Affairs R esponsible to the Governor, with R esponsibility for Administering a Broad Range of Community A id Programs. A state's ability to help communities tackle the tough urban problems of poor housing and inadequ ate community facilities could be greatly increased if responsibility for aid to urban communities were centralized in a single dep artment, agency or individual. Yet, today only a score of states have centralized a uthority for housing and community affair s programs. A centralized agency for community affairs , With adequate authority to administer a broad range of community aid programs like those described above, should be able to: - help communities attract private capital investment a nd business skills in ,solving community p roblems; - help communities attract and effectively utilize greater amounts of federal assistance; - help communities attract the financial assistance of private foundations ; - fill the gaps among existing federallyassisted community programs; - help local governments improve their planning and management of community programs, so that they can better assess community needs and decide the kinds of federal and st ate assistance that are required ; - help communities develop new approaches to commun ity problems through smallscale pilot programs which, if successful, could be widely repeated; -marshal state resources for more effective assistance to communities; - provide needed technical assistance to public and private groups, and - be a clearinghouse fo r information on a ssistance available to communities and a coordinator among communities, between state and communities, and between the federal government and communities. The form a centralized state authority for community affairs will take must fit into the administrative pattern of the state. At least three variations of centralized authority have been adopted : - a department of housing and community affairs with broad statutory authority ( e.g., Connecticut, New Jersey, Pennsylvania, Rhode Island ) ; - a housing and community affairs administrator with narrower statutory authority (e.g., Alaska, Illinois, Vermont); - a special assistant to the Governor for housing and community affairs without statutory authority (e.g., Kentucky, Kansas, and North Carolina). . A department of housing and community affa irs responsible to the Governor and armed with a full range of community assistance programs is, generally speaking, the best administrative arrangement. It dramatically demonstrates the state's commitment to assist its communities on a continuing basis; it allows the Governor to assert executive leadership, and it may make possible a marshalling of state resources in other programs toward solving community problems. A principal task of the department would be to see that state assistance progra ms are more directly aimed at aiding communities to solve u rban problems. At the same time, the department as its principal task must direct its energies to helping communities to help themselves. This requires an able staff familiar with both local needs and the federal and state resources available to meet them. It also requires sufficient funding to create incentives to attract community support and capable personnel convinced of their value to the localities they are assisting. A special program of federal matching grants has been authorized to assist states in providing special training for professional, sub-professional and technical persons to be employed in housing and community development. Many states have already filed plans spelling out specific proposals, but these await federal funding, which is now anticipated. This program m ay thus provide the key resource for departmental staff development. 21 �References New Jersey : Other: I. Increasing the Supply of Low- and ModerateIncome Housing Program 1: Seed money loans, technical assistance and grants. Connecticut: Illinois: Michigan: New Jersey : New York : Other: 8 Connecticut General Statutes Annotated, secs. 218, 220 (P.A. 522, laws of 1967, sec. 20-21 ) . Chapter 67 1/2 Smith-Hurd Illinois Annotated Statutes, secs. 308-309. 12 Michigan Statutes Annotated secs. 16: 114 et seq. ' 52 New Jersey Statutes Annotated secs. 27D-59 et seq. (P.L. 1967 c'. 82). 41 McKinney's Consolidated Laws article 11. ' Urban America, Inc., Proposed Kentucky Housing D evelopment Fund; Proposed W est Virginia H ousing D evelopment Fund. Contact: James Twomey, Director Nonprofit Housing Center Ur ban America, Inc. I7i7 M assachusetts Avenue, N.W. Washington, D.C. 20036 202/265-2224 Program 2: State-developed housing. Alaska: Alaska Statutes, secs. 18.55.010 et seq. Hawaii : 8 Revised Laws of Hawaii, 1955, secs. 74-1 et seq. Vermont: Acts of 1961 , no. 21 2 ( as amended by H.B. 447, laws of 1968) . Program 3: Below-m arket-interest-rate mortgage loans. Illinois: 67 I /2 Smith-Hu rd Illinois Annotated Statutes, secs. 310 et seq. M assachusetts : 2A Massachusetts General Laws Annotated, Chapter 23 A. 12 M ichigan Statutes Annotated, Michigan : secs. 16.114 et seq. New Jersey: 55 N ew Jersey Statutes Annotated, sec. 141-5 (P.L. 1957 c. 8 1); 52 New Jersey Statutes Annotated, sec. 27D -66 (P.L. 1967 c. 82). New York : 41 McKinney's Consolidated Laws, article 2. Program 4: Interest-free loans to developers. New Jersey : Senate Bill 859, introduced June 13, 1968. Program 5: Construction loans. Illinois: 67 1/2 Smith-Hurd Illinois Annotated Statutes, sec. 3 IO. Massachusetts: 2A Massachusetts General Laws Annotated, Chapter 23A. RI 144 New Jersey Statutes Annotated, sec. 141-5 (P.L. 1967 c. 81). Urban America (see Program above). Program 6: Land acquisition and write-down. Connecticut : 8 Connecticut General Statutes Annotated, sec. 214 (P.A. 522, laws of 1967, secs. 16, 17). Program 7: Rehabilitation housing write-down. New Jersey: acquisition and Senate Bill 859, introduced June 13, 1968. Program 8: Property tax abatement. Connecticut: Michigan: New Jersey: New York : 8 Conn~cticut General Statutes Annotated, secs. 215, 216 (P.A. 522, Jaws of 1967, secs. 18-19) . P.A. 1968, No. 334. 52 New Jersey Statutes Annotated, sec. 27D-51 (P.L. 1967, c. 80). 41 McKinney's Consolidated Laws, article 11, sec. 57 5. Program 9: Administration. Illinois : 67 1/ 2 Smith-Hurd Illinois A nnotated Statutes, secs. 308 et seq. M assachusetts: 2A M assachusetts General Laws Annotated, Chapter 23A. Michigan: 12 Michigan Statutes Annotated sec. 16.114 et seq. ' New Jersey : 55 N ew Jersey Statutes Annotated secs. 14J-1 et seq. (P.L. 1967: C. 81 ) . 41 McKinney's Consolidated Laws New York: article 3. ' II. Increasing Housing Choice Program ]: Comprehensive fa ir housing Jaw. Alaska : Alaska Statutes, secs. 18.80-010. 160. Colorado: 69 Colorado Revised Statutes, article 7. New York: 18 McKinney's Consolidated Laws article 15. ' Program 2: Metropolitan area housing information centers. New York: Senate Bill 4099, Assembly Bill 6026. Contact: State Senator Whitney North Seymour, Jr. State Capitol Albany, New York Other: Paul D avidoff, Neil G old, Harry Schwartz, A H ousing Program for N ew Y ork State (1 968) . Contact : Paul D avidoff, Chairman Urban Planning Program Hunter College of the City U niversity of New York N ew York, New York Metro Denver F air Housing Center, Inc. Contact : Richard E. Young, Chairman 130 West Twelfth Avenue Denver, Colorado 80204 303 / 534-1263 Other : Program 3: Priority assistance for integrated housing. III. Improving Building Codes Program: Model building code. 18 McKinney's Consolidated L aws, New York : ar ticle 18. Advisory Commission on IntergovOther: ernmental Relations, 1968 State L egislative Program , pp. 287 et seq. IV. Improving Relocation Assistance Program: Uniform relocation program. Connecticut : 8 Connecticut General Statutes Annotated, sec. 219 (P.A. 522, laws of 1967, sec. 24) . Maryland : 33A Annotated Code of M aryland, sec. 6A. New Jersey: 52 N ew Jersey Statutes Annotated, secs. 31B-1 et seq. (P.L. 1967 c. 79). Other: Advisory Commission on Intergovernmental Relations, 1968 State Legislative Program, p. 264. V. Equalizing Landlord-Tenant Relations Program I: Means to secure code compliance. Connecticut: Community Development Act. Illinois: "For Better Housing in Illin ois," Report of the Legislative Commission on Low-Income H ousing ( April 10, 1967). Maryla nd : Code of Public Laws, Baltimore City, 1949 ed., sec. 459A. Massachusetts : M ass. Gen. Laws Anno., Ch. 111, sec. 127H (1967) . New York: Real Property Actions and Proceedings Law, sec. 755 (McKinney Supp. 1966). Pennsylvania : Pa. Stat. Anno. Lit., 35 sec. 1700-1 (Supp. 1967 ) . Rhode Island: R. I. G en. Laws Anno., 45-24.2-11 (1956) . ( Rent withholding by welfa re agencies ) : Illinois: Ill. Rev. Stat., Ch. 23, secs. 11-23 ( 1967 ) . Michigan : M ich. Stat. Anno., sec. 16.414 (3) (Supp. 1968 ). New York: N.Y. Social Services Law, sec. 143-b (McKi nney 1966) . Program 2: Evictions. Michigan : Laws of 1968, P.A. 297. Program 3: Private obligation to repair. M ichigan : Laws of 1968, P.A. 295. Program 4: Publ ic housing policies. M ichigan: Laws of 1968, P.A. 267, 344. Rhode Island: R.I. Gen. Laws Anno., 45-25-18 (House BiJI No. 1605, Laws of 1968). VI. The American Bar F oundation, under contract to the U.S. Office of Economic Opportunity, is preparing a "Model Landlord-Tenant Code." The final report, expected to be available by January 1969," will consist of a statutory text together with relevant notes and comments. Its purposes include the codification of existing Landlord-Tenant Law, as well as the suggesting of useful changes. The Code is designed for eventual submission to the various state legislatures after initial submission to the National Conference of Commissioners on Uniform State Laws. Contact: Philip Hablutzel American Bar Foundation 1155 East 60th Street Chicago, Illinois 60637 Enhancing Community Development Program J: Financial assistance for community development programs. Community Development Act, P.A. Connecticut: 522, Laws of 1967. N ew Jersey: State Aid for Urban Renewal Projects, Laws of 1967, c. 80 (NJSA 52:27D-44 et seq. ). Program 2: Urban development corporation. New York : Chap. 174, Laws of 1968. Program 3: Loan guarantees. New York: Chap. 175, Laws of 1968. Program 4: Assistance to obtain federal grants. Laws of 1967, c.82 (NJSA 52:27DN ew Jersey: 59 et seq. ). Program 5: Constitutional reform . Advisory Commission on lnter~ovOther : ernmental Relations, State L eg1s/atio11 Program for 1969. Program 6: Zoning and plan ning reforms. Connecticut : New Directions in Planning Legislation, American Society of Planning Officials. 1313 East 60th Street Chicago, Illinois 60603 American Law Institute, Model Other: L and D evelopment Code. Contact: Allison D unham , C hief Reporter 101 N . 33rd Street Philadelphia, Pennsylvania 19104 Program 7: Improving design quality. Chap. 982, Art. 22, Laws of N.Y. New York : Contact: John P. Jansson, Executive Director New York State Council on Architecture 545 Madison Avenue New York, New York 10022 R2 �VII. Developing New Communities Program: Aiding the development of new communfries. New York : Laws of 1968, Chapters 173, 174. Other: Advisory Commission on Intergovernmental Rel ations, 1969 State Legislative Program, pp. 507 et seq. VIII. Centralizing Administration of Housing and Community Development Programs Program: A centralized department of housing and community affairs. Connecticut : 8 Connecticut General Statutes Annotated, secs. 201 et seq. (P.A. 522, Laws of 1967. New Jersey : 52 New Jersey Statutes Annotated, secs. 27D-1 et seq. (P.L. 1967, c.293). Pennsylvania : Reorganization Plan 2, Act 582, 1965, Reg. Sess. Further information concerning the operation of the state programs referred to can be obtained from the follow ing officials : A laska Larry Montgomery, Director Local Affairs Agency Pouch AB Office of the Governor Juneau, Alaska 9980 l 907 /586-5 386 Connecticut LeRoy Jones Commissioner of Commun ity Affa irs 1179 Main Street P.O. Box 786 Hartford, Connecticut 06120 Ha waii Yoshio Yanagawa Executi ve D irector Hawaii Housing Authority 1002 North School Street Honolul u, Hawaii /1 /in ois Richard Blakley Managing D irector and Secretary Illinois State Housing Board 160 LaSalle Street Chicago, Illinois 60601 3 12/ 346-2000 Kansas John I va n Special Ass istant for Urban Land Community Affairs The Governor's Office State Capitol Building Topeka, Ka nsas 6661 2 913/ CE5-00l I , Ext. 261 K entucky John Vanderweir Director of Division of Land Development Assistance Kentucky Program Development Office of the Governor Frankfort, Kentucky 502/564-3840 Massachusetts Julian D. Steele Commissioner Department of Community Affairs State Office Building JOO Cambridge Street Boston, Massachusetts 02202 617 /727-3238 .. Michigan Robert McLain, Director State Housing Development Agency Department of Social Services Lewis Cass Building Lansing, Michigan 5)7/ 373-2000 N ew Y ork Edward Logue President and Chief Executive Officer New York State Urban Development Corporation 22 W. 55th Street New York, New York 10019 212/ JU 2-7030 N ew Jersey Paul Ylvisaker, Commissioner Department of Community Affairs State of New Jersey 363 W. State Street Trenton, New Jersey 08625 609 I 292-6420 North Carolina Luther C . Hodges Housing and Urban Affairs Land Specialist State Planning T as k Force 405 State Adminjstration Building P.O. Box 1351 R aleigh, North Carolin a 27602 919/829-4131 Pennsylvania Joseph W. Barr, Jr. Secretary of Communit y Affairs State of Pennsylvania 201 South Office Building Harrisburg, Pennsylvania 171 20 717/78 7-7160 Rhode Island Rev. Arthu r L. H ar dge Director Department of Community Affairs State House Providence, Rhode Island 401 / 52 1-7100 Ve rm ont J ames F in neran Executive Director State Housing Authority Mo ntpelier, Vermont 802 / 223-23 I l R3 " �I, December 1968 I Community The following statement is an excerpt fr.om a recent speech by John W. Gardner, cha(rman of the Urban Coalition: l Today one of the gravest handicaps to the local community, dne of the things that prevents it from pursuing any of its.purposes effectively, is the fragmentation of the community itselfand the fragmentation of community leadership. I saw_this at first ·h and when, as Secretary of Health, Education and Welfare, I had to visit all of our major cities-and many not so major. I found that the typical American city was split up into a variety of different worlds that were often wholly out of touch with one another. The suburbs were out of touch with the central city. Business, labor and the universities were three wholly separate worlds-as far apart as worlds can be, City Hall was usually out of touch with the ghetto and often out of touch with the ablest and most influential people in the city. The most omin6us rifts, of course, were the rifts involving various minority communities, most commonly the black community, but in some parts of the country the American Indian or Mexican-American_community. As I traveled around, I observed that these fragmented worlds were often terribly ignorant of one another, and that the ignorance bred fear, and the fear bred hostility. These cities were not communities. They were encampments of strangers. Is it surprising that cities so fragmented have great difficulty in solving their problems, great difficulty in even formulating their problems? Long before the riots, it was apparent to everyone who studied these matters closely that communities so riven could not weather a ~to:rm without cracking wide open. , The stqrms came-and they cracked wide -open. One after another. Like all structures under stress they cracked along the lines of their internal weaknesses. The rift between black and white communities was usually the main issue but when the city tried to pull itself together to face that issue, it found its capacity to do so greatly c:Liminished by the other rifts within the community-between business and labor, between suburb and central city; between police and citizen, between young and old. Nothing is more clear than that no major city can or will solve its problems without first repairing some of those devastating gaps in communication. _ In some respects it is harder to accomplish that repair after the troubles that have occurred. In some respects, of course, it is easier. Some people respond to trouble affirmatively, redoubling their efforts to act constructively. But others, both black and white, respond to the interplay of violence and counter-violence with deepened anger, fear, hostility and a desire to strike back. We shall see a good deal more of those emotions before we're through. But they won't ,5olve a thing. Sooner or later we are going to have to sit down together and figure out how we can create communities that we can all live in, all believe in, all be proud of, all defend. �i The sooner we get on with it the better. There are issues so explosive that if we ignore The Urban Coalition was formed precisely them we shall be overtaken by events-and then with that task in mind. I would emphasize the every problem on the list will be infinitely importance oithe coalition principl\;!. Some harder to solve. people think of the Coalition as just another The goal that takes precedence over all organization tackling the tough urban problems others is to begin to heal those rifts that are now of the day. But it is unique. Our distinction is ,makin& many American cities quite incapable that we bring together segments of American of any kind of healthy problem solving. We can life that do not normally collaborate in the heal those 'rifts. We can heal them through the solution of public problems. ' process of coalition, if the PJOSt influential Becaus·e of the need for such collaboration at citizens in the community will lend their ~trength the local level, the national organization has and their presence, if all significant elements in helped to form local coalitions. There are now ' the community are fairly represented and if all local coalitions in 39 cities. As in the case of concerned are unsparingly honest in facing the national, each local organization includes the toughest issues. , representatives from a variety of leadership In a number of American cities today those segments in the community-the mayor, busicondifions are being met in local urban coalitions ness, labor, minority groups and religion. And -the most i.nfluential citizens hctve stepped we encourage .the participation of other relevant forward, all significant elements in the commuelements-the u~iversities, the schools, the nity are represented and the toughest issues are press, the professions. being faced. The coalition principle requires that minority Once the significant elements in the commugroups be represented in the effort to solve nity begin to work together, once they begi~ to community problems. And such representation think as a community and act as a community, is itself a step toward solving the toughest proball kinds of things are possible. Then they can lem of all-effective dialogue between minority give city government the kind of intelligent communities and the dominant elements in support it needs; they can make the needs of the city. their city felt at the state and Federal level; they Such communication is difficult. It requires can see how all the various Federal, state and bard work and patience and imagination on the local programs fit together; they can provide part of every person involved. But there is no strong citizen support for Federal programs alternative, unless we are willing to see our cities that are working and strong citizen criticism torn apart. The one encouraging thing I can say of those that are not working. to you is that communication is possible. We And most important of all, perhaps, they can have proven th at over and over again. look ahead. When a crisis strikes it is too late to begin the Ion~, arduous process of building effective ( ch annels of communication. If there is to be fruitful collaboration between black and white communities it must begin and be tested in a National Relations Office non-crisis atmosphere. Then when trouble strikes, if it does, men who have learned to work An Office of National Relations has been estabtogether and trust one another can go into lished within the Communications Division of action together. the Urban Coalition to "broaden support for the I have not dealt with many substantive probCoalition and its objectives," John W. Gardner, lems of the cities-fiscal and governmental chairman of the national Coalition, announced. problems, housing, jobs, education , health servThe new office is under the direction of ices, economic development and so on. The Christopher Mould, former executive assistant Urban Coalition is interested in all those probto Mr. Gardner. Before joining the Coalition last lems, but we are not free to choose the year, Mr. Mould was chief of the Federal particular problems to which we shall give our Programs Division of the Justice Department's attention . The priorities are thrust upon us. Community Relations Service. 2 The associate director of the new unit will be Fred Jordan, who is leaving the post of Deputy Assistant Director for Operations and Technical Assistance of the Model Cities Administration. Mr. Jordan is a former deputy director of the California Office of Economic Opportunity, a division of the governor's office. Brian Duff, vice president of the Communications Division, said the mission of the National Relations staff will be to establish liaison with other national organizations and with Federal agencies and to seek ways for the national Coalition to cooperate with others in so ving urban problems. Action in Newark The Newark, N.J. , Urban Coalition has a shorter history than many of the 3 8 other Coalitions launched since August, 1967. But its formal incorporation in April of this year has been followed by planning on a large scale and some substantial steps toward improvement of the city's economy. Newark has the second highest proportion of Negroes in its population of all American cities; it is more than half Negro, and another 10 per cent is Spanish-speaking. A report by the city's Office of Economic Development showed that generally this 60-plus per cent lives at a much lower economic level than the rest of the population: It is largely unskilled and untrained, and it has few resources except labor to offer to Newark's economy. Projections indicate the downward trend will continue as the gap widens between the character of the population and the types of jobs available. Growth is expected to 1 come in the non-production industries that require the greatest skills, not in trade employment which could absorb the unskilled workers. The Greater Newark Urban Coalition, in a broad "Plan of Action," has proposed the establishment of a Community Development Corp. that could be the key to the city's economic development. As the Coalition sees it, the objective is to "forge for Newark a communitywide organizational capability that will be able to deal effectively with the wide range of problems th at are rooted in the economic dependency and weakness of the indigenous popul ation of the ghetto." The Community Development Corp. would be owned, operated and managed hy ghetto residents. It would run all antipoverty _ services, but more importantly would also own and manage businesses, own and manage housing and represent the community in renewal planning and other phases of public policy. One of its goals will be to become involved in businesses which are job producing with a market for its products or services both inside and outside of the ghetto. The Coalition is now organizing this corporation so that it will qualify for 502 loans from the Small Business Administration as well as grants and loans from the Economic Development Administration and other sources. <' Solid impetus was given the Coalition's " Plan for Action" by tbe establishment in early October of a $1 million fund by four commercial banks to provide loans to ghetto buisnessmen who cannot qualify for financial help elsewhere. 1 Two staff members of the New Jersey Department of Community Affairs have been assigned to administe1' the loan program through the Coalition office. The Coalition and the private, nonprofit Interracial Council for Business Opportunity will help loan applicants di agnose the problems of their businesses and try to improve their operations. Coalition president Gustav Heningburg followed the loan fund announcement with word that the organization would move into sponsorship oflow-income housing within the next two months. To enter this field , it will establish a housing development corporation with a separate board of directors composed of Negroes and Puerto Ricans. The corporation will provide fin ancial and technical assistance to community groups which wish to sponsor low- and middleincome housing construction under various fed eral and state assistance programs. The "Plan for Action" outlined by the Coalition to the community includes effortsnow underway-to organize and charter a blackcontrolled bank in the city. "The benefits of a full-service commercial bank with a special concern for the fin ancial needs of the minority com munity are obvious," it said. It is working also to deepen the commitment of the private sector to a personal loan program for lowincome residents. The state has promised to 3 �commit $150_,000 to create a guarantee fund if a matching amount is commi~ted by private interests. Gerald L. Phillippe Gerald L. Phillippe, chairman of the board of the General Electric Co. and a merpber of the Urban Coalition's steering committee, died Oct. 17 at the age of 59. Mr. Phillippe had worked for General Electric since his graduation from col1ege. He became the company's seventh president in 1961 and was elected chairmar;i of the board in 1963. He was present at the Aug. 31, 1967; emergency: convocation at which the Urban Coalition was launched, and for many years lie had led efforts ~o join ~he private and public elements of society rn fightrng poverty and unemployment in the cities. Fresno Expands From an initial focus on improving 1ocal housing, the Urban Coalition of Fresno, Calif., has turned its energies to attacking a broad spectrum of community problems. Since Mayor F loyd H. Hyde called meetings of leaders of all segments of the community to set priorities last January, task forces have been organized in jobs, youth opportunities, housing, entrepreneurship and education. · The first task fo rce to get fully underway was ~n housing, and the city responded by trading its street beautification and tree planting program ~or an effort to set up a municipal mortgage msurance fund with an initial appropriation of S10,000. The experiment lets the city insure home loans which do not qu alify for conventional financing. To administer the mortgage program, a Housing F inance Board was established by city ordinance, and it ruled that loan applicants must participate in the HOME (Home Opportunities and Management E ducation) program. HOME was developed by Fresno State hould not deal with local communities, cities, towns and other subdivisions" but only with the states. Sen. Sam J. Ervin (D N.C.) added that cities are only "creatures of the state." Administration officials contended that since law enforcement and juvenile delinquency are basically local issues, federal programs should be "community based," involving local people in the planning and operations. The U.S. Attorney General, Ramsey Clark, said it would be a mistake to "thrust the state into the pipeline" between Washington and the local area. Arrangements under which state officials could review and evaluate-but not veto-local plans for the use of federal funds were favored by the Administration. Action Council Chairman Gardner, commenting on the Juvenile delinquency bill in a July 8 telegram to Sen. Joseph S. Clark (D Pa.), noted that "most youth services and juvenile courts arc now operated at the local level. Precipitate requirements that all federal funds be channeled through state agencies," Gardner said, "would seriously impair the effectiveness of the juvenile delinquency legislation and in my view would be a grave mistake." Congress, however, wrote into the bill require1 ments that federal contributions to rehabilitation and prevention programs, the basic elements of the legislation, be allocated directly to the states. But, each state first has to draw up a comprehensive plan for distributing the money to its communities and get the approval of the Secretary of HEW. The state also has to pay part of its communities' costs in operating the program. The anti-crime bill allocated in block grants all of the money for planning ($25 million the first year) and 85 % of the money for law enforcement grants ($50 million). Each state was required to channel at least 75 % of its law enforcement grants to communities in the state. The planning money was for setting up and operating state agencies to draw up statewide law enforcement plans. Local Legislation Local coalitions have been active this year in urging legislative action by the state legislatures and by city government. They have also made recommendations on bond issues to be voted on by the public. In Racine, Wisconsin. the k1cal coalition- t hl' Racine Environment Committee- met with the 7 1 �:J / Mayor and 12 of the city's 18 aldermen to discuss the coalition's program. The Environment Committee urged swift action by the city in applying to HUD ~or planning funds under the model cities program. Another legislative goal was adoption by the City Council of a housing conservation code so that the city would be eligible for federal funds for low-income housing. This effort was led for the coalition by Paul Cody, the urban affairs manager of the Johnson Wax Company. The Louisiana legislature recently enacted a law for local option urban renewal, capping a two-year campaign by the Urban Coalition's New Orleans affiliate, the Metropolitan Area CQmmittee. Members of the committee endorsed a Community Improvement Act sponsored by the city administration, prepared and distributed a pamphlet explaining urban renewal, and testified at hearings by legislative committees in the capitol in Baton Rouge. The legislature did not act on the proposal last year, but when the New Orleans group and other supporters of urban renewal resumed the campaign in 1968, the bill passed and was signed by the Governor. The city is now actively working on its urban renewal plans. On the local level the Metropolitan Area Committee has been seeking reform of the tax structure and has endorsed bond proposals within the city of New Orleans and in an adjoining parish (county) . The Saginaw, Michigan, local coalition has been credited by the Mayor's office with gaining support within the city for passage of fair housing legislation and an unprecedented tax levy for education. The Committee of Concern, the Saginaw coalition, al o worked successfully for a county-wide mutual fire assistance pact. The New York City Urban Coalition's Housing Task Force has set up a legislative subcommittee of ten attorneys to examine what provisions in the housing law are being used or misused. The subcommittee will seek new approaches to housing legislation and regulations, as well as advising on community housing prob- lems. T tifying before the St. P.aul, Minn sota, City Council in October, representatives of the local litiou supporttd a budget increase sought by the ciiteot.or of the St. Pa1,1l municipal human and 0ml ri,iit, departmeat. Fresno Expands f rom page 4 disadvantaged youth, as weU as summer jobs. But this didn't seem enough to the task force members; they wanted a year-round role. In July, representatives from youth organizations throughout the Fresno area were convened, and a You th Council was born. It includes a voting representative from every youth group, and accepts as members all youth from 15 to 22 years old. The first official activity was a September panel discussion where a fiery exchange went on among 500 .adults and youths on "The Widening Gap Between Youth and AduHs." This gap between the generations was not the only one to be faced ; one of the specifit goals of the Youth Council is to promote interaction and communication among you,ng people from all parts of Fresno. The Council recognizes no barriers, whether city-county, school, church or racial. It has made plans to study such problems as recreation, high school curriculum and drug abuse-studies to be carried out by youth alone. And the gap between youth and the "establishment" is being tackled by having youths sit in on city commissions and take a role in the decision making- learning about community planning processes at first hand. Case Study: Minneapolis Minneapolis, one of the first cities to form an Urban Coalition, has had its first year 's experience described in a detailed case study. The report, available from the national Urban Coalition office, was prepared by Michael