Box 22, Folder 18, Complete Folder

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Box 22, Folder 18, Complete Folder

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The Department of Housing and Urban Development
The Office of Economic Opportunity
Ma y 23-24, 1966
Wa s hington Hil ton Hotel
Washington, D.C.
Agenda for
Department of Housing and Urban Development
Office of Economic Opportunity
May 23-24, 1966
Washington, D. C.
The purpose of this Conference is to evaluate the feasibility of
providing several million additional standard housing units within the next five
years, at prices the poor can afford. We are seeking from this Conference (1) a
summary of what we do and do not know about how the poor are housed, in physical,
economic and social terms; and (2) identification of alternative programs or
combinations of programs and implementation strategies, that might make decent
housing available for the several million poor households that would otherwise
occupy substandard or overcrowded units by 1970.
Monday, May 23, 1966
9:00 a.m.
Opening Remarks
Sargent Shriver, Director
Office of Economic Opportunity
Robert C. Wood, Under Secretary
Dept. Housing & Urban Develop.
9:15 a.m.
Conference Procedures
Dr. Morton J. Schussheim
Director, Office of Program Polky
Dept. Housing & Urban Develop.
Mr. Alvin L. Schorr,
Deputy Chief, Research & Plans
Office of Economic Opportunity
9 :,30 a .m.
Statement of Problems and
Its Dimensions
Professor Charles Abrams
Columbia University
(The number of units and poor people in need of better housing;
the extent to which rehabilitation and/or clearance are
required; the costs involved; present locations of substandard
units; composition of occupants by race, age, size and family
composition; the national goal.)
11 :00 a .m.
Social Issues
Pr o fessor Nathan Glazer
University of California
(The questions of deghettoizing the poor and particularly
the nonwhite poor; the supplemental educational, counseling
and back - up services required; the problems of a means test
and establishing priority criteria; the attitudes of poor
and non - poor to this housing; the difficulties and oppor - t un ities of relocation . Should standards be reduced , e . g .
no air conditioning ; room sharing; smaller room size ; etc • . . )
1:00 p . m.
Monday, May 23, 1966 (Cont'd)
Technological and Land Use Issues
2:30 - 5:00
Richard J. Canavan
National Association
of Homebuilders
(The ~ype of housing required and its location; the
availability of land; architectural and city planning
concerns, the technological problems and opportunities
of a large-scale building and rebu i lding program; the
abilities of existing or proposed institutions to
implement the program; prospects f or cost reducti on.)
Tuesday, May 24, 1966
9:30 a.m.
Economic Issues
Pro fessor Chester Rapkin
Uni versity o f Pennsylvania
(Alt e rn a tive mean s of fi nancing the pr ogr am; the
effect on the economy o f a multi-b i llion do llar
program; the effect on the total housing industry
and constr uction costs; a c ceptable standards of
space and quality; the effect on the values and
cond i t ion of e xisting housi n g a nd n ei ghborhoods;
e ff ici encies that mi ght r esult from a r eeva lu a ti on
of the e conomics of the hous ing i ndust r y.)
12 : 00
2: 00 - 4: 00
Program Issu es
Dr. Lou i s Winnick
Pub li c Affairs Program
The Ford Foundation
(The t ypes of programs to me et the objec t ive ;
possi b le expan sion or red ire ct ion of exi s t ing
programs and t he inv ention of n ew kind s of
programs; possible number of units to be dev eloped;
~he phasing and possible mix of programs over a
several-year period.)
�List of Invited Particip~nts
Conference on Housing for the Poor
Mr. Charles Abrams
Professor of City Planning
Columbia University
Mr. Nathaniel Keith
Mr~. Ruth Atkins
Community Representatives
Advisory Council
Office of Economic Opportunity
Mr. Saul
Mr. Richard J ; Canavan
Staff Vice President
Builder Services Division
National Association of Homebuilders
Honorable Sherman Maisel
Board of Governors of the
Federal Reserve System
Dr. Robert Dentler
Center f or Urban Education
Honorable Arthur Okun, Member
Council of Economic Advisers
, Mr. John Eberhardt
National Bureau of Standards
Professor Chester Rapkin
Institute for Environmental Studies
University of Pennsylvania
Professor Bernard Frieden
Departmen t of City and Regional Planning
Massachusetts Institute of Technology
Mr. Nathaniel H. Rogg
Executive Vice President
National Association of Homebuilders
, Mr. Robert Gladstone, President
Robert Gladstone and Associates
Dr . William G. Grigsby
Institute for Environmental Studies
University of Pennsylvania
of Research
Association of
Savings Banks
Mr. Arthur Levin
Potomac Institute
Mr. Albert M. Cole
President, Reynolds Metals
Development Corporation
, Professor Nathan Glazer
University of California
Dean Burnham Kelly
College of Architecture
Cornell University
Dr. John R. Seeley
Chairman, Department of Sociology
Brandeis University
Mr. Miles Stanley
National Advisory Council
Office of Economic Opportunity
Dr . Louis Winnick
Public Affairs Program
The Ford Foundation
Housing Poor Families
The Problem.
A program to house all the nation's poor in decent
housing at rents they can afford contains two distinguishable elements:
how to improve the housing conditions of those presently living in sub-

standard quarters; and 2) how to lessen burden of those who
live in standard quarters at the price of devoting an excessive burden of
· their income for housing.
OEO has e.stimated that upwards of 4 mi·llion poor
families and poor unrelated individuals in 1964 lived in housing that was
dilapidated, lacked ~lumbing facilities, or was overcrowded •.!:/
The number
· who overpay for standard housing is harder to estimate but is large.
example, in 1960 rent-income ratios were computed for 5.7 million families
with incomes under $3,000 .
4.4 million of them were paying 25 percent of
their income or more for rent.
An ad ditional .5 million were paying be-
tween 20 and 25 percent of their incomes.
In theory, housing needs of poor people should decline because of
anticipated declines in the proportion of families who are poor and because
o·f continued upgrading of the total housing stock.
Between 1950 and 1960,
however, poor families received only 2.5 million standard units out of a
~t overall increase of 19 million .
That is, families representing 30 per-
cent of the total in 1950 and 20 percent in 1960 showed 13 percent of the
The incidence of housing characteristics in 1960 was applied to 1964 data
about the poor population, producing a total of 4.1 million in such units in
1964. If one proceeds alternatively from the housing stock itself .and the
rate at which improved housing stock reaches poor families, an estimate as
high as 5 million poor families in substandard housing would be produced.
net ove_rall increase.
Moreover·, in some' places and for some groups' "natural
forces" may exacerbate the problem in the years just ahead.
families presently living in substandard housing are less mobile and have
more deviant characteristics than thoae who were able to take advantage of •
the filtering process during the 1950s.
And such forces as zoning and sub-
division controls are likely to present new impediments to the distribution
1 ·
downward of _standard housing.
That . the current welfare system --- an
of the pure income approach to housing --- has not produced larger results :is
another argument for seeking substantial approach to the supply side of _theI
Obviously, some improvement will occur naturally and one must assume
too that cash income maintenance programs wi ll meet i ncreasing portions of _/
family income de ficit s.
Reasoning fr om 4 mi llion families and indiv iduals
in s ubstandard housing in 1964 and add i t i onal millions pay ing more than
the y c an affor d for st andard hous ing, one may e stimate the object ive more
or less a t wi ll .
OEO has es t imat ed that the ob ject i ve should be pi t ched
to the expec t a tion tha t the me di an i ncome of families who should be reache d
would be $3, 000 ( f or a f ami ly of fo ur ) .
From th is base, one must de t er-
mi ne an overall objective within t he target date of five or six years.
Developing a Program.
In a pproaching the developmen t of a program
it is necessary to judge what may be built and what may be reclaimed.
an approach represents.more than simple economy.
It allows room for
that may wish not to give up thei r homes and provides a pattern for contintled


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maintenance of the housing supply.
In the decade from 1950 to 1960, some-
thing less than one-fourth of the net increase in standard dwellings represented rehabilitated units.
On one hand, there has been considerable
reduction in the stock of housing that lacks plumbing facilities and is
comparatively easily rehabilitated.
On the other hand, new aids are
available for rehabilitation and new effort is to be invested in it.
is, in any event, necessary to make some assumption about the proportion
of standard housing that would be secured by rehabilitation and the proportion that would be built new.
Similarly, it is necessary to make judgments about the geographic
distribution of additional standard housing.
Although substandard housing
is disproportionately distributed in rural areas, some number of the people
now using it wi 11 be seeking housing i n urban areas.
Finally, plans for a
substantial program should include consideration of staging a buildup of
the construction industry.
For example, a net increase of 1 million units
a y0ar might be built up to at the rate of 200,000 or 300,000 each year for
several years.
The supply of housing for low-income families can be increased either
through government incentives to "the private sector or through direct construction by public housing authorities.
Incentives to the private sector
include -subsidization of land costs and reduction in the cost of bon:owing
building capital (low interest loans or subsidized interest rates).

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Use of
these aids provides an attractive incentive to private builders (and rehabilitation contractors) while permitting some control over the allocation
of benefits and rentals or sales prices.
However, these forms of assistance
are not sufficient to produce housing in the $50 a month range.
poor fam:1,.lies must also be subsidized.
To do this;
A program of the JJ1,B.gnitude being
described might be fashioned entirely out of two elements
rental or
purchas.e assistance and interest and land subsidization.
The obverse side
of these assistances are conditions as to beneficiaries and uses.
Obviously, Jll,S.ny variants of the two elements are possible and alternative programs may be fashioned as well.
Related questions that would arise
include the uses and place of code enforcement, the type of research that
might be most productive, the special ne.eds of rural areas, the niethods. of
assuring desegregation, and related needs for providing public and social
l' '
One area the Federal government has neglected in its effort
to make lower cost housing av~ilable is the use of technology and
other innovations to help reduce costs.
Therefore, the idea of establishing an urban .,development
~orporation to create a large enough "market" in the field of
rehabilitation so as to induce innovations is an attractive one.
The need to explore all ways of encouraging rehabilitation of
sub-standard housing is
However, there are a number of uncertanties and risks involved
in launching a UDC program.
To begin with, it is unclear to what extent i echnological and
institution j innovations can reduct costs.
Furthermore, the economic
feasibility of the program, and therefore the assumptions on the degree
of financial support needed, is highly sensitive to such factors as
acquisition costs, rehabilitation costs,and mortgage terms.
In addition, the program cannot be started small.
It must be
launched on a large enough scale to create the necessary "market" for
Therefore, the program must have top-flight leadership,
and it must have a firm commitment on the availability of 22l(d)(3)
below-market funds, FNMA special assistance, and rent supplements.
Given the proposed 30,000 unit target for the first two years
and given the need to operate on a scale of around 10,000 units in
any city, it should be understood that the program will have to be
limited to a small number of cities.
It should also be understood that no matter what cost-savings
may be achieved through innovation, major subsidies in one form
or another will still be required to meet the housing needs of
the poor.
The Task Force therefore recorrnnends:
That a program along the lines proposed by HUD be
inaugurated to test the capacity of UDC to stimulate technological
That the UDC should seek to encourage and to assist-through ·
training, technical assistance, loans and otherwise-- the formation ·
of competent and qualified local non-profit organizations to help
carry out its mission.
That firm commitments be made on the availability of
sufficient 22l(d)(3) below-market funds, FNMA special assistance
funds, and rent supplement funds to meet its program objectives.
That a clear understanding of the relationship of the UDC
to existing local agencies concerned with housing and urban development
be worked out before the program corrnnences .
That careful consideration be given to explor}t'\ith those
most concerned possible political acceptance• of a UDC program
involving new construction as well as rehabilitation.

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Subcommittee on Exe cutive Reorganization of the
Senate Committee on Government Operations
Afternoon session - November 29, 1966 .
Richard M. Scammon , Vice - President, Governmental Affairs
Institute , Washi ngton .
th' . Scarnmon testified on the need for a mid- decade Census, or an inter -
censal urban Census. He said that although the 1960 Census is out - of- date,
obviously the 197q census count won 1 t be ·available for five years.
A big factor in the obsole scence of data is the increased mobility of the
population . According to . Ya- . Scammon, there is a great need for area data
rather than figures from a city as a whole . I n the questi oning by
Senator Ribicoff this point was elabo:::-ated upon and it was stated that if
information had been available concerning the situation in the Watts
area of Los Angel es , the riots could have been avoided . Senator Ribi coff
said t hat when a census was taken of Los Angeles the bad figures from such
areas as Watts were offset by the figures f:::-om more affluent areas .
Senator Ribicoff pointed out that Yir . Cohen from the Department of ~:EW had
used figures which dated back to 1961 when he testified before the com.~~ t te e
and that government agencies cannot cure social ills without up- to - date
statistics which point definitively to the location of those 'ills .
Senator Rib i coff and lfir . Scammon both agreed that a mid- decade census is
ne cess ary . Senator Ribicoff mentioned that the Office of Eco nomic Opport u.,."li ty
is planning to take a special census in 1968 in st andard metropolitan ar ea s
to complile pertinent data on such statistics as the median family income .
- Vir . Sca.m.~on laid the blame for the fact that a census is taken only every
ten years on the Budget Bureau . He said that the costs involved are so
tremendous that the Budget Bureau would not agree to a more frequent census.
Method of t aking the ce nsus
Senator Ribicoff asked whether or not the method of ta..~ing the census is
important. He pointed out that a census was conducted in Watt s where
questionnaires were mailed to the 1·esidents. He questioned whether or
not people at these levels would be interested enough to return the complete d
Lack of data on adult male Negroes
Senator Rib ico ff also pointed out that i n the last censu s betwe en 15% and
~.r. Sc a~.mon rep lied t hat
there was a slippage in less afflue nt areas of cities, but he did not know
whether Senator Ribicoff's percentages were entirely correct.
2Cf/o of adult male Negroes were mi ssed entirely.

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L?16:57, 29 December 2017 (EST)
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Advantages of a five-year census .
Senator Ribicoff said that abnost all grant programs are based on the
number of people and their needs . He claimed that we must wei gh t he
advantage s of a five -year survey in relation to these programs . He said
that a · f i ye-year census would be better for decision ma.~ing by such
administrat ors as the Secretary of h'UD .
Central location for statist ics.
Senator Ribicoff also asked whether there should be a central place for
t he gathering and keeping of statistics, rathe1· than allowing each Department to have operations of its own . ifi r . Scammon sai d that a task forc e
heaaed by Congr essman Gallagher r ecommended s et t ing up a cent r al ban.~ for
statistics, but that a big concern of the Task Force was the right of privacy
of individuals in responding to questionnaires. Senator Ribicoff contended
that where the information was merged, th~ pr.oblem of confidentiality was
Senator Ribicoff
to get people to
forei gn areas of
in orde~ to gain
said that the problem of taking an urban census has been
do the work . It was also poi nted out that in problem or
a city, t he census takers must be famili ar with the area .
the confidence of the people who are interviewed.
Spending in.cities
Senator Kennedy asked through the _Chainnan whether it is possible to
determine .how much the government is spending i n ea ch city to rebuild .
He wants to know how we can get better figures . Mr . Scam..'llon said that
this information should be available from the Census Bureau or through
the Subcommittee.
Senators P_!esent:
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Hea:ci ngs before the Subccmmi tt ee on Executive Reor gan i ze.t i. or:.
o f the Senate Govermr..ent Ope rations Corr~tlittee
Afternoon session :
Witness :
Novembe r
30, 1966
Judge GE!org e Ed,·re.1·ds, U. S . Court of Appeals, 6th Circui t ,
F orme r Police Co~.missione r of the City of Detroit; 1962 and
J udge Edwards outlined for the Subccmmittee the p::.·oble!ns of law enfor c ez:-.ei1t
in the large citi es of the U. S . with examples drawn la1· ge ly f:r ora his o~-,n.
experi ences i n the city of De t::.·oi t . The J"G.dge emphasized tl":e prob l em::: of
the Negro co:r,!nuni ty and the fac t that the a ttitude s of Negroes to,-, ards Ls:w
enforc ement are the product of the ir early environr.1ent mainly in t he South.
J udge Ea.war ds said that r.1ost crh--rie is tted by Neg::.·oe s and inflicte d.
[ on othe rs of their own race . He said, hc,;ever, that the large r::2.jority cf
· Negroes are i n favor of l aw enforc e1-::ent and want to see it i::1~roved .
The Judge made the followi ng sugge stions :
16 .
Fi nd out more facts in regard to c o;·:iplaint s about police brutality .
Transfer trouble:nakers on a police force and those who use bru.tali-::.y .
En d in,restigative arr ests .
Increase police in high crime prec i nct s .
Fe ci.e r e.l government must help loc a liti es co:n"':Jat organized c rime .
Professionalize policemen by upgradic·g their stan dards throue;h bette::.'
trainin g .
Prorr,ot~ Negroe s on an eq_ua l basis with uh i {;es .
Ban polic e dogs in raci al d.err.or2str at ions .
I ntegrate p:)lic e t eams .
Ra i se the pay of po l ic emen .
Hir e more polic er.ien .
Coordinate l aw enforcement agenc i es .
Esta"':Jlish a i'iat ional Police Tr aining College .
Est ab lis h hi gh l e vel board..s within police de:partn,ents to i nvestigate
charges a g ai:1st policerr.en .
Federa l grants -i n - i i d should b e made for police training .
End the autonor!lous :-iature of l aw enfo:r·c e ment bodies .
Witness :
Robe r t Coles , M.D., ~ese a rch Psycl: iat ris t , Es.rve.::.·d Un i versity
Health Servic e s .
Dr. Coles is a child psychiatrist w:'lo ,,;orte d exten s ively i ri the So·t.1t h e.n.i
studi e d the effect of racial ten s ion on J:egr0 child.::.·en . He stated th~t t he
young Hegro children who fir st att e::-ided white schools i n the S01;.to. and ,_.;~-:o
h ad to mar:y torments and ant agonism siowed a great stre ngth of
chara ct e r. He said that i t was a puzzle::;e nt to him that st::.·e s s yr odu2e s ;-:,c-r-::
str ength of character tha,, an envil·o,Jn-21;_t of lu.."\.-ury 01· midcile clas s tr""r: q_uili ty . Eo1.-rever , the Doctor poi n.t e d out that afte::.· the 2.g2. , of twe l ve ,
unde :cpr i vileged c hildren b egin to r eali z e that ob e d i ence to the Bibli c2.l
teac h in g s of their child...hood will r2ot pay off. P.ft e r thi s re a liza~ ion t'::le
s l urn ym.rt:·.
.".·=;rgoes 1·:i1at psycnia trists c all " death of t h e t ea::-t . " 'I:'rseY
then oui te
·· "=D b e co:ne a nti - so c i a l a nci. turn t o a. l i fe of c:::.- ~,e or
deli nq_uen c;-r . .::'b..e Doctor pointed. ou t sor~e d e linquents do ,,,.co:1g b e c 2.u s 2
they c an f L . i. ::oth i ng r i ght , nothi ng signi f ic ant and ch a l le r..g i ng t o do .
Main questions raised. ·oy the Su"!:l co!!~:i.i ttee :
Rac};:et ee:..-ing i n shEn hous i ng .
Senator Kerille(\}r ask ed J udg e Ed,,:-2.rd.s whe the r orgc.nizeci crir.-.e pla.y s a ~ c._..,
i n the creat ion and. continuat io r.. of slur:: housi ng con cii tion s . The Juc'. ge
s a id that i t probabl y does and Sena to::.- Kenne ci.y tol d the Ch 2..iri,1an that
h e t hinks the Subcomnlittee shoul d expl ore thi s ~ossib ility .
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Defense by citi e s a gain s t riotin ~ .
Senator Ri b i coff aske d the J 1.; Hhat a ci t y c a :1 do to d.e fend i ts e lf
a gainst r i oti ng and at wha t p o i n t the nat ional Guar d s:-::.ould. b e ca l l e d
_in. The Judge s a id t h a t all of his suggest ions HO"'c1ld help :prever.t
r iots , bu t once the ri ot had. c e gun i t c ou1d. be coun-c e1.· ac tec. on l y by
qu ick o:cgan~z a tion and gre a t r,,ob i l i ty of sub st antial forces on t he sic'.e
· o f the l aw . He said that t he f orce us ed mu s t b e ove r Ki.1el.:1.i ng a ,:d di s c i ~.)lined .
He be_l ie v e s that tne Nation a l Guar d s i2ould be c a lle d. to a riot sc ene
whe n ' police gur, i'ire i s n e eded .
Cu l ture o f p-.:> ve:rty .
Se nator Ke n ne ciy a s}:e d Dr . Co l es whe t her th e r e is 2. cu l t uyc of -;:iove i't y
i n the U. S . 'I·:1.e Docto r 1-epli ed that h e does not t :ii ~ '- t ha-'c we reJ.lly
h ave a cult u re of povert y because pe op l ':! a:::e no l onge r i so:'..a teq. due t o
th e exis tenc e and ext e ns i ve n e s s o f a rr.a .ss r::edia o f corr.:,;c:.>l i c a t i ons .
Throug:1. TV a n d othe r me d i a p ::: a c-c i c a lly e v e ryone i n this country is a,.-ra:::-e
of t:C-1e oppo:ct w1iti es wh i ch ex i st o:r at l e a s t t h at ther e i s a nett e r i-,2:y
to live a l t hough the a tt a i ma.ent o f t h a :, l i f e i s not p o s s i b l r, .
B' i r. g of schoo l chi l clren .
Although D~ . Cole s thi rik s t hat the Eosto:1 e:>..--pe rin e r:t i n bus s i ng c hilclr2n
t o t he s u'::mrb s h e.s b e en qui te suc c e E:s lul , Senat or Rioico ff i ::,pli ed t=-,c:. t
i n hi s y i e1·r the ~;1oney. ::-: i ght better be spE:n t iri~yrov::.. ng s l ~-:--:. c: 0.ucc..t i on
gener a lly . Se nat o:r Ri bicof~ sai d t h a-'c h e d i ci r.o t th i nk t hat the p l a ci r.g
of very poor chi l dren in school s ':-:i t h a f f luent an d well fe d c hi l ci:::.· en
was p s y cholog ically goo ci. for t h e u nd.e r :;,:ci vi l ege d. c h i l d .
Rehab L!. itat i on o f sl'.ll-:i. d,:e l lers .
~ a r.ybocly c cJ.:-, cha::: 6 e i: gi ve n s01:·.2~:1. i r.g t o rf aepll l i b8.edcre on .
Ser.atc:c Rib i coff a ::;ke d ,·,het ne r there i s ar..y h o-::;e fo:::- t ~12 :::ost -vio l e nt
rr1ert::> e r s of sllt7t c o:r_~11u1~i ti es .
1I·i-.:. e :8:> ctor·
t hat i n ::i s op i n2.on
Ee c ited as
ar~ exar::.p le t he a1itob io z;ra~!.i.;y c f lv:s.l col.2:-. X ,.,;10 1-:e.s f r cr:1 a r.::, st u~:foTt.1.L;.f.t =
far:1ily and ·w!".1 0 t ur ned a~-ra·:l ::'ro~n c. li f e of C!."'i to b e ccr...e a l ea.:Iei-· o
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Mea!1s ,;:
·, ~h ; n g
There ,.;.·.
slurn cl:.i J.fu·en .
general ciiscus s ion of wl:.e t:ie r the vast amount of 1rconey beir_z
~catio!1 today is payi ng off . Senator Kennec..y '.·ras v e ry int e. ::.· e s"c e c..
i n findi ;;. _: ~-2tter ways to help slun c h ilfu·e:, .
spent o :-,
Senators present :
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!ill/1.RHTGS OF
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December 2;
J ~1ES M. HESTER; President, Ne'., York University
Mr. He ster evaluated the contribut i ons which New York University
and similarly situated educational institutions are malcini to the
improve~ent of urban conditions . _The shortage of available financi2.l
r esources creat ed by a lack of sup:9ort from public sources was
s een· as the major obstacle to the broadening of the uni versity role
in u rban affairs .
The I mprovement of Research on Urb211 Problems
President Hest er stated that the effectiveness of university research
int o urban problems was limited by the need to proceed on a projectby-proj ect b asis . The availability of fu.~ds ade~uate to finance lo:1g term programs would l ead to an increased university r esearch contribution.
The Heed for Greater Univers ity Participation i:-i the i stratio:1
of Federal Government Pro1; r a:ns Affecting the City
Senator Ribicoff stressed that the soluti on of urban problems depe:rJ.d.s
upon the :i;:_ecruitment of oual ified persons to carry out proGrams which
Congress ha s authorized . Unless the University can i nc:::·ease its
supply of such personnel, t he objectives of recently enacted l aws
will not be r ealized .
President He ster replied that N. Y. U_. was fulfill i ng its responsl;)l..Ll-v~to the city within the fr amework of existing finaYJci al resources .
GEORGE STEill~LIEB, Professor , Rutgers Uni ve r sity Uroan Studies Cer.te r
Mr . Sternlieb maintained t hat federal programs aimed at alleviating
subst an.dard housine; conditions have not achieved t heir obj e:cti ves
because f eder al hous ing policy has not t a1~en into account the
r ealities of the urban ghetto situation . The primary er:1l1hasis i n
urb a.YJ r ehabilitation should be on the r esponse of the persons. li vi:13
in slum conditions to the mea sures desi gned to help the:n .
Public I e;norance o:f
!'fir . Sternlieb declared that the sm3.ll ghetto lane.lord usc:ally doe ::;
not know that FHA a s sistance is available. The a110.rc;1e ss of FriA
p rograms is lir.iited to l arge proper ty owner s .
,----J - , ·- --- - - ~.. .___ ___ ;.,

The I moact of FilA. stande.rds on Urban nehabili tat ion
!tr. Sternlieb emphasized that the adoption of more sensible fina..'1cing
arrangements in the field of low incor.i~ housing was ir,,perative . A
property 01-mer in the ghetto who sought to bring his parcel up to
FHA sta.'1dards would comrni t "econo!!li c suicide
T11e FHA st2.ndards
were uescribed as completely divorced from the housins market and
the capac ity of the neighborhood to sustain such housing .

The Need for an Increased Emphasis on th·c: Promotion of Hor:ie
Mr . Sternlieb maintained that the e::qJerience with the public housing
program indicated that better pnysical facilities will not produce by
themselves a corresponding improvement in living conditio~s. The G~etto
[ resident will not support m·ban rehabilitation unless it promis e s to
lead to some typ e of home ownership.
The Desirability of Greater Administration Awareness of Urban
Senator Ribicoff criticiz ed the failure of execu-tive departments
generally to concern themselves with t he condition s that their progr2.:r.s
are designed to affect. He declared that the testimony of ~rr . Sternlieb
would enlighten Secretary Weaver and his associates in the Cabinet .
LEES. STERLING, Executive Director, Arr:erican Property Rights Association,
New Yor~ City
Mr. Sterling testified that the abolition of rent controls ar..d the
compulsory re - education of welfare _rec epients would be a large step
toward the solutiqn of New York City' s housing problem. He de"'-anded
that New York City rec,::ive no demonstr ation cities money until r ent
control imd welfare abus es were abolished.

•• r.
!- _, ---- ·-
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· ..:. - .
" ~
De c e mber
5, 1966
( mor ning )
CONS'l'.ANTINOS· IX)XIADIS J President , Doxi a dis As sociation
Vrr . Doxia di s ma intained that t he cri s is of urba:., s o ciety c oul d b e
a llevi ated only t hrough an appro ach b ase d upon systematic k.nowledGe
of hu man _settlements . The gre at defe ct of existi ng urban develo:p;nen-;-,
p rograms according to 1-ftr . Doxiadis i s t hat they h ave a n i mp act on a
l imite d segme nt of the totality o f urba n existenc e . Ti1e s e effor ts
c onfine d t o a singl e area c annot produce a f f i r mitive r esults bec ause
the problem of mas s tra." lspor tation or t he d of the c e ntral
cit y are integrally r elat e d to the broader p atterns o f humon
s ettlement. The main points r ai s e d in the t e stimony and d~ring t he
questioni ng p e riod wer e the following :
. •j



The Fa i lure of Feder al Government Progr ams to Sol ve Urba:1 Pr ooler::s .
Mr . stated tha t t he public hou s ing and u r ban r e t'.ewal p:•: :
h ave riot pre ve nted a worsening o f t e e ur b a n s itu ation . The d e:::~;:·___ _
c itie s progr a m was de scrib e d as "a · small beginning in t he direc·:.; i o;: o::· ·
c oord i nat ed ac tion , s mall in size and small as c ompared t o t !'le a r e as
i t mus t cove r . " .
. ,i
The 11ee d f or Avo idin·g Incre sed Pr essu re on Urbe.n
Mr . Doxiadi s sue;gested t h2.t t:.1~ cri s i s of the cit i es ~ight be 2.ggravc:cted
by a substant i a l incre a se in f e d eral ex_penc1i tures for urb&.n d e ve l o:;:irr,3nt .
Ari e a s ing o f the p re s sur e o f exi s ti n[!; cit i es t hrough the c onstru::::ti on
of n ew urban c enter s s hould b e cons i d e red .
Feder al P-.cor;rar.-1s as a M8 chan:i_sm fo r Accuirinr; I ncreased !(r,owled;,2
o f Ur ban Pr obl ems
Mr . Doxi adi s s t r essed t h a t an awarene ss of t h e i nt e rrela t e d chan1c te r of
urban p r oblems should l ead t o a n i nten s i fied s t udy of s oci al , e c onorr.ic ,
an d po_l i t i cal p a tterns pre va i l i r.g in u r ban areas . He urge d that c;ov::::c:.:.:::e:t::.:.
p r should b e u til i z e d to p:t ovide increased knowl edge of these ::i:3."./c,:.::::·:·,::; .
Th e Preserv at ion of Ouen S-93.ces
Mr . Dix i a di s declared t hat t he c onstruct j_on of public facili tief. in
s electe d areas would cnc ourac;c persons and b usi~esses to l ocate t~~m s e l v es i n a manner which would s erve the int ere::;ts of an enti:ce u rba:'l
r e 6 ion .
The c o:-iservat ion of open l ar,d b y the government is thus
n ecessa:cy t o the creation of an infrastructure of p'J.blic faciJ.ities
whic:, wou ld po s sible orderly ur':)an deve lop:~!2nt .
T11e ResoJut;_on of ti1e Urb2.,, Cri sis D2µ2..rids lJ:,on a Li n i t&.'c icn o;._~
Co~·.~:·.u:1 i_ .J~y J..u~·.o;·Le, ::~:,,-
.M:- . Dcn:iadis called for ov-2rall f-::!o.cre l govern~r,ent co:1t:::-o~ ;:,;: 'c:~,2 ]='-';·, . .::;:·:~,.
of' t'r...t:-c::.!1 st:t"tle t.:i:::"t . '"J:i1t..; .:.cnLi:1l10:~i cn o~· c o~1::riu[.1ity a ~ ~v.:1c.:1:· . .,~.t -~·1 1.--..:: ..._..~ v.
to its owi d2ve lor,,.2::-.t \-; ill :9rc::1-<c2 a i-iorseni.ns or t he
c:::-is.:.s .
- - ·····
---..~ ~-~ ~-~---------<--
Subcommittee on Exe2utive R~orga.~i z aticn o f the
Ser.ate Co~mittee on Government Operatio~s
Afternoon s ession :
De c ember
5) 1966
Witne ss:
Walter P. Reuther
Subj e ct:
Problems of the Citie s
Mr. Reuther was accompanied by Jack 'I'. Conway former Deputy Di1·ector
of the Housing and Ho;:;;e Fi nance Agency and OEO . Mr . Re utrse:::- c.e2..i ver2c:
h is statement on behalf of t he six ar..d one-half millicn industrial
workers re:presented by t h e I ndustrial Ur,io:1 Depart ment of the A.FL-CIO
and the millioYJ. and one -ha lf we:nbers of t he United Automobile , P.eros~13..2e
and Agricultural I :Ylp1,.ement Workers of P.neric a.
He advocated a weaving of all the el ements, h ousing, fu"lti - pollution
control and others , in co~oating urban blight . He s ai d that these
efforts must entail the n;ost participation possibl e by eve-:::yone
affected {3-:nd there must be a ma..xi mum coordir:.ation of effort . ·
He also said that t he problen:s of cit_ies are b eyond the e conor::ic c a:pf, ti es
of the loc a l gcvernr!lents . However, h e feels t hat the real drive and U"lr '
rr.ust come fr or.i the l ocal level .
!fir . Reuthe r proposed the creation of a I~ional Non:pro:;:i t
Coruorat.."!_.on consistin g of the be st :ni:1cs fro::i7.a"oo::i.· ,-,c"e } i!:o.ust ·,y,
education, etc . He prefers t ,1is nongovernme ntal type oi' cor~)o1·at i o0.
b ecause sucn ari organiza.ticn would r:.ot be entrenched i::i. t:ic bm·e:c..uc :::-2.'.:, ic
p atte rns which are to be found in the governr.1ent . He also -chi::i:~s t:1...1.,
thi s type of ation would not involve in- fighting i·:hici"l is
sometimes prevalent _in governr:1ent oi ga.n iz ation s . In h is o::_:iinion } a
private orga..."lization would b e much m-::ire :flexible .
Jl"u" . Reu'cher , in suggestinG tnat the taslt cf r etuilding t::.e city be
done by the tot al co~11!Lunity ) de sc-:::ited the Detroit i<etropolitan Ci ti :-t,ei~s '
De velopmcr,t Aut:iori ty , of wl1ic:1 r.e i s no',, chairr.'.lan . He said t r,j_s
Author:i.. ty j_s tryi ng to r 2bui2..d the city a ncl to qu2.lify Detroit a s a
D21r:onstration City. 'I~~ is Authority now h as t he .s.cti v 2 :participatio,. o:?
industry , :i:etail stores J churcr,es , c ivil r iG}lts groups 2.:.1c. r,.;21:. y othe::r::, .
He said the y are trying to c :r·eate a co~,11;uni ty :;iar"cnersni:p .
.t-1,r . Re uther describ e d the three kinds of r:,o:ney w:1ic:1 t he g ::Ol;:;? ,;ill 1..:se
to build hou sinJ as " seed mon e ; ,) developr.,ent rr.oney and r:--.orts2.::.;,2 u:c,.e~-' .
}Ie s aid that t De seed· tj'!OD·::!Y is nee Ce d t o the plans a:~d s· c
int erest in the progra~n J bt1.t \·,· ill not b e- r eturned to the dc~ors or t:~s
goverr:.r;;ent i f rr:ac.e thro~isn grants . In thi s rega r d, he se.5- d that unic.:1
p ens ion f ur1ds could p robably b e 'J.sed only for mortgage mor.ey b e cause
the funds are cont.rolled by :Beards w0ich ,~t" de c;ide ,-;het:--.. er t ;:.e inv e "'i:-::,2:--!t
of the r::ioney is se:cm· e . He s a id t hat see cl r::o!'.ley a.n.d d evelopr.'!e,1t mo:-,=--:;' ·.,c,, :2.c',
not "be a. pe:rr:-1i ss ible investr.1ent for t11ost pe!1sior: J:\1rAG.s .
�.i-J _____· - - - - - - :'1

Oi:e fu_r1ction of the nonpro£'i t co:c-poration ; acco:cdine; to E:_·. Re1..i.:-her;
would be to a te and e:1cot.n-age t:-.e ouild:Lr:.s o:.': low i nco,.1e h cusi r.:;:;
by g ivin 6 technical assista n c e to builder.:; wbo would 0:9::::i·ccte fo::: a
profit. He · t~>iat t ::1e:·e wouid necessa1·il:,· be ex-.9e1·ts 2.v:1.ila-ole o:c
on call. He said that the key t o t he ·,,l-wle p:c-oblen; of ,r,:oviding lo,.;
i n c o:ne housing is to demonstr2.te the p ra".!t ic al c 2.:p3.bili ty 0£' sa.'-< :in~
public plmming compatible with :9r :!.sate plannine; a:1d builo.i::J.G ·
' .
Kr. Reuther s aid that h e is very e!1thl,siastic a':)out the Demcnstrat i ons
Ci t ie s Bill. .However ) he criticized Congr ess ' attitude to-.,·a rn ·ct Le
appro:;iriation o:;: n,oney for don;est i c programs . He thinks ti~a t these
prograo,s s hould be fu..rided a...½.ead of tic:2e ; so that the :Oe:92.rtrne:ot::; ,-,ill
k n ow what mone y is available and have the money in tb1e to pl a.., .
He thinks long term c ommi tt:n2nts should be mao.e for c.or,11:: sti c proc1·a::is
as ,,e l l as for mili t_ary progra:ns ar;d i'or,=i g n aid.
While c ri ticiz ine; pre s ent practices of 12nd use in cities ;
suggested that a l ar.d b2.nk should b e c reated to help l oc.3.l
p r ovi d e· l a,nd for low and r.1oderate inco,:.e housing . :-re s a id
could. l earn a lot from Great Eri tain . He also pointed. out
no slu~s in Swe e.e n .
1·~ Reuther
con:::,u::1i tie. 3
thc:t the U . S .
th~t t her e &:-·::;
Mr . Reutl:.e r · c ont ended t hat the only way to r ed1_;_ce the cost of ouj_lcling
hou ses is to appl y modern ; advar::ced t ec:hriolo~y 2.s i.t h e.s b een e.:ppl i ed
t o such .fields as space ex-plo::.·atio::1 . Ee believes t ::-,2.t a ho·.1s-:: uorth
$16 ; 000 according to present standards could b e developed. an-:: 3old ::·o:::
$8, 000 if i ndustry i s sccn-m how to do i t b y research ins'ciG2,tcd by t h e
gove r nment or a private :::i.on - profi t cor·::;ioratio;1 .
11.r . Reuther was h igi1ly c ritical of t he present s~rstems of r.~s s t~ ... ,,sus :r'c.?,:~j_c,:1
in this country. rie s ai d that t he _c ar i ndustry ':iill e ver; uffe:c fn:;:.1
self- s tra.'1gul at ion o n the high,-rays . Fie thinks it i s ri diculous for a
p erscn to c arry a ton and. a h a l f of rcetal with nir,1 to wcrli: everyds.y .
Ma in que stions r a i se d by Subcorm;ii ttee :
Fa1~t icii;>ati on by private inc1.11str:y in r ci .
l-1r . Ri b ::.coff 2.s~ed i-!D.lter Beuther whe:::. ratio \-:culo. b e de s i :rE..ble :o:cp art ici.p:i.tion by private indus t r y 2.:.1tl go\rey_~:.!e P-t i :r1 r ebuilf~inG 2i t i er, .
Mr . ~e replied that he t hcc:::;_lt the mi:-i. irau:1 ratio s h ould oo $1 o:::
gove:rr.i~G2nt mo!1e:>' for e--..rer:/ ·~5 of private fu.r. c~.s used . ·I 1his \·.:-a s the r 2.-:.i.0
p r oposed by Davi d Rockefeller.
Tee.chin;::; mi c r s.,, ts t o live in the c:i.ty .
The Cnairt,1EL'1 aske d w:io t eaches the farm p e o::;ile h ow to live i:1 c.itio s 21c.
how to e:void tur-ning hrn.l :::- ins into slu'.'1 ~2ss . He c laice d thi s i s o;t.:::::,
the gli ght of public housing in r.-.2.r!y cities . r-:r . Re uther :;aic. t nat t:--,::
w1fort-..1r).ate thi.Dg is th a"c most new city d,,•ellers leE..l'[", i'l'O",. tt:.e :;::,20::_:iL, ,. -:: .::Xnv·.-i tic l ec.. st. abou"~ l:r_;·.., to li\~8 ~n a . : . : ~~y . __. . :::. :.(~ "'.:11.::.J.:, : .::c·:22;.-- : :1:.:~ .-::)_·;~,
b e cr6aniz e d from the slutT!s to co ba c~ into the sJ.u~~s e.2:.d st':.O\·! -.9co~l.e >o-·:·
�.. -..c--- .. -
- -:
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..a~~':.l ;~~-·--- - ---- --- ---- -· ..... -

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to live £j_nd ta..~e ce.r-e of fu""'ld nei,.;:- housing.
Senator Ribicofi' seid t11at ~atc :r
i;1 vne he r~r ings
becomes a.
Se:nator RibiGoff a·skecl ho·w i s the govern:nent org.:Lu.ized to tc..~:e caJ."~ ot
the pro1)lems of urban -~~r.-1·2 ric 2.. . t·T . Co::P,-ts_:_y.. said t!-:at t !1.e so --1e!·1:r~er!.lc 1 s
r ead::r for a ne\; Eoover Cc:.1~·;1ission . }Ie t 11e :£'oll0'".-.ring su3ge st :=-.0:1::
Y(n.ich wo"'..lld in his opinio:1 str~::Gthen the go-,.:""e:!."'nt1ent ' e. l i t~.- to de cJ_
·with tl1e urba!:t crisis:
Group functions together as was done in t.he D:!fer1se :r2r, urt~n·:::rrt a~1.Q
Coordinate from above:: .
cutting of pro ::::rai:13 Con':! by the Burer·.u of the I,~d ge t .
would pl(lll &:c.d de·-;elop :;:>rogrc.:.1s f:c-0:1 •,·/ hi cl1 _t-ll·.-: i>::--c s!.d/:~n t cov.1. ,::
select the rcost useful . T.he a.dv~tr.\ced. I>lennj_ng futh~·t.ion of t ~:,~
execut:L-:1,~ br:~nch s hould :1ot. co6e u n d\-::j_... ~~he au o f th e 5-J d{: :·: ~~
bec it s}1ould be done o·J.t front nn1 n.\')t t e l1ii1d clc st.:d Cl.Oi..:i ~·s .
}'u.r1d a.'1ead so t hat. tl1e a,;encies vron 1 t have to b es for r::or~~\ Y 2s.c h

,rea.r .

Create a rnecha!;t ( su.c~1 a s a l oc2.l coordinat o2.. ) i.Ihicll -:: sx! .Jv.-::.~u::
all the tool=· avails.Ole and fit thern t O th2 !le eds o f ~.oc2.l.
corrll--nuni t i es J:" than --~:"ice v e:csa .
a genius at i.:.he loc a l 1 evel
federal pro grc~c.s .
how -c. o t ak e ad·..- ::. .:i.1 tn~_; ,-- of
R.ole of l abor i.n r e\ri sio!"l cf t:1e c:Lt~--- .
Ee :::.aicl t b..: .:.t eleven · \ cr:i s c..r c ~)2r tici~)2.ti:) .~~ . .:.::-::l
cre a .J(:. e Q a 2.::-id have do:·~e cu~:-i e.x citi nc; t l1in[;s e. s hoJ.O.i.n-~ .::! l sr_;:::-:·- 2
2uJ.d build i ng p l ayt; ::'ol:;.n ds .
Se nato:t Ke:--~11eCy wl;.:.o .·tas not present ask8d t h.~cu_-.30.. · -L~e Che.i 1·tt~2.n -..:~ ::;t:.};e; ~·
!1:r. F:-~ ut~er \-.1:1.s in favor of Co:·:~~rJ..;] :i.ty· DeveJ.o~:tn8nt Cor i:. or-2..tions c.t "Lt .~:
�. . ---- --~~---- - .. --- ---·- - - - -------·- -----'
-~--'--·- -1. . c ~---~
('"3~ .
l ocal level . ff:Y . said he is very much in fa,,-or of theL'l . :S:e ,:e..,ts
a N2:tional Corporation to work with the total probler.! and t o 02 bc:.c~ed
u p by local corpo2:·at io!1s .
National Nor.:profit Housing Corp orc.tion .
Senator Ri.oicoff said that the only person· he could think of ".,ho would
be capable of a ssemblins the r.ecess ary leve l of representation fror,
foun c.ations , u__--i.i versi ties , l abor , fin2.nce , ir::dustry and ot::ie:::- fields
to participate i:1 t he n2.tional c or pora .:.ion 1 would be t he Pre side nt .
The Senator said t!lat he h opes t he President will consider ti:-1is :_;;ropc s2.l .
Ho':-r to avoid continua tion of c. ,,.;e lfare sta te .
Consres s ma..11 J ames Scheuer ( D - N. Y . ) who was present at th:; h e ari ngs
asked Mr . Reuther hm; third genera tion. wel::'Etre famil ies 8Ld :9:.·ec.ictc.':)2..e
drop - outs c 8.J.'1 "be avoi ded . l/,r . Rc1.:the r said that tne recc:r:8 icns
made by tr..e ~ e s idec1t ' s Cow:1i. s s i er:. 0:1 .114cr..2.t i 5m s:1ould be i tr:_pl e,~,entcc,.
"'1 - e pror:-""""
S' 7 E: '·'n e - r,-,on
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-s C.~~a"
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-o :..- :_··.~, ince n::c i ve s 1 sucn as e arning out. s i de mon e y . He t.!1.lD:~s tna t a re c i :,ne:Tc s:-,01:.:..d.