J. McMaous, correspondent for Time Magazine who had been on loan to the Urban Coalition. Sparked by Mayor Arthur Naftalin, 14 business leaders who had worked together after a 1966 riot in Minneapolis agreed that a longrange attack on the city's problems was needed. Each donated Sl ,000 for a citywide study on the possibility of creating a Coalition for com- ( 9 �munity focus on the problems. To conduct the study they hired Larry Harris, organizer of the Hennepin County poverty program, who was white and had the respect of most white leaders. Se,9sing distrust by the militant black leadership, H arris asked for a co-directon T. Williams, black staff director of a local community center. Their study found wide agreement on need for a coalition , but re al apprehension that business -would dominate it. The businessmen responded by minimizing their role, deciding that only seven of them would sit on a 63-man board. One-third would represent minority and poverty groups, one-third governm ent and agencies, one-third business, labor and religion. A statement of goals was drafted a nd circulated to 100 leaders by midNovember, and a temporary structure was designed with six-month terms for chair man, staff director and task1orce heads. Larry H arris became exec4tive director fo r the first six months. In early December, a single meeting of men from 60 corporations raised the $45 ,000 budget, and a six-man staff was planned. " In retrospect, this underestimation of staff needs was the largest single error in launching the Coalition," the report says. "Once the study was completed, things seemed to drag. It was not until Feb. 8 that the first Coalition meeting was held." Task forces were named on employment, housing and community information. T he latter followed up the Kerner Commission Report with . an "Anti-R acism Week" : Church-goers were given a "sensitivity survey," seminars were held on the shortcomings of the wh ite press, housing industry members were confronted with charges of discriminatory housing practices. In the week following the murder of Dr. M artin Luther King Jr., black members, venting their emotions with violent words, charged th at the Coalition was useless and formed a Black United Front to p resent fo rmal demands. T heir 14-point "Recommendations fro m the Black Community" impressed the white members with the thoughtfulness of the demands and the unity of the community. "The Coalition committed itself to a series of specific actions in direct response to the 14 points," it is reported, but "as p ainful as it was for the fledgling Urban Coalition to bow (some said 'capitulate' ) to the demands of the black community, producing action on the 10 promises was far more difficult. The white man had made new promises, but he did not provide the staff to do the hard work to produce results." The outcome : frustration on all parts, culminating in an explosive me~ting on the six-m,onth annivers ary. It was time for a new loo1c at purposes and methods . L arry H arris' temporary assignment as executive director eIJ.ded at this meeting, and he submitted a series of special recommend ations. One was carried out immediately, as Harry D avis, the man the blacks had chosen to negotiate their 14 points, became the new executive director. The appo intment had " profound symbolic value," McManus says in his report. "To have a Negro in that post underscored the city's long-term commitment to press the battle against racism and poverty." Finding th at the sh arpest cry was fo r blaok entrepreneurship, 17 fa mily and corporate found ation s form ed a consortium and pledged $225 ,000 for an equal opportunity fund. A predomin antly ql ack subcommittee of the business developm ent task force was fo rmed to decide which applicants fo r enterpri se are to be helped ; other committees give technical aid. By early October, Sl 7,000 made in "soft" loans had drawn another S64,000 from traditional lending sources to help Negroes open their own businesses. T he housing task fo rce also had produced results. By October the city had added 14 building inspec tors to fo rce landlords to maintain property stand ards; leg islati9n to protect tenants was in the works; the consortium had approved 51 applications and was reviewing 175 more fo r down-pay ment fu nds for needy fa milies. T he employment task force help ed fill 600 full-time jobs and fo und 1,470 summer jobs. Lessons learned in this year : T he Coalition cannot be "solely a behind-the-scenes catalytic agent . .. ," the case study concludes. It must actively strengthen the black leadership on a broad base, and there must be persistent communication among all parties. I t must be fu nded to afford enough fu ll-time staff to do the job; bor rowing personnel initially is only a stop-gap solution . Finally, says the report, the principals "must recognize that they are blazing new trails through perilous terrain. Like explorers, they must have goals, enthusiasm, strength and a vast capacity to be flexible when confronted by the unexp ected. " Communications Brian Du.ff, vice president of the national Urban Coalition in charge of communications, has announced the appointment of William A. M ercer as deputy director of communications. Mercer has served since April 1964 as executive director of the Business and Industrial Coordinating Council in Newark, N.J. , an organization of business, civil rights, industry, labor, education, the major religious faiths and social agencies that has developed more than 15,000 job and training opportunities for the disadvantaged in that city. Mercer is a graduate of the New York University School of Commerce, Accounts and Finance and has done graduate work at the NYU Graduate School of Arts and Sciences. 11 �I ,, \ ·/ " - ,,, I I 1 ,. The Urban Coalition ort~ Nonprofit Org. U.S. Postage PAID Washington, D.C. Permit No. 43234 1819 H Street, N.W. Washington, D.C. 20006 J1bird Class 100 �REPORT OF THE LOCAL COAL ITION DIVISION TO THE EXE CUTIVE COM.MI TTEE December 16, 1968 I. Accomplishments of Coalitions The "older gene ration" of coalitions , with increas ing frequency, is showing tangible and substantial re s ults; the younger coalitions are, in many insta nces , cons ume d by o rganizationa l problems . Some illustrative accomplishme nts are listed: The Miami Coalition, in collaboration with the United Black Federa tion, a bl a ck organization formed with the encourage ment and cooperation of members of the coa l ition, h a s taken significant steps to ease police- community relations. It is currently f o rmulating programs in o ther fields identified as key to Mi a mi's needs. Ten (or more ) coalitions are aggressively c reating entrepreneurship o pportuni ties f o r minorities. The New York Coa lition's Venture Capital Corporation has just made its f i rs t loan, in cooperation with the Harlem Commonwea lth Council. The comp l ementary Coaliti on Development Corporation h as begun with a case load o f 203 entrepreneurs s eeking t echnica l as sistance . Plainfi e ld and Racine h a ve h e l ped establis h sma ll companies . REC Industries , a small manufacturing company estab li shed by the Ra ci ne Environment Committee now employs and is training 35 "hard core " youths. Both the Philade l phia and New York coaliti ons h ave active programs designe d t o enhance the capabilities and opportun iti es o f mino r ity con tractors. Most coalitions are striving to re lieve unemployment, consist ently i n collaboration with the loca l NAB effo rts. The New Detroit Committee has found 50,000 j obs; Minneapo lis ha s promote d coordination o f NAB efforts with other o rgani zations; Fresno h as estab l ished a Manageme nt Council f or Mer it Employmen t; Riverside h as formed a Job Opportunities Counci l ; and Tacoma has establ ished a ghetto area employment o ffice which has plaqed 300 h ard-core une mp loye d. The Winston- Sa l e m Coalition h as estab li s h e d a Housing Foundation {with a million d ol l ar budget ), and h as h e lped finance a hous ing proj ect f or the elderly. Other coalitions with strong hous ing activities include Detroit, Fre sno, Lima, Minneapolis, New York, Philade lphi a , and Tacoma. The New Detroit Committee i s pressi n g l egal action t o get more adequate reso u rces for core-city sch oo l s. Bridgeport, Minneapo li s, and Racine are conce ntrating on scholarships for des e rving minority college s tudents. Detroit a l so h as stimulated the formation of partnerships between schools and major companies, �Page Two L. C. Div. Report and Newark has proposed private sector construction and operation of schools. New York has helped find sponsors for 15 Street Academies, whos e contributions will amount to $600,000 annually. New York also has a ttempted to come to g~ips with the city's decentralization crisis through public education and offers of mediation. The Philadelphia Coalition is launching an employment training program by establishing "academies" in high schools which are sponsored and operated by major compan ies. Three academies are being o rgan i zed in Of fice Management, Banking and Finance, Aviation and Aerospace, and in Electronics. Coalitions in Detroit, Newark, New York, Baltimore, New Orleans, Philadelphi a , Plainfield, Racine, and Saginaw are promoting legislative activity either at the local, state or Federal level. II. Established Coalitions New Bedford, Massachusetts established a coalition in late November; this brings the total of established coalitions to 40. III. Hou.sing Con fere nce for Coalitions During 1969 the Urban Coalition, with the help of the National Institute of Public Affa irs, will provide a s e ries of conferences to help coalitions develop effective strategies in particul ar substantive areas. The first of the s eries , To Impr ove a City ' s Housing , will be held on Feb r u ary 6 and 7 in Washington. This conference i s specifica lly d es igne d to h e lp the staf f and hous ing ta s k forc e me mbers o f coa litions to ident ify the i r rol e and strategies in improving the loca l hous ing situ at ion. IV. Organizing Efforts Efforts are currently underway to establish coa litions in 33 cities. Thi s tota l includes Chic ago , Illinoi s and Durh am , North Caro lina. Coa li tions are e x p e cted to be a nnounc e d soon in San Francisco, Kansas City and Dayton. ·Mr. Walter Re uther h as scheduled a luncheon on January 9 to advance organi zing efforts in Michigan cities . . At the Novembe r mee ting , the Steeri ng Committee resolved to aid. in the formati on of loca l coa litions . All 38 members were contacted by letter as a cons equence , r equ es ting assistance in relation to spe ci f ic cities. Te n members h a v e responded to this r equ es t; s even me mbers h a v e p r ovide d the n ame s of individu a l s who can assist in a total o f t we lve of the target cities: Since the last meeting on Nove mber 1 3, the following Steering Committee members h ave made or wil l make speech e s: Mayor Nafta lin Cl e v e l and , November 21 Mr. Close Corpus Christi, January 28. ., ��November 20 , 1967 Mr . John Feild National Coordinator The Urban Coalition 1819 H Street, N . W . Suite 220 Washington, D. C . 20006 Dear John: Mayor Allen will not be able to attend the December 18 Detroit St ering Committee m.e ting. Unfortun tely , l will not be ble to be theJ"e either so please fe 1 f re to carry on without u • Sincerely yours ., Dan Sweat DS:fy �C y F.ATL CITY HALL ATLANTA, GA. 30303 Tel. 522-4463 Area Code 404 November 2, 1967 IVAN ALLEN, JR., MAY~R R. EARL LANDERS, Administrative Assistant MRS. ANN M. MOSES, Executive Secretary . DAN E. SWEAT, JR., Director of Governmental Liaison MEMORANDUM To: Mayor I van Allen, Jr. From: Dan Sweat -{]!53 Attached is a memorandum which you forwarded to me conc erning the D ecember 18 meeting of the Urban C o alition Steering C ommittee in Detroit. The Washington office has inquired as to whether or not you plan to attend this meeting. What shall I t ell them? DS:fy a /V{J,I �FROM: Ivan Allen, Jr. D For your information D Please refer to the attached correspondence and make the necessary reply. 0 F ORM 25 - 4 Advise me the status of the attached. �October 27, 1967 MEMORANDUM TO: Members of the Steering Committee FROM: Steering Committee Co-Chairmen The next meeting of the Steering Committee will be held on December 18 at 4:00 p.m. in the Van Antwerp Room on the 8th Floor of the Veterans Memorial Building, 151 West Jefferson Street, Detroit, Michigan. Mayor Jerome P. Cavanagh will host a dinner for the members of the Steering Committee or their representatives to be served in the penthouse at 6:30 p.m. Please advise the National Coordinating Office as to whether you and/or your designee will be present. The Urban Coalition 1819 H Street, N . W. Washington, D.C. 20006 (202) 293-1530 �October 27, 1967 NATIONAL COORDINATORS WEEKLY REPORT LOCAL COALITIONS Six cities have now announced the formation of urban coalitions and intend to affiliate with The Urban Coalition--Detroit, New York City, Minneapolis, Gary, Indianapolis, and Atlanta. Sparked by the Chi~ago "Mobilizing Urban Coalitions" planning session dozens of other cities now have organizing committees. The California League of Cities, meeting in San Francisco, formally e ndorsed th e formation of coalitions in all its constituent cities on a motion by Mayor Floyd Hyde of Fresno supported by officials of San Diego. Both cities announced they are organizing coalitions. Regional meetings like the one in Chicago have been scheduled for San Francisco on November 30 and New York in early December. PRIVATE EMPLOYMENT On October 25, some 40 major Pittsburgh employers and labor leaders attended a meeting hosted by Mayor Joseph M. Barr on private industry pla ns for hiring hard-core unemployed. On October 27, at the invitation of Mayor Herman Katz of Gary and Mr. George Jedenoff, Superintendent of the U.S. Steel Gary Work s, The Urban Coalition Task Force on Private Employment joined with sev eral hundred leading Gary employe r s a nd unions in developing a progra m o f expanded e mployment opportunities. Mr. David Stahl, o f Mayor Daley' s o ffi c e r e p resenting t h e Task Fo r c e , s poke b rief ly a t the luncheon . Other local mee t i ngs on priva te employme nt have been scheduled f or Ba ltimore (Nove mber 14 ) and De troit (Nove mber 2 1) . Task Force c o chairman Gerald L. Phi llipp e wi ll s p eak a t both meet i ngs. In Balt imor e, Mayo r Theodore McKeldin and Counc i l President Thoma s D 'Al esandr o and fift een major i ndus tria l lea ders are convening a meeting of top manag e ment representatives o f Ba ltimore firms to launch a program of e x panding Negro entrepreneurship in the ghetto s timulated by sub- contract arrangements. with leading industries . • �(2) This is being viewed as a "breakthrough" type of program and is being carried out through the Baltimore Council on Equal Business Opportunity (CEBO). CEBO is a pr·o ject of The Potomac Institute. In Detroit, the New Detroit Committee's employment and education committee is convening a meeting of industrial and labor leaders to discuss expansion of private employment in the ghetto. The Ford Motor Company has announced that it will recruit 6500 new workers from the central city and the Michigan Bell Telephone Company has announced plans to concentrate its training efforts in an allNegro high school in the center of Detroit. LEGISLATION Coalition co-chairme n Andrew Heiskell and A. Philip Randolph urged members of the House/Senate Conference Committee on Independent Offices Appropriations to adopt the Senate's recommendations for funding model cities and rent supplements--$637 for model citi es arid $40 million for rent supplements. Rent supplements received $10 mi llion (th e House had earlie r appr oved no f unds) and model cities received $312 (the House had approved $237 million). The f a ct sheet and position paper on the Social Se curity amendments will be mailed to the Steering Committee the first part of nex t week. EDUCATI ONAL DISPARITIES The Task Force will meet on November 7 to map its program and round out its membe r sh i p . HOUSING , RECONSTRUCTI ON AND I NVESTMENT The Task Fo rce had t o r eschedu l e i ts October 19th meet ing f o r earl y November. EQUAL HOUS ING OPPORTUNITI ES Task Force working committee meets November 3 in Washington to consider a pilot three city pro ject invo lving development of new lower-income housing o n a n open o ccupancy b asis in suburban areas. Also scheduled for the meeting are plans to draw together some 30 0 Fair Housing Committees now operating in suburban communities for a national action session on open housing to be held in Chicago e arly in January. �November 7, 1967 Mr . John Feild Co - Coordinater The Urban Coalition 1819 H Street, N. W . Suite 220 Washington, D . C , 20006 Dear J ohn: I will be unable to attend the November 27 Working Committee me ting of the U:Tban Coalition . If any particular point com s up on which you n ed some specific word from Mayor Allen, plea e 1 t me know. Sine -r ly yours, Dan Sw DS:fy t �SYMBOLS CLASS OF SERVICE This is a fast message unless its defe rr ed cha r# actcr is indicated by the p roper symbol. W . P. MARSH A LL CH A I RMAN O F T HE B OAR D TELEGRAM ® L T- l ntcr-natio n a l - Letter T clegram 1102A EST NOV 6 67 AC072 PC078 WMR023 WDO~O (WMR) PD 6 EXTRA DUPLICATE & CORRECTED COPY WASHil'GTON DC 6 NF"T DAM SWEAT OFFICE OF THE MAYOR CITY HALL ATLA Tt£ WORKING COMMITTEE WILL ~EET AT 2:00 PM ON MONDAY, NOVEMBER . 27 IN Tt-E .NEW YORK SUITE OF THE MAYFLOWER -HOTEL, WASHINGTON, · D. Ce TO CONSIDER THE AGENDA FOR THE DECEMBER 18 STEERING COMMITTEE MEETif\G JOHN FEILD RON M LINTON NATIONAL COORDINATORS THE URBAN COALITION 2:00 27 18. SF1201 (RZ-65) �CLASS OF SERVICE This is a fas t message unless its d efe rred char• actcr is ind icated by t he proper symbol. WESTERN UNION W. P . MARSHALL CHA I RMAN O F THE BO A RD TELEGRAM ® SYMBOLS DL = Day Letter NL =N igh t Letter R . W . M c FALL PRESIDENT LT _ I ntern atio n a l - Letter Telegram The fi lin g time shown in the da te line o n domes tic telegrams is LOCAL T IME at point of origin . T ime of receipt is LOCAL T IME at poinc of destination 742P EST NOV 3 67 AH388 CTC 516 w ncvo;o rxz1 TXZ1 PD TX WASHINGTON DC 3 NFT DAN SWEAT OFF ICE 0:- THE MAOR CITY HALL A11.ANTA GA THE WORKING COMMITTEE WILL MEET AT 2100 PM ON MONDAY, NOVEMBER 27 IN THE NEW YORK SUITE OF TH.E MAYFLOER HOTEL, WASMiflGTON DC TO CONS IDER THE AGEN:>A FOR THE DECEMBER 1 g STEER ING COMMITTEE MEE·ING JOHM FEILD RON M LINTON NATIONAL COORDINATORS THE URBAN COALITION • . SF1201(R2-65) �\ -- ~ MINUTES OF A MEETING OF THE STEERING COMMITTEE New York, New York October 9, 1967 Co-Chairman Andrew Heiskell opened the meeting by welcoming Mr. John Johnson, President of Johnson Publications and Mr. J. H. Allen, President of McGraw-Hill P~blications to the meeting. They are Co-Chairmen of the Communications Task Force. By unanimous approval they were added to the Steering Committee. In addition to this, Mr. Heiskell said that the present limited religious representation warranted additions from that segment. REPORT ON BUDGET AND ADMINISTRATION Coalition costs are running slightly in excess of the approved budget. It was suggested that a finance committee made up of members from the Steering Committee be set up. Mr. Heiskell appointed Mr. Asa T. Spaulding, Mayor Jerome Cavanagh, and Mr. Theodore Schlesinger to that committee. They will oversee the budget and fund raising activities. To date, contributions have been received from the mayors and the business members. The labor contribution is expected shortly, and the contribution from religion is in the process of being worked out. PROPOSALS ON ORGANIZATION AND PROCEDURES The Report of the Special Working Sub-Committee on Organization was brought up for discussion. There was some disagreement as to whether the National Coalition· itself should take a public position on legislation pending before the Congress or whether this should be done on the local level. It was decided, however, that any statements released by the National Coalition would be seen by all members of the Steering Committee before being made public. Specific changes were made in Paragraphs 7 and 8 (see attached) and the public policy position was approved. PRESENTATION OF TASK PROGRAMS AND RECOMMENDATIONS Over fifty cities have indicated that they are interested in setting up their own local coalitions. To assist these communities, as well as others, a one-day planning session will be held on Tuesday, October 17, in Chicago. This session, hosted by Mayor Daley, will be attended by representatives from several hundred cities. The Co- Chairmen of the Task Force on Communications will be recruiting ten leaders in the various areas of communication . Contact has been made with both the Magazine Association and the Advertising Council. Both have expressed an �• -2- interest in working with the Coalition. It was suggested that Urban America might serve as liaison between the Advertising Council and the Coalition. The Co-Chairmen of the Task Force on Reconstruction Investment and Urban Development have met and have agreed on the expansion of the Task Force. They have assigned their working committee to develop r ecommended goals and a task force program. The full task force membership will meet on October 19. The Task Force on Educational Dispari t ies and the Task Force on Equal Housing Opportunity are in the process of holding working committee meetings to develop task force programs. The Task Force on Priva te Employment is scheduling meetings in three cities with local private employment task forces in preparation fo r a national private emp loyment conferenc e. REPORT ON LEGISLATION Mayor Lindsay reported on the Task Force's activities on behalf of the Cl ark-Javits Amendment . He noted that the Prouty compromise failed by five v otes . He a lso noted that a new effort would be made in the Senate and an additional effort in the House to pass an emergency public employment meas u re. He said that the l egislative committee fe lt that two other pending measures related directly to the employment problem. One was adoption of the poverty legislation; the other was defeat of the Welfare Amendments to the Social Security legi slati on. There was intense discus s ion relative to the position of the Steering Committee on this legislation. A consensus was reached that there shou ld be prepared a positi on paper on the Welfare Amendments to be distributed to the Steering Committee members to determine their reaction. URBAN ECONOMI~ COUNCIL A committee wil l be made up of members from the Steering Committee to work with Urban America on setting up the Urban Economic Council. Next meeting of the Steering Committee will be at 7:30 p.m. on December 18 , 1967, in Detroit, Michigan. �CHANGES AS APPROVED BY THE STEERING COMMITTEE on the REPORT OF SPECIAL WORKING SUB-COMMITTEE ON ORGANIZATION 7. The Coalition shall take public policy positions except where a substantial or intense disagreement emerges. 8. Statements should be communicated in writing or by telegram with a specified response date indicated to all members of the Steering Committee. �TY OF A.TLANT CITY HALL October 2, 1967 ATLANTA, GA. 30303 Tel. 522-4463 Area Code 404 IVAN ALLEN, JR., MAYOR R. EARL LANDERS, Administrative Assistant MRS. ANN M. MOSES, Executive Secretary DAN E. SWEAT, JR., Director of Governmental Lia ison MEMORANDUM To: Mayor Ivan Allen, Jr. From: Dan S weat ~ When John F e ild was in town Thursday, discussed with him the role which I could best play in assisting the ban Coalition. As I discussed it with you before, it was my feeling t there was no reason why I should attend all the working sub-co ittee meetings of the Co a lition in Washington and that John Gunther and John Feild could represent you and the other Mayors involved without specific repr esentation from each Mayor. We are in agreement on this point and I will not attend any routine · working sessions but only those where my attendance is absolutely necessary. He will keep in touch with me on any points where your individual recommendations are needed. He has asked that I act as liaison with e ight or ten Southern cities list ed as key participants i n the Urban Coalition. Th ese are: Atlanta, Little Rock, Savannah, Charlotte, Chattanoo ga, Nashville, Galveston and Miami. My role would be to maintain contact with the Mayor and/or his key representative in e ach one of these cities with the immediate task of enco ura g ing their participation in the O ctober 17 planning meeting for local coalitions in Chicago. This would involve some telephone calls during the ne x t two weeks. I belie ve this type participation at this point would be better than trying to attend meetings every week in W a shington. I would appr e ciate your thinking on this matter. DS : fy � - Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
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- Text: MINUTES OF A MEETING OF THE STEERING COMMITTEE New York, New York October 9, 1967 Co-Chairman Andrew Heiskell opened the meeting by welcoming Mr. John Johnson, President of Johnson Publications and Mr. J. H. Allen, President of McGraw-Hill Publications to the meeting. They are Co-Chairmen of the Communications Task Force, By unanimous approval they were added to the Steering Committee, In addition to this, Mr. Heiskell said that the present limited religious repre- sentation warranted additions from that segment, REPORT ON BUDGET AND ADMINISTRATION Coalition costs are running slightly in excess of the approved budget. It was suggested that a finance committee made up of members from the Steering Committee be set up. Mr. Heiskell appointed Mr. Asa T. Spaulding, Mayor Jerome Cavanagh, and Mr, Theodore Schlesinger to that committee, They will oversee the budget and fund raising activities. To date, contributions have been received from the mayors and the business members. The labor contribution is expected shortly, and the contribution from religion is in the process of being worked out, PROPOSALS ON ORGANIZATION AND PROCEDURES The Report of the Special Working Sub-Committee on Organization was brought up for discussion, There was some disagreement as to whether the National Coalition itself should take a public position on legislation pending before the Congress or whether this should be done on the local level. It was decided, however, that any statements released by the National Coalition would be seen by all members of the Steering Committee before being made public. Specific changes were made in Paragraphs 7 and 8 (see attached) and the public policy position was approved. PRESENTATION OF TASK PROGRAMS AND RECOMMENDATIONS Over fifty cities have indicated that they are interested in setting up their own local coalitions. To assist these communities, as well as others, a one-day planning session will be held on Tuesday, October 17, in Chicago. This session, hosted by Mayor Daley, will be attended by representatives from several hundred cities, The Co-Chairmen of the Task Force on Communications will be recruiting ten leaders in the various areas of communication, Contact has been made with both the Magazine Association and the Advertising Council. Both have expressed an a interest in working with the Coalition. It was suggested that Urban America might serve as liaison between the Advertising Council and the Coalition, The Co-Chairmen of the Task Force on Reconstruction Investment and Urban Develop- ment have met and have agreed on the expansion of the Task Force. They have assigned their working committee to develop recommended goals and a task force program, The full task force membership will meet on October 19. The Task Force on Educational Disparities and the Task Force on Equal Housing Opportunity are in the process of holding working committee meetings to develop task force programs, The Task Force on Private Employment is scheduling meetings in three cities with local private employment task forces in preparation for a national private employ- ment conference, REPORT ON LEGISLATION Mayor Lindsay reported on the Task Force's activities on behalf of the Clark-Javits Amendment. He noted that the Prouty compromise failed by five votes. He also noted that a new effort would be made in the Senate and an additional effort in the House to pass an emergency public employment measure, He said that the legis- lative committee felt that two other pending measures related directly to the employment problem. One was adoption of the poverty legislation; the other was defeat of the Welfare Amendments to the Social Security legislation, There was intense discussion relative to the position of the Steering Committee on this legislation. A consensus was reached that there should be prepared a position paper on the Welfare Amendments to be distributed to the Steering Committee members to determine their reaction, URBAN ECONOMIC COUNCIL A committee will be made up of members from the Steering Committee to work with Urban America on setting up the Urban Economic Council, Next meeting of the Steering Committee will be at 7:30 p.m. on December 18, 1967, in Detroit, Michigan,
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- Text: October 27, 1967 NATIONAL COORDINATORS WEEKLY REPORT LOCAL COALITIONS Six cities have now announced the formation of urban coalitions and intend to affiliate with The Urban Coalition--Detroit, New York City, Minneapolis, Gary, Indianapolis, and Atlanta. Sparked by the Chicago "Mobilizing Urban Coalitions" planning session dozens of other cities now have organizing committees. The California League of Cities, meeting in San Francisco, formally endorsed the formation of coalitions in all its constituent cities on a motion by Mayor Floyd Hyde of Fresno supported by officials of San Diego. Both cities announced they are organizing coalitions. Regional meetings like the one in Chicago have been scheduled for San Francisco on November 30 and New York in early December. PRIVATE EMPLOYMENT On October 25, some 40 major Pittsburgh employers and labor leaders attended a meeting hosted by Mayor Joseph M. Barr on private industry plans for hiring hard-core unemployed. On October 27, at the invitation of Mayor Herman Katz of Gary and Mr. George Jedenoff, Superintendent of the U.S. Steel Gary Works, The Urban Coalition Task Force on Private Employment joined with several hundred leading Gary employers and unions in developing a program of expanded employment opportunities. Mr. David Stahl, of Mayor Daley's office representing the Task Force, spoke briefly at the luncheon. Other local meetings on private employment have been scheduled for Baltimore (November 14) and Detwit (November 21). Task Force co- chairman Gerald L. Phillippe will speak at both meetings. In Baltimore, Mayor Theodore McKeldin and Council President Thomas D'Alesandro and fifteen major industrial leaders are convening a meeting of top management representatives of Baltimore firms to launch a program of expanding Negro entrepreneurship in the ghetto stimulated by sub-contract arrangements with leading industries. (2) This is being viewed as a "breakthrough" type of program and is being carried out through the Baltimore Council on Equal Business Opportunity (CEBO). CEBO is a project of The Potomac Institute. In Detroit, the New Detroit Committee's employment and education committee is convening a meeting of industrial and labor leaders to discuss expansion of private employment in the ghetto. The Ford Motor Company has announced that it will recruit 6500 new workers from the central city and the Michigan Bell Telephone Company has announced plans to concentrate its training efforts in an all- Negro high school in the center of Detroit. LEGISLATION Coalition co-chairmen Andrew Heiskell and A. Philip Randolph urged members of the House/Senate Conference Committee on Independent Offices Appropriations to adopt the Senate's recommendations for funding model cities and rent supplements--$637 for model cities and $40 million for rent supplements. Rent supplements received $10 million (the House had earlier approved no funds) and model cities received $312 (the House had approved $237 million). The fact sheet and position paper on the Social Security amendments will be mailed to the Steering Committee the first part of next week. EDUCATIONAL DISPARITIES The Task Force will meet on November 7 to map its program and round out its membership. HOUSING, RECONSTRUCTION AND INVESTMENT The Task Force had to reschedule its October 19th meeting for early November. EQUAL HOUSING OPPORTUNITIES Task Force working committee meets November 3 in Washington to consider a pilot three city project involving development of new lower-income housing on an open occupancy basis in suburban areas. Also scheduled for the meeting are plans to draw together some 300 Fair Housing Committees now operating in suburban communities for a national action session on open housing to be held in Chicago early in January.
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- Text: Office of the’ Mayor TO: ALA FROM: Ivan Allen, Jr. L] For your information {_] Please refer to the attached correspondence and make the necessary reply. (_] Advise me the status of the attached. FORM 25-4
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- Text: Vol. | e« No. 9 e June 1968 CHOW tile POI Published by The Urban Coalition . Federal Bar Building - 1815 H St. N.W., Washington, D.C. 20006 Executive Committee Sets Urgent Priorities l ZA oor “We owe it to his memory to end inaction...” The Executive Committee of the unincorporated Urban Coalition, meeting on April 8, prefaced its statement of urgent legislative goals with this tribute to Dr. Martin Luther King, Jr.: “The Reverend Dr. Martin Luther King, Jr. is no longer among us to challenge our consciences and fo press us forward toward fulfillment of a just society. We owe it to his memory and to our society fo end inaction in the face of urgent national needs. “The leadership and organizations which work together as The Urban Coalition mourn the loss of Dr. King as a courageous national leader and as a member of our Steering Committee. We here and now renew our pledge to pursue action af both the national and communify level appro- priate in character and scale to the crisis con- fronting the nation.” Tax Increase Supported To Finance New Programs The Executive Committee of the unincorporated Urban Coalition met on April 8, four days after the assassination of Martin Luther King, Jr., and adopted a set of high-priority legislative recommendations keyed to the national crisis, Immediately following the Executive Committee session, Chairman John W. Gardner, accompanied by Andrew Heis- kell and Whitney Young, Jr., held a press conference to make the actions public. The Executive Committee placed the highest importance on passage by the House of Representatives of the Civil Rights Act of 1968, with fair housing provisions, The bill passed the House by a vote of 229 to 195 several days later. It had previously passed the Senate. The proposed supplemental appropriation for the Office of Economic Opportunity also received urgent endorsement, but was defeated in the House. The Committee called across-the-board cuts of Federal expenditures “irretional by definition” and strongly opposed them. Expenditures should be raised If Congress rises to its responsibilities, the Committee said, “it will increase, not cut, expenditures for essential programs such as jobs, housing, education, and community services.” To finance such a program the Committee urged the adoption of a tax increase, “pending the accomplishment of the reordering of priorities and the reorientation of our resources in the light of urban needs.” The committee reaffirmed Coalition support for a public service employment program to create one million meaningful jobs, and public and private housing programs to produce one million units annually. The newly incorporated Urban Coalition Action Council is actively seeking fulfillment of all these legislative objectives (see page 2). The Report of the President’s Advisory Commission on Civil Disorders was strongly endorsed, with the pledge that “The Urban Coalition will give the highest priority to bringing it to the attention of leadership at all levels of both the public and private sectors.” Legislative Goals Outlined at Press Conference ee 2 (eee I ae ee Chairman John W. Gardner talks into an array of television and radio microphones at press conference called to express urgent legis- Action Council Is Created To Carry Out Legislative Program On April 8, 1968, with the approval of the Executive Committee, two separate and distinct corporations—The Urban Coalition and the Urban Coalition Action Council —were created to carry out the objectives of the unin- corporated, voluntary group previously known as the Urban Coalition. The new organizations will operate in completely different areas. The Urban Coalition Action Council will be concerned with legislative activities, and The Urban Coalition with non-legislative programs. The purpose of creating this new corporate arrange- ment was to facilitate financing by making it possible to secure tax exempt status for the Coalition under Section 501(c)(3) and for the Action Council under Section 501(c)(4) of the Internal Revenue Code. These exemp- tions have now been secured. This means that contribu- tions to the Coalition are tax deductible. Contributions to the Action Council are not. John W. Gardner will be chairman and chief exec- utive officer of both corporations. The Steering Committee of the former unincorporated Urban Coalition will serve as the Steering Committee of the new Urban Coalition. The same individuals, acting in separate and distinct capacities, will serve as the Policy Council of the Action Council. lative goals. Also participating were Steering Committee Member Whitney Young, Jr. (left) and Co-Chairman Andrew Heiskell. Gardner Calls for Million Public Jobs in Two Years Chairman John W. Gardner appeared before a Senate Labor Subcommittee recently to urge prompt approval of a public service employment bill. He generally endorsed S, 3063, the measure under con- sideration, but noted that its objective of one million public service jobs would not be reached until the third year after enactment. “It seems to me,” Gardner said, “that this pace should be accelerated so that 500,000 jobs are made available the first year and a total of one million the second year. We are in a period of great urgency and should stretch both our fiscal and administrative capacity to the utmost.” He cited a recent study made for the Urban Coalition which shows that at least 141,000 persons could be employed “almost overnight’ in 130 cities with populations of over 100,000. Projecting the study to include smaller cities, local governments and non-profit organizations, he added, makes it likely that jobs could be found for 500,000 persons within six months. All public service jobs, Gardner emphasized, should be meaningful and socially useful—not dead-end, make-work projects. He said a public service employment program should apply to rural as well as urban areas. ACTION NOTES... The Urban Coalition has moved into new headquarters in the Federal Bar Building, 1815 H Street, N. W., Washing- ton (20006). Main offices occupy the sixth floor of the building. The new telephone number is Area Code 202, 347-9630. * * * A new booklet containing the major addresses given at the National Action Conference on Equal Housing Oppor- tunities in Chicago in January has been published by the Urban Coalition Action Council and is available on request. * * * The Steering Committee of The Urban Coalition and the Policy Council of the Urban Coalition Action Council will meet at separate sessions on June 10. The first meeting will begin at 7 p.m. in the Tudor Room of the Shoreham Hotel. ke ae Local Coalitions have now been formed in 33 cities, and several others have expressed active interest. The national Coalition is placing new emphasis on assistance to the locals, hopes 100 will be established by the end of the year. * * * During the period of widespread unrest following the assassination of Dr. Martin Lufher King, President Johnson called on the Urban Coalition to play a key role in efforts to reduce tension. In response, Chairman Gardner wired the officials of local coalitions asking that they bring together the leadership cf their communities fo examine local tensions and needs, and support the pending Civil Rights Act of 1968. Ok Se In recent issues, the Wall Street Journal, Business Week, and Agenda Magazine have carried in-depth articles on the work of the Coalition. Reprints are available from Coalition headquarters. Publishers Contribute Part Of Profits From Riot Report Bantam Books and The New York Times recently con- tributed $10,000 from the profits from the sale of the Bantam edition of the Report Of The National Advisory Commission on Civil Rights to the Urban Coalition. Pre- senting the check to Chairman John W. Gardner are Tom Wicker (left), Washington Bureau Chief of the _ Times, and Bantam Books President Oscar Dystel. Wicker wrote a special introduction for the book. In recent weeks several staff members have joined the Urban Coalition and are now at work in the new headquarters at 1815 H Street in Washington. They include: Sarah Collins Carey, an attorney, served as consul- tant to the National Advisory Commission on Civil Dis- orders and was associated with the Washington law firm of Arnold and Porter. Mrs. Carey is a graduate of Rad- cliffe College and received her law degree from George- town University. Margaret Carroll, a graduate of Lawrence College, worked for the past seven years as a researcher, writer and editor for the Congressional Quarterly News Service. John Dean, former Regional Administrator of Office of Economic Opportunity programs in the Southeast, is a graduate of Howard University in Washington, D. C. Brian M. Duff, a former Washington correspondent, New Staff Members Join the Coalition came to the Coalition from NASA, where he was Director of Special Events in the Office of Public Affairs. He is a graduate of the University of Michigan. Herbert M. Franklin, former director of the Business and Development Center of Urban America, Inc., and Development Administrator of the city of Middletown, Connecticut, is a graduate of Harvard College and the Harvard Law School. Peter Libassi, former special assistant to the Secretary of HEW and director of that agency's Office for Civil Rights. Libassi is a graduate of Colgate University and Yale Law School. Richard S$. Sharpe, former Peace Corps Volunteer serving in Ethiopia, was recently Research Assistant, Cen- ter for Studies in Education and Development at Har- vard. He is a graduate of Wesleyan University and the John F. Kennedy School of Government at Harvard. Gardner on local coalitions “Nilo One Segment Can Solve the Problem Alone” Speaking at the Convention of the United Auto Workers recently, Chairman John W. Gardner discussed the importance of broadly based local coalitions, and areas of activity at the local and national levels. The following is an excerpt from his remarks: “The need for collaboration is most dramatically apparent in the cities themselves. No one leadership segment can solve the problem alone. City Hall can’t go it alone. The business community can’t solve the city’s problems singlehandedly. All must collaborate. “Because of this need at the local level, our national organization set out immediately to form local coalitions. We now have 33 and we hope to have 100 by year’s end. As in the case of the national, each local organiza- tion includes representatives from a variety of leader- ship segments in the community—the mayor, business, labor, minority groups and religion. “Now | still encounter leading citizens who say, ‘Why try to get all those people into the act? Why don’t a few of us get together quietly, and try to solve some of these problems?’ “It's a reasonable suggestion, but hopelessly old- fashioned. It won‘t work for long in any modern city. We won't re-establish stability in our cities until all significant leadership elements get together, until we bring into the same conversation all the people who exercise significant power—or veto power—in the com- munity. “This includes ghetto leadership. Nothing is more important to stability in the cities than the creation of open, continuous and understanding communication be- tween white and black communities. This must be a prime task of any coalition. “Such communication is not easy. It requires hard work and patience and imagination on the part of every person involved. But it is necessary. Indeed, there is no alternative, unless we are willing to see our cities torn apart. We Must Work at All Levels “At both national and local levels the Urban Coalition will work toward the solution of our urban problems. We will be concerned with unemployment, housing, education, race relations and many of the other problems that plague the cities today. We will try to make the public aware of those problems. We will try to bring the nation’s best talent to bear on them. We will support constructive efforts to solve them. “We will seek to supplement and not supplant other efforts. We consider every organization constructively engaged in these matters to be an ally and we will hope to work with them and strengthen them where possible. “The purpose of the coalition is to enable all of the segments of our national life, represented by those vari- ous leaders, to act together toward solutions to the urban crisis. “| would emphasize the importance of the coalition principle. The woods are full of specialized organiza- tions interested in the urban crisis. Our distinction is that we bring together leadership elements that do not normally collaborate in the solution of public problems.” scams (/;///(())\/ PRE POR east THE URBAN a U.S. POSTAGE Federal Bar Building PAID 1815 H Street, N.W Washington, D.C 20006 measringsen Se PERMIT 43234 oieestn 31 Bre
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- Title: Box 7, Folder 9, Document 10
- Text: WORKING COMMITTEE ROSTER Mr. John Feild Mr. Ron Linton (202) 293-1530 Mr. Andrew Biemiller (202) 628-3870 Mr. Jack Conway (202) 393-5596 Mr. David Cohen (202) 393-5581 Msgr. Lawrence Corcoran (202) 332-2730 Mr. Jack Davies (212) 552-4415 Mr. Alfred Eisenpreis (212) 679-0800 Mr. Walter Fauntroy (202) 387-2090 Mr. John Gunther (202) 298-7535 Mr. Patrick Healy (202) 628-3440 Vv September 27, 1967 Co-Chairmen Mr. George Meany President AFL-CIO 815 16th St., N. W. Washington, D. C. Mr. Walter Reuther President United Auto Workers 8000 E. Jefferson Ave. Detroit, Michigan Archbishop John F. Dearden President National Conference of Catholic Bishops St. Aloysius 1234 Washington Blvd. Detroit, Michigan Mr. David Rockefeller President Chase Manhattan Bank New York, N. Y. Mr. Theodore Schlesinger President Allied Stores Corporation 401 Fifth Avenue New York, N. Y. The Reverend Martin Luther King President Southern Christian Leadership Conference 330 Auburn Avenue, N. E. Atlanta, Georgia 30303 Honorable Joseph Barr Mayor of the City of Pittsburgh City Hall Pittsburth, Penn. Mr. James Hamilton (202) 544-2350 Dr. Roy Hamilton (617) 523-1100 Mr. Tom Hannigan (202) 265-8040 Mr. William C. Hart (212) 751-1311 Rabbi Richard Hirsch (202) 387-2800 Mr. Richard Idler (412) 553-4555 WORKING COMMITTEE ROSTER (Page 2) Honorable Milton Graham Mayor of the City of Phoenix City Hall Phoenix, Arizona Honorable James H. J. Tate Mayor of the City of Philadelphia City Hall Philadelphia, Penn. Dr. Arthur Flemming President National Council of Churches 475 Riverside Drive New York, N. Y.. Honorable John F. Collins Mayor of the City of Boston City Hall Boston, Mass. Mr. Joseph D. Keenan Secretary International Brotherhood of Electrical Workers 1200 15th St., N. W. Washington, D. C. Mr. Gerald L. Phillippe Chairman of the Board General Electric Co. 570 Lexington Avenue New York, New York Rabbi Jacob Rudin President Synagogue Council of America 235 Fifth Avenue New York, N. Y. Mr. Frederick Close Chairman of the Board Aluminum Company of America Alcoa Building Pittsburgh, Penn. Mr. Vernon Jordan (404) 522-8764 Mr. Jay Kriegel (212) 566-6934 Mr. Peter Tufo (202) 223-6694 Mr. Conrad Mallett (313) 963-0566 Mr. Allen Merrell (313) 322-2687 Mr. Clarence Mitchell (202) 544-5694 Mr. Charles Moeller (212) 578-2011 Mr. Paul Parker (612) 330-2100 Mr. Guichard Parris (212) 751-0300 WORKING COMMITTEE ROSTER (Page 3) Mr. John Wheeler President Mechanics and Farmers Bank Box 1932 Durham, North Carolina Honorable John V, Lindsay Mayor of the City of New York City Hall New York, N. Y. Honorable Jerome P. Cavanagh Mayor of the City of Detroit City Hall Detroit, Michigan Mr. Henry Ford II Chairman Ford Motor Company Detroit, Michigan Mr. Roy Wilkins, Executive Director National Association for the Advancement of Colored People 20 W. 40th St. New York, New York Mr. Gilbert W. Fitzhugh President and Chief Executive Officer Metropolitan Life Insurance Co. One Madison Ave. New York, New York Honorable Arthur Naftalin Mayor of the City of Minneapolis City Hall Minneapolis, Minnesota Mr. Whitney Young, Jr. Executive Director National Urban League 55 E. 52nd Street New York, N. Y. WORKING COMMITTEE ROSTER (Page 4) Mr. Joseph Rauh (202) 737-7795 Mr. Bayard Rustin (212) 666-9510 Mr. John J. Sheehan (202) 638-6929 Mr. William Slayton (202) 265-2224 Mr. M. A. Sloan (919) 682-9201 Mr. Philip Sorenson (812) 379-6331 Mr. David Stahl (312) 744-3307 Mr. Arnold Aronson Executive Secretary Leadership Conference on Civil Rights 2027 Mass. Ave., N.W. Washington, D. C. Mr. A. Philip Randolph President Brotherhood of Sleeping Car Porters Room 301 217 W. 125th St. New York, N. Y. Mr. I. W. Abel President United Steelworkers of America 1500 Commonwealth Building Pittsburgh, Penn. Mr. Andrew Heiskell Chairman of the Board Time, Inc. Rockefeller Center New York, New York Mr. James Rouse President The Rouse Co. Village of Cross Keys Baltimore, Md. Mr. Asa T. Spaulding President North Carolina Mutual Insurance Company Box 201 Durham, N. C. Mr. J. Irwin Miller Chairman of the Board Cummins Engine Company 301 Washington Street Columbus, Indiana Honorable Richard Daley Mayor of the City of Chicago City Hall Chicago, Ill. Mr. Dan Sweat (404) 522-4463 Mr. Anthony Weinlein Mr. Richard Murphy (202) 296-5940 Not yet designated WORKING COMMITTEE ROSTER (Page 5) Honorable Ivan Allen, Jr. Mayor of the City of Atlanta City Hall Atlanta, Georgia Mr. David Sullivan President Building Service Employees International Union 900 Seventeenth St., N. W. Washington, D. C. Mr. Roy Ash President Litton Industries 9370 Santa Monica Boulevard Beverly Hills, California
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
- Record Created: April 18, 2017
- Record Updated: April 29, 2021
Box 7, Folder 9, Document 7
- Result Type: Item
- Item Type: Text
- Title: Box 7, Folder 9, Document 7
- Text: November 30, 1967 Mr. John Feild National Coordinator The Urban Coalition 1819 H Street, N.W. Suite 220 Washington, D. C. 20006 Dear John: Some time ago, we discussed the possibility of my obtaining a number of additional copies of the special supplement to CITY entitled Urban Coalition: Turning the Country Around". I would be glad to receive any number of free copies that might be taking up shelf space and if there is a change, please let me know how much 259 or 300 would cost me. Sincerely yours, Dan Sweat DS;fy
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
- Record Created: April 18, 2017
- Record Updated: April 29, 2021
Box 7, Folder 9, Document 14
- Result Type: Item
- Item Type: Text
- Title: Box 7, Folder 9, Document 14
- Text: 1969 Schedule Steering Committee, The Urban Coalition ‘(also for the Urban Coalition Action Council) Date Wednesday, Wednesday, Wednesday, Wednesday, February 26 June 18 September 24 December 10 Time 6:00 p.m. 6:00 p.m. 6:00 p.m. 6:00 p.m. Place Washington, D.C. New York City To be determined Washington, D.C.