be allowe d to do this without loosin8 his welfare ::;:,ayment so tha t the
person will aspire to living on a hit:;her pla.ri.e . ·
l., !
J.. ~
_ \".~
l., •
Mr . Re uther said thc.t a.ri.other wa y to avoid a welf are state 8..."ld put
people to work is to have a s t.,_nd2.rdi zed c o::-;:;,'J.t. e:::-' z ed e;n:::,7 o·-::::cr.,. n.:- ·
At p re sent 1 Mr . Re ut h e r clair:12d 1 ttie :.:"i 1· c,y e;1 c,rei:criect s--ca--:, 2 syste:,,s 2.·'.·-=
obstacles t o the setting up o f efficie r:.t c ctT::_:iut ers ,:hich c ould m2."' :.::-..
une,·a:;,loyed p e r son to a job withi n a r.:att er o -: r:,i nutes . i,'..r . R2u t h e r
s aid t hat the whole p e :!: son 1 his hobbi es a s we ll 2.s h i s ski lls , is n o".;
ta:~e n i nto account u..r1 the p r e s e nt S'.:. at e systecns .
Missin p; e l ement
in the s J.uc:-1s .
Conbressr.1an S~heuer asked what i s ti-!e missi;:r.t3 element that has no-r, ce .:::n
u sed to h e lp the cit y and ,-:heth e:..- this ele,:1e ::1t i s r.10:ce suLoidiz e c1 :10L,s :.:-.f/ '
Mr . Conwa y s a id ti1at on e r e a s on the gov e r nrr.8:1'-:, h as not h e l p e d · enou gh 5.:..
subsidi zing h ousing i s that in t he. o e:;i.nnin c; EBJ,'A was a f i n2.11e:ial i r.·.~-:'..r.,.'.:.
macle avai l abl e fo r p riv at e i r.dust,:y . He said that the A;;,e,~cy '.-ia s n ot :;,0oj:::. ,
o r i ented.
Change in Witness s che dule :
An t hony De cha".lt , Presid ent , ::-Io.t icna.J_ Fc.rrr.e:r:s lin ic::-i '., i l l not t e stify c ::-.
Tuesday Deceuber 6 . D~-. ;-/ill iac!l Dcebele , Gre.c:.u 2.te School of D:::sie;n ,
Harvard Un i versi t y w2.s shLfted f r o:n \·lcdr:esda y t o 'I \ .:.esd.8.:f L:,s-'.:.e.s.d .
I,Ie l vin Thom1 Ne.ti o I ndian Youth Council n B.s been 2.dcle d. ·co tbe li s t fo:::Monci.ay , December 12 .
M<::r:i'.)e rs pre sent:
Senator Ribie:off
Coc~ressr:!a..'1 J ames H. Scheuer ,
( D-:'TY )
ITK.~S O? I !"'U'2~S-~} ~Cl.)/l!~l; ~C; · }0)~ R:\ISE!D ;.\'r }f.SP:.Rif\TGS
OF RIBIC ()?:f' su:::!C:-=-~ii·:?~~- c:-; E(_ECU-:r·rv~ RSOl~GJ:.~TIZ..6..:J~'I0:·-1
6, 1966
( Morning )
BAYARD RUSTII'J , Exe cutive Director , A. E.i,ili_p ·· Randolph Institute
Mr . Rustin e.ttrioui:,ed r ecent :nEJ.r2ifesta tions of r a cial conflict to e.
n at ional sh or cage of jobs , educational opportu.,.'1.i ties , 2.nd housin; 1 which
c reates the fee.r tha t j\iegro advances will prove detrimental to w:C.ites .
He urged the adoption 0£' the proposed 11 freedc:;i budget" so that sc2. rcities
i n the fields of e;u.ployr.ient , ·housing , 2nd educe.tion ce.n ce elimins.ted .
An econo~ic and sociolocica l ana lysis of r a cial prejudice and e.lienation
c ompels the concl usion tha t progress can be achieved only tbrou--3;h a
L'l2.ssive n2.tional commitment to t he :i.r.iprove;rrent of urban concli tions . The
IT:.atn p oints r a j_sed in the testimon y 2.c1d the questioning period were toe
following :
The Effect of tl, e Eousin3 Shortage on n~.ce Relat:i.ons
Mr . Rust:i.n stress e d t:1. e ir:1port,2.nce of ass uri ne; all inco,':le grou:9s effec"-:.i ,:e
a c ces s to tte housi n3 rr,a r~ e t . He pointed out that the existence o:f h oi.;.s i n~
scarcities l ea ds wni·t.cs to support re st rictive prac tic es 2nd f'orces r{e[,;ro-2 s
to l j_ve in substanda rd hous i n.3 .
The Fa ilure of t he 1,:::1 r~-cet ?-'.e cha:1.ism
Mr, Rus tin support e d the view of Profess or G3.lbr2 ith t ha t socia l and estbe~ic
values should have prior:i.ty over fin anc i a l c ons iderat ions in urba n develop:nent .
A . FrlILIP RAJTDOLPrt , President , A. Pnilip R-2.ndolph Institute
Mr. Randolph ana lyzed the probl em of winnins politica l support for the
11 fr eedor:i bud2;et " appro::'. ch to urban prob l en s .
He decl a r e d t 2. c caJ.i t ion
of libe ral el ements could b e fanne d with s,Lfficient stre: Ds;th to ·,ii.n appro,:a l
for t he expenditure of $185 billion of r edera l fu"lds
over a period of ten
yea rs. Th e r:12. in poi n";:,s r ai sed in the testiJ:iony and cluri:!:lg the ques tioning
period 1-:e re the followin g :
Tne ~ i'fect of Fe der2.l Hou.sin~ Polici es
Mr, Ra ncJo1:Jh asserted tte~ FeC::e1-e l prog r-2.2s have subsidized housinsi; fer
persons i n the r:i iod1 e and D.p~e r incc,,:e gr01...r;_:is to the neg;::1.. ect of t he :poor.
The fli ght fro:n the c entra l ci ty to suburbia ha s bee n nac.e p ossible l-i;yFedere.l e:·c-peudi tures , whJ.le a nuch s ~,a.ll e r c:..:ilOUci ::, has gone t o provide
t h e p oor wit:1 hi 6 }1-rise se;rese.ted bousin3: projects. ?-Ir, Rs.ndcl ph noted
tD.2..~ t!:is cc~cli.lsic~1 ~. ,~::.s se-'.: foi-t,':: i:--! tl!e :re;:01.,. ~ cf tI":2 1,.;}1ite }Ic-usr:: C::r:_~~2:r2:-.~c:
on Civil ~ights .
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The Heed for Planned Soc~al. Ir..·,;estr,1ent
Mr. Randolph advoc a ted the adopU.on of a program of planntne: social
investment in urban develop,ent rather tha n a counter subsidy for l ow-income ,- ·
housing .
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su1,:~~!ARY O:-F' E:~Ar:r:;Gs EE?0!--3 StJ2,:;c1-:2·-J143.215.248.55;'l-; ~;E OI\I ~8XECUI' IV3 ~-:£:C1RGAT:IZ..D/?I C-i~ .
0? j,iflE SEi.'T A'I '~ CO!,:.MJ.~. I '2:S 01] It{T~CV'I'~Vi PJ~ORGA~:IZAT ~:or.;
Stibj2ct :
\r!i tness :
Geru.ld I..J - PhiJ.lippt.::, Sh-=.irr_r.e. n of t!1e 503.rC. o:f t !1e Ge ne:~ 'aJ_
Electri_c Co~rJnt1y
l"~ r . PhillJ.ppe se.icl that GE !~eis 300 , 000 e:--i~r l oy·ees j_n the TJnj_tea. S ta tr~s }
I.'10st of v:[101r! wo~ck and 1i,_...e i :--1 cities. He said tr13.-t , 3.s u con se (luc~ t! ct":: ;
his c o:r.r. any 5.s deeply cor1ccrned v;ith the ,,,tell - b e ins of cities ar!d
the people who J.i ,.re nnd \.,:ori-: ther,2 ~
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}!e: tol.d the Subcoi'~nr:ittec tf.:at ti"Jc .re:i10di e -.-; 1-:-e
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pro"b1er:-1--.-s of the ci t:Les :-;~ust. cc!"..:c; t:---;rou3h tte c:cer~.t :t . ~,.e. j c.~1!:.dr;~ c:-Z'
public and private r esourc es to ucl::i.eve wr.a t ne:Lther c~:::-1 concc:d.·vc:..:,;.. ~.r
do a lone .
1•·! r . F.:1illippe pointed out th 3. t t ndus·try contrib1.1tc.: f~ to the p :tcbl e-.~s
of th e cities t!:-ircugC tlle disposal of u_'fl-,;:2.nt e d \·;=1.::., tca £1~1::l. t. :rn:t'.:Cic
conges ti en ., resul t,j nt; f ror:1 r11c':..rer:.: ent o.t i ndu.ztry r.s go·ods e.~tl 1::c c.1;1 .~.
0 ~'1 the othe 1~ h and ., it1c~t:stry is a r~a. j 0 r vie t i !'J of thc~:3(~ ;::.a~:~:2 p ·~·ol·J_::: ~:-.; .'3
·t.eca1.1se it, suff ers ad6eci cos t ~~ frc,l:.! traff ic con;~es~icr:1, 2i1. p ol.11.r"c .lo:1 ,
\·tater ~pollution e.nc1 v.::.nd.2-..lisrn .
f-1r. I'hilltppe listec3 t he rl1:l j o:r· c o!:.tribut io:1s 1:)e j_ r:c r;r-:::!2 b~r G ~~ t o
teln t~nnrove c:i.tie s : P-.:c,<: u.::tio~1 of h i&,::'; - p c rf or:-r:.:-} ~1ce ec;._'..:.~r~~:e:ni.. f'c:.. .
f ast tr-ar:s i t tr2. i n r. , rr.:. ;1u.fa~t· of GtO=-:!ic -~~c ,. .#c'!r·::d ;~en.e:c.2. ~j_ ni; p12d ::.s
-{ii~~e d~-c143.215.248.55,_.,;~1143.215.248.55;~$ t~~/,~r143.215.248.55 16:57, 29 December 2017 (EST)'c·!~~e ~:~ 16:57, 29 December 2017 (EST):~t;:: ~~::~~: ~!;/~z
i ;·-:;
Irf:o~por.:1.t0 cl.J }#J a v e f oy-.·. n~d Ge!l.e:ra.l L e~J."c.::. n::: Cox-po;.. .at ion cs
·,~oir1 J.:.
vent ure to f urthe r -t.Le ec:u.c o. t.ion oi· dis:1.G·, pers c:•nn .
GE ha s t entat ive pla ns t o c r eate ent ire143.215.248.55 citi~ s .
A CC·l~.ri~ur-Li t :,r
Syster:--:.s Deve.lo;:tent DI \-~s:i.oL t as
1. Ch:i.n~; es i n· the bt:.ild :i n[; proct.::~1s tL1rC) u.t;h t he 2.1:1:~,:.ic at icn of r c~;,2;_j_ :_,-·e:L
a~d e n~ i nee:ri r.ig t o c~esi~.:-.1 eJ.ect1,o -:1~tec:.1r~ nica l e o1!~·9c!11::~~rt.s t ~·.:D.-t.
de lj_ver b~::tte r IJerforr;-~~1 r.:cc and J. o~·:e:c - i~1 - p1.:1.ce costs.
2. Util:L zi~3 a. r.; yste:-:~s pler:n i.1:.c ap::,_ :cco c: h to a t~ ~iel~1~) n e ·,.r p:cvto:.y-,::·,r; t..i_es 1::..:r..:';e eno·1 ch to s··,._,_ppo r~ a fciJ.. c.:c;;1p.l{?.J ,:2:1t o:::·
mtmicipal ser•...-j.c es ,.
Mr . Ph illippe s a i d that wor~c by GE scientists and i n f orma ti on spe cis.l is t s
has led to c ont ra ct s f or s tudies on appl ying sys t e ms analys is t ec hn ique s
to ov era l l u r ba n pla nni ng ; to inte g rated polic e , fi re and ar.!°bulanc e
c ommunication networks e tc .
He sugges t ed t ha t t here be mo re and b ett e r c orrmur1 i c a tion 2.nd coopera t i on.
b e t ween bus i nes s l ea de r s and political l ea dc::rs i n see}:ins t h e sol u U.0;1s
to u r ban p roblems . He t hen des cribe d di ffer e nt pro j ects in wh ic l1 his
c ompany h as pa rticipated. He al s o sa id t ha t r.iore ext e n s i ve re sea r :::~1 is
n ee de d into the dem2. nds of th e city . GE i s wo r k ing to disc over h o w
i t ca n effe ctivel y apply to cit y p roblems what ,,a s l ea rn e d through its
part icipat ion in sys t ems development for t he de fe nse a nd the s pace
prog r an:s .
TEMPO , a GE c e nte r in Santa Narb3. r a , Ca li f ornia , h as a n expe rimentc.l
program with th e City of De troi t to int r oduce prog rar.1 pa c k2. Gi n.s a nd
budge t ine; t echn iques l ea r ned t broue :1 its c ost/ eff e c ti vene ss work on
De f e ns e De pa rtment problems . It i s a lso working wi t h the Uni versi t y
of Minnesota on an expe r i ment a l city pro 6 r am to b e b uilt n ea r
Minneapoii s .
On e big c ompl a i nt wh i ch .Mr . Pb illippe ma de c once r n inG present c ondi ".:, i oYJ.s
wa s tha t b u i l dine; c odes or hous ing c o·des , ele ct r ica l or c ode s
do n ot promote e f f ici e n cy i n c onst ruct i on and e.r e , i n f a ct , ins t i tut i o:1:.11
i nh ib i t ors to eff i ci e ncy in r ebui l di ng our u rba n areas .
He a l s o c r i U. ci zed p r e sent gove r nme nta l policy i n r e 6 a rd to the di st1·i ou ti on of pa t e nt ri ghts t o i n v e n'.:.i ons a ri sing out of r e sea rch a n d d ev l'! l op me nt carr i e d on by private i ndust r y , but fi nanced i n whole or in pe.rt
b y the Gove rn.rne:1t . He s a i d t hat pre sent pol ic y disc ou r age s p a r t ici p3. t :i. on
b y p ri vate i ndustry .
He approve d of f a nning ne w type s of c omb i ned publ ic and p riva t e co r po r a t ions gea r ed to r.1ceti:1g urba n ne e d s , b ut di d not f a vo r a COJ,·'.SAT type
of corpo ration . He b el ie ve s it would b e b ette r t o ha ve an a£en cy 1 ik e
1-TASA, wi t h a n acc e pt e d ob j e c t i ve f or the ~e ne r a l p ublic . Ee s a id u~is
i s a socia l probJ. e:r. a nd s hould b e k ept i n t he n onp rof i t a r ea . · In hi::;
op inion , r e habili t at ion a nd low- i ncor.1e h ousing i n g e nera l are not
a t tra c t i ve t o p r ivate i nves tors . Be s a id tha t Thoma s Paine , t he
ma na ger of GE I s TEMPO o r ga nj.zat l on , is urein~ c r eat io:1 of a n Urba n
De ve lov 11e nt Corpor a ti on t o buil d f i ve millj_on ne ,r h ous i ne; rn1 i ts in s L ;:,1
area s over t h e next de ca de a t an es tima t e d cos t of son,e $50 bil li on .
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l·litness :
Fi1il i p }1 . Ha ll e:-1 ., ?1·2s::_ dent , I,·~3·ur:i. ce :Fe.2.k r,;E:dico.l IT\.t:.16. ,
pj_tts btlr[)! , Penns.yl v2niH .
Mr . H:--ill e~ told t11e Stlbco11:;:d.tte;~ th::.t tho:::! poteD ti2.1 rol. e for tf::;;
sn1alle:r f'oundnt.ions i n th·~ Un:1.tcd Stn tes 11~'"~~ :r1ot yet ~et:::!J. t a ~~}2d
in relation to the urban condition .
He sugge s ted th2. t the ~lul)cor:!.."11itte i::: or t-;o::ne otbcr app rori:r:i.atc .::.c r~ n c~/
shou.J.d co:i.1.vent:; at l~b.e nGtJ.ona.l level a. ;,. O·rl,: ing confe~cc:nce on the c~. -t ,:;is
in t'b e c:Lt ies ) as r:i.n n)r of the sr;:a l lc:1. fo unda.ticr:s 2-s c ou1.. f~
b e i::-1.:~er ested and induc ed in"'co a.ttendi112; s u..:!h a session .
In i~·r r . l!n1 le~ 1 s opin:tor~ ) by u:t J.l:i.zinz its freedorn ·to a,c-~ in S\l~J ~_·, cr~_,j_·:1,:.
and to the 11rbc..:r1 p~obJ. e~-:ts -;,:b ic h n re r : :-! s: : :-:;.~~ ·::.
to action l:;y ex:i. stin.::; r;ublic a e enci(!S end i n~;t itut.j.on.s, the ~--c.~c:c\t ~_c ;·;
ca n IJOint out r;rove:n pu.ths for soc :i et~,r to folJ_c~v .
Senator Ri b:i.c of:t ...,. a s vr: 1...y inte1·es t t~ q. J n ;.:fly 1Gcn li t.ic~s 1-:c :·:.:p
e.nt1q u.:.:. te d -ouil d in.:; cod~s . }Ie s a i d :.r.o t n(~n rly eveI.'Y w1-;.:.:-;r.~s~1
so f a r <lur:1.ns t.l: e h ea r:i.n£.~c; };a s cc1r~·:;J..9.:i n t: d ti.Uo;.rt o;:,::, o~!.. c t. e
buil dinc c ode3 . I·: . F.:·.ij.lli p pt~ f:,ai d the:. t, c.:E: hr1. s two r:1en n~:;k i n:-;
a s t u.cty . of t r1.1 ildin;?; c adet; ri,.nd t.11~:::,t i n ex~1lnini1·1[; ~hr~ .:i e in c,:_c};
of the 50 stnt2s t bc::r Da ve: fo 1..1nd tha t t h e r e };..~.\-e 1=-eer.i :.1. cr ::;1..J~·sta n ti a.l t:ff ·:;.r t.s rao d':~ to l~p ~datc th e:::.e code; ::, . L oc-:1 1. ~Jr:o:q:l. {·~
s e e:m di s inclined t o ri.18 k e chc.r1 _.~;es r:.u ::_;e t r·1e:_.1 n:a~r ; i:i -:. ----2 t ~) l E"·::~.!~~-~
llG'.iT s1-~il1s ~ l o c a l :i.n t. c:ce~-; t s a r e op~}C~~;cc1 , l aOo:(' ::"':-:-.cto::-.-;:;
come :tnt o lJla. y, there is z:.:;i ine r t:i.::i in t hj.s eree., 8. :) d n:O:?t
c iti e ::; ha ve pi e c e;·!1cs. l o:f -pur.·c :1-:!. si~[~ ·
It ,ra s a g r e ed that th e j)0rno~1st. rnt. j_on s C.i. ti c:: s i\c t ~r~a y brj_ n:: n~: c i...~t.
so:ne !)TOgress in thj_ s area. b e of the r\·:::::-~1:.~n t. :i. n tJ1i:!
Act t ha t t h e citi es hRv e node r n ~uildi nJ cedes in order t o
qun.1:l.fy for a::;s i s t a nee .
Sena tor T~ibf co:2f" i.:.skt~d wltG 't.J: e :r a vas t t ax 1.,t ri tr.: -o f f f or a~:.i t -po3-l u tior! rr,ec s u r0:: s w·o:J..l c1 b e :=:.n inc ent,i ve to y1ri ·vc~ L<:! ). 1i dus ::.1·y
to t..ake st. ci:,~~ in "'L h:Ls d j. 1·c;(:: t :i. or.1 .
Jv:r . Pil i l J..i J;te t~a i d ::.1~ -..:o:J}_,:
encoura.fe p r :L -:r at c effo1. . ts :L:1 th~t :f i eld . }Io·,,rev·~: ::· ., t h (: re:~·J
p 1--001. E:rn i s t h~tt Jt l. s no~~ ei' Zi.c:i. ·:=.:::-jt t c, e.dd t o o l d ·1::.,J.:-,t-:l°- 3.
wou1c1 b G Gette r t o -bu:1..l d r-;ev.~ pln:1.t~3 wit}1 z.!-l':,-, t - po]_J. u·~.ion _f\ ~~ t :~j-•,;,_;.,
bu.t i t will ~ B ~ ~e a l o:r~i~ tlr,:e t o r c~:pl a.ce e x i ;3tj 1;.~:; ~1l.z :n:t:.2. .
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SE:nator }Cenncd:r o.f :f\:(~w ·yorl-: ':",; as ext:ri:::::i--;11;:ly i:1t,2rc-~stf:d. j_:-i t:c,yit tG
to get pri v·a te i n 6ustr:f to buJ.1d pl2.nt.s in sue!~ 2.r,::c.s ~.:s ~i:1. :rlc::::
and Bedfo~... d - StuyvE:s .:1.:1t. fa_:::ter r:·.u(~h qt~es tic..::rLjr;:2.: --' ttc C>s.i.:t·1.-~~-"~1
o::-. GE fi~·1 0J. l~l ad:nitted. his co.~.~pany '.-.r o uld ncr~ ·be i n~:(.::rrj~;t~:·. i
i n l ocat i ~1; in such areas bec8.t.1se of ·the foll c·,\ri:-1i di 3 a _d-:tc.1 11 t :! .; ..;:-; :.
\-!01.Ud not G
~·Tou..ld 11ot" Oe clos e to s1.1p~lies and n~a .
? he clir:--.8.te wo1..D.d nc,t be c.ttractt~re becaus e of rio·~sJ l a ~·C.::
st r i.fe , etc .
It is too h8.:rd to 38t goods in and o·,,t t)2-c 0.use of tr,~ff'::.c
c ongesti_on .
c entr8.l to a 1r2 .rket fer the proQuct .
costs are too ~j_gh ana. 1 2.r ge enough arc.-·.f3 \·tO"l.Jld r~0i.·, : .:::
a Yo.ilnb1e . . (IIe s a i_d t h:J.t Gl~ :ts not inte.res t.~C. ir-.. c o~ t :':'. .r_:;c- - t~y;~
indust. rJ'" i s ca rr:i.:::d on in the c:ro-.:.. :~e d cou.:ntr~_.. of ~ ·c:;.):·.. ~1. )
1 -:-::
J,!:r . F·hilli1_"")pe sc.1,:i.d tr~at, GE ·ha d a 30 -y2ar-ol.C! :;1lc.nt in Q. Gb et tc1
area ,..r ·tich it iv·as r fo:i.---ced to scJ..l "'oc:::a· of' tt:~e u:.r:-e.r:--.~i~11:~:-8;;·.:..3
~nc1 h:?.. :rdch i ps , He would not n:·ui:ie the: loc f.i 1::.:Lon , · End r,old ;::,:~:ea t·.o.:.'
1{enned~/ t.b a t he 1.-.1oulcl t ell. hir!l -::he 1 or.;(1..-tio~1 in pri ve te. Ee 3~·.. j_~
tba t sc:nc of' the t h in_ss . ,.,;l:i.c}1 :1 ~H1 h2.y.,y,2 nE: d to the pJ.2:-r~~ \:e~·e \i ·:·:.:.-y
ur:u.smJ_ and thRt }J e had su.r:·ert:d TJerso::a l unple£::.s.: ~.:1 t, e _v~pe:ci e ;~ e: ~. . ::
·w hen visiting t he p1ant .
/tl th ouch Se~at,or :{enned;/ c o::i ..~ '::ndec1 t11n t t ·l1·2 r ~~ wcuJ_d t ,-:-~ a n
unta.pped rna rkc.:~ for \.TO:cke rs B.!~d cooC. s .in Stlci1 an 2..r~~.:::. -~ t te C~n:·-:.:i. l"'J::.:~ r:.
o f GE s e c r:1cd unconvinc ed and ~1ld r\ot e-c;r2e t!:2.t C·::.:-:--~·1_)a.~1:.· ·
ml gh t be interest ed in locat inc in such an area .
Rib.coff and
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}-7.c'.\.?J:l·:GS :S:220?2 T::..:; SU~:8C:.: .J:'='.!:';:';::':: on K{ECU?IVE PEORG.-~IIZATIO:,J
OF '.!'EE sr:=·~.\'I'~ c c:.:-=:TI':Z::: o~r GO'JERI'J-ZJW OP'.a.::R6.TIOHS
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Afternoon Session :
BRUC6 P. F.AYDEH; Vice ?:resident; ::ort 6ase 2.nd Real Estate J?epart.ment,
i Colli'1ecticut Gene:r3.l Life Insurance Company
Mr. Hayden defined the c onditi on.sunder which life ·insurance corporations
_and other bus inesses could increase their participation in the urban
r edevelop:nent process. The ex.te~1sion of Gove r!l.ment financial assistance
programs to profit ventures as. well as nonprofit organi zations and the
effective exercise of t h e planning and coordinating function on the part
of Gover.ruaent were des cribed as necessarJ to the achieve;:;ient of greater
business involvement in t h e reouildir..g of the cities. The main poim;s
·rais e d in his testiraony and during the questioning period were the follo wing :
The Weakne s s of :n orrnrofi t Ventures