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
- Record Created: April 18, 2017
- Record Updated: April 29, 2021
Box 7, Folder 9, Document 18
- Result Type: Item
- Item Type: Text
- Title: Box 7, Folder 9, Document 18
- Text: Prepared by ,.._m:llma The Housing Staff of The National Urban Coalition \ �An Agenda For Positive Action: State Programs in Housing & Community Development November 1, 1968 A Report Prepared by the Urban Coalition's Task Force on Housing, Reconstruction and Investment �Preface and Acknowledgements On July 9, 1968, the Urban Coalition Task Force on Housing, Reconstruction and Investment met in New York City. At that time the Task Force members discussed the potential role of the states in helping cities meet urban needs. The discussion soon revealed that a few -states had begun innovative programs, many of which show promise of bringing better living conditions to an increasingly urbanized population. The Task Force accordingly requested the staff of the Urban Coalition to draw together and analyze legislative actions that had been taken, and which cQuld feasibly be taken, so that states considering enacting housing and community devel~pment programs might have guidelines for action. This report is the result of that survey and analysis, and was prepared with the goals of the Urban Coalition in mind. The Task Force reviewed and commented on the paper in draft form and at its meeting on .September 23, 1968, approved its publication. The report is intended to enable those in each _state responsible for administering, recommendmg and drafting housing programs to ask relevant questions and to be aware of possible patterns for :state involvement. The paper describes an assortment of weapons in the armory of state action which can be combined to achieve overall objectives. The Task Force believes each of the tools described in this paper is worthy of serious consideration. It further believes that no · recommendations for state action in housing and community development can be deemed complete without their consideration. _Although responsibility for the judgments in this document remains with the Urban Coalition ~ousing staff, helpful suggestions were received rom many sources. Chief among them were Seylllour Baskin, Esquire, of Pittsburgh ; Ralph Brown and Michael Herbert, Department of Colllmunity Affairs, State of New Jersey ; Joel Cogen of Joel Cogen Associates, New Haven; Mrs. Glenda Sloane, National Committee Against Discrimination in Housing; and Stephen Ziegler, Esquire, of New York City. Each attended discussion meetings and critically reviewed the draft in detail. Helpful advice, assistance or critical comments also were advanced by: S. Leigh Curry and H. Ralph Taylor of HUD; Stanley Berman, Esquire, of New York City; Peter Paul · and William L. Slayton of Urban America; Professor Daniel Mandelker, Washington University Law School, St. Louis; Richard Blakley, Illinois State Housing Board; Eugene Rossland, National Bureau of Standards; James Martin of the National Governors' Conference; Stephen D. Moses of Boise-Cascade Corporation; and Warren Lindquist, Associate of David Rockefeller. In addition, representatives of the Task Force co-chairmen supplied support and guidance from the inception of the study: Thomas Hannigan for Joseph Keenan; David Cohen for Walter Reuther; and Richard Dowdy for David Rockefeller. Jack Davies of the Chase Manhattan Bank and John Kolesar of the New Jersey Department of Community Affairs provided valuable aid in redrafting some of the material. . Helpful advice on presentation of the matenal was received from Commissioner Paul N. Ylvisaker, Mayor Jerome Cavanagh and James Rouse, members of a special Housing Task Force Subcommittee which reviewed the fin al draft. . Citations were checked and expanded by Stuart Stiller. Two reports previously published : "The States and Urban Problems," a staff study of the National Governors' Conference, and a preliminary report ("Action for Our Cities-Part IlHousing" ) of the States Urban Action Ce~ter, Washington, D. C. , stimulated Task Force thmking at the outset. �Table of Contents and Summary of Recommendations Page v Page Introduction II. Increasing Housing Choice I. Increasingcthe Supply of Low- and Moderate-Income Housing 1 2 2 3 4 5 6 6 6 ii Program I: Seed money loans, technical assistance and grants. 7 Interest-free seed money loans and technical assistance to limited-profit and nonprofit developers of low- and moderate-income housing; grants to nonprofit developers of loW· and moderate-income housing. Program 2: State-developed housing. State-developed low- and moderate-income housing. Program 3: Below-marketinterest-rate mortgage loans. Below-market-interest-rate mortgage loans to limited-profit and nonprofit developers of low- and moderate-incorne housing. Program 4: Interest-free loans to developers. Program 5: Construction loans. Program 6: Land acquis ition and write-down. Program 7: Rehabilitation housing acquisition and write-down . Program 8: Property tax abatement. Program 9: Administration. 8 9 Program I: Comprehensive fair housing law. A comprehensive fair housing law establishing a strong enforcement agency. Program 2: Metropolitan area housing information centers. Financial assistance to nonprofit metropolitan area housing information centers to aid families in finding decent housing. Program 3: Priority assistance for integrated housing. Priority assistance to developers . which have affirmative plans to locate, promote and manage their low- and moderate-income housing projects to achieve integrated housing. III. Improving Building Codes Interest-free loans to limited-profit and nonprofit developers to enable them to fall within federal cost limitations on JoW· and moderate-income housing. Construction loans to limited-profit and nonprofit develop· ers of low- and moderate-income hou sing. 10 Program: Model building code. A model building code embodying performance standards for permissive adoption by communities; a building codes appeal board ; aids for building inspection. IV. Improving Relocation Assistance 11 Financial assista nce for acquisition and sale or lease of hous. rket . mg sites for low- and moderate-income housing at ma value or less than market value. Program: Uniform relocation program. A uniform relocation program to assist communities to pay relocation expenses and to provide relocation services to families and businesses displ aced by state or local government action. V. Equalizing Landlord-Tenant Relations Financial assistance for acquisition of substandard housing and its sale or lease at market value or less th an market value for rehabilitation for low- and moderate-income housing. . Reimbursement to communities for abatement of normal ' or moderate-income b 0 us· ~roperty taxes on public housing mg; ~~yments to cover extra public service costs incurred b)' localities on account of this housing. Administration of low- and moderate-income hou sing as· sistance programs. 12 13 13 Program I: Means to secure code compliance. Permit a tenant to institute a housing c~de enforcem~nt ~roceeding, to obtain specific relief for inadequately mam~arned premises, and to withhold rent to secure code compliance. Program 2: Evictions. Prohibit "retaliatory" evictions. Program 3: Private obligation to repair. Require that every lease pledge that premises are fit_ to live in when the tenant moves in and that the landlord will keep them in good repair. iii �Page Introduction 13 Program 4: Public housing policies. ~equire local housing authorities to give reasons for evictmg tenants and establish a "Board of Tenants Affairs" for public housing. VI. Enhancing Community Development 15 Program 1: Financial assistance for community development programs. 16 Program 2: Urban Development Corporation. 17 Technical and financial assistance to communities to draft proposals for federal program grants. Eliminte ~onstitutional prohibitions, if any on the involvement o pnvate enterprise in urban affairs. ' Program 6: Zoning and planning reforms. 18 A Decent Home and Suitable Living Environment Program 5: Constitutional reform. 18 guarantees to owners of residential property and small Lo~n b usmesses. Program 4: Assistance to obtain federal grants. 18 ~n ~rban Development Corporation with state-wide aut onty to combine state and private resources for the improvement of metropolitan areas. Program 3: Loan guarantees. 17 Provide a substantial portion of the required non-federal share of federa~y aided community development programs a_nd a su~stantial portion of the cost of non-federally assisted projects. AC .. _omm1ss1on to review and assess modern techniques of zonmg an~ land use regulation and to recommend legislation to moderrnze the state's zoning enabling act. Program 7: Improving design quality. · o f structures mvolving . Excellence in the d es1gn the use of nd ta~e fu s or c_redi~ and the preservation of public buildings n areas of h1stoncal or architectural significance. VII. Developing New Communities 19 Program: Aiding the development of new communities. 21 VIII. Centralizing Administratio n of Housmg . and Community Development Programs P rogram: A centralized Department of Housing and Community Affairs. References iv New ~ommunity development corporations with eminent domam powers; deferral of property taxes during development ~eri?d; state approval of new community development plans m lieu of other land use regulation. ~C~binet lev~l Department of Housing and Community a'.r~ res~onsible to the Governor, with responsibility for adm1mstenng a broad range of community aid programs. At its Emergency Convocation in August 1967, the Urban Coalition called upon the nation to t~ke bold and immediate steps to fulfill the nat10nal goal to provide "a decent home and suitable living environment for every American family" with guarantees of equal access to all housing, new and existing. This goal requires a national effort vastly larger than anything done in the past. The Coalition set an objective of building or rehabilitating one million housing units a year for lower-income families. The National Advisory Commission on Civil Disorders later recommended construction of an average of 1.2 million units a year for lowand moderate-income families over the next five years. The Housing and Urban Development Act of 1968 set a goal of six million units in the next decade-an annual average of 600,000 units. These goals exceed by a wide margin the current annual rate of production of less than 100,000 housing units for low- and moderate-income families. Why State Action? State action must be part of any national program to provide the housing to meet the very real needs and expectations of millions of Americans. The states have abilities and legal authority unavailable to the other levels of government. If these resources are withheld from national programs, the federal government, the cities and the private sector will be seriously hampered in carrying out their roles. If the states apply their authority and abilities creatively, they can enhance the effectiveness of the other partners in programs aimed at providing a decent environment for the residents of our communities. States have authority to assist cities in modernizing governmental patterns and to amend laws that impede new programs for urban progress. States have great flexibility to experiment with a wide variety of instruments and incentives closely tailored to local conditions and requirements. States, moreover, have the capacity to respond directly to urban problems as they arise, and to work with cities in supplementing federal and local programs and to adapt them to the individual challenges each city faces. A few states have already enacted their own housing and community development programs covering a wide variety of problems. But these programs are not as well known as they should be at a time when many states are seeking new avenues through which -to enlarge their assistance to local communities to improve the quality of housing and community facilities. The Purpose of This Report. This report on possible state programs has been prepared by the Urban Coalition's Task Force on Housing, Reconstruction and Investment as a guide for those in the public and private sectors concerned with greater positive action by the states to assist cities in housing and community development. The programs for state action outlined here are designed to meet problems which fall into eight categories: V �I I I. II. III. IV. V. VI. VII. Increasing the Housing Supply Increasing Housing Choice Improving Building Codes Improving Relocation Assistance Equalizing Landlord-Tenant Relations Enhancing Community Development Developing New Communities VIII. Centralizing Administration of Housing and Community Development Programs Programs in each of these categories are prefaced by a brief statement of needs and potentials in the area. And federal programs are related to state programs where a relationship exists. The programs cited are designed to spur swift and effective action. This report does not envision establishing at the state level another set of complex administrative requirements alongside the existing federal regulations. To the greatest feasible ex tent, where states supplement or relate to federal programs, the federal appro val should be the principal criterion to obtain the additional state aid. Duplicating and possibly conff,icting state requirements may only delay or frustrate needed action. Cities have built up a body of experience dealing with federal aid procedures, however complicated these rules may be. States must master the same procedures before they can work effectively to improve them. A state administration truly intent on helping cities thro ugh these programs will develop its own experienced and capable staff. It will, consequently, -find its voice significantly strengthened in shaping -the course of federal action. Strong voices are indeed needed, because in the last analysis increasing the effectiveness of federal efforts, backed by the far larger potential financial resources of the federal government, will prove crucial. States should join with their cities in working to channel these resources into urban needs. Except for a suggested commission to revise complex laws for zoning and land use, no proposals are made that require extensive research. A suggestion is advanced for centralized state administration, but with one exception, no at~ tempt is made here to deal with long-range con~titutional or fiscal reforms. Though such organic and fiscal change is unquestionably vital, to maintain a sharp focus this report concentrates on specific measures which can be readily taken. Indeed, most of th e measures described are already being undertaken in some form in one or more states. In ~an_y states constitutional li mitations may make it difficult to enact some of the provisions vi described here. States with restrictive constitutions are, however, already undertaking many of these programs by the use of responsible and imaginative legal counsel, financing devices and careful draftsmanship. Before a sensible course of action is piscarded because of assumed constitutional difficulties, the statutes of other states should be carefully e?(amined for possible solutions to the constitutional problem. The primary objective of the majority of these programs is to attract greater federal aid-to bring in several federal assistance dollars for each state assistance dollar. A number of the programs also act to attract wider private sector involvement and to overcome legal and political impediments to swifter and more effective progress. In many cases, state assistance can be seen substantially to improve the scope and efficiency of federal and private programs. No model legislation for these programs is included since such legislation must necessarily be drafted to fit the circumstances in each state. However, citations to existing state programs and other relevant sources are given in the references at the end of this report. These citations are intended to be illustrative rather than exhaustive. The staff of the Urban Coalition is prepared to provide further information and assistance to those interested in carrying out any of these programs in their states. E ach state is urged to review these suggested programs carefully within th e fra mework of its own needs, priorities and resources. The programs outlined here could be combined or considerably altered to fit particular circumstances, and there is still certainly a great need for experimentation . Each housing and community development project, moreover, should be related to an ongoing local or metropolitan comprehensive planning effort. Ideally, each state should seek to combine new concepts and existing programs into a well-coordin ated and effective effort. It is a time to decide. It is a time to act. To justify the role of the state as an innovatora laboratory for imaginative approaches to urban problems-state leaders must dramatically increase state assistance to urban communities. Enactment and adequate funding of a com· prehensive state housing and community de• velopment program which in some measure includes the specific programs described in this report would dramatize an important commit• ment that states could make to their own people. I. Increasing the Supply of Low- and Moderate- Program I Income Housing Interest-Free Seed Mo ney Loans and T echnical Assistance to Limited-Profit and Nonprofit Developers of Low- and Moderate-Income Housing; Grants to Nonprofit Developers of Low- and Moderate-Income Housing. , Federal and state low- and moderate-income housing assistance programs rely heavily upon . nonprofit housing sponsors. * Nonprofit housing sponsors are e1the_r bro~dly-based housing development corpo_rat10ns _aiding or sponsoring a number of ho~smg proiects in the community or individual proiect sponsors, such as churches, charitable foundations , se~tlement houses, labor unions, fraternal orgaruza. tions and other civic-minded groups. As landlords or as organizers of cooperatives, these groups are likely to follow enlightened policies. As sellers, they are likely to help lowerincome buyers adjust to homeownership. Th_e social motivation of many nonprofit corporations, moreover, causes them to undertake t_he_bften risky, tedious and difficult task o~ bu1ld~g or rehabilitating housing in inner- city . or gray areas " where many private profit-motivated de' will not enter. velopers Experience has shown, however, t_hat to? many nonprofit groups are long on social dedication but short on money and skills. Thus, ~he difference between good intentions and hous'. ng in place is often assistance to nonprofit housmg corporations in the forms of: -seed money loam, (advances from a revolving loan fund needed to cover initial costs, such as preliminary architectural fees, engineering fees , site options, tenant surveys, market analyses, and legal an_d organizational expenses during the project development stage, which are recoverable from the proceeds of the FHA-insured mortgage ) ; . - grants for administrative costs, social services and other necessary expenses whic~ are important to the success o~ the organization and the project, but which may not be recoverable fro m the mortgage proceeds; -interim fina ncing ( construction loans needed when private construction loans are not available as described in program 5 below) , and - technical assistance (expert aid needed to train personnel, develop projects, se_cure project approval and oversee construct10n). • A used ;,, this paper references to 11011 profit deve lopers or n~npro{it sponsors include nonprofit cooperatives as well as ot er non profit entities. �/ The availability of grant money is particul arly important to housing development corporations. These broadly based nonprofits need start-up and operating money that will not be recaptured from the proceeds of housing project mortgages. Seed money loans interim loans and technical assistance might also be made available to limited-profit housing developers in need of this assistance. The federal Housing and Urban D evelopment Act of 1968 (hereafter the 1968 Housing Act) provides similar assistance to nonprofit developers of low- and moderate-income housing. It directs the Department of Housing and Urban Development (hereafter HUD) to provide information , advice and technical assistance. It also authorizes HUD to make 80 percent interestfree seed money loans to nonprofit corporations from a small, newly created revolving fund. It creates a government-chartered, nonprofit, private corporation known as the National Homeownership Foundation to encourage private and public organizations to provide increased homeownership and housing opportunities fo r lowand moderate-income fa milies. A state assistance program, however, would provide an additional and more flexible source of aid to developers of low- and moderate-income housing. A state program could be used to give encouragement to the form ation of limitedprofit and nonprofit housing groups within the state, when federal assistance is not available. A state program, moreover , might put more emphasis on making non-recoverable grants, rather than recoverable seed money loans-the thrust of federal aid. Grants, rather than loans, are needed to help finance housing development corporations and pay fo r the extra costs of housing low-income people, such as the provision of important social services. Program 2 State-Developed Low- and Moderate-Income Housing. Developing housing for low- and moderate-income families requires a great deal of expertness. The services qf a lawyer, real estate agent, builder, banker and administrator at a minimum are generally required. In many smaller communities it is difficult to find people who are both qualified and willing to render these services to a housing sponsor. Thus, as a logical alternative to state or federal technical assistance to help local groups become qualified to develop housing projects, the state may wish itself to develop either public housing 2 or moderate-income housing. It should only do so where there is no functioning local p ublic housing authority or moderate-income housing developer to build the housing. To produce public housing, the state would establish a public housing authority which could provide the necessary public housing anywhere in the state. R ecent changes have added great flexibility to the federally assisted public housing program. A public housing authority can now lease as well as bu ild or purch ase housing, and can sell the housing to its tenants. State-wide public housing authorities are eligible to receive federal public housing assistance. To build moderate-income housing, the state could create a nonp~ofit housing development corporation to develop this housing anywhere in the state. The corporation generally would serve as developer of the project. It would only serve as sponsor (i. e., the owner and maintainer of rented housing) in the absence of a local group which could serve as th e sponsor. In developing either public hou sing or moderate-income housing, the state would act in close cooperation with local public and private groups. And the state would not itself construct the housing; construction would be done by a private contractor under the " turnkey" system. Program 3 Below-Market-Interest-Rate Mortgage Loans to Limited-Profit and ·Nonprofit Developers of Low- and Moderate-Income Housing. States may use their power to borrow cheaply through the issuance of tax-exempt bonds to finance moderate-income housing projects at mortgage interest rates several percentage points below commercial rates. On long-term mortgages (usu ally forty years) , this lower interest rate can be of substantial assistance in reducing the cost of housing. New York pioneered this assistance with its highly successful "MitchellLama" program. F ederally assisted moderate-income housing programs also aid the production of housing by reducing interest rates. The FHA section 221(d) (3) program, for example, provides fin ancing at a three percent interest rate. Nevertheless, at least five states have enacted their own belowmarket-interest-rate programs to supplement the federal programs. There are many good reasons for states to establish their own below-market-interest-rate housing programs. Com prehensive Program. A state agency may find it difficult to undertake a comprehensive Substantial reasons still remain, however, fo r program fo r encou raging the development of moderate-income housing without itself being states to make supplemental loans to developers able to assist in the mortgage fin ancing of this to enable them to qu alify fo r federal assistance housing. Without its own below-market-inte_r<:st- when they otherwise would not. The FHA and the Housing Assistance Adrate mortgage program, the important decIS1on (HAA) continually have under conministration of whether to fin ance a proposed housing projproposals for housing projeots which sideration ect would be made exclusively by th e Federal or fo und infeasible because have been slowed Housing A dministration. proposed costs exceed maximum fe~er_al ~ost Flexibility . M any FHA programs can only be limits. In many cases federal cost hm1tat1ons used to assist housing developers in communisimply may not adequately re~ect lo~al cost facties which have enacted . a "workable program might, for. extors. Costs per unit for a proiect for community improvement"- an overall plan ample, exceed the federal maximum by as little of action for meeting problems of slums and blight, and for guiding community development. as five to ten percent; yet, as the ~evelo? er This "workable program requirement" greatly spends perh aps months redesigning ~1s ?roiect restricts the use of important FHA programs in to bring unit costs in line ( often sacr~cmg demany states where such a program has not been sirable design features in the process)'. m~reases in construction costs during the redes1gnmg_ peadopted by a locality. A state program would not riod might well consume wh atever other savmgs be subj ect to this restriction. The FHA allows a maximum six percent book were managed. This tedious proce~s causes many units of badly needed housing to die on the draftreturn to limited-profit housing developers. To . il encourage greater participation, a state program ing boards. State assistance can remedy this and s1m ar may allow a greater maximum return , such as the cost problems. To reduce th~ t~tal fed_eral morteight percent return allowed under the New Jergage assistance amount to w1thm m~x1mu~ fedsey program. . eral cost limits, the state could provide an mterL essComplexAdministration. FHA processmg est-free loan to the developer of up to t~n percent of moderate-income housing proposals is comof his cost to supplement his FHA-msured fiplex and generally time-consuming. An adenancing. R epayment of the state loan would ~e quately staffed state program may be able to deferred until after the fed eral mortgage loan is simplify its rules and regulations and thus spee~ . processing time. And based on its own expe~I- ·paid off or refinanced. The state loan is secured by a state lien on the ence, it may be able to suggest .improvements m project. T he loan is subordinated t~ the FHAFHA regulations. insured mortgage. It becomes a first hen af~er the Experim entation. States may wish ~o i_nnovate with their own programs, such as Ilhno1s, M as/" . M sac/111setts and N ew Jersey also sachu setts and New Jersey are doing with "rent • To lower rents, II m o,s, b -:;-' programs to pay the di ffe rence ~~"~\ ~om_e family can afford to pay skewing." Through rent skewing, rents in a 143.215.248.55,~e:~a~;:etd : :~:,,,~~n! state-assisted pro1ects. and the ren s o n ' may wish to delay initiating rent supmajority of apartments are raised slightly_ to Other states, howe'r~[· they see how two new sections of the plem ent programs un 1 •• low larger reductions in the rents of a mm~nty · A ct are adnumstered. b 68 H 19Secti;:s143.215.248.55(b) allows f';deral rent supplem ent payments to e of apartments. R ent skewing allows a wider . . t made t_o st~~6't/if~r,~::;0 ;,~;t~;ew fe deral interest reduc tion pa?;range of tenants' income~ in a hous'.ng f roi ec Sect,onb de for state-assisted housing. These payments_ w1 I m ents to e ma b t ee n normal rents on a state-assuted th an would be possible without skewmg. ma~e up the dlfferenc{ ,:h;; ,. tenants can afford to pay ii they u- pro1ect and the re nta_ s ·ncome for rent . Tir e paym ent cannot ex- P rogram 4 Interest-Free Loans to Limited-Profit and Nonprofit Developers to Enab le Them to Fall Within Federal Cost Limitations on Low- and Moderate-Income Housing. Federal programs have almost excl u_sively assisted housing by reducing fin ancmg costs through mortgage lo ans, mortgage in_surance and interest subsidies. T he 1968 H ousmg Act ex~ pands these programs. Due to th e ex istence of substantial federal ass istance some states ~ ay not wish to engage in the same form of assistance. ( As desc ribed in P rogram 3 above.) pay 25 percent of 1•.e~ 'vo11ld lower the effective interest rate on ceed an am ount w uc , 'd I om the rentals to less than one perthe project mortgage pa, r cent. . . f state m ortgage loan and federal rent Th ese comb1'.1at1ons :eduction payments give pro mise of lwussupplem ent or mtere~t in state-assisted housing. Ing families of low m co;"e ver that in many cases the state Jt does not appear, ,owe t ~ e loan and the federal in terest below-mark et-interest-ra!lel m ar bg ·,g,e to reduce rents below the . . tance w, com , . d reduction ass1s I the m ortgage were FHA-msure at amount _they would be di ti e fe deral program , and not statemarke t-mterest rates un er 1 1 1 arket-in terest rates. . 11 assisted at b e O H- m 0 m ent m ay not exceed the T he federal interest"i:e!~~f'~teJ' t~ pay under the mortgage" amount a m ortgago~, Id b! obligated to pay if the m ortgage and the am o unt he ,!vo~t ti e rate of one percent. To the ex tent we re to bear inte~es! ~ ' federal assistance com es into play . this one percent l1111k1tat1? 1t1 orenst-rate m ortgage loan wo uld simply .1 re below-m ar e t-Ill e I t ,e ., a f d I b itli• by lowering th e am ount the mortgagor 'i,, reduce the e era ·"'., the absence of the state below-market"is obligated to pay. 1 the federal government would make interest-rate mortgage ,oa,b,, . of FHA -insured market interest higher payments on t ,e rate morgage. as,s 3 �financing of federally insured housing for lowand moderate-income families. This action was instrumental in clearing the backlog in Illinois in 221 (d)(3) housing. As of October 1968, $288 million were allocated to qualifying banks in proportion to ,their outstanding loans. Additional sums for time deposits have been made available where needed by banks to meet special public needs. Those varied needs have included programs other than housing. The Illinois plan involves no sacrifice to the state of earnings on its investments, or greater risks of loss. Where this state stimulus is not possible and construction financing is difficult to secure, states might make or participate in providing interim construction loans at below-market-interest rates to developers of low- and moderate-income housing. A state could borrow its loan money through the sale of tax-exempt bonds and establish a revolving loan fund. Since construction financing is short-term, such a revolving fund would have a rapid turnover. Thus, a limited amount of money could finance a large number of projects. No net cost ,to the state would be incurred, and a state could in fact earn a sum on its Joans sufficient to pay borrowing costs and the costs of administering the program. FHA-insured mortgage is paid off. (FHA has indicated approval of this type of state assistance since_ t~chnically it does not constitute currentl; proh1b1ted secondary financing.) The state loan is well secured. Even were the improvements on the property to be depreciated completely by the end of the FHA-insured mortgage period, the land would still remain to secure it. The small state loan brings high returns. If the state w~re, for example, to finance ten percent of the proJect cost With its supplemental loan, the state loan would call forth ten times its amount in private and federal investment. Program 5 Construction Loans to Limited-Profit and Nonprofit Developers of Low- and Moderate-Income Housing. The recent tight money situation and the general shortage of long-term mortgage financing in some areas have hampered the development of low- ~nd moderate-income hom;,ing. Despite a commitment on the permanent financing by the federal government and in some cases FHA insura~ce of the interim construction loan, conventional loans have often been unavailable to finance the construction of housing in the interim period before the permanent financing takes place. When interim construction financing is available for lo:V- and moderate-income housing, the ~eveloper is often required to pay high rates thus mcreasing housing costs. ' The shortage and high cost of short-term construction financing can thus be a substantial bottleneck to the production of large amounts of low- and moderate-income housing. State authority to invest millions of dollars of cash resources not immediately required for expenditure provides leverage to encourage banks to meet public objectives. In January 196 7, the sta:te of Illinois announced a Sta~e Investment Program to forge a new partnership between the public and private sectors-between public treasuries and private ba~s._ The_ program was implemented through adm1mstrat1ve action by the state treasurer. Under this program deposits of state funds are made in banks agreeing to make interim financing available for construction of low- and moderate-income housing. Working with FHA and several banks in the Chicago area, the state agreed to deposit, at competitive interest rates about $90 million in those banks which in tur~ were willing to invest equivalent sums for interim 4 Progra1n 6 Financial Assistance for Acquisition and Sale or L ease of Housing Sites for Low- and ModerateIncome Housing at Market Value or L ess Than Market Value. .. A state program of assistance for land acquisition can: (1) increase the incentive of limitedprofit developers to construct low- and moderate-income housing; or (2) help assemble large housing sites and, where justified, lower the cost of housing by writing down the cost of the land through its sale or lease to a nonprofit housing developer at less than fair market value. (1) Increasing the incentive of limited-profit developers to construct low- and moderate-income housing. Nonprofit housing sponsors alone cannot build or rehabilitate six million houses in the next five years. The private developer can produce a large share, either by building "turnkey" public housing (public housing developed by a private developer rather than the local public housing authority) or by operating as a limitedprofit sponsor developing low- and moderateincome housing. Since 1961, when FHA assistance for moderate-income housing began, 42 percent of its projects have been built by limitedprofit sponsors and 58 percent by nonprofit sponsors. As a limited-profit sponsor the private developer is allowed a regulated return before taxes on its equity investment in a housing project. In FHA programs this is usually six percent. With the benefit of early writeoffs and other favorable investment factors to which a developer is entitled under the law, he can substantially increase his after-tax return above this amount. Yet even with the favorable rate of return presently allowed under the law, only a small number of units of low-r,isk, moderate-income housing projects have aotually been built by limited-profit developers, principally at times when other construction business has been slow. To increase the incentive for a limited-profit developer to build low- and moderate-income housing, states could leverage the federal program by financially assisting communities to purchase land and to lease it to a developer at favorable terms without loss to the states or the municipalities. Land purchase and lease frees the developer from investing substantial capital in land, which cannot b_e depreciated, and substitutes an annual rent on the lease which is a deductible expense, thus increasing his after-tax return. Such land purchase and lease would also lower the cost of housing by enabling lower sales prices or rents. States may be able to obtain the money needed to help municipalities purchase and lease land by floating state-guaranteed, tax-exempt bonds which are repaid