Hr. Hayden testified that d eveloprnent efforts unde rtaken by nonprofit

conc erns u sually r esu.l t in f a ilure due to P. J a ck of knowledg e and experi ence . The tendency to l init Gover Th7ent fi"'anc i a l support to nonprofit
organizati ons is thus m1desirable .
The Gathering of Housing Costs
}Ir. Hayden stressed the importance of r ~.?~e?in~ the divergence between
housing construction costs and gene:r2.l price levels which force s builders
to t olerate lmr quality work . The contimstion of r eli ance upon ea s i er
fina ncing arrangements will p revent a soluti on of t he costs probl em .
The Or ganization of tl"e Attack uuo!1 Urron Problems
Mr. Hayden sta t ed t hat an agency should b e c reated with the r espons ibility
for mak:Lng a tota l systems approach to tbe problems of urban housing.
Such an agency could b e orga nize d along the lines of either NASA or COl-.SAT .
JAMES W~ ROUSE; President; The Rouse Company
irr. Rouse descri bed the steps taken to plan and f inance the Col umbia project
which involves the de velopment of an entire new city within the next l 2
years in an_area midway b etween Washj_p.gton and Bal t imcre . Tbe expe rience
of t he Rouse Corpor ation and the Co;:1ne cticut Gener"--1 Life Insurance Ccnpany
with r egard to Columbia can b e applied to the reconstruction of t he c entral
c ities ac cording to 1-il' · Rouse. The ma j_n points raised i n hi s testimony
and during the questioning period were the following:
The Need for Concentratic~ of Financial Resources upon a Single City
Mr. Rouse suggested that all urban ·renewal and -demonstration city funds
should be utili zed to accomplish the total and successful renewal of a
single l arge American city. The country needs to be convinced that
urban problems are capable of solution.
The Place of Profit Consicerations in Urban Redevelopment.
Mr. Rouse declare d that the construction of new cities and the reconstruction of old ones so that the real needs of their people are satisfied
will b e a profitable enterprise. Once the market success of well -planned
development projects is established, the solution of the nation's urban
problems will be possible.


1I . J, 11/\._.,.


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·I (} ~-· tA / v,
Afternoon S e ssion :
6, 1966
Lee Rain1,,;c1ter, Pro fessor of Sociology and /mthrop 0 log y,
W2.shinc_:ton University ( St. Louis)
Poverty and Deprivation in the Crisis of the A."llericDn City
Professor F:ainw':iter told the Subcommittee that until we make really
s i gnificant head~a y in solving the poverty problem ( and thereby also
the probl en;s of race and ~thnicity ) it will prove irr.pos s:i.ble to plan
urba n enviromr.ents in a r 2.tional wa y, in a way tha t is useful and
sa ti sfyins to urb3n populations .
He sta rted by desc._:ribing one particular lowe r c l ass Nc t:: ro crn:unun ity
wh ich , with a d ozen colleaz;ues , he studied int e nsively for th e pa st
3 y ears . Thi s i s the Pruitt-Igoe Housins Proj ect in St . Louis.
Built in 1954 , th e project was th e fir st hi gh-rise public h ous:i.ns
in th e ci ty . It cons ist s of 33 e leve n story sla b sha p e ~ building s
f csigned to provide housin~ for about 2,80 0 families . At present,
it houses about 10,000 t~e 0 r oe s in 2 , 000 }1ouseholds . i·Thnt s t.a rtr~ d
out H S a pYcced:::nt-o:r·eak in3: pro jec t to i: np r ove the live s o:; the
poor in St . Louis , a proj e ct ha il.ea n ot only by the loca l ne~spepe rs
b ut by Arc r::itec turo.J. Fon.::,(, h2s b e c oue an em'oarrassmen!.; to a ll c on c erned . In th e l ast f e ~ y ea rs , t he proj ec t h as a t all ti1nes ha d a
va c a ncy r a te of ove r 20 p e rc ent . News of crime and accident s in
the proj ect nakes a r e 6 tLl r, r appe2.n:1.11c e i!1 the ne·.1spa pers , e.nd the
words Pruj_tt -I g oe ha ve b eco:;1e a househ old term for t he worst in
ghet t o li ving in loue r class Ne.:;ro h on,es , as we ll as in the larr;e r
c orn.mun i ty .
Prui t t-I goe , :i.n Professor Rai:l'.,8.ter ' s opinion , CO!1denses j_nto one
57-acre t:r-a ct a ll of th e probl e::;s a nd diffinilties that ari se frorn
r ace and pove rty, a. nd al l of the impotence , indiffere r,ce , 8.n:l host ility
with our society has so f a r deal t with th es e problems . Processe3
that are srn-,,e tines beneo. th the surfa ce · i n l ess virnle r.t lowe r class
slums arc r e2 dily appB-rent i n Pru i. tt-I 6 oe . Because PruJtt - I g oe exists
as one k ind of Fe de~ n l Gove r n~e n t r esponse to the probl ems of pove rty ,
t he f a il u r0 o f that r espor,se ,,,ill be of pa. rticuJ. ;:;,r int. ere3t
to the Co1:u:dttc e , Professor nai ff,·T~tter s a id .
P1·ofcssor Ra inwa t e r brouz.)1'..; out:, tl-:e follo·.1i .n 6 facts in. r eca rd to
. Prui .J~ t-I g o 2 :
All tr~e wh i te s h e.v e !,:ov e c1
and th e po p'Jla t io;-1 is no·,i a ll I:egro .

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'I'e nents , tl-,e:r0fore ,
Frosram .
h:;.,..-2 ~
t h ings out of wi ndo·.,rs., hur~:i :1;
j2.,J.ndiced Yiew of t he :publ i c Hous i ng
P1~ofe3s or Raj_1!-,ia.t e2."" 22. id tfl~.: - i1f2 r1ust s tart with a.n unde rst2.ndi r.g
c f ',!hy l c ·, rer c le.s::; ::. i.r'e i s tn5s '...'e.Y . He beli eve s the lower cla s ses
ac t - this wa y b e ci:f L ro probl ems :
! ~a bil i t y t o find ~ork and adequate pay .
Beca u s e of lc1 ck of fi n?. .!1c e s , tr:ey live a mong other indivic.;.~el s
simi l a rly s i tus. ted , ind i v :Ld uci.l s wh o , t he expe rien c e of their
daily live s t es che s t hem, are da nc;erous , difficuJ_t , out to
e x pl o i t or hurt t hem i n p e tty or si g n i f ica nt w2.y s . And the y
l earn t hat in t h e ir c or:-;:iuniti es the? c a n expect bcil y p oor ai'1d
i n fe r ior se r v i ce and protect i on f r om such i nst i t u tions as tte
p ol ic e , t h e CO\u-·::.s , t he s chool s , the s a nita tion depa rtment , t h e
l andlords and tr:c rne r chc1n'.:, s .
Professor R2.i,1wG t e r c o,1tem1ed tl1a t effort s to sol ve t he . gen eral
proble ms of u rbc1n rr.a,;'?.;cment will forc ·, e r be f rus trated , o r a t l east
much , m1,;.ch rr.ore c os t l y without 8 solut i on to the p :: :oblcrn of p overty ,
bot h u :c'c6.n and r ul'al .
He p:t :iposc j c hannel i ng nation'3. l incc;:;c ( po.rt i.cul arl y the yearl y
i ncrem2nt in nntion':l.l j ncor,1e ) to f am ilies in the lm.rer thirty to
f or t y p e r cent, of the popula tion so tha t a fami l y i :icomc: f l oor i s
estab lishe d which i s n ot too far b e l ow the med i a n i n come for
Americ a n families e.s a ,,,hole .
Professo r Ra i nwa te r t h inks that there are 1::asic 8lly t ·,,o 6 i es
i mpl i cit in the va r i ous p roBra~s and s ugges ted pla ns for d oing
some thi ns about pove rty . One , by far t he most entrenched a. t pre sent 2
might b e c a lled the ser-,,ic e s strat::bY , an d the ot.h er the inco1::e
stra t e 0 y .
In hi s opinion , t he p r oblem with the services appr oach is t h a t to
a. conside rable extent j_t c a. n:ies t he l atent assu..r.iption either t hat
the p oor a r e p ennan cn tly p oor and th e refore must h a ve spec ia l
s e rvic es , or tha t th e p oor c a n be chanzed (by l ea r ning productive
skill s , b y l earning how to u se the ir r,,oney more wi sely, by developinc;
bette r at ti tudcs , etc . ) whHe the y are s t ill poor and that once
t h ey ha ve c hs~ged the:{ will th e n b e abl e to c1ccor.1:pli s h in ,:e.ys t hat
wiJ.l do a:.ra y with their poverty .
., ·r. .
A s econd pro':Jle:;; , ::e 132.icl , witr: t !~e s ervices a ppro::1 cl1 is that the
priori ty of ne~ c1s of tte pvOl' is c: s. tei:;Ol'ice.lly est.2.blished when the
service pro6 :car.:s a re set u~ .
An ex::rn,ple he descrj.bed j s tha t ti-:e Federal puoli c housi ng program
prov ides 2. service to eac:1 !",cus e;10ld in Pruitt -I goe in the fo rm of
a subs i dized a p?. rtr::ent t.}·.~t c c sts ab out $545 a year . This amotLrits to
a fifth of t he ~ean f auily incoxe of the tena nts in the project .
It is v e ry l i1,el y t !'.!3.t fr c::·:; t:'1e point of vie'.r of the needs of n,any
of the f amil ies who live in Pruitt-Igoe t ha t $5!f5 could be put to
much b etter u se .
The Professor said the.t those ec:ono:dsts who h ave pursw,~d thi s line
of thinking in studying t~e probl em of pove rty have suggested
the inc ome s t r<ltegy ree;ui res t:-iree ele~iic: nts :
A. An agg r e ga tio~a l a pproJch --~hich i nvolves gene r a l economi c
plan ni ng directed at the l:l<:tintene.nce of tibht full e mployraent with
une;r,ployme,1t r ate ( t ha t is , t aking into account l abor force
drop outs ) t hat i s ext::::::l:1e ly lo;,.r. Such an employment rate has
cha rc:cteri zej ~.h is co ry only ourinc the h e i gh t of World Wa r II .
a r eal
B. A structura l 2. p proac~- -'.!hich cOr:ipens2tes the tende ~1cy for une;r,pl oy ment sncng lo:.' st:illed \.:02·}~ers to r :2:r,3 in at relativ ely high
l evels eve n u1:de r co:1d i tions of ti 2;ot ; ful l emploY7",ent . Such an
approach ·,.;o:Jld r eQuire thst f e d'2:c2.l ~ro 6 r a ms t o b2·inz; full
e mploy1:-ient be ti ed to s u9.rc:ntee s of 12-bor f orce entry j obs f o r
unskille d men , e.P..d r;u2rn nt e :=& of t n:Ji n i n8 c:-i the j ob to upJ;r8. de
th ose skill s . In t h i s c onte:·~t , tha t is tii;ht , full e,11pl oy:r.c,r'.:.
at all s1(ill l e vels ) a hi gh nin:i.mum ,raz;e woul d a l so be ne cessa ry
and would not };~ve the nega tive effe ct of ha stening th e r e pla ce;:ie::1t
o f me n by rr,o.c11i nes .
C. An inc o~ne rr.3 inten,,:1ce p roG1·2.m- -·,,}1ich fills in the i ncome ga p not
touc h e d by th e tight full e mpl o,y-;r:e :1t pro3 r o.1:is . The i nc o,ne m:'l int enc1. nce progr:':rn ,:oul d b e r ecpired f or families ,:i th dis 2. bled or
rio m3le h ead and w~e re the wife should not ~ork b e ca us e of the
ages or m mj )e r of th e child ren . Such a pro;;rcun could t a ~e tte
fo rm o f f 2r:::i.l y a ll o·.:e nc (~s , a ne 0 cJ 't:fv
.e-S:nc~_,2.x , or c !i ann1.1e .L
r eorc.2.n i za ti on of t:-1e Gove n E1e n::. ' s c l.11T e :1t inc o;:1e r::':.: in'.:.e n2. i1ce
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n ow 5n exi s t ence .
Mr. Kot l e r d e sc ·rib ed t o t h e S1..tbccr!,;;1itte e tt e 2cti viti es 2 2·,d 2cco::,pli s tme ;i.ts o f t.:,e 2:cco p ro j e ct j.n Co j_l1.::,1.,u s , Oh io . He [; 2 ic1. tha t th e s ucce3s
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o f c,Llture J freec. ,,~ _. 2:1('. ~:!"0spe1,i·:y . 'i';;e nei 6 hborhood mus t becC-r:ie
a le~2 l cc~::nur1i ~ ~: Oi-. s~1.f' :-lelp e!1d sel.f' - 50,._.rer:iing de cisions r..r i th
the suffic j_ e:-it c2 pc, :::i.ty '_;o rele te '.:.o c t o.e:c organjza::.ions ) publi c
a~d private ) for t~e !~sourc es and tecbnicel assistance required to
b uild a bett er city .


t-'. r . Kotler made the ::'ollc·.-1in.::; reco:rJnen.c1a ti o:is :
'J:he Federe.l
The i ndependent nei &;hbod:ood corpora tions of a c ity should become
d ele[;ate agencies of the existing Corr::nunity Action 0rc;a niza tion .
The neit';'hborrwoc1 corporations wouJ.d use the Federal f t.mds to s ub contr2. ct t o p1'i v21te industry to rebuild the c ity .
An P.lte r no.tive is fo :r t:-1e neiGhbor~1cod corporst ion to beccrr;e a
d elegate a 6 ency o:f the l oc2.l ho . J.s ins a Ltthority .
Goverffir:ent ce.n assist the forrne. t i on of ne i ghbor}1ood
corpo r at i ons by fundin ['; thei r a d;i;in i s trati ve costs and p ro~r ar.'!
ope r at i ons .
'\-1:Lll i mn A . Doebele ) ,Jr . 1 Profe ssor of City and Reciona l
I~anning ) Assoc i at e Dee n for Developme nt ) The Giac1uate
School o f Desii:;n) Ear··13. rc1 University) Ce r;,bric1L~e) I-1:;.ssach:...lset ts .
Professor Doeo e l e rr:3. de the follo wi nc; rec o,::rc1e nds.tions :
1. ThStt it r equest the S e cre te, ry of the De pa 1·tme nt of H.01..1.s ing and
Urba n De velop~ent to initiate at t he earliest poss ibl e opportun ity }
i n cooperat ion with app ropri a te profe ss i o11a l o rgan i zations and
u nivers it ies ) a c o~r.prehens ive study of rr.a npower resources in the
field of urba n affairs ) r el a tinB t he s ame to t he ne e ds of both
the publi c and pr·i va t e s e ctors J and t he r e quire;;1ent s not only
of ex i stin[; pro 6 r a ms ) but those conte1:1pl a te:d or like ly \-,i thin
t he nex t dec a de .
2. Tha t th e current $500 ) 000 appropri a tion fo r :fello~ships for
gra du':l te study i n cor::m:.m i ty pla nni r:g and nll i e d fi elds ) first
provide d for i n tL e Hou s j_ng Ac t of 19611) o ut not fllnd e d unt il
thi s y ea r ) b e irr.:n'= dj at e l y increa s e d t o at leas t $10 mill.ion
p e r y ea r) a nd e:,:tcnde d to c ove r u r be n s tudies in 1;_s ny fi e ld s
and at ma ny l eve ls of tr2 inine; .
3. Th 2 t sinc e th e ~ os L critica l s h o rta g e of pe rsonn e l is at the
t op pol icy p os i t i ons ) a spec i a l f un d o f $5 mill.i on per year for
5 y e :3. :!."'S be appropi~i a t e c1 for t h e purpose of E.~:'lot j_~~ t h~
este.:)J. j s~r'.:e"'1t , e.-S s e l e c te d u~:i. v ers i t:i e s, of t::ro--_r 2 :-:1s cl es_i r=: ~cd
-~~-c~t{_;-:;_(;~c·~,~:;_;t~::c~:~~-c;: 16:57, 29 December 2017 (EST):~'. 16:57, 29 December 2017 (EST)c~~
~~:.[:';-~,'-~-~~ o~l ~·;:c:::
an ~:J_ .:., . -~.- of t:~e r:ctv2:~,:.:eG. ~-:.:.:::: ~::·:·:==_---:-, ::-:~·e>_::r2 ~.s of leedi~~ school s of
b :.t:=:: ::::. ::~s 2~ct-;:i:1is t:.·?! •.-=: --:!2·:.. :-i~1 }i:·c:[; rc.:--:s ._of t}1e ~"i'Jc,:.1rc'.-,r ~·?ilson
Sc }-_c·.:-l -st Prf1!.c etc.:1 7..!~i';/ ers :L:.:: ) t: _:; i;eir,1s.n J?ellows}1ips , e.!1d the
n eu }:c :1~1ec1~,i- Ins t:i. tu~e e.t Hct1~ve, rd . ,.;. _
l~·: Th-?.. t. a1:. equive.l er!~ s;J;·1 Ce cr;~~·-J p:::.~i =?. t~d for the pu.rpose of doi~g
r ese9 :;-·cli and es ta'8l:-..2::-,icl=:; p ilot v2·0,;:ra;n s relat ing to th e tr2. i nin,-:=;
of intabitents of slar a r e ~3 ~o p9~ticip~te effectivel y i n the actu9 l
r e~_u~_ld ing o! t}1et r o~.r~, en . .ti r o!·:..:·;;er.t .
'.i'ha.t 2 su:,1 of n ot l ess than ~;20 r::illion per year be rr,ade available
~----- --to -an -·approprirrte "C~:~3rtn:ei.i:, c1- e. ns.tion~l cc~1nc il, for · di strib1..1-- -tion to univers ities and other r esea rc h organizations for s tud ies to
increase as r a pidly as possible our bas ic 1u1derstanding of the
na ture of u rba!1i zat:i.on and nrban a r eas .
6 . Tha t a separate
sur:i of not l ess than $250 milli on per yea r be este.bli s :-.ed
under the adrninist r2. t.ion of cne or several Fede r a l De pa rtments f or the .
c onstructio~ of l 2r~e - scu l e e xperimenta l u rb~n enviror~:ents, to t est
and ev2.l.ue.te , 1..:0: :1,; th2 ;ne~.h ods of the social and m,tura l sdences,
tbE:__effects o[.:_-u--::::·Lc1e- r2ns_e 0~ poss \,h ich are nm, technolo;:-:ica lly
feasibl e but cannot be bailt beca use of fi nancial , l c Ga l or other
constraints .
In reply to a c_;ues t,ion by Sen3.tor Ken ne c.y , tr.2 Professo r that be \, Oltl d
put a priorU:,y on his firs t r eco:r::1;enc12 tion , the second sug[;est ion next ,
a1fd tben m Enoer fi vc 2s third priori t:,
S er..!?,tor Kennedy ,:as very i rnpre::,sec1 ·
with _the p1· or ' s r ecomrrienc1a tions to get nore informa tion e.bout urc a n
enviromaents·, since this j_s one cf the r easons the p roblems } not bee :-1
solve d at thi s time .
1 •
Ma in questions r a ised by Sena tors Ribicoff and Kennedy ( the only n:embers
present ):
1. g oe p~blic housing project j_n St . Louis .
S e na tor Ribj coff aske d Profess or Ea. inwa ter ,1hether there were any
a dvant2,ges at e.11 to living in Pruitt -Igoe , an d the Profess or r epl ied
that the t ena?.1ts were pl eas e d wi "'ch U1e interiors of tr,e ape.rtments ,
but tha t the world tha t be s gro'.m up arot~?.1c1 the project and 'Id thin
i ts bounda ries is \..'h2tt e;ives th e project j_t s ba d name .
Ribicoff \o:as inte r c:-:;ted in whether thi s p r oject sheds e. ny li ght on
public h ous j_ng in 0 e neral. Th e Professor s a id that it s:!10·,:s that
public hous ing s hould b e buHt a t s ca tt ered s it es m i d in s nm l l settl e1,:ents .
Sen':l ·i;o:· ?j_oi~:off b:cc,<Jch e d th'?. possH,i :i. j ty t Yat p1..1bJ. i c }1ousi n c; mo:-i e v
,nj 3 flc -c :2 1ju ~ t o 1:~~ -:.e:: r us e by l e~. L:r: ::: £::l e(_ p0: r so~1 proc:.11·2 h j. s c ·.,·r1
p::i ·.;2. ~.£.:: i:.~-u:::i:1J ·,,_~~ L 2.ri ec~:.liv:1le~1:. 2l -iC'- ~ ~1t. e2.2f". 1~0:1:r: ( 2.":;c.-J. 1:- ~-:)J ) .
A propc,seJ. T., at a pre,rjous session -,.,as ol so disct:.ssec1 . Tt.2..t
propos0 l #'"·=-c)~_J..d be to h'3 ve ~:-i urb8.1: ho;r1estead similar to t !1e ol d
Homes ·cead .'\ ::: t . Profes sor F:2 in°,:=-!ter also pointed 01..:t tha t Den:~_e rk
u ses c oop2::::::.t i vcs and nct~l)rofi t c ooper2.t i ves to provide lo·,r- incoa,e
h ousir:'.i._; ty givin[!; the o·,.,:1e:c a sutsidy to rent up to 20 pe rc ent
of h is buiJ_din.3 to lmr- i,1co,r::: fa1n.ilies ( rent subs i dies ). Profess or
Ra i rn:at e Y told Ser;::-1tcr :;ibicoff that he c:efini tely would substitute
s ometh j_n; else fer the p:r~sent puoljc tous ing prog re.m a lth oue;h
t he program wor~s b etter j_n so1,:e places t q_2. n in others .
Coope r a ti,:-n b2. t112en EUD and other agencies in Pruitt - I g oe .
.. .
Profesr,o r Ra i mi2.te r told the Subc orr2·.1ittee that th ere have bee n
many effort s to coordin,,'..te act i vi tics in this project by HUD
and the Labor Depa rtment; but they have neve r rea lly gotten off
the ground . He s a id t h2:r.·e is not a treme,1dous amount of coordination .
In 1961 , e Conce rt ed Proc;rams Se n ' ices ,,as begun; but wa s not very
su<'.:"c ess flLl .
Role of th e Univars ities .
Professor Ra.i!1W"te r ; in r eply to Sen2. tor Ri bicoff; s a i d tha t h e
did not thi nk that a Uni\·ers ity c ould u se th e money that is b eing
spent on Prui t t-Ic:;oe anc1 do a better job tha n the Government is do j_nc;
n c·,r . He the.t his g roup 2 re n ot pra ctioners . He thinks th e
r e a l in public hcus j_ne.; is political . Whethe r the country
i s ,-, ill in;; to do a bet,.:.e r j ob . lie thin:(s tbe role of the u niversity
i s to c12velop p:::oz;:ce~ns f or t he yotmc3 p e·opl e anc1 to try and unck r s t and
the co,~i:11uni ty .
Hi gher inco1r e s - key to
p:co"blem .
In Profes sor Ra inwater ' s opinion ; the r cc,l k ey to url:a n s l ums i s t o
provide p e opl e ;Ii th an adequ3te inc o,.~e . He thin ks this ha s
p riority ove r hous ins a nd everyth i ng else . The solutio:-1 to the
protle:n of ina c:equ,::te i nco:ne would simplify a ll the ot!1er p ro1.Jlc~ns .
TI-i::E i:JE\-7 YORK THlES - Decemb er . 1, 1 966
V1 LKINS DEPL RES /}~r.??.~~r~~
AYUR- Af ]DCUT[[ '· '/

Tells S0nators Such Savings Ji
Would Be 'Criminal'
Sprci al to The :-;c ~ Tor~ Times
·; ;-
30 (, .
· -Roy 'W ilkins asserted befo re I:··,\,, : '. •
a Senate subcommittee toda y (i.,.ij,: L
that it would be "crimin al" fo r \ \'., ~- ' .';
either Congress or the Admin·- ·. ·, . ,. · .I
-, . . -·
is tration to cut back budget ., .
.· -·- ·. , . .::,,
expenditures on social a nd ur-1\
· ban programs.
. /'
The executiYe dire ctor of th e . •
·, (
-~'-·· 1
N ~tional Association · for ti1c (
~ft fl~·,,·· '·
Aa\'ancement of Colored Pcoplc jt
\ t /A ,, :·,
m a de this pomt a day a lter L-·---- ·-·'--' "---~·-· -'~•-'·· Uil lt"rl ?re- ;:;, Intr mat1ot1J.! T cl e,1hnrn." j
President J ohnson a nnounced,
a t a news conferen ce in Texas, H an-,Y Go l<lcn, left , til e wri te r, and R oy W il k ins, cw cutiYe
th a t he was canceling or de- dirqctor o ' the , ;:i t iou :i l AssociaJion for t ie A d\·:rnceferring S5.3-billion worth of m ent of Colo r c<I Peo:ile, t est.if~·in ;;· yesterd a y a t h ea r in~
· Federal prog rams in tl1e cur-!
rent fi sca l yea r. .
I of :t ~c11ate sub(•.nm m it t-ce on pr o ilcm;; of A mer ican citirs.

1 1-

...-~.. f/,'~ .....- ..,} I
The Pres ident: in~is ted Urn t J· ··

none of the c.uts would ",-;h0r t-·s la nli a l cw·c for Neg ro un - ' tions .ire so cJ0sirahle th:tt he '
ch3n ge the young, or tl1e·n ccdy ,:ci_11p loymC'nt. "
'. wants in on them," he said.

_he iH or th e ol~." Sources here, ! "Un fort u n
,~cl .~·, " he, w0nL en .! Ju dge Ed wa rds s tru ck a r e- :

-?nf1rmcd t ~da). _th a t . tl; e C'Ub /the ad m1'.1 1st1_~ t1on o~ . F cdcral jsponsi ve cho rd in the .subco m - 1
\\ ould not I cq u n_e el1m,n a t1on ,111,rnpowc1 dcvdopmcn c .ind cm - mittce when he c::i.lled foi· mo re
o.f key Grea t S0c cty prog ra ms ploymcn t prog rams '_'has often 1and better -trai ned· policcmPn in :
but would del ay th e _ award /bccnn1 a z·k cd by r,u tn gh t r:1,;1a.l 1ur!Jan a reas a nd SU""es tcd es - I
of !Some grant~ and re:q_u1roc <10l11e ,dis\nmin atz~n ~ nd b:i,: ,~r~c:on- ltab lishm ent of a na tii na l police !
belt-t1ght,cm:1 0 a~ . we1l. .
· !rcn cd, . ste1e~ty~cd i~e.i:-; of academy s imila r to the service ,
Mr. V\ ilkms said a fte 1 t he 1wha t Jobs _ N cg1ocs can a nd institut ions at Wes t Point a d /
hearmg th a t although .. he was j"hould ho la. W 1en colored ap - Annapoli s.
n .
dis turbed by the poss10le con- 1phcan ts have been accepted :
sequ ences of some of the cut~- 1they ha ve often_ found l hem -1 T ~,e ~ub<;o'.n.m ittee cha_i rman_,
he did nd't specify thcm-he 1selvcs bemg t ram ccl · for blue- Scn,tt~1. Aoi anam -~: R1bicoff,
ind intend ed his rem a rks la r ge-:collar. service employm<'nt. fre - ,Demoo;t of Connec ci cut, called
lv as a "warn in "' t o . the n w qu0n tl y in dving industri es."

for v ascly imp roYed police p_roCongress," which, he feared , The three other witnesscs 1tcction 1,-:,st. A~gust fo llo,w1ng,

m igh t inte r p ret Mr. J ohnson ·s; were Harr y Golden, author anct 1th!_paneJ 5 fi r_s c round of nea r- :
a ction as a ma nd a t e" to be " in publisher of The .Carnlin rt Is- !m,,,, on ci ty p ioblems.
, m al.;:ing fmt hc r slas hes.

rac litc ; D1·. Rohc,·t C"lcs. Har- I _Dr. Col_es, a · ch ild psyc hia- ;

T he Neg ro le.adc r w:i.s one o( 'l va.l'd re.~ea rc h psych iatris t. and 1t1} st , revi ewed his expcne nce ,
fou r wi tne,;,;cs wh o appearc<l br- .Jud ge Gcor;::e Edwards of l hejw1th poor ch1l?rcn and their ,· :
fo re heari no· of the . Senate ' U m ted States Court of Appeals p:'lrents m SouLnern to\~715 and,
Gover n ment O Operations s ub- Ifo r th e Six th Ci1·cui t .
Nor th ern ghettos a nd said t hat 1:
com mittee on urban problems.
Mr. Golderi proposed that the , m many · cases he ha d fou nd 1,
In other points, he :
Nf'gro be g iven a 10-year, Sl00- I"strength" ,rnd " vitality '., de - ;
C:: Describ ed the "black power" billion
"indemni ty"-in
the lspite huge obstacles.
m ovemen t of some young Negro form of weliarc, . housing. and
He said, moreover, that he :
a ctiv ists as "t oo da nge rous , too education progr a ms- t o pay fnr had become le. s "eonvincC'd"
amateu r ish , too t ecn-agcrish. his confinement "during the that racial prej udic-e "is Lhe de . t oo much li ke a stud ent p ra nk,' greatest wealth -prod icing pe- cisiYe issue confronting· our
· adding : "It isn 't as bad as i1 r iod in the history of-the world." citiP:'i ."
sou nds, but it's misc hievous..
The Neg ro 's struggle for jus- White;; and Neg roes, he said , ,
. C:Ch arged tha t Federal Job- tice, he said, "ha: no t been to share the same basic fears of t
tra ining programs :'la u in some1a lter a single insti tution. He did un employment, high prices, ill- l
cases h el ped perpetuate racia l'J not wan t to bum the bastille, ness, a:nd the like.
· ,
-=-·discrimina tion.
or get rid of the tax on tea, nor "There is nothing · in the ;
· "Existing Government pro-:did he demand a new parlia- minds of any group of Ameri - i
. gr~ms, " llfr. \Vilkins said in a lrncnt. or a new Constitution ."
cans." he concluded, "thrtt nee-;
~ . , statement, ' 'ha ve fa llen tar! '. ·'V\iha t he ha,; been tellin;; us cessarily compels our present j
· · shor t of prov iui:ng a ny su b- Iis_ that the American institu- !problcms to continue."

By Andrew J . Glass
\Vashi:anon Post Staff Writer
..... .
Sen. Abraham A. Ribicoff capacity as chairman of the
(D-Conn.) yesterday disclosed Executive Reorgan ization subthat he intends to subm it a committee of the Senate Govbroad legislative package t o ernment Operations 'Comthe new Congr ess dealing with mittee.
what he called "the problems Sen. Robe1-t F . Kennedy (D·o f rebuilding urban America." N.Y.) is expected t o attend the
" We're off on our own," t he session .
Senator said in an interview. The Ribicoff panel held
He thus made it clear that he three weeks of hearings last
plans to champion the cause summer on "the crisis· in the
of t he cities on Capiitol Hill cities." They produced several
nex;t year whether or not he abrasive encounters between
receives backing fro m the Kennedy and witnesses, who
Johns·on Administration.
wer e drawn mainly from men
"One of t he great ·prob- holding elective or appointive
IT ems," Ribicoff went on, "is posts.
the tendency of the Execu tive The current hearing list, rebranch to r un t he whole leased for · publication today,
leans heavily toward non-govshow."
While Ribicoff, a former ernmental witnesses. They
Cabinet member' in the Ken- come from such diverse fields
nedy Administration, did n ot as private finance .and psysay \SO, it was nevertheless un- chiatry.
derstood that the 'W hite House Tuesday's w·1nesses will be
has offered him virtually no David Rockefe er, president
support for his urban legisla- of New York's Chase Mantive drive.
hatt:an Bank, and Richard
3 Weeks of Hearings
Scammon, vice president of
The Ribicoff proposals will the Governmental Affairs Inbe shaped, in large measur e, &titute and a former director
through ,a series of public of the Census Bureau.
hearings encompassing all The hearings will conclude
phases of urban life that will Dec. 15 with testimony from
begin on Tuesday and con- the Rev. Dr. M-artin LutJ1er
tinue for _three weeks.
Kin.g Jr., president of the
Nearly 50 witnesses will ap- Southern Christian Leaderpear before Ribicoff in the ship Conference. Ribicoff said
Senate Caucus room-and on this will mark the first tim~
television. The hearings prom- that Dr. King has ever testiise to serve as the sole legis- fied before a congressional
lative -a ctivity of any conse- group.
quence ito · occur 'before the Virtually the entire roster
new Congress convenes next of the Nation's Negro leaders
also will appear before the
Nearly 50 witnesses wm ap- panel. They include Roy Wilpear before Ribicoff in his kins, executive director of the
_ _ __ __ __ _ __ __ National Association for the
· Advancement of Colored Peoples; A. Philip Randolph, president of the · Brotherhood of
Sleeping Car Porters, AF LCIO; Floyd McKissick, national director of the Congress of
Racial Equality, and Whitney
M. Young Jr., executive director of the Urban League.
Other leading witnesses at
the hearings include Walter
Reuther, president of the
United Auto Workers, "AFLCIO, -and McGeorge Bundy,
president of the Ford Foundation ,and a former Special Assistant to President Johnson.
= ==-- - - - - ·- --·-- - -
�THE I\lEW YORK TI.MES - November 27, l 966
oi rntcrc~t the White House ap parcr,tly put it aside. R epresentative Henry S. Reuss, Democrat of Wisconsin, has also
, suggested it ln the House.
Mr. Goodell said h!s pl an dit.
fered from Mr. Heller's in makRep . Good ell Asks All otting ing a specific allotment o! tax
of 3 % of Income Tax
receipts to local communities.
The plan calls for. distributing
50 ner· cent of the f unds' for
WASI~N~TON, Nov. . 26 stat~ purposes, with 45 per cent
. (AP) - -- House Republican to be r edistributed by the states
leader has a!ready draft;d _ a to iocal governments, a..-1.d lS per
plan for sharmg Federal r.axes cent t o strengthen the executive
with st~te an_d loca,l govern- and management fWJ.ctions of
ments tnat will be a come stone of Republican policy in st ates.

the next Congress.
The stace _and 10cal . gove:n·
The plan calls for turning mcnts would nave full discretion
back 3 p er cent of Federal in- ?Ver how the money was used,
come tax receipts to states and out each: state would ?e required
localities to use as t hey see fit. to submit its pl n for allocatmg
The amount would rise gradu- ~he ~10_ney and :make an annual
r eport on how it was spent.
ally to 5 p er cent.
Offered by Representative
Treasury Post Planned
Charles E . Goode:!, Repub lican The office or administrator of
?! upstate New York, the plan general aid would .be established
1s the fi rst concr~tc proposal by in the T reasury Deparbnent to
the House Republican leadership assume Federal -esponsibilities
since the Republican election u..~der the plan. •
trmmphs of Nov. 8.
"This proposal seeks to pro- . M1:, G_oo!ell s plan calls :for ,
vlde for the great public needs d1str1but!n 0 90 per cent _of the ,
of the 1960's a nd l970'.'l by Federal mcome tax dlstr1but1on J
equipping state and local gov- to the state;; on a b':s1s of popernments to meet these needs " ulat1on. The rema mmg ;o per 1

vrr. Goodell aid. "It 1s an a'i- cent would be used to raise the .

t ernat ive to the philosophy of per ~ap1ta ,_allotment in the 17 :
the Great Society " he added . poor-est staces.

Using estimated lncome tax
.1'.ot Replacing Anything
payments fo r 1967, Mr. Goodell
Mr. Goodell, chairman of the said that Sl.8-billion would be
Republican Planning and Re- available for distribution. The
search Committee, said in a average basic allocation would
tax-sharing be S8.50 per person, with the
would provide needed general equalizing funds raising the
aid funds without reducing poorer states by as much as S6.
state and local governments to Although the. Federal Govern-'
administrative subdivisions of ment would have no control over!
how the states and localities
It is not being offered, at u~ed the money, Mr. Goodell
least originally, as a substitute said, such use would have to
for any existing programs, he comply with Federal law, includsaid, although in time ,i t m ay ing the Civil Rights Act ban on ,
permit s ome of them to be cut using money for programs in ;
which there is. racial discrim- :
A tax-sharing plan was pro- ination.
posed in 1964 by Walter W. He!- Mr. Goodell v,,ould also require :
!er, then chairman of the a review and possible revision :
President's CoWJ.cil of Economic of the program by Congress
Advisers, but after a brief flurry after four years.
�IvJI .4l F8_Il lfi ltfJW IE
fvII !E fiJ. 1 §
is here 1o stay and.' make it a deeent place to
live," Foli:y protested.
i.ubtu·bs '?
The meeting, as often happens in g1.1v-e1-n.
ment, didn't settle anything. It is, however, a
dramatic illustration of tile painful but secret
process now going on inside the White House
as the adm.ini'>i:rat\on prepares for L°ti7.
.: · .' ' %~iii'-\
.· _/:.,-;- '·-?r·i
SO:ll,E OF THE PARTfOTT'J\:\'TS in that hig,h-
powc•rwl St':S.'i'ion we-re chug--rin<·d t;hat Shul tze
failf'r:I to inclu<k a proposal tackl ing what they
wn sider the h igi,'C'St urban pro'xl<'m of - tm-
em 1,l9yrnent. .Secretary of Lnho.r Willard Wirtz
obsNvN.i testily that t:he prol,l<-m ot t11c ci<t:ics is
c cntl'rcd upon tlw pl igJll o[ tu1e pove ry-{;trickcn
Negro. Ghettos . He pointed oul that the unemp loyment r ate among Negroes is twice that of
whiles, mid stressed he belirves providing jobs
oo m the ghettos is tJ1e key t:o tlw.Jping the cities .
Silould the Ul'h'an N<'g-ro gfhetl:os be r"'bu1Jt or
ti!iould ~hair re::;1dents ibc ::;catlcred t:o the white
R1Ji?"X:'.t f..,~&l 'l1.11c smgglc among high adf?/'-'t/0 .-··: _., :\:: mini::;u·atlon ollidals for an ani' ·
·,·.-J\ '.d swe r to that question has been
i. . : ·.,,,~ / (J. inlcn!;C since a heated a.rgu;'1,-: )l~'-,:,i
mcnt eriuptcd in the White
[ ·' · ...,·,'·':, f ;~ ·; -~ HoLtSe office o£ Joe
many weeks ago.
\ ~ 'i · ' ·-:,-' ·: Bureau of the Buc'.get Dircc1Dr Ch,u·ks Shi1llze set the
~ - ·- ---...J tense exchange w 1w11 he b{'gan
cliscw; tJ1e urban crisis be-fore nr-;u•Jy a dozen cabinet anrl ::;uh-cabinet
rnrmlx:rs a~semhled bc1H'a th Califano's stark
hl,wk ,ind in-ey a:lr.;trncl pain1'in 6'S. Sh1tltze prescntro a hst of J5 sugg<'!il ions for improving
condituon in the ci ties .
111en-Attorney General Nichol-as Katz,:nb'ac:h
and thcn-Assbtant Secret,ary o! Commeroe Eugene Foley (Ka tze nbach is now in tJie State
i:.:l Deparlment, F oley has gone into pl'ivate life)
~ echoed Sec:retary Wirtz. T hey added t:heil· awn
pleas for new progr anis to attr a ct industry and
PRESIDE.1\'T JOill\SON has long btoen roncerned about tl1e problems of the urban centers,
where 70 percent of the population lives, and
h as rejX'atcdly · indicated that city prob~ems ,1i ll
make up a large share of his 1967 legis lative
program. In a d<lition , his inte rc::;t in the citi('S
nm, t crn·tainly krve been reinfo..rc..<>d by llie
warning of this montJ1's eJC'Ction, in which tlie
. GOP di:monstrated impressive gains in_ t11e nol··
m al ly Democratic hig city vore. •
(Although tJ1at same e.lection sePmed to ind:
c~:te a n;lfionul nbn0c---phe•re of entrench ,'1}ei;t
which . for,'shadows difficulty for the admin istration i n Congress i f it:; progrnms for tile cit ies
are deemed t:oo expensive or too visionary).
Witllout much fanf:lre and largcly ,,ithout
p ubhc notliec t11e White House has se t about in
scv0ral ways to work on tJic problems o£ tne
ci ties. Passage la~·t ::;Pason of the Demons trabon
Ci til's Bill, was of coiu-:;e, a small but importa nt
b eginning. A special l~ k foi;ce has been assigned to produce new ideas for tlie cities which
oould be included m adnunistratioo measures.
meets weekly m Califano's office, nets e..s a
watchdog over tlle presently exisitng programs
m an effort ro see tJ1ey are fully ut:i.ful:xl.
Meanwhile, t"ie Justice Depar!:zl".ent is pbnnjng sho1tly to mnduct a landlord-tenant co!"Jr:rOn e official present, however, int ~rjected th a t
c.1ce in the capi tal. The conference will bring
he opposc-<l such eflo11·s to rebuild t!he slums
tugether state and local officials and lawya:s
until conditions WPre improved for the poor, unfrom _across fue country to discus s procedurl'6
ed ucatcrJ Negres of lhe rural soutli. I-Le s aii<l he · which might be adopt ed to protect slum tenants.
prl'fc1TPrl trying to resettle slum jlJcgroes. " H
A major slum probl em is tile failm'e of landyou make tJ1e ui·ban g-h0llo livabl e all you'll
lords to make essentia l repairs upon their
haw i~ the Mississippi Nrgl'O moving North and
dwellings. Tenants, w110 often cannot r ead noI
reducing t.he arc-a to a sltun again ," he said.
write, seldom know the identity of their landlord
"You've got to face the fact that ·he gjhetlx>
an<' hav.c no wey of pi-ess• 1·ing 1'.im Wo action.
job-pro<lucing projects into
•• I
ghe ttos .
�TI-E rIEW YORK TI MES- 11- 30 - 66
,: ··-u .0,
Q _ n11r1r1 11TG
1.1 ,~L1'1
l/'1 0/ &--
.~hief _Hints Pro~os~l-i'1
_e. to Di vert Highway Funds . .