from rent receipts under the lease. The financing is analagous to state financing of industrial parks. (2) Assembling land and ·reducing the cost of low- and moderate-income lwusing . The increasingly high cost of suitable land in metropolitan areas is a major factor in boosting housing costs beyond the reach of low- and moderate-income families. The federal government does not provide financial assistance in writing down land costs for housing except in urban renewal area , which, for the most par·t, have been in the central city. Section 506 of the 1968 Housing Act, however, now allows federal assistance for "write downs" of open land in declared urban renewal areas for low- and moderate-income housing. But designating urban renewal areas and receiving federal funds is a long and cumbersome process, involving more than writing down land costs for housing projects. Additional state assistance to communities 5 �j assembling and developing land for low- and moderate-income housing outside of urban renewal areas would give substantial aid to the large-scale production of low- and moderateincome housing. By use of the community's eminent domain powers, large tracts of land could be assembled. With state aid a municipality could sell or lease the land at less than market value to nonprofit developers where the write down was to be reflected in lower rentals or sales prices. Program 7 Financial Assistance for Acquisition of Substandard Housing and Its Sale or Lease at Market Value or Less Than Market Value for Rehabilitation for Low- and Moderate-Income Housing. Systematic rehabilitation of housing in the core or "gray areas" of cities is an important part of the nation's housing program. The federal assistance needed to clear these areas for the development of new housing is greater than is likely to be made available in the foreseeable future. Even if the money were available, •the dislocation and disruption involved in clearance and reconstruction would weigh heavily against total reliance on c;learance as a renewal instrument. Of the six ml'llion standard houses that the Department of Housing and Urban Development sets as a production goal, two million ( one third) are intended to be rehabilitated structures. Housing rehabilitation could be increased greatly if the states were to help municipalities purchase substandard houses and resell or lease them to nonprofit developers which would rehabilitate them for sale or rental as low- and moderate-income housing. With state aid a municipality could sell or lease the substandard houses at less than market value where the write down was to be reflected in lower rentals or sales prices. In addition, a judicious use by a locality of its power of eminent domain would enable a systematic rehabilitation of all declining properties in a neighborhood or on a block, rather than the rehabilitation of only those houses which are on the market, as is now generally the case. This systematic rehabilitation has a greater effect in upgrading entire neighborhoods. Program 8 Reimbursement to Communities for Abatement of Normal Property Taxes on Public Housing or Moderate-Income Housing; Payments to Cover 6 Extra Public Service Costs Incurred by Localities on Account of This Housing. Under the federally assisted public housing program,communities are required to abate real estate taxes on the project. They receive a payment in lieu of taxes of approximately ten percent of the rentals of the project. This reduction of tax income to communities has proven to be an important barrier to the production of public housing. State payments to make up the difference between what the public housing pays in taxes and the normal tax bill would help communities to provide needed public housing. On the other hand, local property taxes often account for between twenty arid thirty percent of the rents paid by occupants of FHA-assisted moderate-income housing. These projects are usually taxed as though they were conventional apartments even though the rental income they produce is limited by FHA. State payments to communities to reimburse abatements of normal local property taxes on federally and stateassisted housing would be a potent device to lower rents. An additional barrier, even if full taxes are paid by or on behalf of low- and moderateincome housing projects, is the higher cost of public services for occupants of higher density housing, e.g., schools, playgrounds, social services. State payments to communities in excess of local taxes to meet these extra costs would provide an inducement to communities to accept low- and moderate-.income housing. This inducement would assist in locating low- and moderate-income families outside central cities, closer to places of expanding employment. Gearing these payments to an industrial development program would help relieve labor shortages which increasingly inhibit economic growth of outlying areas. Program 9 Administration of Low- and Moderate-Income Housing Assistance Programs. States administer housing assistance Programs one through eight in varied ways. A pattern of clustering programs designed to encourage the construction of low- and moderate-income housing-seed money loans and grants, technical ass istance, construction loans, tax abatementaround the core program of making belowmarket-interest-rate loans to developers has, however, emerged in several states . These programs are then either administered directly by the state with the below-market- interest-rate loans being made from a housing II. Increasing Housing Choice development fund . Or they are administered by a separate public benefit corporation, sometimes called a Housing Development Authority or Housing Finance Agency. State constitutions may well dictate this choice. The important factor in administering these programs is to assure that one responsible agency has the authority to combine them imaginatively. For example, a state seeking to increase the production of low- and moderate-income housing and homeownership by low- and moderateincome families, might administer each of the first eight assistance programs described. The state could make seed money loans or grants and give technical assistance to help establish sponsors. . It could help finance projects by makmg construction loans and permanent mortgages to developers. And it could make additional loans to lower the costs of projects which exceeded FHA maximum cost limitations. Where sponsors did not exist it could develop projects itself. It could assist. communities in purchasing and leasing housing sites or houses for rehabilitation. The sales or leases could either recover fully the state's costs or, if needed, could assist the project by recovering less, i.e. , by writing down the land. ·. f It could help to reimburse commumties or abated taxes where needed. And in addition to the first eight programs, the stat~ might be given some unearmarked de_monstration funds to devise new ways of meetmg its housing problems. For example, using demonstration money, the state might: -make equity loans to developers of ~ooperative housing to enable moderate-mcome families to purchase their houses on a cooperative basis with a minimal down payment and liberal financing of the balance Program 1 A Comprehensive Fair Housing Law Establish. over a period of years, or - establish a rent assistance program to fill m ing a Strong Enforcement Agency. gaps in federal programs whereby houses The landmark June 17, 1968, Supreme Court would be purchased or leased by ,~ e state decision, Jones vs. Mayer Company (20 L.Ed. and then leased or sublet to low-mcome 2nd 1189), interprets an 1866 Civil Rights law families at reduced rentals. (guaraillteeing to all citizens the right "to inherit, To fin~nce loan-type programs, such as seed purchase, loan, sell, hold, and convey real _an? money loans, construction loans, below-m~ketpersonal property") to prohibit ra~ial discnnninterest-rate loans, and purchase and leasmg of . land, the state would issue tax-exempt bon~s nation in the sale or rental of bousmg. The Jones decision, however, is not a substi(guaranteed by the state where the state constItute for a comprehensive fair housing law . .It tution permitted). Grant programs and other ~scovers only racial discrimination and not_ dissistance would be financed by state appropnacrimination on the grounds of religion or national tions. 7 �origin. It does not deal with discrimination in the provis,ion of services or facilities in connection with the sale or rental of a dwelling. It does not prohibit advertising or other representations that indicate discriminatory preferences. lit does not cover discrimination in financial arrangements or in the provision of brokerage sources. Nor does it provide for administrative assistance to aggrieved parties or enforcement. And although courts can fashion effective remedies to enforce the 1866 statute, ,the statute contains no provision expressly authorizing a federal court to issue injunctions or to order payment of damages. The 1968 Civil Rights Act, on the other hand, covers these specific acts of discrimination omitted in the ·1866 s,tatute and fashions administrative and legal remedies as well. The remedies, however, are not strong enough to provide adequate relief in many cases for those who suffer discrimination. The Secretary of HUD may investigate complaints. His powers, however, are limited to conference, concilia-tion and persuasion. He may not issue an enforceable administrative remedy. For enforceable relief under federal law, the aggrieved party must himself generally go to court. (The Attorney General may bring suit based on a pattern or practice of discrimination or a denial of rights to a group of persons that raises an issue of general public importance.) The 1968 Civil Rights Act, however, invites strong state action to gu arantee fair housing. Section 81 0 ( c) provides that wherever a state (or local) fair housing law provides rights and remedies at least substantially equivalent to rights and remedies in the 1968 Act, the federal government will defer to the state in its enforcement activities. Thus, in enacting a comprehensive state fair housing law and in establishing a strong state fair housing agency to secure the constitutional rights of raci al and other minority groups, states would be filling the gap in federa l legislation and taking advantage of the priority extended to state legislation by section 810 ( c ) of the 1968 Act. A strong and comprehensive state fair housing law should : -establish an enforcement agency with adequate staff and appropriations to enforce the law; -empower the enforcement agency to receive complaints fro m citizens, from appropriate state officials, and to initiate complaints on its own motion; - ban all discrimination on the grounds of 8 race, religion, or national origin in the sale or rental of all property, including: -refusal to sell or rent, -discrimination in the terms or conditions of a sale or rental, -use of advertisements or applications which express or imply any such discr-imination, -discrimination by real estate salesmen or brokers, or -discrimination by lending institutions; -empower the enforcement agency to use temporary injunctions on sale or rental during its investigation of a complaint; -empower the enforcement agency to conciliate, issue cease and desist orders, require appropriate affirmative acts to cure the discrimination ; -provide penalties for a failure to comply with the enforcement agency's orders; -subject the enforcement agency's orders to judicial review, and -empower the enforcement agency to carry on appropriate research and education programs to eliminate hous.ing discrimination. ment, state and federal grants. There is presently no regular source of funds for the support of housing information centers. States might make grants to help establish and operate such centers. Progran1 3 Priority Assistance to Developers Which Have Affirmative Plans to Locate, Promote and Manage Their Low- and Moderate-Income Housing Projects to Achieve Integrated Housing. Racial integration of housing projects or neighborhoods rarely occurs without deliberate measures by developers. Low- and moderate-income housing must be located in areas where housing for these families does not exist in great numbers. The housing must be affirmatively marketed with minority communities not accustomed to considering housing so located. Rental projects, if they are to become and remain integrated, must be managed with ,this objective always in mind. A state can encourage developers to locate, market and manage projects with the objective of achieving integration by giving priority on its state assistance (Programs one through eight) to developers with affirmative and practical integration plans. Program 2 Financial A ssistance to Nonprofit Metropolitan Area Housing Information Centers to Aid Families in Finding Decent Housing. In most communities the existing supply of decent housing for low- and moderate-income families is not limited to the central city ghetto or to its gray areas. It is often found in other p arts of the metropolitan area as well. The lack o f information on available rental and sale housing throughout the metropolitan area, however, is a substantial barrier to the movement of families out of declining neighborhoods of the central city. F amilies in the housing market need help in finding housing they can afford, convenient to their jobs, and located in good school districts. A nonprofit metropolitan area housing information center would list available housing, i nteres t low- and moderate-income families in moving to areas with which they are initially unfa miliar, escort them on inspection of houses, ed ucate the community to the need for providing more housing fo r low- and moderate-income families and undertake other associated activities. The Metropolitan Denver F air Housing Center, Inc. is the principal example of a housing information center providing these kinds of services. It is supported by private, local govern- \ ,I 9 �Ill. Improving Building Codes P rogram IV. Improving Relocation Assistance A Model Building Code Embodying Pe,jormance Standards for Permissive Adoption by Communities; A Building Codes Appeal Board; A ids for Building Inspection. Program In most states, communities enforce differing and generally outdated building codes. This profusion of outdated codes has tended to raise building costs by perpetuating the outmoded and uneconomic use of building materials and building techniques and by restrieting the natural play of economies of scale in the construction industry. Higher building costs, in turn, unnecessarily restrict the availability of decent housing for low- and moderate-income families. States might assist communities to improve their building codes and building codes enforcement. Specifically they might: - authorize the development of a state model building code utilizing to the greatest extent possible performance standards for permissive adoption by communities. (To maintain uniformity the state should specify that the code would be automatically amended when state amendments were adopted, and that communities might only alter the model code upon specific approval of the administering agency) ; - establish an appeals board to hear appeals from decisions on the administration by communities of the state model code or other codes adopted by communities; - require that state and local government agencies utilize the state model code for public construction; - require that the state model code be used for federal or state-assisted nonpublic construction ; -establish professional qualifications for building inspectors, train and license them; - establish minimum staffing requirements for community building inspection departments; --offer building inspection services to communities which do not wish to maintain their own building inspection departments . 10 A Uniform R elocation Program to Assist Communities to Pay R elocation Expenses and to Provide R elocation Services to Families and Businesses Displaced by State or Local Government Action. Communities cannot be rebuilt for public objectives without uprooting families and businesses. The public has the obligation to compensate these dislocated families and businesses for the costs of dislocation, and to see that they are relocated in suitable accommodations. Unfortunately, famil ies displaced by public action are often those with the least freedom in the housing market- the poor, minorities, large families and elderly. Special government efforts therefore must be made to relocate these families successfully. States might establish a uniform relocation program for families and businesses displaced by state and local government programs. It would give financial assistance to communities in making relocation payments and providing relocation services where federal assistance is unavailable. To reduce inequities in the treatment between families displaced by federally assisted activities and families displaced by state or local activities, to the extent possible there should be uniformity in the relocation assistance offered to fa milies or businesses displaced by any public action- federal, state or local. Federal urban renewal relocation assistance includes : - relocation payments to families and individuals which may not exceed $200 for moving costs and property loss; -relocation adjustment payments totaling up to $1000 over a two-year period to fa milies and elderly individuals to assist them to relocate in standard accommodations; -an additional payment to owner-occupants of residential property acquired for an urban renewal project ( in lieu of a relocation adjustment payment) to enable them to purchase a replacement dwelling within one year. (This payment would be that amount not in excess of $5,000, which, ' when added to the acquisition price paid for the owner-occupant's borne, equals the average price for an adequate replacement home in the community, and - relocation payments for moving expenses and re.imbursement to business concerns or nonprofit organizations for property loss, up to $3,000, incurred in their move. (If no property loss is claimed, reimbursement for moving expenses can be made up to a maximum of $25 ,000.) Such payments are covered in full by a federal relocation grant made to the appropriate local agency. If the moving expenses of a business concern exceed $25,000, the locality may elect to reimburse the excess costs through a local cash payment which will be shared by the federal government through a relocation grant in the same percentage as other urban renewal project costs. State-assisted relocation agencies should be required to: -establish a single central relocation agency to offer services to all families needing relocation in a metropolitan area ; - formulate a single reloc-ation plan covering all foreseeable relocations by all government programs; - see that displaced families are relocated in . standard housing that is decent, safe and sanitary ; - relocate families to the greatest possible extent practicable outside of declining areas of the community; -provide for temporary relocation of displaced fa milies in decent housing where permanent housing is not immediately available; -pay the expenses of moving the displaced family or business and fix payments to cover other expenses, and - provide social services to relocated families with such needs. 11 �V. Equalizing Landlord-Tenant Relations The law governing the relationships between landlord and tenant in the Anglo-American system has not changed substantially since feudal times. Historically the law viewed a lease, not as a contract recording mutual obligations, but as a conveyance of an interest in land subject to conditions. Consequently, the law as formulated by the courts does not adequately, with some recent notable exceptions, reflect the new aspiratiions and economic realities of an urbanized society. An updating of these archaic laws" not only will tend to reduce tensions in our cities by responding to the just claims of tenants, but may instill greater respect for law -in general and provide greater incentives for the maintenance of property by ,those who occupy and own it. At the same time, responding to the valid claims of tenants while ignoring the legitimate interests of those who own and finance housing would not be productive. Landlord-tenant relations have attracted legislative attention recently in Illinois and Michigan. The Illinois Legislative Commission on Low-Income Housing, in a 1967 report entitled "For Better Housing in Illinois,"examined many of the inadequacies in the laws governing landlord-tenant relationships and the enforcement of housing codes in that state. Revisions of these laws were recommended in ways which may be applicable to other states. Five laws that significantly equalize the rights of tenants have recently been enacted in Michigan. These laws and similar provisions in other states are the basis for the following guidelines. Program 1 Permit a Tenant to Institute a Housing Code Enforcement Proceeding, to Obtain Specific R elief for Inadequately Maintained Premises, and to Withhold R ent to Secure Code Compliance. Anti-trust laws, securities laws and other modern regulatory measures have commonly provided for private as well as public enforcement. By contrast, although the tenant is a critically interested party, the enforcement of housing codes has been heretofore generally a two-party affair between the public enforcement agency and the landlord. Tenants have not been allowed to initiate or control enforcement proceedings. Yet their critical concern is justified in view of the fact that in many instances the proceedings can lead to the abandonment of the building, the eviction of the tenants, or a major increase in rent; and the failure to take action would result in the continuance of substandard and often intolerable conditions. 12 The Michigan law makes housing code enforcement a civil rather tha'Il a criminal matter, allowing a tenant to begin court action. The law also creates a variety of court actions that may be taken against landlords, including injunctions or orders permitting the tenant, a receiver or the city to make necessary repairs. The repairs can be paid for out of rents withheld in an escrow fund or by a lien on the property when the landlord is at fault, or by an assessment against the tenant when he is at fault. In Connecticut, state law authorizes municipalities ,to create repair receivershipt with the state advancing the cost of the repairs until rent receipts replenish the fund. These rent receivership or rent withholding measures are also a housing code enforcement technique. The state of New York, because of its dense patterns of urbanization, as long ago as 1930 allowed New York City residents to pay rent into court rather than to the landlord when a certified code violation exists. The court retains the rent, and evictions are stayed, until ,t he violation is corrected. To stimulate prompt remedial action by the landlord, the law was amended in 1965 to permit the tenant to arrange for heat, electricity, janitorial service or make repairs and apply to the court to have bills paid out of the rent on deposit. Another method of rent withholding, applicable to New York City tenants, permits onethird of the tenants in an apartment to bring action against landlords when conditions in the building are dangerous to "life, health or safety. " The court may appoint an administrator to collect rents and use them to remedy defects. Rhode Island, Pennsylvania (limited to Pittsburgh, Philadelphia and Scranton) , M assachusetts and M aryland (limited to Baltimore) have recently enacted similar measures. In a rela,ted problem area, some states (Illinois, New York and Michigan among them) have enacted legislation suspending the legal duty of a welfare recipient to pay, and the right of a landlord t? collect rent for housing in violation of applicable housing codes. Program 2 begin eviction proceedings without giving any reason. A few courts, however, have begun to rule that retaliatory evictions violate the tenant's constitutional right to petition for redress of grievances. The Michigan law enables a tenant to resist an eviction by contending that it is in retaliation for exercising lawful rights, such as complaining to public code enforcement authorities. In addition, the new law reverses the general common law rule that the breach by the landlord even of an explicit promise to make repairs does not excuse the tenant from payment of rent. Thus the tenant may withhold his rent until the landlord makes the repairs he has promised. Program 3 R equire that Every Lease Pledge that Premises Are Fit to Live in When the Tenant Moves in and that the Landlord Will Keep Them in Good R epair. The common law provides a tenant with little assurance that his dwelling will be comfortable or even habitable. No duty to repair is imposed on the landlord and he is under no duty, in the absence of express agreement to the contrary, to maintain or repair the premises. This rule is so firmly entrenched it is widely felt that specific legislation is required to override it. In o rder to correct some of the injustices of the basic rule, courts long ago adopted the fiction of a constructive eviction-which permitted the tenant to move out without payment of further rent if he lost the beneficial use and enjoyment of the premises through lack of beat -or light or some similar gross defect. The right to leave, however, is an empty one for the slum dweller. The Michigan statute, accordingly, specifically places upon the landlord the duty of repair during the term of the lease, and the duty to comply with applicable health and safety laws, except when the disrepair or violation has been caused by the tenant. Presumably, the courts will construe this to give the tenant the right to sue for damages, consisting of the difference in the rental value of the premises as they are and their value if in the condition warranted by the landlord. Prohibit "R etaliatory Evictions." The term "retaliatory eviction" refers to an eviction undertaken in retaliation for the tenant's complaint to municipal authorities of violations of housing and health regulations: W~ere landlords have resorted to this practice it has not been challenged. This may result from the law prevailing in most states, where a landlord may Program 4 R equire Local Housing Authorities to Give R easons for Evicting T enants and Establish. a "Board of Tenants Affairs" for Public Housing. Local housing authorities are instruments for local, state and federal housing policies. Such 13 �authorities are created by the state, subsidized by the federal government, and their members are appointed by the cities. Unlike the private landlord, the local housing authority is not motivated by profit. The admission and eviction of tenants is the source of most controversy in public housing practices. Because of the silence of most state enabling statutes and the special concern of the federal government with financial aspects of subsidized housing authority operations, the local authority typically sets its own admission and eviction policies. These standards may not be published, or if published may not be clear; they often relate to the "social desirability" of prospective or existing tenants as determined by the management. Nevertheless, tenants seeking to resist their eviction from public housing projects have found the courts frequently an alogizing public landlords with private landlords, or using other rationales to avoid reviewing the merits of such cases. Although there have been exceptions to this rule, the results of most cases leave local housing authorities with power legally to evict, or refuse admission to anyone, without cause. Corrective regulations aimed at " upgrading . . . outmoded management policies" addressed to procedural problems have been issued by HUD. Section 3.5 of the HUD Low-Rent Management Manual ("Procedures Prescribed for the Operation of Federally Aided Low-Rent H ousing" ) requires a local authority to adopt and publicize its admission policies, but does not prescribe policies beyond those imposed by law relative to income, age, disability, race, etc. Section 3.9 prohibits evictions witho ut giving the tenant notice of reasons and affording him "an opportunity to make such reply or explanation as he may wish." Although these rules are intended as mandatory by federal officials, it is not clear that local authorities view them in the same light. In the absence of an adequate supply of decent low-income housing, the refusal to confer, or the withdrawal of the benefits, of a dwelling in public housing constitutes substantial injury to a potential or existing tenant. It is within the pu rview of the state to prescribe the manner in which housing authorities deal with applicants and tenants. The ingredients of a policy reflecting commonly accepted standards of fairness might be: - applicants for admission to public housing should be apprised with in a specified period of a determination of ineligibility and given a right to appeal to a body other than the management; - the reasons for an unfavorable decision 14 should be clearly and concisely stated in relation to precise standards of admission; - leases should be written in simple language and effective on a self-renewing basis terminable (for a cause other than exceeding income limitations or nonpayment of rent) only for conduct injurious to other tenants or substantially injurious to the project; - evictions should be permitted only for good cause with the opportunity for a fair hearing; and - rights of privacy of tenants should be respected and harassment in the form . of fines , charges for repairs, threats of eviction, etc. , prohibited. The Michigan law adopts many of these principles. Another essential ingredient of a soundly administered public housing program is an increased effort to involve tenants in the management of projects. This may be done through the creation of representative tenant organizations or the representation of tenants on the local housing authority board. The Michigan law creates for public housing in the City of Detroit a " board of tenants affairs ," one-half of which is composed of elected tenant members and one-half by appointees of the mayor. The board may veto rules and regulations of the authority and acts as a binding board of review on decisions of project management or the authority with respect to matters such as denial of admission to or eviction from public housing and rent increases. A similar Rhode Island measure creates a board of tena~ts affairs for each city in the state with a public housing project. One-half the board is elected from among tenants occupying housing proj ects, the others to be appointed by th e mayor from residents of neighborhoods in which the projects are located. Thi s board advises the housing authority on tenant welfare, may veto authority rules on admission, occupa ncy, and eviction policies, and sits as a board of review for individual compl aints on these matters. VI. Enhancing Community Development Housing without stable neighborhoods served_by adequate community facilities will not provide long-term values to our cities and their people. States can take important steps to enhance the environment which supports new and rehabilitated housing. Just as an expanded supply of well-designed housing requires the stimulation of private initiative and assistance to local units of government, balanced community d~velopment cannot take place without a contmuous partnership between government on all levels and private groups. Program 1 Pro vide a Substantial Portion of the R equired Non-Federal Share of Federally A ided Community Development Programs and a Substa~tial Portion of the Cost of Non-Federally Assisted Projects. The federal programs to aid local comm~nity development require contributions to project cost from non-federal sources. These are often in the form of cash but usually in the form of non-cash items ·such as staff services, parks, schools or other facilities related to the project. Increasingly, the ability of many localities t_o utilize these programs is dependent upon their ability to finance the non-federal share of a . project. Connecticut has recently implemented comprehensive community development legislation which, among other programs, extends state financial assistance to localities in the form of contributions to the non-federal sh are of _fe~erally assisted projects. In some instances this kmd of help has spelled the difference between federal funding and no local program at all. Connecticut, for example, fund s one-half of the local share of fed erally assisted urban renewal projects, demolition of unsafe or uninhabitable buildings, construction of neighborhood facilities, and open-space land acquisition. The state contribution to the non-federal share of urban renewal projects actually began in 1955 and has contributed materially to the flow of federal urban renewal fu nds to cities in that state ever since. A Connecticut city need supply only one-sixth instead of one-third of net project cost. As a result, one dollar of city funds (supplemented by one state dollar) generates four federal dollars instead of only two. The form of state assistance was inaugurated in Pennsylvania as early as 1949, the year the federally assisted urban renewal program was enacted. Neighborhood facilities, in particular, embrace a wide range of horizon-expanding centers 15 �for persons of low- and moderate-income. These centers house health, recreational, social service, civic, educational, cultural and youth activities that can give residents a sense of identity, community pride and participation. In Connecticut, the state pays half the non-federal share of the cost of building these modern-day settlement houses, and there have been proposals to extend state aid to non-federally aided neighborhood facilities. In Connecticut, a special state program also assists the development of child day-care centers for disadvantaged children by funding two-thirds of the operating cost to the locality ( or an antipoverty agency) . The state normally relies on the application approval by the federal authorities in allocating its own contribution to the locality, thus avoiding unnecessary paperwork by municipal officials. In New Jersey, the state, in addition to providing one-half of the local share, allows a flexible formul a (up to 100 percent) for contributions to the local cost of federally assisted urban renewal projects to the extent they are devoted to public uses. As a prerequisite to aid for community development programs, Connecticut requires localities to prepare a Community Development Action Plan (CDAP). The CDAP is a community's survey and estimate of its problems and the physical, economic and human resources for dealing with them. T he state provides three-fourths of the cost of preparing the CDAP ; some of these costs to the state, with respect to CDAPs for communities under 50,000 are in ,t urn funded by HUD. It is vital, however, for a state to assure that these planning requirements do not become a substitute for or an inhibitor of program actions. The Connecticut Community Development Act, moreover, permits state aid to many projects that do not receive federal funding. In such cases the state provides two-thirds of the cost of the project. A state which participates in the funding of federally assisted projects should retain this flexibility. Some deserving applications will not receive federal funding fo r a variety of reasons. The state may wish ,to help localities that have sought federal fund ing but have not been able to obtain it for reasons unconnected with the merits of the project. Pennsylvania, for example, has launched an ambitious open-space land acquisition program financed by proceeds of a $500,000,000 bond issue. This pays for one-half of project cost to the locality. Although Connecticut only makes grants for specific programs set forth in its statute, states 16 might consider making a portion of their grant money available in block grants to cities for programs which do not fall within established categories of federal or state assistance. This will encourage ·1ocal initiative and will help meet individual locality needs. Program 2 An Urban Development Corporation with StateWide Authority to Combine State and Private R esources for the Improvement of Meiropolitan Areas. There are many factors inhibiting private, profitmotivated entrepreneurial participation in city renewal efforts on the scale demanded by current needs. Profit-motivat¼d entrepreneurs are used