n;; :\UHJOH- E

,'. · Sp rc li\l lo Thr New York Times
·•.· WASHINGTON, Nov. · 29~ .
The.· Administration is expected ;
t o , Congi·css next year lo j
dea r· the way . for. the ,us e 1 'of
highway flmcts :· to help· : cities
fin ance off-st reet parh:ing..
·• · .
· Strongly backed by Fedci·a l

h·ighway offi<o:i~J~. the, wop_o ·all);

js known to · 1Jc unclc1' sc nous ·
1consideration a t higi1 level:;. · · ·.
l A strong indi cation that the '
IAdm inistration has virtually de -·
cidcd to push · for such . an .
amendment to the Federal High~
,way ·Act, in th<; next Congress
came to day in a ·pccch by f.:c,-;
M. Whitton , the Federal ' Higf1-·
way Administrato1·.
I n a speech to the Americ,tn
A sociation of · State Highway
Officials in Wichita, Kan .; ai1d·
rele ased by his . office here, Mr,
Whitton said : .
. .
I "It is my belief that we will
have to do something to provide
fin a ncial assistance to cities for
off-street parking.'.'
Mr. Whitton did not set a
ta rget date. Nor did he propose i
'any specific· amount of money. :
However, sources close -to , the :
Administration say that- .the ,
p1;oposal i almost C<:?rtain to be :
presented to the Congress con- ,
venini in ' J an uary.
·Under the present Federal
hi gh \\'a.~· law. funds cannot be
us<'d for parking faci!lties . . The
bulk of the 1:10ncy is used to
help s tates acq uire rights -ofwa\· a nd onstruct highways. ,
i 1any mcmbe1·s of Congress .
would a lmost certainly oppose
diversion of funds from road building into construction of
parking faci li ties.
This opposition would likely
be particula rl y strong at this
time. for President Johnson last
week ordered a sharp cutback
in the Federal highway program
in an effort to quell inflationary
pressu re in the economy.
The Federa l Government ha d
originally planned to commit
$4-billion to $4.4-billion in highway funds in the present fiscal
year end ing next June 30. This,
has been cut back to $3.3-billion.
This will slow roa dbuilding in [
every state. The grea test im - :
pact will be on the inlcrstat c l
supcrhi;hway system, a H,~00- 1
mile system that is now s llgntly ·j 1
more than half completed.
Under the cutback, New York
State's Federal -aid lirnitation
bill will be Sl 71.115,000, of
which just $183.000 has been
placed under contract since last
·June 30. New York's share last
fi scal year was ~210,587,661.
In pushing for authority to
divert funds into off - street
'parking, Federal highway officials argue that it would less
costly in most cases to erect
park ing facilities than to construct new streets.
By removing existing street
parking, they point out, one or
two additional traffic lanes can
be opened to vehicles.
Federal highway_officials arc
also see ,ing other solutions to
·urban traffic problems. One proposal is for what they call
"street stretching."
· In his speech today, ::11r. Whitj ton described "stree t tretch,ino-" as converting existing
1 sidewalks
into vehicle traffic
lanes. Pedestrian walks would
be provided in arcades buiit into
the first floor of buildings.
' 'This obviously is not a chea p
solution to increas ing the traffic capacity a nd safety of
streets," Mr. Whitton said . "But
it certainly is less expensive and
disruptive than removing entire
buildings for new street or free• 1
way constructions.' '
THE i'J"EW YOKC TIMES - 11- 30- 66
61/ '.J.:,-f ,,-·
,,__ __
Sen te Panel Endorses Bid
for · eavy Inv stnient
SpcCJ,11 ·to The 1,:cw Yor · Times
...... .
- ~po~::,ls aime~t._;,ttr~1;;
h v,;·e su ms oi_J,,r(,va,t<> r.llJ2.! tal
into sl um rehabilitation received
i,f?ong endorsc,nc~~Ltoday as the .
Sc:nate Govc::·nmen t Operations
s ubcom mittee began · a second
r ound ... qfl, ca1:in;;s on what has
be:en _, ;1llcd, . U,e,. ' c_i:isi,( ~n _t]1e .
ci ties..': .·. . , ; .':·· :· ··....i :·;:., · , ._.;~ ·: ~:-11·
Sena'tor\Jacr;b K _J a vit~. 'N°cwf.
Yorl, Republican , ~ subcommi t- ,
tee member, said he was '.'encouraged by 1:ecent reports that
the J ohnson Administration had
such a plan under study.·
Senator Abrnham A. Ribicoff,
t he subcommittee chairman, decla red tha t the task cf providing
decent housing , in slums was
"not going · to be solved ·by
Government-alone.", ·
He indicated that ··he would
listen sympathetically to any
proposal involving- a joint pu blic-private assault , on g hetto
h ousi,ng. . · ·· · '
·.. ·
A Tc1itati ·c Proposal
Th~ Adn1inis t r ation's Lci1 tativc '
proposa l, developed over t he/
l;i.s t six months and re fined by
til e Dcparlmenf of H ow-:ing and
Urban Developmen t, calls fo r ,
creation of a na ti ona l, nonprof-1
it, semi-public _~.!1-Df'vel_Qp.Jlli;nt Corpornt1ll11 lha t, its sponsor~ hope, would attract heavy I
private irwestmcnt · in t o ~!um
r ehabilitation by p roviding .
variet y of F ederal incentives
and guarantees.
'I11c substance of the plan was 1
disclosed in The New York
Times on Sunday.
' E ven thoug h ., no member of
the s ubcommittee ·would comm it himself to · it specific approach, today's hearings indicated ·a lively interes t in the /
pla n on the par t of ·!Irr . Ribicoff ,
and Mr. J a vits, a s well as t he 1
committee·s ·lcad witnes., , Da, ·id !
R ockefeller, New York fi na ncier
Mr. Rockefeller, p resident of
t he Chase ?v!anhattan Bank, decla red tha t . " urilan r ehbiilita tion is primarily a t ask for p r i~
vate enterpris e." But,- in rcspon
to sustained r1ucstionin g ·from
1fr. J a vits, he conceded tha t
·business would be r eluctant to
make heavy_ capita l· .otttlays j n
slum a reas ··beca us e the · ris k'
was grca.t a nd the prof/t re-,
turns poor , ._. ,_
.r.olc a s Cont_ractor
However , the Xew Yllr!, '
ba nker also decla r ed t h:i.~ busi- l
n would nrobably be abl e to
provide substa n t ia l clp as a
··contrncto,·:' acting fo · the
Govern men t-which is one of
t he roles f or bus inc.s s envisioned
the propos;1,l · P. OW under study
in the Adminis tration .
U nder th e pla n, the ,Ur;;an
Dcvclopmcn_t Corpora.Lion would /•
h elp acquire rundown hou~in;;u sing money from pr l\·atc sou r- I
c:cs such as ban ,s a nd fnunda-1
lions as .well a:-; Governm ent
fun ds-and Lhen invite i:1dustr y
to ifate it · chea ply and
efficiently .
·· ·
In this wa y, the r cpc,rt describing the p·lan wasy, the cor poration
presently fra;;mcntcd purchasing p·ower" of the Government
with t e nrnnagcrial a nd technol o~ical capacity of "Amen. ca n industrial or;;anization."
The progra11's sponsors have
said tha t n either n ew appropriat ions ·nor new le;:;islation oould
be imincdiately requir ed.
T he plan, in its fin ai form ,
r ecommends as a first step the
purchase and rehabilita ti o~ - of
· 30 000 units in se,·era l c1L1cs,
requii·ing about _ HOO -million.
E arlier versions of t he pla_n
predicted that · ih 10_ · years . it·
could providc..,...assummg 1mt1al
success-5 mil lioa· ·cha bilitat cd
or newly b..:il t. s um un its at ,an
aggregate . cost of S?0-billion.
Appear s ' Pessimistic
?11:r: R ibicoff urged :).1:r. Rocke feller·, who .at t imes app ear ed
pessii11istic a bout a,i"akeningbusiness enthusiasm ·for la rgescale. investment in slum s on
anything other than a contractual b?.sis, to examine not the
obsta'c lcs to redevelopment but
the "hopes and the possibilit ies.'_'
H e ., u;;;:;e.:;tccl U1a t busmes s,
especially ·t he construct1on · 111dus try , woul d find in sl um re h abil itat ion J n enormous mar ket for suppiies 1·a n,:;in;:: from
floorin "' m aterial to dis posal
uni ts.
Mr. Rcickcfcllcr a lso h ad kind
words fo r loca l · r r.development
pla ns such as tha t envisioned
by S enator Robert F. Kennedy
in t he Bed,or cl-Stuyvesant a rea
of Brooklyn. The Kennedy plan
ca lls 'for t he establishment of a
n onprofit corporat ion t o engineer the· r ehabilita tion of Bedfo rd-S tuyvesant · housing.
Th. New York banker described th e approach as "mo t
He a lso exprc-ssed considerable interc,-t in ll[r . J avits',, sugg estion that the Go".ernmcnt
h elp industry fon11 a technological consortium similar to the
supel'sonic transport pro::ram .
The New York R epublican
pointed out that t he Governm ent wa.<; currently pou ring
lar;:;e sums of money into the
aircraft industry in Lile quest
for a successful super~onic line.
He ,q1;::r:estecl. Rlld ~rr. Roc-kefeller ag1:;,ed. that some k ind of
" broad - scRle
m a nagement
group mi~ht be established .
with Go\'emm01,t. help a nd - put..
to work d,~,·bing a nswers to iltE;
- . , - ··-. - ~ ....-.....- ., ,. · .:, .
�Poirt lo r .i-D /U ll to Ponder
The co nt roversy bct\reen _,M,ont m nic ry C'.J.ll.Ult.Y
an the Department o, Housing and Ur ba n Developme 1t h olcl s a much broader interest than
the rezonin g of three squ:-ire miles in the Wash ingi on suburbs. We clo not, of course, wish to minimize the importa nce of nullifying the butchery of
planning by the old Montgomery County Council
in its lame-cluck r ampage . But this is an in teresting
test case which is certain to have an important
b ea ring on the r elations between HUD and local
governments in all parts of the country.
HUD must necessarily invest its matching funds
for the purch ase of park land and the protection
of open space in accord with the standards that
Congress and the agency have prescrib ed. It cannot be, exp 1-cted t o assist a county which makes a
farce of planning and ~ou,i_ug protection. At the
same time, however, HUD must avoid usurpation
of the powers of local government and the use
of pr essur e in deciding local issues.
In the case at hand, we think HUD went over
the line in applying pressure at a moment when
the unfortunate situation in Rockville seemed to
be righting itself. Unquestionably its intentions
\\·ere good . But unless its pressure can be relaxed,
the result may be to defeat its own purpose. Senator Brewster and numerous local officials have
pointed out to HUD that the net effect of .its pressure on the new County Council to cancel its
predecessor's last-minute r ezoning decisions may
be to throw the entire controversy into court on
the issue of intimi dation .
A significant precedent for su9h suits is r eadily
at hand. The grant of a n exception to the Soviet
Union to per mit the construction of an embassychancery in Chevy Chase wa s upset in court some
months ago because the State Department had ,
brought pressure on t he District's Board of Zoning
Adjustment. HUD officials should realize that any
specific zoning change which they impose upon
un willin g local zoning authorities is highly vulnerable to legal attack.
HUD needs to have assu ra nce that the reckless
zone-busting policies of the old Council in Montgomery County have been abandoned . It needs assurance that proper safeguards will be ad hered
to in areas for which Federal aid is sought. But
these assurances appear to have been given not
only by statements from the new Council but also
by its vigorous action to wipe out the effects of
the r ezoning spree, so far as that is possible. The
grand jury investigation into possible irregularities
and abuses affor ds~ further evidence of the new
atmosphere in Rockville.
In view of these vigorous efforts to undo the
wrongs of the past and to adopt sound new p oli, cies, we think HUD should withdraw its freeze of
Federal funds for the Maryland suburbs before
the Council decides the rezoning cases' which it
has reopened . HUD could again suspend the
matching fLi'nds if the final policy which emerges
should prove to be unsatisfactory. But if it insists
on turning the thumb-screw whi1e the Council is
sitting on these controversial cases it may defeat
its own purpose and greatly embarrass the cause
of proper development of the National Capital
The Washi ngton Post - Nov . :2-S, 1966
�n7 P:
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Dangling- on h ook of a large er ne,,pre-assembled kitchen
and bath room unit is hoisted ornr East Fifth Street on
Lower East Side in "instant rehabilita ion" demonstration.
,..,... -·-·---~-~--......
-· -
,,,._ . .
]\foments l ter, unit is lowered towa cl roof of the building
for whic 1 it is destined , an unoccupied old-law tenement
in which a hole has been made from the roof down.

~-....,.;•. ·-----.
Experiment Testing '
New Rehabilitation
---· · Me t hods Here
A gian t cra ne swung a prcasscmo!cd kitchen and bathr oom unit thtough a hole in
the roof of a five -story oldJaw tenement on the Lower
East Side yesterday. Within an
hour workmen had bolted it
into place and would have had
it r eady for use except for the
plumbers' strike.
The job was part of a progr ess report on "instant rehabilitation" - a n experiment t hat
aims at cutting the time for
r enovation of a slum building
to 48 hours.
vVhrn the experiment began
la~t A;, · : the plc.n was to
new mac<'rials and r ehabilitation techniq ues on t wo unoccupied tr·ncments at 633 and 635
E ast F ifth Street. Conrad E ngineer.,;, t'.1e California company
that is conducting the experiment said It would be ready
for the 48-hour trial on No. 637
in midsummer.
,::[.:}k'.,;_foj ·. ;f
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�New York Times - 11/30/66
The four-month stri ,e of con-,
strnction p umbers and other
del:.w s have set back the f inal
triai' until Feb111ary or March,
accordi ng to Edward Rice, president of Conracl Engineers.
When the glistening bathrooms and ki chens were in·stallcd yesterday at No. 635,
structural defects in the 70ye;i.r-old tenement caused the
- ·
unit to rest. at an inch whether <,>ld_-Ta_w !enements aret·~~t~estions" the wisabove the ex1stmg floo r.
worth r enamllutmg. Peter L . Q..QI\:) 01 rt:, uvaun:; tenedirector for 1:1J6iR oii:!.h~r"Easc Side,
This seemed to symbolize the Abeles, housin
c~~us . an: ong- hou.,:Sin_g __ex- ~ -f.i0L!,_tor.J:m= .t.~!]nJ)- Th_ey_ cover l:i5 per ce t o!their
per~s on'""'insfan r c1ITtb!ll_ta- !2JlV~~'~ 1~iz2g-E:~J'~~ the bmldmg lots and front. on
tion"-that i t is a prom:smg currcnc expern ~ b!.lk.,'j_aid he streets only 60 feet wide.
experiment that has produced =
-================,--- - - - -=--- -"""'"'
some, but by no means all , of
the answers to the problem
of renovating slum housing.
]\[orcovcr, t:1e experts beJicYc, it should be only the berrinnin"' of an intensified refearchO program to !ind better
technical and financial tools to
produce decent housing in the

ountry's slum areas.

\rr. Rice noted that many

const. uction materials had been
·tested in the fi rst building. The
-tenement now cont2.ins vinyl
.f loors that require n o r efinish·n"' for 10 years, ceramic bath!i·o~m tiles that stick together
i\vithout liquid cement and wallb oard that is so tough that
workmen had trouble cutting
holes in it for electric wiring.
E:.;:pandablc windows t at
adapt to the irregular shapes
of the old window frames have
·been installed. Garbage chutes
lead into a Swedish device that
compresses the refuse, disinfects it, and even sprays it
with perfume.
Two one-bedroom and one
three-oedroom apartment will
be buit on each floor of the
tenement buildings. The average
development cost will be about
S13,000 an apartment, Mr. Rice
estimated, as opposed to about
$23,000 for new construction.
"There is uch a tremendous
need for better housing in New
York that it is worth r ehabilitating these tenements," he said.
He asserted that the cost of
demolishing the city's 43,000
old-law tenements - those built
before 1901, with minimal standards for ventilation and sanitary facilities - would be pro-,
Housing experts a re debating


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~ ~ - ~ - - - - - - -- --- - ----- ------
• ,
'• .'
�Noveml> r 23,
TO : All Member of the T
the draft sub-cammitt
�Dictated but not read
A PILOT P (X;R.A.t\.l TO P RO::-lOTI..: HO:-IEG:E-.:ERSllIP .1~- iO:'-!G SLUl'-I RESIDS:;:-ns
by Anthony Dmvns
The desire to own n home is a bas ic par t of our tra dition.
Today 62% of Amer ican f amilies h ave ach i eved tha t des ire.
Yet the re
are still millions of f ami lies who wou ld J. il~e to own the ir m-Tn h omes~.
but c annot.
arr angements.
They are too poor to do so und er present financing
l eas t, ha lf a million such househo ld s now r ent
sub standard h ou s ing in our metropolitan area s.
A chance to mm a de cent
home of their m-m mi ght hav e a profound effect up on their att i tuc es
towards soci e ty.
Instead o f f ee li no like fru strat e d and he l pless
transi e nts floa t ing a l ong in th e po re rty and filth of t he slums , they
c ou l d b g in deve loping a chanc e o_f contro l ove r . the ir
The y cou l d gradual l y build a stake in the ir commun it i es , alld wou l d l earn
how t o u se ar'.d b enef it fro:n l ega l and politic a l i nstit uti ons they no
rega rd with hos tility.
Furthermore, providing th e l m-r- income h ou sehold with h ome-owner hip
assistance would no, be g iving them the same advnntage we a l r eady ext end
t o mil li ons o f middle-income and up per- income households.
These h ous ehol ds
now r eceive a l arge subs icly i n the form of f ederel income tax deduction
for the int er es t and pr operty t axes pa id on the ir home s .
Thi s subsidy
amounts to at l east $1. 7 bilU on per year for j ust the wea lth iest 20%
i n the form of al l public h ousing pnymcnts, we l fare payme nts ~ and t ax
deductions c ombined.
Cl e ar l y, t ax de ductions aren ' t much he lp t o f amili e s
with littl e or no t axab l e inc o~e .
Sc simple j ustic e demands tha t we
encourc1ge h ome owners hip fo r th em in some oth e r way mor e suit ab l e to
the i r n eeds,
Th ere fore, we r ecomme nd ena ctment o f a pi l ot program of aid to
l ow-income famili es to h e lp th em achieve home owne rship.
This program
should conc entra t e up on slum dwe ll er.s because the y nou h ave at l east an
opportunity to mm de c ent h omes, and bec auf;e it Hou l d h e l p i mprove s l um
l iving cond itions in genera l .
The pr og ram shou ld ass i s t s l um r es id ents
either to move out of slums by buying h o:nes e l sewh ere s or to ac qu ire
ownership of new l y r eha bilitated ui1its in ne i ghb orho ods whoch will be
u p-gr aded t hr ough a wid e variety of oth er progr ams to o -- as in the
~Jode l Citi es Program.
This h ome- m,mer hip program wo uld he lp l m-:~lncome
famil i es buy sing l e-family ·houscs s · individua l unit s in multi- fam ily
c ond om i niums , or apartment bu il dings ,~1 i ch th ey op er ated as r es i de nt
l and lord s - - r ep lacing absentee l and l ords
, ~10
had neg l e c ted t he i r prop-rties.
Seve r a l types of aid would b e i nvo l ved in thi s program .
First , th e
slum hou s i ng units i nvo l ved would be su bstandard one s r ehab ili tated by a
pub l ic agency or a non-pro fi t group be fore be i ng so l d t o n ew owne rs.
Second, b e l ow-market- r ate l oans shou ld be us ed to fina nce owners on a
n o-down payment bas i s.
Third, potentia l ·o·,mers should reciev e advanced
t r a ini ng in th e sk ill s of minor ma i ntenances f inanc ing , and oth e r
r esponsib ilities of owne rshipo
Fourth, new owners from t he l owest-
i ncome groups would need a monthly h ous i ng supp l ement sim i lar to the rent
supplement but app lic a ble to owne rship payment s.
Fifth, so;ne t enant s
i n r es id ent- l andlord bu ildings t-:ou ld receive r ent supj_::-le.;nents.
owners should receive follow-on couns e li ng about financin 6 , and repairs.
Seventh~ th e publ i c agency r unni n g the prog r a:11 would agr ee to buy b a ck
the housing invo lved duri ng a fi xed pe riod in c as e the owne rs c ould not
car ry the r e quir e d burdens.
In our opinion ~ thj s i s a program s o lidly in the Ame ri c an t radition,
and we ll worth trying.
'- -
�Dictated but not read
by Julian Levi
Archaic landlord-tenant law and principles, once appropriate to
an agricultural society, must be reformed and modernized to meet the
need of industrialized urban America.
Ancient legal doctrine construing a lease as a conveyance of an
interest in land rather than an agreement leads to the holding that
the obligation of the tenant to pay rent is independent of the duty
of the landlord to repair and maintain the premises.
The sole remedy
thus available to the tenant to secure his rights is limited to his
vacating the premises and then granting termination of the lease or
himself repairing the premises, financing the cost and thereafter
creating a set-off against further rents.
Such limitations, while onerous to all tenants, are intolerable
in their application to poor people.
within their means is minimal.
Their choice of accorrnnodation
They cannot finance repairs nor often
even gain access to parts of the premises requiring repair.
state and local governments prescribe minimum standards for housing
accorrnnodations, outdated legal practices thwart the poor in direct
assertion of their rights.
�r------'-"'=---- - - - --- -
Reformation of landlord-tenant law is a state and local
government responsibility burdened with consequence to the
national welfare.
While appropriate solutions may vary between jurisdictions
certain broad principles must be applied throughout:
State and local enforcement of building, health, and
safety codes must be streamlined and improved.
flexibility and fact-finding must be fostered and the power of
local courts strengthened.
The obligation of code compliance
must be a prior charge on the property itself and all rights
within rather than merely a personal obli gat ion of the owners.
Compliance with law must be a basic part of every
agreement and every right.
Obligations of landlord and tenant
alike as provided in building , health and safety codes must be
construed as creating independent rights enforceable by direct
legal action.
Determination of such issues in the court room
must be facilitated.
Public funds must not reward illegal conduct.
rent withholding procedures must be developed for the welfare
Appropriate actions must be taken in all public acquisition
to the end that prices paid disregard values achieved from income
derived in property operation contrary to minimum building, health
and safety codes.
While these responsibilities are local, the Federal government
can and has assisted:
the establishment of neighborhood l egal
centers in slums by the directive of the Office of Economic Opportunity who are maldng a major effort to help te nants secure the ir rights
to safe and sanitary housing :
the convening of a conference by
the Attorney General to develop new procedures to insure that the
rights of tenants are fully and effectively enforced;
appointment of a commission to make a comprehensive review of codes, zoning,
taxation and development standards.
Practices and activities of the Federal government while indirect,
inept, enforcement of fire prevention, housing, building, and sanit at ion
law as a responsibility of local government can be of decisive i mportance:
Section lOla of Public Law 171 qualifies federal assistance
upon the appropriate local public body undertaking "positive progr ams" and
"workable programs" for community improvement through the "adoption,
modernization, administration and enforcement of housing , zoning , building
and other local laws, codes and regulat ions relating to l and use and adequate
standards of health, sanitation and s afety and building , includi ng the use
of occupancy of dwellings."
Administrat ive regulations heretofore issued
by the Secretary of Housing and Urban Development should be clarified to direct
specific enumeration and attention to the appli c ation and enforcement of
local codes and ordinance s related t o life, health and safety throughout
the locality and to demonstrate increased effort and progress in s uch enforcement.
Such enfor cement of minimum codes shall be required as protection of li f e and
health of occupants irrespective of whether a basically sound and stabl e are a
is to be created.
The Secretary of Housing and Urban Development can further


�- -~ - ----

- - - ---·- - - - - ---
-- -
implement the purposes of the legislation through the development ·of major
uniform statistical reporting whereby a yardstick of comparable muni cipal
performance may be established.
The Secretary of Housing and Urban Development can t ake exist-
ing regulations to the end that mortgage insurance ava~lable through the
Federal Housing Administration for property acquisition, rehabilitat ion
and improvement must be conditioned upon code compliance.
At t he same
time mortgage insurance and grants under section 312 can be promoted and expedited .
Special personnel can be designated in each insuring office of the Federal
Housing Administration with the specific assignment of coordinating the insuring activities of that agency with city building departments and community organizations to the end that division of property financing for complete
rehabilitation to meet code standards be gre atly expedited.
The Secretary of Health, Education and Welfare can by admini -
strative regulation require that each local authority participate in
administration and disbursement of relief funds available in collaboration
with appropriate local authorities systems of housing inspection and certification to the end that appropriate withholding of rents where justif i ed b e
All departments of government concerned with property acquisi-
tion wherever federal investment is involved can r equire t hat t he acqui sition
public authority demonstrat e and certify t hat no part of the award granted
or payment made represents values achieved by operation contrary to local
codes of building , health, and s afety.
All department s of government dealing with the audit ~d verifica -
tion of rea,l estate and mortgage as sets can re quire certif i cati on as to the
vroperty concer ned no complaints are pr esently pendi ng by any l ocal authority
charging violat i on of local minimurn codes, building health and safety.

At this time property owners in deteriorated or declining
city areas assume that the municipality either cannot or will
not enforce the building, housing, health and sanitation l aws an assumption based on experience and occasions supported by
federal statement:
"Characteristic of a typical slum area is the overcrowding
of housing units well beyond the l eve l s permitted by local
codes. Any effort to enforce the occupancy standards of
the code would have as its immediate consequence a massive
displacement of the families occupying the overcrowded
units. This might be acceptable if it were coupled with
a concurrent program to make available to such families
decent housing at prices they can afford. Unfortunately,
the latter tends to b e far slower and more costly than
the carrying out of code enforcement. In many cases local
courts have recognized this consequence and, as a matter
of public policy, have refused to permit enforcement action.
"By its v ery nature, a program of code enforcement requires
propoerty owners to make substanti al investments in repairs
and improvements in order to avoid prosecution. Unless that
investment is coupled to an increase in rental returns or
property values, the owner is likely never to be able to
recover the cost. But since we are still dealing with a
seriously bli ghted area, neither the increase in rerit~ls or
property value s is likely to occur. The present tenants
usually cannot afford hi gher r entals, particularly if
occupancy is reduced and there are fewer wage earners to
pay the rent. Tenants with higher incomes usually cannot
be persuaded to move into a still bli ghted area. The value
o f the property in a private sale cannot be expected to
increase unless the rentals increase nor would the repairs
or improvements add si gnificantly to the property v alue in
the event of a future public comdemnation.
�"It has been argued that rigid code enforcement in
deteriorated areas will so depress property values
that new purchasers will be able to afford to make
the necessary repairs without increa sing rents.
In fact, this does not happen on any broad scale.
While our understanding of the factors which motivate
owners of slum prope rty is very limited, a recent
study does cast some light on this. The large
,sophisticated' owners of slum property usually have
so little of their own money invested that any feasible
reduction in cost of purchasing could not equal the
cost of needed repairs. On the other hand, the small
'unsophisticated' investor is usually incapable of
taking advantage of any such economic effects.
.In sum, it is our belief that concentrated code
enforcement by itself in badly blighted areas would
result in more turmoil than improvement of housing
conditions. But to say that this one approach will
not work is not a satisfactory answer to a very real
and pressing problem. Although we have not yet arrived
at anything we regard as an adequate solution, it would
be extremely valuable to present some of the problems
and possible approaches in order to bet broader
"Staff Report Housing and Urban Development
f orwarded by the Secretary to Senator John
Sparkman, Chairman Subcommittee on Housing,
Senate Committee on Banking and Currency,
July 26, 1966."
The assumption becomes an unful fi lled prophecy:
Property owners reduce expenditures for property maintenance
and repair wherever possible.
Tenant and community morale collapse.
Constructive community leadership is denied creditabil ity.
If it be assumed that power of state and local government to
regulate housing condition in order to preserve life, health and
safety is a prior charge on all interest in property, then the equation
as to the feasibility of property repair to minimum st andards is simply
whether the gross rent roll will cover current operating expense,
current taxes, and principle and interest payments to cover the cost
of repair.
Antecedent mortgage commitments as well as the equity investment
are irrelevant to the issue.
Where mortgagees and property owners,
contrary to existing assumptions, are convinced of this contingency,
their conduct concerning property repair and maintenance would be
altered significantly.
In this circumstance it would not be ne cessary
that public action be asserte d a gainst ea ch property in a given neighborhood
in order to r everse the prior assumptions .
A formidable case ex ists therefore for s el ection of a few
neighborhoods in which after complete inventory of structure condit i on,
ownershipj mortgage debt, and pri or hi story of code enf or cement, an
experimental program be undertaken by the appropriate local public ,
author i ty, working i n collabora tion with the loca l communi t y , i n whi ch
a•numb er of t he poss ibl e sanctions we re enumer a t ed we r e emp loyed.
The e f f ort is a ttrac t ive i n: (1) pres enting a new att a ck upon the
syndrome of community decli ne and coll apse; ( 2) of fering promise of
reduce d publi c expend itures by i mpos ing costs upon non- conf orming
pr operties; (3) gene rating i ncreased v olume compli ance with minimum
codes and standards.
Nei ghborh ood centers
1. Su bstitute the word " commu n ity 11 for " ci ty" where it appears .
( Purpose : t o i mpl y a broader universe than just the local
gove rnment .)
2 . As a pos s ible a lternative to h a v i n g t h e d e monstra tion c a rri e d
out b y t he federal i nter - agenc y group : Have one or all o f the
f ederal agenci es provide a "pool" or an 11 e a rmark i n g 11 of funds
for the de monstration, but establish an indep e ndent Advis ory
Council to c arry the prog ram out 9 or to recomme nd to the
a ppropr iat e a g e ncy or a g enc ies h ow it should b e c arried out.
( Que stions: would legi sl a tion b e r equire d? would the imp e tus
for re concilin g differing req u irements a mong the fe deral
a g encies be lost? would the leverag e ne c essary to g et
a p propriate state and local a g enci es t o par ticipate be
Home own e rshi n by the poor
Ins e rt t h e f ollowing af t er t h e 2nd par agraph:
The pro gram should b e v iewe d as a mea n s of ass i s t i ng
p e opl e and a c h i e ving huma n v a lue s, r a t h e r than as a d e vic e for
i mprovi ng b u ilding con ditions a n d maint en a n c e . It s h ould als o
avoid 11 l oc k ing " pe opl e into bad i n vestments, financial burdens
t h ey c a nnot manag e, and slum ghetto es only.
�June 2, 1967
Members of Task Force
Richard C. Leone
The attached papers are not ·meant to be improvements on
the Ylvisaker draft of May 15~ 1967 .
They are simply
attempts to include more material fo·r discussion on
June 8.
Work on other proposals is going forward.
Mike Danielson
and I are working on a revised structure (really two parts race and income segregation and a related section of fiscal
and institutional capacity).
We hope to have most of these
in detailed outline form at the next meeting.
The enclosed, of course , are confidential.
l ecut ive Se cre t ary
America and its conuntmities are changing with tmsettling rapidity.
t~st of this change has been healthy; and most of the problems it
has caused tend to evoke their mm solutions.
This country - despite
its transitional strains and its freely-voiced compla:ints - has an
i.rnmense capacity for self-correction.
There is always a temptation - and a pressure - to over-react:
to give equal ear to every complaint, to chase off after every problem,
and to wind up with congeries of programs ,~hich may slow up rather than
_ accelerate the nation's natural and long-run capacity for self-correction.
Evidence is accumulating that such has already happened in the
federal govenunent' s response to urban problems over the past twenty
These have been years of improvisation, and probing.
have been constructive.
On balance, they
But neither in scale nor impact have they caught
up with the dimensions and force of the nation's urban trends and
developing problems.
The time has come to move from improvisation over a wide front, and
in sorretirnes contrary directions, to an effort
a) lvhich is aimed at selected problems of transcending ir.Jportance;
b) which 1s of a scale large enough to make a difference;
c) which is not dissipated by conflictD1g policies and administrative
d) which offer powerful incentives to state, local and private

initiative, ancl thereby move toward a "steady state" of

continuous problem-solving;
e) which begin to erase the public's skepticism -- its growing
feeling that public programs are not to be taken seriously,
that 111ore is promised than will ever be delivered.
The Task Force believes that the first priorities for public action
urban An,erica are related to the grmving disparity between city and
suburb. -· A disparity which is expressed in the segregation between white
and black, the gap between income in central city and in suburb, the
uneven economic growth in our metropolitan areas, and in our capacity
for response to the problems of central cities.
Today too many of our central cities have become the political
jurisdictions and geographic areas in which accident, design and even
progress have housed an inordinately high proportion of our problem
people and an outsized share of our problerrLc; of public policy.
The Task Force on cities decided early in its deliberations to
focus on these urban disparities.
e have
identified t wo major approaches.
The first is a straight-
fonvard discussion of urban segregation by r ace and income and some
recommendations intended to alleviate its ef f ects .
The second involves
a s eries of re commendations - some modest, some sweeping - intended to
increase sharpl y our abilit y to deal with urban prob l ems creativel y,
rez!X'ns ivel y, and on a l arger scal e t han i s presently possible.
We also have found it convenient to acld three smaller sections to
our report; on :innovation, the model cities program, and an agenda for
future study.
While we recolillnend that Federal action in these areas be altered,
refocused and expande<l, we aclmit two general caveats.
That our knmJledge of how to deal Hi th urban problems both
physical and human is still limited.
That a period of intensive and
well-managed experimentation is a necessary first step in any large
scale strategy for altering the patten1 of urban development.
While we believe that the sorts of programs we are recommen<lin[!
should have the hi~hest national priority, lve recognize how politically
and practically <lifficult it is to spend a larger portion of our resources
on the urban poor and the central cities.
This is true fundamentally
because the present system of urban <levelopment works quite well for
most people.
i',!ost Arnericans are happy in suburbs, they have done well
in the system, and they look fon.rard to doing better.
on the disaffected and they are few.
society, however, is enonnous.
Our report focuses
Their potential impact on Ar.terican
�- · - - - -- - ·- 1
The overriding problem of our cities is segregation by race
and income.
There are no urban solutions of any validity which do
not deal directly with the questions posed by this segregation.
The facts are these:
23% of the total population of our
central cities is Negro, and 35% of these Negroes have incomes in
the poverty range.
Within five years, assuming present population
trends and allowing for current levels and even greater effectiveness
of ameliorative public programs, the proportion of Negroes to central
city population will rise to 28%, with a constant percentage
remaining in poverty.
By 1978, both proportions will be 35%.
By 1983, our central cities population will be 44% Negro, nearly
two-fifths of them poor.
The se are percent age s of the tot a l population of all our central
By 1973, at least ten of our major cities will be
predominantly Negro; by 1983, at least twenty, including Chic ago,
Philad e lphi a , Cleveland, Detroit, etc.
To rep ea t, the s e are our proj ections of which will h a ppen if
(1) pres e nt popul a tion trends continue , (2) ther e are no sudd en and
surprisi ng change s in public attitud es, and (3) curr ent governmental
polici e s and l ev e ls of spending r emain in force.
The Task Forc e b e lie v e s that a significant cha nge in (1)
despit e the notoriou s unr e li a bility of popul a tion tr ends - is
unlike l y.
We be li eve tha t change s in (2) a lso a re bo t h unl i ke l y
and unpred i c tabl e .
Given these uncertainties our report focuses on (3) - current
governmental policies
level of spending - • We recognize
Government action is only one element in the process of urban decline.
And, while it may not be a sufficient condition for turning the
tide, it is certainly a necessary one.
The sheer rnagnitude of the problem is staggering.
Our population
models tell us that simply holding the size of central city ghettos
to their present size will require movement of approximately 600,000
Negroes a year into predominantly white suburbs.
Such a figure would
represent from ten to fifteen times the present rate of Negro outmigration.
Our crude cost calculations for providing a minimlD!I
acceptable level of social services in all central city ghettos
indicate Federal expenditure patterns of staggering and unlikely
We believe that to alter these projections signific2. .ntly,
quantum leaps will have to be taken in public policy and levels of
Yet without a massive effort disparities bet ween white
and black, affluent and poor , city and suburb will grow l arger.
The probability for potentially dangerous confrontation which divides
American society along these lines Hill continue to increase.
<lo not presw:ie to calculate how hi gh that probability is but we
are quite sure that it is high enough to be cause for urgent concern.
It is appa:;:ent then that segregation by race and income in our
great metropolitan areas is outstripping whatever we are now doing
to offset it.
Yet the Task Force recognizes that .American society
1967 is not prepare<l to pay the costs of a fully integrated urban
We lmow that integration will not be possible in the life
of this Administration, but we suggest a place to start - a line
of policy which will build towards a future breakthrough.
In surrnnary, the Task Force identifies as a problem of the
greatest national urgency the growth and poverty of centrc}-1 city
ghettos and the related race and income segregation in urban areas.
We believe that this situation already provides a driving
force in urban decline and that its iraportance is increased
by the unequal patten1 of urban development.
We are convinced that a dramatic confrontation between white
and Negro, affluent anc.1 poor, growth and decline already is
building in most of our urban areas.
In the absence of state, Federal and local action on a wide
front accompanied by enlightened private activity, these
problems will grow larger, more dangerous to American society
and increas ingly diff icult to solve .
We therefore r ecommend a series of strat egi es designed to:
Increase indivi dual access to jobs, education, i ncome , hous ing
and other social services .
Increase r ac i al and income integration in metropol itan areas .
Increase the proportion of middle-class population, especially
Negro, in cent ral cities.
Increase the ab ility of new immigrants t o adjust to urban life.
·. Priorities
The specific proposals based on these policies, indeed the
policies themselves, rnay often seem to be in conflict.
We believe that these contradictions are more apparent than
real, and that the very limits of our present ability to
achieve any of the above goals on a large scale makes it
imperative for us to move in several directions at once.
2. While it is clear that a large scale of effort is required we
believe that the first stage must focus on experimentation and
refined efforts in many areas of present activity.
lfuile a truly integrated and stable urban society is our
ultimate goal, we believe our ability in the short run to
attain massive integration is quite limited.
lve, therefore,
place an especially high priority on those policies designed
to create a larger middle class with a stake in the city.
We seek methods of increasing stability as the proportion
of Negroes in cities continues to increase.
As a minimum, we believe that it is a matter of the highest
national urgency to attempt to "integrate" ghetto populations
into the mainstream of American life by raising their income
levels and the leve l of accessible social services.
We have ordered our recommendations in response to a crude
attempt at cost effectiveness - feeling that sor:1e attempt at
systematic ordering was better than none at all.
\~e have seen no value in asking the President to spend his
urban resources, political and financial, on proposals Hhich
are unacceptable to American society in 1967; ive of course
urge him to continue his leadership in educating the Arrerican
people to the necessity of accepting our central cities ghetto
residents as full participants in American society.
Only such
a development can offer hope for our cities and the people \\'ho
live in them.
We intend our proposals as far as possible to be consistent with .
the following principals:
Federal assistance should be tied not to institutions but to
Federal assistance to state ancl localities should be designed to
strengthen the role of political executive 1\•herever possible.
The administration of programs should be carried out at the
lowest level poss i ble and Hith the greatest flexibility possible.
Programs designed to up- gralle ghe tto life should also make a
contribution to integration - if possible.
NeH institutions should be created only tm<ler the most unusu2.l
We have divided our proposals into two sections.
The second are
those which are in some Hays most des irable and ambitious but which
seem to us to be only long-nm possibilities.
The first are meant
to be the first stage - . perhaps about five year - developnents in
ur ban policy r.1aking.
The Task Force recommends a number of specific proposals
designed to offer incentives for the integration of Negroes with
whites, to r a is e the leve l of socia l services to the poor within
the central city or to create a more stable middle-class society
within the city.
Naturally there is a great deal of overlap
between the obj ec t ives of each of th es e r e commendation s.
None o f
them are pure "integration" or "up-lift" or "civiliza_tion" programs.
We have made some judgments on the practica lity of each of thes e
recommendations .
They a r e divided into t h os e which might be poss i bl e
under present social circumstance s and those which de pend on more
fundament a l changes in the attitude s of the Ame rican people.
Empl oyment is the mos t meaningfu l, d i r ec t and permanent means
of providi ng the poor Amer ic an with a n opportun ity f or f ull
participation in soc i ety .
The following r ecommenda tions r egarding
employment ar e int end ed f or the short run, say the next f ive y ears.
The major prob l em with fed era l ly supported manpower programs
is fr agmenta tion bet ween Cabine t agencies and within Departments .
Th is pro li ferati on of manpowe r programs , oft en with a spec i a l t arge t
group for each program, only compounds the difficulty of any city or
agency has i n de s igning and impl ementing a compreh ens i ve a nd
comprehensible employment and tra ining effort.
The Task Force recommends the consolidation of present l y
s e parated manpowe r progr ams into a sing l e compreh e nsive manpower
This move would a llow deve lopment of sufficient loca l
manpower programs tmder the aegis of a single agency to
absorb the important functions of recruitment, selection and processing,
training, placement and follow-up of the poor. A first step would be the
consolidation of those programs administered by the U.S. Department of
Labor including institutional training, on-the-job training, neighborhood
youth corps, concentrated employment program, and the employment service.
Strong incentives for cooperation with vocational rehabilitation, and OEO
employment operations should be explicit in the lceislation.
Tn the absence of sigpi f"ic:ant consolid~ri on ma.nnower _programs,
the T~sk Force recorrnnends an e).TJ,msion and n ~focusinr; of the on-th~-i ob
traininQ_oro r.r am
Drovi de higher subsidies to privat e inclustrv to under-
take the traini.nQ of the poor.
It has become clear that without the
close cooperation anJ participation of privat e industry t hat permanent
and meaningful employment will not r esult from even excessive employment
·and training e:x11endi turcs.
Reimbursement for training cost should be
doubled and perhaps quadrupl ed and the 2Ci \\'eeks presently allowed should
be expanded to a f ull year.
OJT should provide for a gr eat er s t aff for
job devclopnent and for counsel ing and follow-up aft er placement in a j ob
training pos ition.
O.Jr i s r.1os t r el evant in the devel opr.1cn t of cornrncrc i al Md manu-
facturing jobs for t he poor in the area of the centr al city.
In order
to cor:ipcnsat e for t he decline of these jobs in t he city t he Task Force
reco1:nnends an e:x.-pansion in public enployment - the Task Force r ecommen<ls
an expansion in the new careers idea in puhlic er:1ployrnent such as
embodied i n the Scheuer 2..memlment to t}1e Econoa ic Onoorttmi t v Act.
This program combines the advantages of providin.g entry level employment
for the poor with meaningful grading in ,wrk and professional training.
When operate<l successfully it serves the goal of enrichment as well as
that of assisting in the creation of a more stab le middle class in
central cities.
This recomrnendation also t akes into account the dramatic
expansion in service related employr.1ent in the p ublic sector.
The Task Force is i mpressecl by the nl.lra!ber of emplo~ent
opportunities lost to central city residents bocause of their lack of
access to the neh·er centers of employment in t he rnetropolitclll area.
HUD finm1ced clefi1onstration in the Watts area 0£ Los Angeles has indicated
the .important relationship between deficient t nmsportation to those sites
and the willingn e ss and ability of area residenrts to accept employment and
1\'e recommend an expans ion in the nlffifiler o f such pro i ec t s in
major metropolitan areas which would include e i tt her n ew mass transit route s
or subsidized f ares .
The Task Force r e comr1cncls a j oint effort hv FUD cinLl the Department
of Labor to negotiat e t he national model a,fTr eC'TTTmt for emo loyment ,vith
the building trade unions which would permit I aryge scal e slum r ebuilding
experiments to make ~r enter us e of s l um l abor .
\We recogn ize that tlti:x the
impl ementation of thi s r ecommendation woul d not :s olve any signi f icant
pr oporti on of the employment prob l em but it woul,d have useful symbol ic
val ue i n the ghettos of cent ral cities .
It is becoming increasingly apparent that integration of economic
classes is a critical factor in educational achievement.
The recommendations
of the Task Force reflect this relationship.
program of Federal aid fnr elementary and secondary school
construction shoul<l offer incentives for f8cilities designed to increase
the integration of students.
For example, "bonus" funds would be
avaihble for educational parks within cities, suburban exhange schools
and for consolidated school districts.
In addition, funds for the
modernization and replacement of older school plants in central cities .
should be offered.
2. To help increase the mobilitv of the ghetto child and to make
possible a variety of new educational jnstitutions, we recommend a nror.ram
of educational subsidies for low-incone children which would be administered
as scholarships for use at any approvecl elementary and secondary educational
Those funds whid1 did not have the effect of integrating
poor children with affluent children, would be available for compensatory
educational programs in the central cities.
Presumably, some parents may
wish to have the "scholarships" aid in the creati on of new institutions
which might be operated by universities, corporations or neighborhood
The Task Force reconunends the follm·d ng program(s) to assist returning
servicemen who come from low-incor.1c backgrow1cls.
There are a number of recommendations wfo',i ch the Task Force
feels are clearly beyond the capacity of the. l~erican political
system at the present time , either because oE ,their outright
integrating objective or b ecaus e of insti tut-j:.®nal de fects not like ly
to be resolved in the immediate future.
Thes..e include:
A progr am which would operat e much lL ike the GI Bi 11 of
. Ri ghts which would pl a c e ent itl ements in the fuands of the poor to
maximize personal choice in sel ecting educa t frn~a l, training and
employment assistance .
The funds could b e us;e.d by the ind ividual
to gain certi f ica tion in r egul ar educational nmst i tutions or f or
trdning on the job with the employer receivf.rJi,g r e imburs ement for
his training cost s .
The great advantage of t:fuis a pproa ch is in
avoiding the s eeming l y endl ess t ang l e of r eferra l s , de l ay s, and
· insens itivity encount er ed in the pre s ent, f r agpent ed system.
A progr am of bonu ses ti ed directly to the degr ee of
int egration a ch i eved in a s chool district, up t o 25% Negr o enro llment.
Such a program wou ld focus very cl early on i ntegrating c~rrent l y
all -whit e suburban districts.
An expanded h ousing subs idy progr am ,;hich wou l d grant or
l oan funds to Negroes for down-payments on hom2 s outside the central
ci t y, et~ .• .• .•..•••••
The dev e lopment of metropolitan-wide institutions which
'Qould be r esponsible for opening housing a nd e:z::.p loyment opportuniti e s
for c entra l city Negroe s.
To facilit a te incre a sed housing for Negroes,
the Federal government might inst itute a revolv ing development fund
which would b e available to the s e institutions ..
e tc •••...
·----Jtme 2, 1967
I -
Task Force Members
Richard C. Leone
Downs, Macinnes, Frederic and I had a long anc.l rambling session with
As sistant Secretary of HUD Charles Ilaar and his deputy. The following
t wo portions of our discussion may be of interest to the Task Force.
1. It's quite clear that the metropolitan development plans of HUD
Jo not t ake t he ghetto an<l dispersion into accmmt. The reasons for
this ar e not a l ack of interest or understanding of the problem. It
is simply that the metropolitan programs themselves are "a weak reed"
t o carry the heavy burden of integration. Our discussions brought out
the unremarkable f act that we would be likely to lose our metropolitan
programs if we attempted to force integration through the use of them.
2. I t is gener ally agreed that a more promising route for approaching
the r.1Ctropolitan aspects of integration is to the use of the states
or providing the cities with special leverage on suburbs. To discuss
onl y the state example here: it appears much more likely that a political
executi ve r esponsive to pr essures f rom Negroes and indeed to pressures in
eener al will be more like ly to work on the kind of problems we are
inter ested in. We should be thinking here of the urban governors of the
lar ge nor theast ern and mi d-we stern states who are undoubtedly somewhat
r espons ive t o the problems of central cities. These areas include a
lar ge proporti on of t he cities we arc most concerned about.
In short , our fee l ing was t hat placing the responsibility for some of
these movements in populat i ons (even by t he most rotmdabout means ) would
be most l ikel y t o have a payoff i f we depended upon political execut i ves.
I think that one of the principal aJvant ages we' ve seen in our discussion
of metropolitan approaches t o the prob l em goes beyond the fee l ing that
metropolitan-wide soluti ons are rational. Some of us have seen the
me tropolitan unit as less responsive t o the ant i -int egrati on pressures just as the courts arc less responsive than the Congress. The problernp
of course, is that the courts exist an<l metropolitan bodies do not.
This has led us in turn to suggest that in round ·11one" we might create
such bodies working with the "winners" such as water and sewer grantsp
etc., and, then, in round "two" ask them t o take on some of the tasks
of integration. My reaction to this is based largely on the experience
with authorities in the New York Metropolitan region. They too have
taken on the winners but no one has yet figured out a way to force
them to take on some of the losers (the c01mnuter railroads, for example).
This is not meant to say that we should leave our metropolitan development
corporation, netropolitan services corporation, etc., out of the final
report but that we should think about them a bit more in the perspective
of what are the most effective and promising ways of building something
larger than a city and to the integrat~on plblem.
Exe '
. /,
�J uc1e l E- ,
2._.. o:n :
Richa _
-_ 9.6 7
C. ~ec~2
.::.·_-_c ::.cs2C:. &:ce .. a jar portioas
,.: 2 realiz- th t sc~11e of th1...s1...
·c' - d _aft r epo::-L
s~ill in a crude fore
- ·c·.-,e:.y s~-:.ould g eve:.:,·c,:_~ sc::-.2tr iag to t about
,:ic:.: _-:
betweE:-t now and :'hu..:-sc:ay .
d::aft 3nd should have
cle&: er
We wi 11 b e rE:v::. s ~ :--_::;
nd perhcps ~ore r efi .~c
_, _>y for our r:1ccting in W .
Execut ive Secret ry
Letter of Transmittal
Problem Statement
Strategy for Meeting Problem
Increasing our knowledge of
solutions to _urban problems
Federal action to strengthen state
and local ability for meeting the
oi urban disparities
Focusing and increasing the level
of Federal. assistance directed at
urban disparities
Reforming the administration of
Federal urban pr?grams to provide
simplification fl e xibility and
Increasing the prospects for
integration in metropolitan areas
�-·· ·- --- - . . . . _., .· -· .... ·-· - L
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'-- ---~'--------
deal d ~rec t ly w:th the que s tio~s pcsed by this se~re~ at ion.
7he racts are th2s e :
of th es e Negroes h ave i::·,,::.:::_~e:s
c 2~t ~~ 1 ci~ies is ~eg~o , and
o:: E.::1.2 liorE.tive pub l i c prog ra::is, th e prop ortion. of Negroes ·- -· _. __--.t::..-a l
city ~C)Llat ion wi ll rise to - - ---
, ,·,i t h
a _ _ _ _ _ percentag~
By 19'i8, be ::·__ pro :Jo:::-t i o;:1s will be
3y 1~33 our c e~trel city popula ti on wil:
j e
The se a re ? er c enta2;e s-o f the total po~ulatio~ of ail
By 1973
\_; •,:. .:.L.._