to assuming normal business risks. They are less accustomed to the political and public relations risks associated with publicly assisted programs. And they are disinclined to shoulder the additional commitment of personal and fin ancial resources occasioned by protracted negotiation and processing which often lengthens the development period. One way to bridge the gap between public control over land use and private entrepreneurial initiative has been indicated in New York. The state has recently created the New York State Urban Development Corporation (SUDS) . SUDS is empowered to draw upon the combined talents and resources of the state and private business to work with local governments to produce development and redevelopment projects throughout the state. These projects are intended to include balanced combinations of housing, light industri al, commerci al, recreational and cultural developments. As requested by agencies of the state or by cities, the corporation is to consider implementing projects within ex isting state and city programs. The corporation board of an urban development corporation similar to SUDS could be onehalf comprised of public officials and one-half chosen from the private sector. Initially, the corporation could be funded by the state through the issuance of tax-exempt revenue bonds. Conceivably, the corporation would eventu ally genera te sufficient earnings to cover operating expenses with o nly investment capital furni shed by the state in the form of loans at a rnte approximating that of the state's cost of borrowing. The corporation would plan projects and assemble the land, through eminent domain if necessary. In New York, SUDS has ultimate authority to override local building and zoning regulations. Although SUDS has extensive statu- tory authority in these respects, it is likely that it will oper-ate most effectively and perhaps exclusively in communities where local governmental and planning bodies are cooperating with the corporation. Rather than tie up its capital in the actu al development of a project, the corporation could encourage private developers to undertake this work. The corporation could also act as a developer itself where necessary. In such instances, after the project was completed, with long-term financing in effect and the project fully rented or functioning according to plan, the corporation would undertake to sell the project to a private investor or investors. The proceeds of the sale would be applied to the retirement of state loans to the corporation. Pursuant to conditions to be defined, some portion of the proceeds could be retained by the corporation. In some instances, the corporation might find it necessary to take back a lease in order to relieve the investor of the operating or supervisory burdens of ownership. Conceivably the corporation might eventu ally cause various real estate investment trusts to be organized. Projects would be sold to the trust with a lease-back by the corporation. If feas ible, this could be a method of mobilizing and channeling substanti al amounts of priva te capital into investments to which it would ordin arily not be attracted. Direct investment in real estate and development requires experience, sophistication, and fixed amounts of equity money, with the ·a dditional diffic ulty, especially in the case of residential real ~state, of responsibilities to tenants, legal, public relations and political hazards. However, purchasers of the real estate investment trust certificates could enj oy the benefits of real estate ownership and be substantially free of its hazards. Progra1n 3 Loan Guarantees to Owners of R esidential Property and Small Businesses. Private initiatives are necessary to reh abilitate the economic life and physical fac il ities of blighted communities. But often th ese are not forthcom ing unless th e addition al risk of inve tment in deteriorated areas is reduced. When needed capital, or bonding capacity, is not otherwise a~a ilable, states might provide an urban development guarantee fund to guarantee loans made by conventional lenders to owners of resi dential property and small businesses. A loan to an owner of residential property would have to be intended to provide housing for persons and families who could not obtain safe and sanitary accommodations provided by the unaided operations of private enterprise. A business would qualify for a guaranteed loan if it were unable to obtain adequate financing to maintain a stabilized work force or increase job opportunities by virtue of (a) its location ; (b ) its net assets ; or ( c) its doll ar volume. The New York Urban Development Guarantee Fund loans are to be used for the purposes of construction rehabilitation, or refinancing of properties a~d, in the case of small business pr_ojects, for equipment, stock in trade or wor~mg capital. The monies of the fund are den ved through the sale of debentures and from gifts. The fund is empowered to invest funds held by it and to charge a premium for its guarantees. In the event of default, the fund would pay to the lender the net amount of the loss. Program 4 Technical and Financial Assistance to Communities to Draft Proposals for Federal Program Grants. The increasing complexity of application requirements fo r some federal yrograms, eve~ those whose ultimate objective 1s frankly expen1:1-ental, has outrun the staff resources of many small er communities. The federal "Model Cities" progra m, for example, is intended to demonst rate how th~ ~nvironment and general welfa re of people hvmg in slu m and blighted neigh borhoods ca n be substanti ally improved through the orchestrati~n of federal, state and local governmental and pnvate efforts. Cities must submit proposals fo r planni ng grants. T hese proposals are to analyze the social, economic and physical problem~ of the model neighborhood area, what the city proposes to do about t~em, ~n? the strategy and adm inistrative machmery 1t mtends to employ. Under the program, cities with approved planning grants will become eligible fo r s~e~ial grants supplementing assistance under_ ex1stmg federal 1rrant-in-aid programs. T he reqwred nonfederal 0 contribution to every federally as isted project or activity carried ou t as part of an approved model cities program serves as the " base" fo r computing the special supplemental grant. The special grant may be up to 80 percent of the total non-federal contri bution. The development of a model cities or urban renewal proposal places a demand on the financial and techn ical capabilities of many localities. To help them obtain the e grants, the state might: 17 �--l I ( a) assist in drafting proposals for federal grants for communities which request technical assistance, and (b) make grants to enable those communities which wish to draft their own proposals to hire competent staff and consultants for this purpose. The stategic injection of assistance in this manner can help to enhance the flow of federal dollars to communities within the state. The purpose of this kind of assistance, however, should be the development of local competence to handle these administrative tasks in the future. It can be applied to a variety of federal grant-inaid programs. The New Jersey Department of Community Affairs has been particularly active in helping communities with Model Cities applications to HUD. Pennsylvania, through its Department of Community Affairs, provides similar help with applications for federal assistance for a broad range of programs. HUD is authorized to make grants to states to provide technical assistance to communities under 100,000 in population. A state program as described here, organized as a special technical assistance effort, might be eligible to receive a 50 percent grant from HUD to cover its cos ts. Program 5 Eliminate Constitutional Prohibitions, if Any, on the Involvement of Private Enterprise in Urban Affairs. A concerted attack on the problems of urban housing and community development requires a public-private partnership. New legal and financial tools and interrelationships must be devised to permit states, local units of government and private groups to marshal their resources in ways not foreseen years ago. Some state constitutions, however, specifically prohibit the use of the state's credit for private undertakings or contain provisions which have been interpreted as precluding tax abatement and other desirable public-private cooperative arrangements. The Advisory Commission on Intergovernmental R elations, a permanent, bi-partisan body esta blished by Congress to study relationships among local, state and national levels of government, has recommended the following constitutional language to facilitate general cooperative efforts between state and local public agencies and private enterprise : Notwithstanding any other provision of this constitution, the state, its political sub18 divisions, and any public corporation may, as provided by law, where a public purpose will be served, grant or lend its funds to any individual, association, or private corporation for purposes of participating or assisting in economic and community development. These basic constitutional changes are important. It is nonetheless vital to recognize, for example, that a program of state aid to localities for urban renewal under existing constitutional provisions can go far ,to bring about a constructive public-private partnership. Program 6 A Commission to Review and Assess Uodern Techniques of Zoning and Land Use Regulation and to Recommend Legislation to Modernize the State's Zoning Enabling Act. The period of rapid urbanization since the war has proven the inadequacy of present zoning statutes to control urban sprawl. The American Law Institute is presently drafting a Model Land Development Code to overhaul antiquated state zoning enabling statutes and provide much needed new tools to communities for shaping urban development. States should authorize the establishment of a commission to review and assess modern techniques of zoning and land use regulation and to recommend legislation for modernizing the state's zoning enabling act. A legislative committee of this nature is now at work in Connecticut having the benefit of a report on th at state's plan~ ning legislation . It is drafting specific measures that may have applicability in other jurisdictions. The prime objective of such a review would be to introduce greater flexibility into typically rigid requirements which inhibit imaginative and progressive land use for community development, and to eliminate the use of zoning powers to undergird economic segregation in residential development. Program 7 Excellence in the Design of Structures In volving the Use of State Funds or Credit and the Preservation of Public Building,r and Areas of Historical or Architectural Significance. Stimulation of massive increases in needed housing and community facilities will not achieve durable improvements in urban life unless conscious and unremitting attention is paid to the quality of the structures and public spaces and their sensitivity to the needs of people. Design quality is not a matter of style or pa- tina or the application of cosmetic effects. It goes, rather, to the heart of the process by which space is shaped. Delay, inadequate fee arrangements, resistance to innovation, imprudent concern with short-run savings at the expense of long-run viability-any of these will drive superior talent away from design responsibilities in subsidized projects. Great architecture, it has wisely been said, requires great clients. The state, in its manifold direct and indirect role as a potentially "great client," should impress all those who deal with it or serve it as functionaries with ,t he understanding that excellence in the end product is a keystone of .the state's housing and community development policies. The creation of a State Council on Architecture is one means of implementing these objectives. Such a Council has been created in New York to: -encourage excellence in design of all buildings constructed by the state or under supervision or with assistance of any state agency; -stimulate interest in architectural excellence in public and private construction throughout the state; -accept gifts to further its objectives; -obtain from other agencies of the state necessary cooperation and assistance; -make grants to municipalities to rehabilitate structures of historical or architectural significance for public purposes. Whether a council or some other instrument is created is secondary to assuring that what is designed, who is involved in the process, and how the process works is sensitive to user needs and community values as well as the normal economic structures. Even in purely economic terms , costs of managing, maintaining ( and protecting) a structure may be sharply reduced by appropriate design in the first instance. The responsibility for analyzing and changing the manner in which public funds are employed in designing community facilities from capital budgeting to maintaining the end result-must be centralized and highlighted. VII. Developing New Communities Program New Community Development Corporations with Eminent Domain Powers; Deferral of Property Taxes during Development Period; State Approval of New Community Development Plans in Lieu of Other Land Use R egulation. States can participate directly in solving urban problems by encouraging the development of new comunities on raw land outside of existing urban concentrations. New communities offer opportunities both for alleviating the problem of overcrowding in the central city and for overcoming the ugly patchwork sprawl on urban fringes . By providing a wide range of housing at varying prices, including low-income housing, new communities give promise of economically and socially integrated cities. Through comprehensive planning, new comi;nunities can provide for orderly urban growth using the most desirable locations, timing their development to correspond with area-wide or regional development plans or objectives. Internally, new communities can use land more efficiently, thereby cutting costs and providing better public services. They can br~ak away from conventional thinking, devel?p~ng new arrangements in such fields as bu~dmg codes, land use controls, zoning regulations, public services and governmental structures: . New communities offer unique opportumttes to enlist the talents and energies of the private sector in the inevitable expansion in the nation's metropolitan areas. They offer 'large-scale investment opportunities and new markets. Moreover, they offer a dramatic chall~~ge to ~e private sector to demonstrate its a~1hty to ~mld new urban environments in a settmg relatively free of the many constraints which hamper private initiative in existing cities. A first step in undertaking a state new community program could be to inventory land now owned by the state which may be deemed surplus to its needs. It may be found , fo r example, in many states that thousands of acres were purchased in the last century for penal or mental 19 �institutions and hospitals in then rural areas which are no longer required in the light of mod~ em medical or penal practice. Such land could be retained by the state, but leased to new community developmeat corporations. To help fin ance approved new communities Title X of the H ousing and Urban Developmen~ Act of 1965 provides FHA insurance of mortgages fin ancing land and improvements for new communities. T itle IV of the Housing and Urban D evelopment Act of 1968 provides a federal guarantee of debt obligations of private new community developers. These provisions should ease the financing difficulties of new community developers. S~ates, however, can remove three other major barners and thus stimulate the development of new communities within their borders. F irst, they might charter new community development corporations which would be authorized to use the power of eminent domain to assemble _large tracts of land necessary for the construction of new communities. S_econd, they might defer local property taxes dunng the development period of the new communjty by temporarily reim bursing developers for local property taxes paid, as an interest-free loan to be repaid when the property is sold, but not la~er than the end of a stated deferral period. Third, they might provide for state approval of new community development plans wpich would supersede local land use regulation that would otherwise apply to new com munity tracts. In many areas where new communities would be located, largely rural local government is unable t~ respond effectively to the needs of new commumty developers. Direct state action is ~eede~ to speed development or, indeed, to make it ~oss1ble. State authority would then be relinq~1shed to the government of the new commumty, once it was established. A state land should not be leased eminent domain powers granted , the deferral of local property .taxes made, nor state approval of new commumty development plans given unless a state finds that: - the development of a new community will make a substantial contribution to the economic and social development of the area in which it is situated ; - the site ~elected fo r the new community is sound with regard to projected population trends, the availability of land required , the absence of undesirable topographical or geological features, and the availability of transportation; - the proposed new community will have a 20 sound economic b ase and sound land-use patterns; -adequate provision has been made for local self-government; - adequate provision has been made for all necessary public utilities and facilities including those n eeded for education, he;lth, transportation, open sp ace, sites for industrial and residential uses, a central business center, and cultural and recreational facilities, and - adequate housing is available to meet the needs of families of a wide variety of income levels, including a substantial number of families of low- and moderateincome levels. VIII. Centralizing Administration of Housing and Community Development Programs Program A Cabinet L evel Department of Housing and Community Affairs R esponsible to the Governor, with R esponsibility for Administering a Broad Range of Community A id Programs. A state's ability to help communities tackle the tough urban problems of poor housing and inadequ ate community facilities could be greatly increased if responsibility for aid to urban communities were centralized in a single dep artment, agency or individual. Yet, today only a score of states have centralized a uthority for housing and community affair s programs. A centralized agency for community affairs , With adequate authority to administer a broad range of community aid programs like those described above, should be able to: - help communities attract private capital investment a nd business skills in ,solving community p roblems; - help communities attract and effectively utilize greater amounts of federal assistance; - help communities attract the financial assistance of private foundations ; - fill the gaps among existing federallyassisted community programs; - help local governments improve their planning and management of community programs, so that they can better assess community needs and decide the kinds of federal and st ate assistance that are required ; - help communities develop new approaches to commun ity problems through smallscale pilot programs which, if successful, could be widely repeated; -marshal state resources for more effective assistance to communities; - provide needed technical assistance to public and private groups, and - be a clearinghouse fo r information on a ssistance available to communities and a coordinator among communities, between state and communities, and between the federal government and communities. The form a centralized state authority for community affairs will take must fit into the administrative pattern of the state. At least three variations of centralized authority have been adopted : - a department of housing and community affairs with broad statutory authority ( e.g., Connecticut, New Jersey, Pennsylvania, Rhode Island ) ; - a housing and community affairs administrator with narrower statutory authority (e.g., Alaska, Illinois, Vermont); - a special assistant to the Governor for housing and community affairs without statutory authority (e.g., Kentucky, Kansas, and North Carolina). . A department of housing and community affa irs responsible to the Governor and armed with a full range of community assistance programs is, generally speaking, the best administrative arrangement. It dramatically demonstrates the state's commitment to assist its communities on a continuing basis; it allows the Governor to assert executive leadership, and it may make possible a marshalling of state resources in other programs toward solving community problems. A principal task of the department would be to see that state assistance progra ms are more directly aimed at aiding communities to solve u rban problems. At the same time, the department as its principal task must direct its energies to helping communities to help themselves. This requires an able staff familiar with both local needs and the federal and state resources available to meet them. It also requires sufficient funding to create incentives to attract community support and capable personnel convinced of their value to the localities they are assisting. A special program of federal matching grants has been authorized to assist states in providing special training for professional, sub-professional and technical persons to be employed in housing and community development. Many states have already filed plans spelling out specific proposals, but these await federal funding, which is now anticipated. This program m ay thus provide the key resource for departmental staff development. 21 �References New Jersey : Other: I. Increasing the Supply of Low- and ModerateIncome Housing Program 1: Seed money loans, technical assistance and grants. Connecticut: Illinois: Michigan: New Jersey : New York : Other: 8 Connecticut General Statutes Annotated, secs. 218, 220 (P.A. 522, laws of 1967, sec. 20-21 ) . Chapter 67 1/2 Smith-Hurd Illinois Annotated Statutes, secs. 308-309. 12 Michigan Statutes Annotated secs. 16: 114 et seq. ' 52 New Jersey Statutes Annotated secs. 27D-59 et seq. (P.L. 1967 c'. 82). 41 McKinney's Consolidated Laws article 11. ' Urban America, Inc., Proposed Kentucky Housing D evelopment Fund; Proposed W est Virginia H ousing D evelopment Fund. Contact: James Twomey, Director Nonprofit Housing Center Ur ban America, Inc. I7i7 M assachusetts Avenue, N.W. Washington, D.C. 20036 202/265-2224 Program 2: State-developed housing. Alaska: Alaska Statutes, secs. 18.55.010 et seq. Hawaii : 8 Revised Laws of Hawaii, 1955, secs. 74-1 et seq. Vermont: Acts of 1961 , no. 21 2 ( as amended by H.B. 447, laws of 1968) . Program 3: Below-m arket-interest-rate mortgage loans. Illinois: 67 I /2 Smith-Hu rd Illinois Annotated Statutes, secs. 310 et seq. M assachusetts : 2A Massachusetts General Laws Annotated, Chapter 23 A. 12 M ichigan Statutes Annotated, Michigan : secs. 16.114 et seq. New Jersey: 55 N ew Jersey Statutes Annotated, sec. 141-5 (P.L. 1957 c. 8 1); 52 New Jersey Statutes Annotated, sec. 27D -66 (P.L. 1967 c. 82). New York : 41 McKinney's Consolidated Laws, article 2. Program 4: Interest-free loans to developers. New Jersey : Senate Bill 859, introduced June 13, 1968. Program 5: Construction loans. Illinois: 67 1/2 Smith-Hurd Illinois Annotated Statutes, sec. 3 IO. Massachusetts: 2A Massachusetts General Laws Annotated, Chapter 23A. RI 144 New Jersey Statutes Annotated, sec. 141-5 (P.L. 1967 c. 81). Urban America (see Program above). Program 6: Land acquisition and write-down. Connecticut : 8 Connecticut General Statutes Annotated, sec. 214 (P.A. 522, laws of 1967, secs. 16, 17). Program 7: Rehabilitation housing write-down. New Jersey: acquisition and Senate Bill 859, introduced June 13, 1968. Program 8: Property tax abatement. Connecticut: Michigan: New Jersey: New York : 8 Conn~cticut General Statutes Annotated, secs. 215, 216 (P.A. 522, Jaws of 1967, secs. 18-19) . P.A. 1968, No. 334. 52 New Jersey Statutes Annotated, sec. 27D-51 (P.L. 1967, c. 80). 41 McKinney's Consolidated Laws, article 11, sec. 57 5. Program 9: Administration. Illinois : 67 1/ 2 Smith-Hurd Illinois A nnotated Statutes, secs. 308 et seq. M assachusetts: 2A M assachusetts General Laws Annotated, Chapter 23A. Michigan: 12 Michigan Statutes Annotated sec. 16.114 et seq. ' New Jersey : 55 N ew Jersey Statutes Annotated secs. 14J-1 et seq. (P.L. 1967: C. 81 ) . 41 McKinney's Consolidated Laws New York: article 3. ' II. Increasing Housing Choice Program ]: Comprehensive fa ir housing Jaw. Alaska : Alaska Statutes, secs. 18.80-010. 160. Colorado: 69 Colorado Revised Statutes, article 7. New York: 18 McKinney's Consolidated Laws article 15. ' Program 2: Metropolitan area housing information centers. New York: Senate Bill 4099, Assembly Bill 6026. Contact: State Senator Whitney North Seymour, Jr. State Capitol Albany, New York Other: Paul D avidoff, Neil G old, Harry Schwartz, A H ousing Program for N ew Y ork State (1 968) . Contact : Paul D avidoff, Chairman Urban Planning Program Hunter College of the City U niversity of New York N ew York, New York Metro Denver F air Housing Center, Inc. Contact : Richard E. Young, Chairman 130 West Twelfth Avenue Denver, Colorado 80204 303 / 534-1263 Other : Program 3: Priority assistance for integrated housing. III. Improving Building Codes Program: Model building code. 18 McKinney's Consolidated L aws, New York : ar ticle 18. Advisory Commission on IntergovOther: ernmental Relations, 1968 State L egislative Program , pp. 287 et seq. IV. Improving Relocation Assistance Program: Uniform relocation program. Connecticut : 8 Connecticut General Statutes Annotated, sec. 219 (P.A. 522, laws of 1967, sec. 24) . Maryland : 33A Annotated Code of M aryland, sec. 6A. New Jersey: 52 N ew Jersey Statutes Annotated, secs. 31B-1 et seq. (P.L. 1967 c. 79). Other: Advisory Commission on Intergovernmental Relations, 1968 State Legislative Program, p. 264. V. Equalizing Landlord-Tenant Relations Program I: Means to secure code compliance. Connecticut: Community Development Act. Illinois: "For Better Housing in Illin ois," Report of the Legislative Commission on Low-Income H ousing ( April 10, 1967). Maryla nd : Code of Public Laws, Baltimore City, 1949 ed., sec. 459A. Massachusetts : M ass. Gen. Laws Anno., Ch. 111, sec. 127H (1967) . New York: Real Property Actions and Proceedings Law, sec. 755 (McKinney Supp. 1966). Pennsylvania : Pa. Stat. Anno. Lit., 35 sec. 1700-1 (Supp. 1967 ) . Rhode Island: R. I. G en. Laws Anno., 45-24.2-11 (1956) . ( Rent withholding by welfa re agencies ) : Illinois: Ill. Rev. Stat., Ch. 23, secs. 11-23 ( 1967 ) . Michigan : M ich. Stat. Anno., sec. 16.414 (3) (Supp. 1968 ). New York: N.Y. Social Services Law, sec. 143-b (McKi nney 1966) . Program 2: Evictions. Michigan : Laws of 1968, P.A. 297. Program 3: Private obligation to repair. M ichigan : Laws of 1968, P.A. 295. Program 4: Publ ic housing policies. M ichigan: Laws of 1968, P.A. 267, 344. Rhode Island: R.I. Gen. Laws Anno., 45-25-18 (House BiJI No. 1605, Laws of 1968). VI. The American Bar F oundation, under contract to the U.S. Office of Economic Opportunity, is preparing a "Model Landlord-Tenant Code." The final report, expected to be available by January 1969," will consist of a statutory text together with relevant notes and comments. Its purposes include the codification of existing Landlord-Tenant Law, as well as the suggesting of useful changes. The Code is designed for eventual submission to the various state legislatures after initial submission to the National Conference of Commissioners on Uniform State Laws. Contact: Philip Hablutzel American Bar Foundation 1155 East 60th Street Chicago, Illinois 60637 Enhancing Community Development Program J: Financial assistance for community development programs. Community Development Act, P.A. Connecticut: 522, Laws of 1967. N ew Jersey: State Aid for Urban Renewal Projects, Laws of 1967, c. 80 (NJSA 52:27D-44 et seq. ). Program 2: Urban development corporation. New York : Chap. 174, Laws of 1968. Program 3: Loan guarantees. New York: Chap. 175, Laws of 1968. Program 4: Assistance to obtain federal grants. Laws of 1967, c.82 (NJSA 52:27DN ew Jersey: 59 et seq. ). Program 5: Constitutional reform . Advisory Commission on lnter~ovOther : ernmental Relations, State L eg1s/atio11 Program for 1969. Program 6: Zoning and plan ning reforms. Connecticut : New Directions in Planning Legislation, American Society of Planning Officials. 1313 East 60th Street Chicago, Illinois 60603 American Law Institute, Model Other: L and D evelopment Code. Contact: Allison D unham , C hief Reporter 101 N . 33rd Street Philadelphia, Pennsylvania 19104 Program 7: Improving design quality. Chap. 982, Art. 22, Laws of N.Y. New York : Contact: John P. Jansson, Executive Director New York State Council on Architecture 545 Madison Avenue New York, New York 10022 R2 �VII. Developing New Communities Program: Aiding the development of new communfries. New York : Laws of 1968, Chapters 173, 174. Other: Advisory Commission on Intergovernmental Rel ations, 1969 State Legislative Program, pp. 507 et seq. VIII. Centralizing Administration of Housing and Community Development Programs Program: A centralized department of housing and community affairs. Connecticut : 8 Connecticut General Statutes Annotated, secs. 201 et seq. (P.A. 522, Laws of 1967. New Jersey : 52 New Jersey Statutes Annotated, secs. 27D-1 et seq. (P.L. 1967, c.293). Pennsylvania : Reorganization Plan 2, Act 582, 1965, Reg. Sess. Further information concerning the operation of the state programs referred to can be obtained from the follow ing officials : A laska Larry Montgomery, Director Local Affairs Agency Pouch AB Office of the Governor Juneau, Alaska 9980 l 907 /586-5 386 Connecticut LeRoy Jones Commissioner of Commun ity Affa irs 1179 Main Street P.O. Box 786 Hartford, Connecticut 06120 Ha waii Yoshio Yanagawa Executi ve D irector Hawaii Housing Authority 1002 North School Street Honolul u, Hawaii /1 /in ois Richard Blakley Managing D irector and Secretary Illinois State Housing Board 160 LaSalle Street Chicago, Illinois 60601 3 12/ 346-2000 Kansas John I va n Special Ass istant for Urban Land Community Affairs The Governor's Office State Capitol Building Topeka, Ka nsas 6661 2 913/ CE5-00l I , Ext. 261 K entucky John Vanderweir Director of Division of Land Development Assistance Kentucky Program Development Office of the Governor Frankfort, Kentucky 502/564-3840 Massachusetts Julian D. Steele Commissioner Department of Community Affairs State Office Building JOO Cambridge Street Boston, Massachusetts 02202 617 /727-3238 .. Michigan Robert McLain, Director State Housing Development Agency Department of Social Services Lewis Cass Building Lansing, Michigan 5)7/ 373-2000 N ew Y ork Edward Logue President and Chief Executive Officer New York State Urban Development Corporation 22 W. 55th Street New York, New York 10019 212/ JU 2-7030 N ew Jersey Paul Ylvisaker, Commissioner Department of Community Affairs State of New Jersey 363 W. State Street Trenton, New Jersey 08625 609 I 292-6420 North Carolina Luther C . Hodges Housing and Urban Affairs Land Specialist State Planning T as k Force 405 State Adminjstration Building P.O. Box 1351 R aleigh, North Carolin a 27602 919/829-4131 Pennsylvania Joseph W. Barr, Jr. Secretary of Communit y Affairs State of Pennsylvania 201 South Office Building Harrisburg, Pennsylvania 171 20 717/78 7-7160 Rhode Island Rev. Arthu r L. H ar dge Director Department of Community Affairs State House Providence, Rhode Island 401 / 52 1-7100 Ve rm ont J ames F in neran Executive Director State Housing Authority Mo ntpelier, Vermont 802 / 223-23 I l R3 " �
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
- Record Created: April 18, 2017
- Record Updated: December 29, 2017
Box 7, Folder 9, Document 1
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- Title: Box 7, Folder 9, Document 1
- Text: DISCUSSION PAPER Chicago Conference Mobilizing Urban Coalitions Chicago Circle Center, University of Illinois October 17th, 1967 Introduction With any new national effort such as that being undertaken by The Urban Coalition, it may be expected that organizational structure methods will continue to undergo change. For this reason The Urban Coalition is under- standably following a flexible course of action. The ideas set forth in t this discussion paper may be expected to undergo further change as they are subject to continuing review by both national and local leadership. The views of those interested in The Urban Coalition are invited and welcome. Goals Based upon the Statement of Principles, Goals and Commitments adopted at the August Emergency Convocation, The Urban Coalition's program may be restated as follows: 1. To encourage the Congress to respond affirmatively tc the needs of the cities. 2. To encourage public concern with the needs of the cities, 3. To stimulate greater private initiative and effort in dealing with the problems of the cities, including both investment and technical assistance. * ‘ 4. To stimulate greater support for and interest in ongcing efforts to meet such needs as: --job development and manpower training programs --open housing efforts --urban renewal and reconstruction \ Page -Two 2 --anti-poverty programs --programs to overcome educational disparities. Methods Among the methods that may be followed by The Urban Coalition are the following: hie Be supportive, not operational. It is expected that The Urban Coalition will support ongoing efforts at both the local and national levels. It may stimulate new undertakings. It will cooperate with such major new efforts as the $1 billion investment allocation of the insurance industry for center city development. It will give support to local urban coalitions. 2s Stimulate interest in successful examples of action. Through its Task Forces The Urban Coalition will identify, work with, and publicize successful efforts to expand employment, extend lower income housing and equal housing opportunities, new educational programs and the like. The Task Forces hope to serve as catalysts and convenors. They will serve as clearinghouses of local action. 3s Work with the mass media. Through its Task Force on Communications and Public hispanic’ and through counterpart committees at the local level, it is hoped that the mass media can be encouraged to focus greater attention on the needs of cities. Broad public understanding of the need for greater resources, of the complexities of the problems involved and the need for urgent action are essential if the goals of The Urban Coalition are to be achieved. Page: Three 4. To coordinate a national legislative campaign. The Urban Coalition has called upon Congress for action across a broad front to meet the urban crisis. Interpreting and emphasizing the need for national action is as much a local obligation as it is a commitment of the National Steering Committee. Discussions with members of Congress is as much a hometown affair as are appearances before Congressional committees. Structures The National Steering Committee at the present time consists of thirty-six members. They are broadly representative of business, labor, lccal govern- ment, religion, civil rights and education. It is expected that two addit- ional members of the Steering Committee will be selected by the Council of Urban Coalitions. As local coalitions are formed they will be invited to designate two representatives to serve on the Council and through this Council provide the National Steering Committee with advice and guidance on matters of national concern. The National Steering Committee has established seven Task Forces and it is expected that local coalitions will develop counterpart units. These are identified and discussed in the attached guidelines. Under consideration for future development is the establishment of a Council of Urban Economic Advisors to assist the Coalition in analyzing the impact of Federal sconces fiscal, tax, and budgetary policies of cities. A second Council of University Urban Studies Centers is being contemplated as a means of channeling the best research ideas concerning urban development into the discussions and plans of both the National Steering Committee and Page Four S A and local coalitions. Further additions and modifications in the organization and structure of The Urban Coalition may be expected as experience is gained.
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
- Record Created: April 18, 2017
- Record Updated: April 29, 2021
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- Text: The Race Problem: “What Are You Going To Do About It?!’ An Address At the Opening of the Fund-Raising Campaign for the “University of Community Involvement’ on April 1, 1968 at New Rochelle Hospital New Rochelle, New York By SIDNEY P. MUDD A Citizen of New Rochelle President of New York Seven-Up What we need is men of good will. Men who truly care. Men who want to help in the solving of the problem. Men from the white community, men from the black community, and women from both. Can we find one-hundred such in New Rochelle? Can we find fifty? Can we find twenty? What would we call them? It makes little difference. Call them the “Committee of 100," or whatever else. The main thing is to call them together. Once called together, once engaged in dialogue, once exposed to the hopes, the problems, the needs of the city, as it strives to be what all of us want it to be, | can envision no problem that its members, as true men of good will, could not resolve together. It is the togetherness, the mutual respect and actual understand- ing that is so obviously lacking now and so obviously needed. And it will take the leadership that only such a committee can provide to do what is needed to be done. Whe can qualify for such a committee, for such leadership? | do not know. | do know that they must come from among the recognized leaders of the city as it now exists, so that, by their good example, others who respect them will be moved to follow. They must be leaders who want to contribute of their special talents to the good of all. In the final analysis they must, | believe, be able to answer “yes” to the three questions that | ask each of you now: 1.) If you have a child in school in New Rochelle at present or hope to have one there, be it a public school or private, at whatever level, grade, high- school or college, are you content to have a Negro child seated next to yours? 2.) If you are in government, in professional life or in a business are you content to have a Negro as a fellow-worker, a fellow-executive, and, if qualified, as president of your company? 3.) No matter where you live in New Rochelle, in any house, on any street, in any section, are you content to see a Negro family move next door tomorrow? How many men and women can we find to answer yes, and mean it, and live by it, and lead others to follow them? | do not know. The answer is locked in the heart of each of us. But that is what if will take. !1 is that simple or that difficult, depending upon what is in our hearts. You will be asked soon to be such a leader. Let there be no embarrassment if you cannot accept because you cannot truthfully answer “yes” to these three questions. You will at least have been honest with yourself. Since | have proposed this self-examination to be made and answered privately, it seems only fair and proper for me to answer publicly. | do so now, humbly in the presence of so many better men than |, answer “yes’’ to these three questions, Is this the impossible dream, is there not enough love in the world, is my life so busy that | am unable or unwilling to hold out my hand to my neighbor? Perhaps if only a few respond it will be the impossible dream, But, if enough of our leaders are willing ta try, with the help of the God, Who made us all, nothing is impossible. | place this in your hands. | commend it to your hearts. On the 19th of March, just one day short of two weeks ago, | was asked if | would talk to you today, here in New Rochelle Hospital. Although, like yours, my life and my schedule are filled almost to the brimming, | accepted immediately, | accepted for the strongest of all reasons: my conscience told me to accept. And happily | found myself in full agreement with my conscience. | would be less than fair with you, if | did not tell you why. When those fleeting moments of reflection permit, | suppose that each of us on occasion talks to himself. On such occasions two voices within us seem to be engaged in a dialogue, voices that ask questions and give answers. Sometimes the questions go like this: “How well do you think you are doing with your life?” “You say that.you are very busy, busy with earning a living, busy with various outside activities, perhaps a host of them, but are you aware that you could do more, that you could do better?” “Now, please take a hard look at your life from the viewpoint of what sur- rounds it and answer this: ‘What is by far the greatest problem of your time in your nation, in your bib 'y y yY y city?!’ “You know very simply, very clearly and very quickly what the answer is, lt is the problem of race. The crying, hurtful, gnawing, frustrating problem, which exists because one man’s skin is white and another man’s skin is black,” And as you mentally nod “yes, you are right,” there follows, as always it must, that awful, final question, that question which strips you of all the trappings of your life up to that moment: “What are you gaing to da about it?” Please note, dear friends, how this question is asked of us. Conscience is nol content to know how we feel about it. lt stubbornly wants to know: “What are you going to do about it?” | said that | would be Jess than fair if | did not tell you why | am here today, | am here because of that question. | want with all my heart to do something, to make some contribution, small as it may be, to the peaceful and happy solv- tion of the most important problem of our lifetimes together, here in the city for which all of us share so deep an affection. | address you with the greatest of confidence, on a man fo man basis, because | know so many of you and have countless reasons to be sure of the goodness in your hearts. Specifically, we are here today to muster support for the idea and the financing of an infant enterprise called, rather unusually, the ‘University of Community In- volvement.” Is this an earth-shaking movement fo date? Is it going to solve the race problem in New Rochelle? Has it been without controversy in the past? Certainly nat! But the all-important thing is that it is a beginning. A community-beginning, imperfect as it may be, toward the final, searching question: “What are you going to do about it?” The "University of Community Involvement” is not even directly positioned as a program only for the Negro community. It may have, by past circumstance and realistic fact-facing, been forced to lean that way, but that is not what it envisions. It is ideally directed to black and white, poor and rich, young and old. It is called a “university” for a valid reason: its classrooms are the city streets and city build- ings, where living together under love and under law are the subjects taught; its students are the youth of our city, be they black or white; and its faculty are the civic, government and business leaders of the total community. What it needs most of all now is a board of trustees, whose attitude is fo support and guide this first small step toward the answer to the question which our consciences ask. In proof of what | have said, let me read the very first line written about this evolving organization: ” ‘The University of Community Involvement’ is in the business of shaping Human Attitudes.” Let me repeat: the business of shaping human attitudes. Now, friends, it is on the subject of “affitude’ that | most earnestly want to open my mind and my heart to you and to ask you to search your own hearts and minds, as we consider together the number one problem of our nation and city, the problem of race. Let us suppose for a moment that we could stand far enough removed from the problem so as to view if objectively and without prejudice. Hard to do? Very hard. But just suppose that we could. Certainly God does. Let's at least try it together. The first reflection we might well make would be to wonder why in the world, when God came to make Man, by far the greatest of all in His series of created things, why in the world did He make some men white and some men colored. (And parenthetically, He made many more colored than He did white.) Didn’t He foresee that this was going to lead to trouble? Then why did He do it? Not one of us knows, not even the most brilliant among us. All we know is that He per- mitted men to be that way. The second reflection that we might make would be that, even considering the many shadings of religious beliefs, there emerges a very basic formula for solving the problem: love God above all else and lave your neighbor as yourself. Now from our hypothetical, unprejudiced and objective point of view, knowing the problem, and knowing the basic formula above for solving it, it really becomes quite simple to point out three steps, which, if taken earnestly and sin- cerely by men of good will, would solve the problem in the only way it will really ever be solved. The three steps should come as no surprise to any thinking man or woman, white or black, 1.) Give the Negro the full right and the full opportunity to hove the same education as the white man. 2.) Give the Negro the full right and the full opportunity to hold any job in any company for which his education and ability qualify him. 3.) Give the Negro the full right and the full opportunity to live in any house, on any street, in any city, which he can affard to occupy. You will note, | believe, the inter-relationship of these three essential steps and the reasonableness of the order in which they are listed. In preparation for talking and thinking with you today, | felt it not only im- portant but essential to check my thoughts against those of several men of ac- knowledged importance and competence in our city, both white and Negro. The time with which these men favored me was not a brief matter of minutes. The average time spent in these conversations was a good two hours. | pause for o moment to thank them silently for their generosity to all of us. Whatever good may come from our being together here today will be, in the greatest part, due to their generous help and encouragement. In each of the conversations with each of these leaders, there was complete agreement that the three steps calling for equal education, equal employment, and equal housing rights and opportunities were basically sound. But it is most enlightening and important to know that, when the point of view of the Negro leaders was expressed, our threefold answer took on a fourth dimension. Please listen carefully to this fourth dimension. The Negro, with too few exceptions, does not feel himself worthy of these three equalities. How strange this is, how foreign to the way the white man thinks and feels. It was explained to me in this way. Three hundred years of approximate slavery, generation upon generation of a master-servant relationship, lifetime after lifetime of grinding poverty, of ignorance, of brainwashing that what was white was good and virtuous and powerful, while what was black was evil and menial and weak have had their effect, may God forgive it. They have made the black man believe that he is, in fact, inferior and thus unworthy of the white man’s slowly emerging best intentions. The Negro is trapped, so he believes, in a ghetto saciety until he is shown that there truly is a way out. Hence the despair, hence the indolence, hence the crime, hence the anger, hence the riot, hence the ever-increasing polarization into a white society and a black society, two Americas, and, in a smaller sense, two New Rochelles. No city, no state, no empire in history has ever been able to exist thus in peace. Not even Rome when it ruled the whole world. It is the obligation of the leaders of the black man and the white man to disprove this myth of un- worthiness and apply in its stead the obvious and only true solution which we have discussed above: the three equalities that make a man a man. Since we are only human beings who live in a practical world, let me be as practical as possible in concluding these remarks to you. | am going to ask you and many other leaders in New Rochelle to give of your substance and of yourself. In plainer words, | am asking for your money, but, more importantly, | am asking for your hearts. In money, the minimum need is for $30,000, to be contributed by April 15. This will underwrite the improvement, the extension and the application of the Community Involvement program through the full summer ahead. This is to be raised by and from the business and social communities of New Rochelle both black and white. | consider this sum desirable and entirely reasonable. We oughi to be able to over-subscribe it in five minutes right here in this room. It won't be done that way; it will be done by direct contact. | know you will give it. You are both too generous and too practical not to. But | am much more interested in what is in your hearts. In the final analysis, that is the only place the answer can be found to the question we began with: "What are you going to do about it?” EPILOGUE Subsequent to the occasion on which these thoughts were expressed, the citizens’ committee ta which they referred was formally named "The Peoples Assembly New Rochelle, N. Y.” it will be thus incorporated in the state of New York and any gift to it will be tax deductible. Checks should be drawn to “The Peoples Assembly” and mailed to the above address. Particular emphasis should be placed upon the important fact that “The Peoples Assembly” in na way seeks to intrude upon the activity of any other committee, commission, or body, be it governmental or private, in the city of New Rochelle. Its objective is to provide a community-wide gathering of men of good-will, who are dedicated to the peaceful solution of community problems, and, above all, those which spring from our difference of race. “The Peoples Assembly” belongs fo all the people of New Rochelle. It seeks without prejudice the happiness of all. May the God Who made us all guide it to that accomplishment.
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
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Box 7, Folder 9, Document 20
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- Text: Lis REPORT OF THE LOCAL COALITION DIVISION TO THE EXECUTIVE COMMITTEE December 16, 1968 Accomplishments of Coalitions The "older generation" of coalitions, with increasing frequency, is - showing tangible and substantial results; the younger coalitions are, in many instances, consumed by organizational problems. Some illus- trative accomplishments are listed: — The Miami Coalition, in collaboration with the United Black Federation, a black organization formed with the encourage- ment and cooperation of members of the coalition, has taken significant steps to ease police-community relations. It is currently formulating programs in other fields identified as key to Miami's needs. Ten (or more) coalitions are aggressively creating entrepre- neurship opportunities for minorities. The New York Coalition's Venture Capital Corporation has just made its first loan, in cooperation with the Harlem Commonwealth Council. The comple- mentary Coalition Development Corporation has begun with a , case load of 203 entrepreneurs seeking technical assistance. Plainfield and Racine have helped establish small companies. REC Industries, a small manufacturing company established by the Racine Environment Committee now employs and is training 35 "hard core" youths. Both the Philadelphia and New York coalitions have active programs designed to enhance the capabilities and opportunities of minority contractors. Most coalitions are striving to relieve unemployment, consis- tently in collaboration with the local NAB efforts. The New Detroit Committee has found 50,000 jobs; Minneapolis has promoted coordination of NAB efforts with other organizations; Fresno has established a Management Council for Merit Employment; Riverside has formed a Job Opportunities Council; and Tacoma has established a ghetto area employment office which has placed 300 hard-core unemployed. J The Winston-Salem Coalition has established a Housing Foundation (with a million dollar budget), and has helped finance a housing project for the elderly. Other coalitions with strong housing activities include Detroit, Fresno, Lima, Minneapolis, New York, Philadelphia, and Tacoma. The New Detroit Committee is pressing legal action to get more adequate resources for core-city schools. Bridgeport, Minneapolis, and Racine are concentrating on scholarships for deserving minority college students. Detroit also has stimulated the formation of partnerships between schools and major companies, Le; Dine. Report Page Two and Newark has proposed private sector construction and oper- ation of schools. New York has helped find sponsors for 15 Street Academies, whose contributions will amount to $600,000 annually. New York also has attempted to come to grips with the city's decentralization crisis through public education and offers of mediation. The Philadelphia Coalition is launching an employment training program by establishing "academies" in high schools which are sponsored and operated by major companies. Three academies are being organized in Office Management, Banking and Finance, Aviation and Aerospace, and in Electronics. = Coalitions in Detroit, Newark, New York, Baltimore, New Orleans, Philadelphia, Plainfield, Racine, and Saginaw are promoting legis- lative activity either at the local, state or Federal level. II. Established Coalitions New Bedford, Massachusetts established a coalition in late November; this brings the total of established coalitions to 40. III. Housing Conference for Coalitions During 1969 the Urban Coalition, with the help of the National Institute of Public Affairs, will provide a series of conferences to help coalitions develop effective strategies in particular substantive areas. The first of the series, To Improve a City's Housing, will be held on February 6 and 7 in Washington. This conference is specifically designed to help the staff and housing task force members of coalitions to identify their role and strategies in improving the local housing situation. IV. Organizing Efforts Efforts are currently underway to establish coalitions in 33 cities. This total includes Chicago, Illinois and Durham, North Carolina. Coali- tions are expected to be announced soon in San Francisco, Kansas City and Dayton. -Mr. Walter Reuther has scheduled a luncheon on January 9 to advance organizing efforts in Michigan cities. At the November meeting, the Steering Committee resolved to aid in the formation of local coalitions. All 38 members were contacted by letter as a consequence, requesting assistance in relation to specific cities. Ten members have responded to this request; seven members have provided the names of individuals who can assist in a total of twelve of the target cities. Since the last meeting on November 13, the following Steering Committee members have made or will make speeches: Mayor Naftalin - Cleveland, November 21 Mr. Close - Corpus Christi, January 28.
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
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Box 7, Folder 9, Document 11
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- Text: NEWS 7 ~Af from _ The Urban Coalition 2100 M Street, N. W. Washington, D. C. 20037 202/293-7625 (Tom Mathews) FOR RELEASE MONDAY, A.M., NOVEMBER 10, 1969 URBAN COALITION NAMES TOP LEADERS TO STEERING COMMITTEE Three businessmen, two mayors, a Texas state senator and a physician were named today as additions to the national Urban Coalition's policy-making Steering Committee. The new members announced by Urban Coalition Chairman John W. Gardner are: Ben W. Heineman of Chicago, Chairman of the Board and Presi- dent of the Chicago and North Western Railway Company. Heineman is also Chairman of the President's Commission on Income Mainten- ance. Donald M. Kendall, President of Pepsico, Inc., and Chairman of the National Alliance of Businessmen. H. I. Romnes, Chairman of the Board of AT&T. Romnes is also Vice-Chairman of the National Industrial Conference Board and is a member of the Urban Coalition's Task Force on Education. Mayor Erik Jonsson of Dallas. Mayor Richard Lugar of Indianapolis. State Senator Joe J. Bernal of San Antonio, Texas. Senator Bernal, an educator and social worker as well as legislator, is (MORE) =e Executive Director of the Guadalupe Community Center in San Antonio. Hector P. Garcia, M. D., a Corpus Christi, Texas physician and Commissioner of the U. S. Civil Rights Commission. Dr. Garcia was organizer of the American GI Forum, a national group of veterans of Mexican origin. The appointments bring the total membership on the national Steering Committee to 65. Mr. Gardner said the Urban Coalition adds to the Steering Committee periodically to assure broad and dynamic representation from the Coalition's constituent elements -- local government, business, labor, minority groups and religion. He said he was de- lighted that men of the stature of the seven new members had agreed to actively participate in Urban Coalition policy. The Urban Coalition is a national organization with 48 local coalition affiliates. It brings together diverse groups to work toward the solution of urban problems. Co-Chairmen of the national Urban Coalition Steering Committee are Andrew Heiskell, Chairman of the Board of Time, Inc., and A. Philip Randolph, International President-Emeritus of the Brother- hood of Sleeping Car Porters.
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
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Box 7, Folder 9, Document 32
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- Text: OF ihe “9 sf i y CV” CITY HALL ATLANTA, GA. 30303 October 2, 1967 Tel. 522-4463 Area Code 404 IVAN ALLEN, JR., MAYOR R. EARL LANDERS, Administrative Assistant MRS. ANN M. MOSES, Executive Secretary DAN E. SWEAT, JR., Director of Governmental Liaison MEMORANDUM ye ) FS [ To: Mayor Ivan Allen, Jr. When John Feild was in town Thursday, (discussed with him the role which I could best play in assisting the ban Coalition. As I discussed it with you before, it was my feeling t there was no reason why I should attend all the working sub-co ittee meetings of the Coalition in Washington and that John Gunther and John Feild could represent you and the other Mayors involved without specific representation from each Mayor, From: Dan Sweat TA We are in agreement on this point and I will not attend any routine working sessions but only those where my attendance is absolutely necessary. He will keep in touch with me on any points where your individual recommendations are needed, He has asked that I act as liaison with eight or ten Southern cities listed as key participants in the Urban Coalition, These are: Atlanta, Little Rock, Savannah, Charlotte, Chattanooga, Nashville, Galveston and Miami. My role would be to maintain contact with the Mayor and/or his key representative in each one of these cities with the immediate task of encouraging their participation in the October 17 planning meeting for local coalitions in Chicago. This would involve some telephone calls during the next two weeks, I believe this type participation at this point would be better than trying to attend meetings every week in Washington, I would appreciate your thinking on this matter. DS: fy
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
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Box 7, Folder 9, Document 25
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- Text: October 27, 1967 MEMORANDUM TO: Members of the Steering Committee FROM: Steering Committee Co-Chairmen The next meeting of the Steering Committee will be held on December 18 at 4:00 p.m. in the Van Antwerp Room on the 8th Floor of the Veterans Memorial Building, 151 West Jefferson Street, Detroit, Michigan. Mayor Jerome P. Cavanagh will host a dinner for the members of the Steering Committee or their representatives to be served in the penthouse at 6:30 p.m. Please advise the National Coordinating Office as to whether you and/or your designee will be present. The Urban Coalition 1819 H Street, N.W. Washington, D.C. 20006 (202) 293-1530
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Box 7, Folder 9, Document 3
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- Text: BUDGET AUGUST 1, 1967 - JANUARY 31, 1968 Salaries: Professional Staff (7) Clerical (5) Employer Contributions Program Expenses: Conferences and meetings Mailings ] Publications and printing Consultant fees Operating Expenses: Office Rent Furniture Rental Equipment Rental Telephone and Telegraph Office Supplies Insurance Travel Subscriptions August Convocation TOTAL $43,000 11,500 1,500 $ 3,000 2,500 8,000 5,000 $ 4,600 3,600 600 1,200 1,500 250 5,200 50 $ 56,000 18,500 17 ,000 8,500 $100,000
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Box 7, Folder 9, Document 22
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- Title: Box 7, Folder 9, Document 22
- Text: November 20, 1967 Mr. John Feild National Coordinator The Urban Coalition 1819 H Street, N. W. Suite 220 Washington, D. C, 20006 Dear John: Mayor Allen will not be able to attend the December 18 Detroit Steering Committee meeting. Unfortunately, I will not be able to be there either so please feel free to carry on without us, Sincerely yours, Dan Sweat DS :fy ee oS a ee ee ras OT a a aS a a a
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Box 7, Folder 9, Document 15
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- Text:
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Box 7, Folder 9, Document 6
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- Text: Office of the’ Mayo tiwcitt eilics To Name. Ph ssh. hich Telephone No. ["] Wants you to call [_] Is here to see you [_] Returned your call [_] Came by to see you {J} Left the following message: 19/9 Saag 2, NW aval Ei =~ KY ler ere a Ca Date: Time a.m./p.m. By FORM 25-5
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Box 7, Folder 9, Document 19
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- Title: Box 7, Folder 9, Document 19
- Text: | Re Urban Coalition December 1968 Community The following statement is an excerpt froma recent speech by John W. Gardner, chairman of the Urban Coalition: Today one of the gravest handicaps to the local community, one of the things that prevents it from pursuing any of its purposes effectively, is the fragmentation of the community itselfi— and the fragmentation of community leadership. I saw this at first hand when, as Secretary of Health, Education and Welfare, I had to visit all of our major cities—and many not so major. I found that the typical American city was split up into a variety of different worlds that were often wholly out of touch with one another. The suburbs were out of touch with the central city. Business, labor and the universities were three wholly separate worlds—as far apart as worlds can be, City Hall was usually out of touch with the ghetto and often out of touch with the ablest and most influential people in the city. The most ominous rifts, of course, were the rifts involving various minority communities, most commonly the black community, but in some parts of the country the American Indian or Mexican-American community. As I traveled around, I observed that these fragmented worlds were often terribly ignorant of one another, and that the ignorance bred fear, and the fear bred hostility. These cities were not communities. They were encampments of strangers. Is it surprising that cities so fragmented have great difficulty in solving their problems, great difficulty in even formulating their problems? Long before the riots, it was apparent to every- one who studied these matters closely that communities so riven could not weather a storm without cracking wide open. , The storms came—and they cracked wide open. One after another. Like all structures under stress they cracked along the lines of their internal weaknesses. The rift between black and white communities was usually the main issue but when the city tried to pull itself together to face that issue, it found its capacity to do so greatly diminished by the other rifts within the community—between business and labor, between suburb and central city, between police and citizen, between young and old. Nothing is more clear than that no major city can or will solve its problems without first repairing some of those devastating gaps in communication. : In some respects it is harder to accomplish that repair after the troubles that have occurred. In some respects, of course, it is easier. Some people respond to trouble affirmatively, re- doubling their efforts to act constructively. But others, both black and white, respond to the interplay of violence and counter-violence with deepened anger, fear, hostility and a desire to strike back. We shall see a good deal more of those emotions before we’re through. But they won’t solve a thing. Sooner or later we are going to have to sit down together and figure out how we can create communities that we can all live in, all believe in, all be proud of, all defend. The sooner we get on with it the better. The Urban Coalition was formed precisely with that task in mind. I would emphasize the importance of the coalition principle. Some people think of the Coalition as just another organization tackling the tough urban problems of the day. But itis unique. Our distinction is that we bring together segments of American life that do not normally collaborate in the solution of public problems. Because of the need for such collaboration at the local level, the national organization has helped to form local coalitions. There are now local coalitions in 39 cities. As in the case of the national, each local organization includes representatives from a variety of leadership segments in the community—the mayor, busi- ness, labor, minority groups and religion. And we encourage the participation of other relevant elements—the universities, the schools, the press, the professions. The coalition principle requires that minority groups be represented in the effort to solve community problems. And such representation is itself a step toward solving the toughest prob- lem of all—effective dialogue between minority communities and the dominant elements in the city. Such communication is difficult. It requires hard work and patience and imagination on the part of every person involved. But there is no alternative, unless we are willing to see our cities torn apart. The one encouraging thing I can say to you is that communication /s possible. We have proven that over and over again. When a crisis strikes it is too late to begin the long, arduous process of building effective channels of communication. If there is to be fruitful collaboration between black and white communities it must begin and be tested ina non-crisis atmosphere. Then when trouble strikes, if it does, men who have learned to work together and trust one another can go into action together. I have not dealt with many substantive prob- lems of the cities—fiscal and governmental problems, housing, jobs, education, health serv- ices, economic development and so on. The Urban Coalition is interested in all those prob- lems, but we are not free to choose the particular problems to which we shall give our attention. The priorities are thrust upon us. There are issues so explosive that if we ignore them we shall be overtaken by events—and then every problem on the list will be infinitely harder to solve. The goal that takes precedence over all others is to begin to heal those rifts that are now making many American cities quite incapable of any kind of healthy problem solving. We can heal those rifts. We can heal them through the process of coalition, if the most influential citizens in the community will lend their strength and their presence, if all significant elements in the community are fairly represented and if all concerned are unsparingly honest in facing the toughest issues. Ina number of American cities today those conditions are being met in local urban coalitions —the most influential citizens have stepped forward, all significant elements in the commu- nity are represented and the toughest issues are being faced. Once the significant elements in the commu- nity begin to work together, once they begin to think as acommunity and act asa community, all kinds of things are possible. Then they can give city government the kind of intelligent support it needs; they can make the needs of their city felt at the state and Federal level; they can see how all the various Federal, state and local programs fit together; they can provide strong citizen support for Federal programs that are working and strong citizen criticism of those that are not working. And most important of all, perhaps, they can look ahead. National Relations Office An Office of National Relations has been estab- lished within the Communications Division of the Urban Coalition to “broaden support for the Coalition and its objectives,” John W. Gardner, chairman of the national Coalition, announced. The new office is under the direction of Christopher Mould, former executive assistant to Mr. Gardner. Before joining the Coalition last year, Mr. Mould was chief of the Federal Programs Division of the Justice Department’s Community Relations Service. The associate director of the new unit will be Fred Jordan, who is leaving the post of Deputy Assistant Director for Operations and Technical Assistance of the Model Cities Administration. Mr. Jordan is a former deputy director of the California Office of Economic Opportunity, a division of the governor’s office. Brian Duff, vice president of the Communica- tions Division, said the mission of the National Relations staff will be to establish liaison with other national organizations and with Federal agencies and to seek ways for the national Coalition to cooperate with others in solving urban problems. Action in Newark The Newark, N.J., Urban Coalition has a shorter history than many of the 38 other Coalitions launched since August, 1967. But its formal incorporation in April of this year has been followed by planning on a large scale and some substantial steps toward improvement of the city’s economy. Newark has the second highest proportion of Negroes in its population of all American cities; it is more than half Negro, and another 10 per cent is Spanish-speaking. A report by the city’s Office of Economic Development showed that generally this 60-plus per cent lives at a much lower economic level than the rest of the population: It is largely unskilled and untrained, and it has few resources except labor to offer to Newark’s econoniy. Projections indicate the downward trend will continue.as the gap widens between the character of the population and the types of jobs available. Growth is expected to come in the non-production industries that require the greatest skills, not in trade employment which could absorb the unskilled workers. The Greater Newark Urban Coalition, in a broad “Plan of Action,” has proposed the establishment of aCommunity Development Corp. that could be the key to the city’s economic development. As the Coalition sees it, the objective is to “forge for Newark a community- wide organizational capability that will be able to deal effectively with the wide range of problems that are rooted in the economic dependency and weakness of the indigenous population of the ghetto.” The Community Development Corp. would be owned, operated and managed by ghetto residents. It would run all antipoverty services, but more importantly would also own and manage businesses, own and manage housing and represent the community in renewal planning and other phases of public policy. One of its goals will be to become involved in businesses which are job producing with a market for its products or services both inside and outside of the ghetto. The Coalition is now organizing this corporation so that it will qualify for 502 loans from the Small Business Administration as well as grants and loans from the Economic Development Administration and other sources. Solid impetus was given the Coalition’s “Plan for Action” by the establishment in early October of a $1 million fund by four commercial banks to provide loans to ghetto buisnessmen who cannot qualify for financial help elsewhere. Two staff members of the New Jersey Department of Community Affairs have been assigned to administer the loan program through the Coalition office. The Coalition and the private, nonprofit Interracial Council for Business Opportunity will help loan applicants diagnose the problems of their businesses and try to improve their operations. Coalition president Gustav Heningburg followed the loan fund announcement with word that the organization would move into sponsor- ship of low-income housing within the next two months. To enter this field, it will establish a housing development corporation with a sepa- rate board of directors composed of Negroes and Puerto Ricans. The corporation will provide financial and technical assistance to community groups which wish to sponsor low- and middle- income housing construction under various federal and state assistance programs. The “Plan for Action” outlined by the Coalition to the community includes efforts— now underway—to organize and charter a black- controlled bank in the city. “The benefits of a full-service commercial bank with a special concern for the financial needs of the minority community are obvious,” it said. It is working also to deepen the commitment of the private sector to a personal loan program for low- income residents. The state has promised to commit $150,000 to create a guarantee fund if a matching amount is committed by private interests. Gerald L. Phillippe e Gerald L. Phillippe, chairman of the board of the General Electric Co. anda member of the Urban Coalition’s steering committee, died Oct. 17 at the age of 59. Mr. Phillippe had worked for General Electric since his graduation from college. He became. the company’s seventh president in 1961 and was elected chairman of the board in 1963. He was present at the Aug. 31, 1967; emergency _ convocation at which the Urban Coalition was launched, and for many years he had led efforts to join the private and public elements of society in fighting poverty and unemployment in the cities. Fresno Expands -Froman initial focus on improving local housing, the Urban Coalition of Fresno, Calif., has turned its energies to attacking a broad spectrum of community problems. Since Mayor Floyd H. Hyde called meetings of leaders of all segments of the community to set priorities last January, task forces have been organized in jobs, youth opportunities, housing, entrepreneurship and education. __ The first task force to get fully underway was in housing, and the city responded by trading its street beautification and tree planting program for an effort to set up a municipal mortgage insurance fund with an initial appropriation of $10,000, The experiment lets the city insure home loans which do not qualify for convention- al financing. To administer the mortgage pro- gram, a Housing Finance Board was established by city ordinance, and it ruled that loan appli- cants must participate in the HOME (Home Opportunities and Management Education) ' program. HOME was developed by Fresno State College, at the city’s request, to assist people living in substandard conditions to rehabilitate or neplaee their present housing. The Fresno Housing Development Corp. was created by members of the housing task force — as a nonprofit corporation to assist the city’s | renewal efforts, and the task force is also assist- ing the civic redevelopment agency with its General Neighborhood Renewal Area Plan covering 1,900 acres in West Fresno with over 5,000 dwellings. The pilot project, San Joaquin Park, covers 400 acres. Another part of the poverty-stricken West Fresno area, the Edison. Manor neighborhood, was helped by the Coali- tion task force in activating a FACE (Federally Assisted Conservation Effort) project gto halt deterioration. J While housing activities were getting started last winter, the mayor invited a Los Angeles businessman who had headed that city’s rehabili- tation committee after the Watts riots to speak to Fresno business leaders. H. C. McClellan 4 described the Management Council for Merit - Employment, Training and Research, which was finding job and training opportunities for _ minority groups. By March 6, three meetings had been held in Fresno, and 28 industrialists - initiated a like program for that city. The Management Council hired an executive director _to serve through the summer months, called 200 large companies toa general meeting—and immediately got to work distributing job appli- cant biographies and unemployment fact sheets ; along with its statement of purpose. Araft of personal interviews followed, and ao follow-up survey was made later to find out ~ how many disadvantaged MoxigantAnietican. and Negro workers had been hired. By mid- September, 401 full-time and 114 part-time workers had been signed on by 146 companies _ who responded, And by that time, a three-year budget for the Management Council was prepared, a full-time director recruited, a full- time person assigned to work withthe Council _ by the Model Cities Program, and a contract signed with the Concentrated Employment Program to help secure jobs and training for 100. persons in the six months ahead. High priority has been assigned also to seutht opportunities and services. In Aprila chairman and the nucleus of a task force were selected, and : this body was subsequently charged with pro- viding a meaningful summer program for hey ( Continued ou page 9) “sd Here are some examples: —Title I education funds. Last year, $1.191 billion. This year, $1.123 billion. —Grants for model cities. Last year, $312 million. This year, $625 million. —Office of Economic Opportunity, the basic antipoverty agency. Last year, $1.77 billion. This year, $1.95 billion. —Food stamp program for the needy. Last year, $185 million. This year, $280 million. At the very end of its 1968 session Congress considered the appropriations that were needed by the Housing and Urban Development Depart- ment to get a quick start on the new programs in the Housing Act and to administer the fair hous- ing law. The results were disappointing to the Action Council. Of $150 million in contracts that HUD planned to sign under the new home- ownership and rent subsidy programs, Congress approved only $50 million, And the appropria- tion under the fair housing law was even slim- met—$2 million compared to the request for $8 million. The Secretary of HUD, Robert C. Weaver, said October 29 that the cuts in requested appro- priations might set back for as much as a year the goal in the Housing Act of achieving 6 mil- lion housing units for low-income families in the next ten years. He expressed hope that the next Administration and Congress would ap- prove supplemental appropriations for the home- ownership and rental subsidy programs. By the time Congress adjourned it had ex- tended a number of laws that helped meet prob- lems of the cities. Among these were: e The Manpower Development and Training Act, which provides money for training the un- employed and upgrading the skills of the under- employed. The Act was extended for four years, but the Public Service Employment program which the Action Council supports was not added to it. ® The Higher Education Act, which includes the Teacher Corps, financial aid for needy stu- dents and funds for college construction, and the Vocational Education Act. New programs to help disadvantaged students were added to the two Acts. ® The School Lunch Act, which was amended to make federal funds available to day-care cen- ters, neighborhood houses and summer recrea- tion programs. e The Juvenile Delinquency Prevention and Control Act, which was changed from an experi- mental demonstration program to a more per- manent program largely under state control. @ The Mass Transportation Act, which fur- nishes federal funds for improved local transit | Operations. e The Federal-Aid Highway Act, which fi- nances major urban highways. New provisions | were added to the Act requiring that when hear- | ings are held on proposed routes within a city | the effect of the location of the highway on the | | community environment must be considered. Desegregation Amendment. A serious threat to the drive for effective desegregation of schools was barely beaten in Congress this year. The Action Council cooperated with other organiza- tions in working to defeat the proposal. The provision was sponsored by Mississippi Rep. Jamie L. Whitten (D), a high-ranking member of the House Appropriations Commit- tee, and was written into the Committee’s appro- priation bill for the Health, Education and Welfare Department. After the House of Repre- sentatives approved the Whitten amendment in June, the Action Council urged the Senate to remove it from the bill. The provision was not deleted by the Senate but it was made relatively harmless by the addition of qualifying language. The key part of Whitten’s amendment pro- hibited HEW from “forcing” children to attend any particular school against their parents’ wishes, The Senate language prohibited forcéd attendance at a particular school “in order to overcome racial imbalance.” This phrase, which referred to de facto as opposed to discriminatory segregation, was already part of civil rights Jaw. It allowed the Government and the courts to put an end to “freedom of choice” school plans that were perpetuating racial discrimination. When members of the House and Senate Ap- propriations Committees met in conference on the HEW bill, Southerners had a majority of the votes and they struck out the Senate’s qualifying language concerning racial imbalance. In effect, Whitten’s purpose was achieved. Action Council Chairman John W. Gardner wrote House Speaker John W, McCormack (D Mass.) and the Republican leader, Rep. Gerald R. Ford (Mich. ), October 2, asking them to help defeat the Whitten amendment on the House floor. He said the amendment “raises the real threat of resegregation in many Southern school districts” and “implicitly sanctions racially dual school systems.” On aclose 167-175 vote October 3, the House rejected the Appropriations Committees’ recom- mendation and adopted the Senate phrase nulli- fying Whitten’s amendment. The result is that HEW can continue to with- hold funds from school districts that are not making real progress toward desegregation. Block Grants. Block grants to the states were a | feature of two major bills passed by Congress in 1968. These were the Omnibus Crime Control and Safe Streets Act, which provides $400 million in federal funds to help improve state and local law enforcement activities, and the law extend- ing the Juvenile Delinquency program. Block grants have become a classic federal versus states’ rights issue in the last two years. The principal debate has been on whether funds from the federal government for specific pro- grams should go directly to the communities that apply for them, or whether they should go to the state governments for distribution under a state plan. A major argument against block grants to the states was raised by Sen. Edmund S. Muskie (D Maine) during the debate on the anti-crime bill. The block grant approach, Muskie said, will foster “continuing political controversies and partisan rivalries between state and local govern- ments, between Governors and Mayors, between urban and rural areas.” Muskie pointed out that law enforcement is far more a local than a state problem, just as is education—another field in which block grants have been proposed. The chief opposing argument was made by Sen, Everett M. Dirksen (R IIl.), whose block grant amendment prevailed on the crime bill. Dirksen warned that if Congress “bypassed” state governments by providing funds directly to municipal governments, the system would lead to “imposition of federal guidelines, restrictions and eventual domination” of the states. Southern Senators joined Dirksen in support- ing block grants. Sen. Strom Thurmond (R S.C.), for example, declared that “the federal government should not deal with local commu- nities, cities, towns and other subdivisions” but only with the states. Sen. Sam J. Ervin (D N.C.) added that citiés are only “creatures of the state.” Administration officials contended that since law enforcement and juvenile delinquency are basically local issues, federal programs should be “community based,” involving local people in the planning and operations. The U.S. Attor- ney General, Ramsey Clark, said it would be a mistake to “thrust the state into the pipeline” between Washington and the local area. Ar- rangements under which state officials could re- view and evaluate—but not veto—local plans | for the use of federal funds were favored by the Administration. Action Council Chairman Gardner, com- menting on the juvenile delinquency bill in a July 8 telegram to Sen. Joseph S. Clark (D Pa.), noted that “most youth services and juvenile courts are now operated at the local level. Pre- cipitate requirements that all federal funds be channeled through state agencies,” Gardner said, ‘would seriously impair the effectiveness of the juvenile delinquency legislation and in my view would be a grave mistake.” Congress, however, wrote into the bill require- ments that federal contributions to rehabilitation and prevention programs, the basic elements of the legislation, be allocated directly to the states. But, each state first has to draw up a compre- hensive plan for distributing the money to its communitics and get the approval of the Secre- tary of HEW. The state also has to pay part of its communities’ costs in operating the program. The anti-crime bill allocated in block grants all of the money for planning ($25 million the first year) and 85% of the money for law en- forcement grants ($50 million), Each state was required to channel at least 75% of its law en- forcement grants to communities in the state. The planning moncy was for setting up and op- erating state agencies to draw up statewide law enforcement plans. Local Legislation Local coalitions have been active this year in urging legislative action by the state legislatures and by city government. They have also made recommendations on bond issues to be voted on by the public. In Racine, Wisconsin, the local coalition—the Racine Environment Committee—met with the Mayor and 12 of the city’s 18 aldermen to dis- cuss the coalition’s program. The Environment Committee urged swift action by the city in ap- plying to HUD for planning funds under the model cities program. Another legislative goal was adoption by the City Council of a housing conservation code so that the city would be eligible for federal funds for low-income housing. This effort was led for the coalition by Paul Cody, the urban affairs manager of the Johnson Wax Company. The Louisiana legislature recently enacted a law for local option urban renewal, capping a two-year campaign by the Urban Coalition’s New Orleans affiliate, the Metropolitan Area Committee. Members of the committee endorsed a Community Improvement Act sponsored by the city administration, prepared and distributed a pamphlet explaining urban renewal, and testi- fied at hearings by legislative committees in the capitol in Baton Rouge. The legislature did not act on the proposal last year, but when the New Orleans group and other supporters of urban renewal resumed the campaign in 1968, the bill passed and was signed by the Governor. The city is now actively working on its urban renewal plans. On the local level the Metropolitan Area Committee has been seeking reform of the tax structure and has endorsed bond proposals within the city of New Orleans and in an adjoin- ing parish (county). The Saginaw, Michigan, local coalition has been credited by the Mayor’s office with gaining support within the city for passage of fair hous- ing legislation and an unprecedented tax levy for education. The Committee of Concern, the Sagi- naw coalition, also worked successfully for a county-wide mutual fire assistance pact. The New York City Urban Coalition’s Hous- ing Task Force has set up a legislative subcom- mittee of ten attorneys to examine what provi- sions in the housing law are being used or misused. The subcommittee will seek new ap- proaches to housing legislation and regulations, as well as advising on community housing prob- lems. Testifying before the St. Paul, Minnesota, City Council in October, representatives of the local coalition supported a budget increase sought by the director of the St. Paul municipal human and civil rights department. Fresno Expands from page 4 disadvantaged youth, as well as summer jobs. But this didn’t seem enough to the task force members; they wanted a year-round role. In July, representatives from youth organizations throughout the Fresno area were convened, and a Youth Council was born. It includes a voting representative from every youth group, and accepts as members all youth from 15 to 22 years old. The first official activity was a September panel discussion where a fiery exchange went on among 500 adults and youths on “The Widening Gap Between Youth and Adults.” This gap between the generations was not the only one to be faced; one of the specific goals of the Youth Council is to promote interaction and commu- nication among young people from all parts of Fresno. The Council recognizes no barriers, whether city-county, school, church or racial. It has made plans to study such problems as recreation, high school curriculum and drug abuse—studies to be carried out by youth alone. And the gap between youth and the “establish- ment” is being tackled by having youths sit in on city commissions and take a role in the decision making—learning about community planning processes at first hand. Case Study: Minneapolis Minneapolis, one of the first cities to form an Urban Coalition, has had its first year’s experi- ence described in a detailed case study. The report, available from the national Urban Coalition office, was prepared by Michael J. McManus, correspondent for Time Magazine who had been on loan to the Urban Coalition. Sparked by Mayor Arthur Naftalin, 14 busi- ness leaders who had worked together after a 1966 riot in Minneapolis agreed that a long- range attack on the city’s problems was needed. Each donated $1,000 for a citywide study on the possibility of creating a Coalition for com- munity focus on the problems. To conduct the study they hired Larry Harris, organizer of the Hennepin County poverty program, who was white and had the respect of most white leaders. Sensing distrust by the militant black leadership, Harris asked for a co-director: T. Williams, black staff director of alocal community center. Their study found wide agreement on need for a coalition, but real apprehension that business would dominate it. The businessmen responded by minimizing their role, deciding that only seven of them would sit on a 63-man board. One-third would represent minority and poverty groups, one-third government and agencies, one-third business, labor and religion. A statement of goals was drafted and circulated to 100 leaders by mid- November, and a temporary structure was designed with six-month terms for chairman, staff director and task force heads. Larry Harris became executive director for the first six months. In early December, a single meeting of men from 60 corporations raised the $45,000 budget, and a six-man staff was planned. “In retrospect, this underestimation of staff needs was the largest single error in launching the Coalition,” the report says. “Once the study was completed, things seemed to drag. It was not until Feb. 8 that the first Coalition meeting was held.” Task forces were named on employment, housing and community information. The latter followed up the Kerner Commission Report with - an “Anti-Racism Week”: Church-goers were given a “sensitivity survey, ’ seminars were held on the shortcomings of the white press, housing industry members were confronted with charges of discriminatory housing practices: In the week following the murder of Dr. Martin Luther King Jr., black members, venting their emotions with violent words, charged that the Coalition was useless and formed a Black United Front to present formal demands. Their 14-point “Rec- ommendations from the Black Community” impressed the white members with the thought- fulness of the demands and the unity of the community. “The Coalition committed itself to a series of specific actions in direct response to the 14 points,” it is reported, but “as painful as it was for the fledgling Urban Coalition to bow (some said ‘eapitulate’) to the demands of the black community, producing action on the 10 promises was far more difficult. The white man had made new promises, but he did not provide the staff to do the hard work to produce results.” The outcome: frustration on all parts, culmi- nating in an explosive meeting on the six-month anniversary. It was time for a new look at purposes and methods. Larry Harris’ temporary assignment as executive director ended at this meeting, and he submitted a series of special recommendations. One was carried out imme- diately, as Harry Davis, the man the blacks had chosen to negotiate their 14 points, became the new executive director. The appointment had “profound symbolic value,” McManus says in - his report. “To have a Negro in that post under- scored the city’s long-term commitment to press the battle against racism and poverty.” Finding that the sharpest cry was for black entrepreneurship, 17 family and corporate foundations formed a consortium and pledged $225,000 for an equal opportunity fund. A predominantly black subcommittee of the busi- ness development task force was formed to decide which applicants for enterprise are to be helped; other committees give technical aid. By early October, $17,000 made in “soft” loans had drawn another $64,000 from traditional lending sources to help Negroes open their own businesses. The housing task force also had produced results. By October the city had added 14 build- ing inspectors to force landlords to maintain property standards; legislation to protect tenants was in the works; the consortium had approved 41 applications and was reviewing 175 more for down-payment funds for needy families. The employment task force helped fill 600 full-time jobs and found 1,470 summer jobs. Lessons learned in this year: The Coalition cannot be “solely a behind-the-scenes catalytic agent ...,” the case study concludes. It must actively strengthen the black leadership on a broad base, and there must be persistent com- munication among all parties. It must be funded to afford enough full-time staff to do the job; borrowing personnel initially is only a stop-gap solution. Finally, says the report, the principals “must recognize that they are blazing new trails through perilous terrain. Like explorers, they must have goals, enthusiasm, strength and a vast capacity to be flexible when confronted by the unexpected.” Communications Brian Duff, vice president of the national Urban Coalition in charge of communications, has announced the appointment of William A. Mercer as deputy director of communications. Mercer has served since April 1964 as executive director of the Business and Industrial Coordi- nating Council in Newark, N.J., an organization of business, civil rights, industry, labor, educa- tion, the major religious faiths and social _ agencies that has developed more than 15,000 job and training opportunities for the disadvan- taged in that city. Mercer is a graduate of the New York University School of Commerce, Accounts and Finance and has done graduate work at the NY U Graduate School of Arts and Sciences. \ The Urban CT 1819 H Street, N.W. Washington, D.C. 20006 Nonprofit Org. U.S. Postage PAID Washington, D.C. Permit No, 43234 Third Class Sy offices 105
- Tags: Box 7, Box 7 Folder 9, Folder topic: Urban Coalition | Miscellaneous | 1967-1969
- Record Created: April 18, 2017
- Record Updated: April 29, 2021