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Xeg ro ; by 1983 , at l east t w2nty, inc l uding Chi c ago , Philad el143.215.248.55 16:57, 29 December 2017 (EST)
Clevc.~3:1.c, Detroit and Eel t i more .
s~~c e A=er 1can ~ i nori t y g r ou~s t r a ~itio~ally have sough t and won
I~ s c:-:".e cases their,_dency was

~ur ~2~o rt discuss e s this se g r2 sa tio~ as it affects Nesroes.

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~n~:cl2s N~ ~=ces and ~ex ~ca~ A~2~ ic 2~s c:~ ~egrc es a~d PL ~~to S~:~~s.
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e:--: peri2llce bee::i a hea ltl1y 011e for ou:r- pluralis ;i :ic politic 2 l
·sys :: e:-;: .
~e groes .
We therefore ~esr
th e
r"\ ~--
.! ::,
in c 1~v li~e a~d ~c ~i tical
pr ob&~i lity of this con f rontEtio~ is but we are c ertain that it is h i g~
2nou3h to b e a cause for concern.
Its pe;tential d an3 e rs li e· in t :,e follcw ing:
The growin3 d is affection nnJ aliena tion o f Negro ghetto
r2.s ic 2nt s 2.nd incre as ing ..ii li tancy ,,nich r esLl ts, to gether with
i~crea sing viol ence in citi es .
The still po:-1e rful fo:::- c e o f ot::t - rnigration by whit e :r,ic:c:..c-
The in~b ility o~ raoderate ?O litica l l ea~ership t o respo~c
t o th e pressu~es o f larg e r a~d l a rger poor populations .
- - -- -i- - - - ---·------ - - - -----_,,__ _____________ ____ -- -----·-
Of t:.e ~ eg:r:oes ,-1ho live
ci~ies not only because it i s ~or&ily ri ght and not only because of
Th e c. e:-::.::..:-_-.:s o:E
uh ict-. u lt :;_ ,,i.s.te ly 1:-1i ll t est seve::.-ely t he_ v alu2s o f s oe: i c.'.::y .
Integra tion> 1r it does notiing else, ~ay help to r educ e : 2nsions .
- ·-
l&rger integr a tion w~ich

-:.:.:st cc::ie i n. the futu:c2 .

~oce~s t e ll u s t ~a t s i ~ply h o l d~n~ the s i ze of c e n:~nl citv ~~e t:os
6JO,O0O ~egroes a year i ~to predcmi~an: l y ,~i~e su~urb s.
Ct..:.t --- ~~ g r- c.t i C:l .,
Cur c r~2e cost c a~c~lctio~s fo~ prov id i ng ev e~
rc1i2ir:-_;_.:_m .scce:_:,tabl e level
soci&l se:..-v ic s s 1n all centr-21 city g'.ic::t to s
i ·c.dica te f e deral expenditure:: ?at:t e:c11s cf georr:etric c..r:.d un l ike ly
Ev2~y avc il sb l e in~ic&t o r of

he deterio r2t in ; c o~~etitive posi~ion

o~ tt e te~tr~I c~tv (th2r2 are o~ c ourse subst anti a l dif~er~nces
descriptive of Los Anse l cs ).
citi es are l agging beiind t~c rest of the nation by a
S pe ci fical ty:
~etail 2sta blish~ents
by 95% for th e rest of t he ~ation, b~t by only 41% i n citi~s .
- ?2r ca? ite inco2e chang es in city relativ2 to suburb.
- ?rcdict eC: joo
c--...- ...~1.:.
r. t. st :
~. 3 ~
~ r
or public a ttitudes .
Su ch c t a~g e s , ho~ever , a r e b ot h u ~lii2 ly
~. :e
r e c: ogn.iz2
It is a pparent tha t s egr esotion b; r a ce and inca~e i n our
to c ::'fset it .
sore than laws and fed e ril polici e s , but we suggest t~e place to
In sur;i:r.ary, t he Ta sk Force icec1t i fi2s 2.s n p::cob l e!:: of . th G
g ::- 22.test n2t icnai urgency U1 e :;rowt:::. a,1d ? Ove r 'c.y of c e:-,tral c:: ·.:;:


W2 b eli e v e th.=-.t this situa tic1n al:::- cady p::-.· ovide s a driv in,;
=o::c e i n u rban dec l ine and t h at it s effect is - increased
0y t :.,e u:1~c,u2.l patteri'. o:: u r tm1 d2velo?cent .
2. )
'.,J2 E.::.- 2
co, ,vinced tha t e. d rc.r,,a t i c co:-if :cont at ion b et~veen
~ l r e e.dy i s bui lding in ~ost of ou r urb a n ar e as .
~n the absence of st2. t 2; fec2ra i a~d loc a l 2.ct ion on a
th ~se prob l ems will grow l ~r~cr , mor e dangerou s to Arncr ic rn
soc i e t y 8~d i ~creas i ng ly c i ff ~cult to solv e .
We therefore recommend a series of strategies designed
Increase individual access to jobs, education,
income, housing and other social services.
Increase racial and income integration in
metropolitan areas.
Increase the proportion of middle-class population,
especially Negro, in central cities.
Increase the ability of new immigrants to adjust
to urban life.
Increase the ability of all levels of governments
to deal with these problems.

Meeting th e goals will be costly and difficult.
It will
require, in our judgment, a well 6rganized process of innovation,
focusing resources at scale , moving towards increased
flexibility and strengthening th e position of mayors, some
governors, urban universities and others who can be counted
as · urban alli e s.
Our strategy for urban chang e and the
recommendations which flow from it is designed to overcome
five critical limits or present abilities for meeting urban
Capacity is limited by difficulty of effecting
metropolitan integration directly.
Capacity is limited by city and state fiscal
and administrative weakness.
Capacity is limited by the dispersion and low
level of Federal assistance to cities.
Capacity is limited by Federal procedures,
program practices, centra~ization, an~ inflexibility.
Capacity is limited by the state of the art for
solving urban problems.
The five sets of reco~me ndations which follow are
intended to outline a strategy which will increase
significantly th e ability of Federal, state and local
governments to respond to the problems posed by urb an
segregation and disparities.
Increasing race and income integration in urban areas
The Problem
Of all the problems the Task Force has addressed, none is
more vexing than the question of devising effective strategies
to integrate metropolitan areas.
We nonetheless believe that
the highest priority must be given to integration.
Without it,
ghetto families will be denied the opportunities enjoyed by the
urban majority; they will be forced to live in the least attractive
housing at increasing distances from the growth sector of the
urban economy; and the problems of a disaffected minority
will be concentrated in the ceritral cities.
Although improving the standard of living is absolutely
essential if ghetto residents are to move into the mainstream
of _Americ an life, it is illusory to beli eve that enrichment
alone will guarantee int egra tion.
The residential patt e rns of
every American city and metropolitan area document the fact
that income does not provide Negroes with the sam e freedom of
choice . that other Ame ric ans enjoy in th e urban housing mark et .
Equally important, the dec entralized political system of the
metropoli s employs l and us e and ot he r public controls to limit
sev ere ly hou s ing opportuniti es in s uburbia for a ll lowe r income
A prime imp ediment to the dispersion of th e ghetto is th e fact
th at larg e numb e rs of city dwell ers and s ubu rbanites are oppo se d
to resid en tial inte gration and integrat e d education.
In th e
central cities, the opponents of integration usually have more
influence at City Hall than the residents of the ghetto.
In the
suburbs, the Negro has no political voice; and the local
political system employs a variety of devices to satisfy its
constituents' desire to exclude Negroes in particular, and
lower income families in general, from their neighborhoods.
As a practical matter, an integration strategy must encompass
the metropolitan area.
Given the projected ghetto growth rates
and the likelihood of Negro majorities in a number of major
cities, integration cannot be accomplishe d within the confines
of the central city.
In fact , an integration strategy which
excludes the suburbs would only serve to hasten the exodus of
white families from the centr a l cities.
Anothe r r eason for d ev e loping disp e rsion strat eg ies in a
me tropolit an context is th e fa ct th a t th e hou sing marke t f unc tions ove r an entire metropolitan area.
Operating within a
local rath e r th an me tropolitan cont ext, federal housing programs ,
especially tho se aimed at th e di sadv antaged, h ave don e littl e
to foster disp e rsion.
In fact, more oft en than not, these
programs hav e encoura ge d r es id enti a l s egrega tion.
· Few me tropolitan a r eas h av e governmental arrangements which
would permit th e dev e lopment and implementa tion o f a me t r opol itanwid e int eg ration strategy.
Ev en fewer are popul ated by a
significant numb e r of s ubu rban ites who have demonstrated a po s itive
interest in an integrat e d metropo l i s .
In s t ead, most metropol i t an
areas are governed by highly decentralized political systems.
Local governments of small scale control the vital parameters
of community life - the schools, land use, and the tax base.
Highly responsive to their relatively homogenous clientele
and sensitive to threats to local autonomy or the tax base,
most suburban governments show little interest in assuming any .
responsibility for the general welfare problems of the metropolis.
Efforts to create metropolitan governments have been
spectacularly unsuccessful.
Moreover, political realities and
the procliviti es of white middle class reformers have led almost
all me tropolitan governme nt plans to focus on service and physical
resource problems.
The Task Force knows of no metro proposal
that gives s e rious attention to the problems of th e ghetto.
Nor is there any evidence that the few metropolitan governments
creat ed in the past two decades have used their broad e r jurisdiction s to attempt to foster th e integration of th e metropolis.
Federal efforts to encourage metropolitan planning and
coordination also have avoid e d the policy ar eas most like ly to
affect the pattern of residential segr ega tion.
progress ha s b een ma d e during th e past few years tow ar d securing
regional approach es to transportation, air pollution, and
water s upply .
Con sp icuously absent fro m this
list are
p r o grams that mi ght b e u sed to promote integration, s uch as
publi c hou si n g, re nt s u p pl eme nt s, a nd a id to e duc a tion.
Th e
sad truth is that the emerging metropolitan institutions are
concerned almost ~xclusively with the problems of suburban
development -and white middle class families in cities and suburbs.
Unless there is a radical change in the outlook of these planning
and review agencies, they are likely to widen the gap between
city and suburb.
Finally, open housing legislation has had minimal impact
on integration in the metropolis.
In the absence of nation al
legislation, there is a bewildering variety of state and local
fair housing codes .
These nearly always exempt the most common
form of suburban housing - the single fimily dwelling.
major weakness is the cumb e rsome, case by case approach based on
individual complaints, a proc ess which requires l ega l sophistication
and/or support which usually
is unavailable for the ghetto
The federal government 's r e cord in this area is also
unimpr essive - neither FHA nor VA have move d aggressively to
secure maximum impact from the 1962 executive orde r banning
discrimin ation in hou s ing financed by federally guaranteed
mortg ages.
Rec ommendations
National performance standards (s ee Section IV) should
stress int ~g rationas an int eg ral aspect of general developm en t
Inc entiv e gr ant s ( see Se ction IV) should be u se d to
to encourage genera l d eve lopment p rograms for e ntire
metropolitan areas which would tie federal support for suburban
improvements to ~rogress toward ending the racial and income
imbalances between cities and suburbs.
Some form of incentive grants, particularly for
metropolitan areas, should be tied specifically to housing and
education programs which foster integration, such as scattered
site public housing, educational parks, etc.
Section 204 of the Demonstration Cities and Metropolitan
Development Act should be expanded . to cover programs that affect
All federal hou si ng pro g r ams should place a strong
emphasis on disp er sion, including the relocation policies in
urban renewa l.
Federal mortgage policies should be developed
to e ncourag e the construction of lower cost housing units
through relating down payments, interest rates, and the repayment
periods to the cost of the unit.
Such a policy should includ e the
use of subsidi ze d ~ortgages where appropriate.
A compr e hensiv e national fair hou s in g act with the
broad es t possibl e coverage should be e nacted.
An exe cutive
ord e r should b e is s ued prohibiting se g re ga tion in all forms o f
ho~ sing assisted dir ec tly or indir ec tly by a ny federal agency.
The order should b e positiv e ly enforced, using th e techniques
d e v e lop e d in the federa l government 's efforts to e liminat e job
dis c rimin a tion in al l
form s o f f e d e r a lly financ e d employm e nt.
The federal governme nt should stimulate the creation
of and provide fi~ancing for metropolitan development corporations which would undertake to provide integiated low-cost
housing outside of ghettos.
The federal government would pro-
vide initial working capital and extend long term credit from
a national revolving fund.
Such corporations would accumulate
land for integrated housing, provide assistance in job location
for out-migrants, and aid suburbs in preparing effective
education programs for new resid e nts.
Because job opportunities are likely to open up faster
than hou s in g opportunities, we recomm e nd a pro g ram of transportation assist a nc e with the following ch a racteristics.
Re sponsiv e to ch a n g in g loc a tions o f both jobs
and work e rs.
Focused on initial p e riod o f "job findin g " and
"job holding."
Tr a nsfer a bl e from on e individual to anoth e r
d e p e ndin g on n ee d .
Non-co mp e titiv e with the private ma rk e t .
Wh e r e such tr a v e l is r e lativ e ly concentrat e d, this d emand can
be me t th r ou g h sub s idi ze d public transport a tion .
For mo r e
disp e rs ed tr a v e l from gh e tto r e sid e nc e s to suburb a n job s,
sho r t term pub licl y - ass i s t e d a utomobil e l ea sing ar r a n gem e n t s
will be ne e ded .
The Administration should realize that the greatest
potential fever for change in this area is the courts.
The Task Force urges the Administration to hasten the
inevitable Supreme Court rulings which will ban de facto school
. segregation and the employment of land use controls for social,
economic and racial discrimi~ation.
Given the revolutionary
impact of these anticipated rulings, it is not too early to
begin contingency planning to assure their speedy implementation
with a minimum of public disorder.
Federal action to strengthen city
for meeting the problem of urban disparities
Implementing the strategies for urban chan$e discussed in
this report depends ultimately upon actions taken by state and
local governments.
We assert that strengthening the positions
of governors and especially mayors will be of critical ·importance
in this process.
Their ability to deliver services is seriously
limited by administrative weakness and fiscal strain.
Yet they
are the only public officials with the potential authority
necessary to effectively manage the large-scale attack on
urban problems which we believe is essential.
They too - and
our population projections indicate that this is certainly true
of mayors - will be under increasing pressures to respond to
.J 11,
the fre_quent, now almost steady state, urban crisis of :11;· J :~verty
an d segregation.
The administrative problem breaks along the follo wi ng lines :
- Fragmentation of program responsibility among semiautonomous .agencies, often -reinforced by their counterpart s at
the federal leve l, bypasses and weakens the position of mayors
and gove rn ors.
- State and l oca l officials are under di rect and close
pressures to deliver and their high political mortality rates
indicate that delivery is enormously difficult in the present
r! 1,
" I
- State and local government is in a disadvantageous
competitive position for directing talented, imaginative staffs .
The political executives management problems are compounded by
the lack of personal staff; there are few institutions analagous
to the executive office at the state and local level.
- Possibi l ities for a meaningful decentralization to
federal field offices are severely limited by the realities
of political authority in the federal system and by present
congressional-bureaucratic arrangements in Washington.
- Local officials must conduct an enormous numbe r of
negotiations with truncated federal agencies to receive any aid.
At the same time the cost of urban services is on the rise ..
We can expect increasing per capita costs for social services
and we ·can expect an increasing proportion of ci t y dwe l ler s
to require them.
The cities thus are caught in a process of
cumulative deterioration whic h can be r eve r sed on l y by s hif ts
i n t he r esi dence o f poo r people or h i ghe r i ncome by city
r es i dent s.
The pr ob l em i s par ti cu l a rly a cu t e f or l arge cities.
During fi s cal year 19 65 , f or exampl e » muni c ipal expenditures
per capita were appr oximately three times as hi gh for cities
with populations exceeding 1 million as they were for communities
with populations under 50,00 0 .
In short, we see the following
as critical limits on cities t o pay their own bills:
- Cities are under increasing demands for social services
while their revenue capabilities are increasingly inadequate
to pay for even existing levels of serviceso

lj :, ,,, I
Social service costs are rising more rapidly than
costs in the economy.
- Some cities are already in danger of becoming
almost exclusively by peop l e who can simply not a ff ord to live
elsewhere and whose need f or services is very great.
- Problems of ra i sing additional revenue within juri sdictions such as cities are i mmense, due in part to the high
mobi l ity of resources between stat es and local it i es i n the
federal systems.
Cities are forced to rely heav ily on property
and consumption taxes, both of which are highly re gressive in
- The dependence on property· taxation on hous ing f or c i ty
revenue s may be a positive de t riment t o providing mo r e standard
unit s £ or the urban poo r.
Re commendati on s
Re gard les s o f pas t fai lures t he popu l a t i on pro je c tions
and trends we fore s ee clear l y ind i c ate t hat most mayo rs and
ma ny urban governors, o f n ecessity, will be increasing ly
resp on sive t o the problems o f ci ty ghetto s.
Th ey can be the
Pr es i den t's mos t i mp ort ant al l ies i n fulfilling our nat i onal
urban go al s.
They mu s t be the f ocu s o f any mean i ng f u l
decen t rali zat i on of the f ederal s y stem .
In add i t i on to the fi scal flex i b i lity and d e cent ralizati on
recommended below, we u r_ge that presen t aid programs operate
through the political executive and not semi -autonomous bureaucracies.
To build toward a capability similar to that of the
federal executive office, w~. recommend direct gr-ants to mayors
and governors for staff assistants o~ city problems.
4) _ To increase the competence of state and local govern-
ment personnel we recommend increased federal assistance for
training and continued efforts in the direction of inter-governmental
exchanges of personnel.
Legislation should be promoted permittirig state and
local governments · to waiv·e . federal tax resumption of securities
1· 11
in return for a federal grant equivalent to the federal taxes
collected on the . interest from such securities.
Some estimates
indicate that this could result in an added .6 to 1 billion
dollars per year.
6) ·
Federal assistance to cities should be significantly
increased; and the existing impediments to the effective use
of federal aid at the local level should be eliminated.
components of this recommendation are presented in detail' in
.Parts 111, ·1v, .-and V .- below.
1 I
., '
Focusing and increasing the level of Federal
assistance to cities
The Problem
Many of our present programs fail to reach
the central city poor with enough resources to make a
Simple extension of present programs - leaving
effectiveness aside - to reach the central city poor would
cost in manpower, education, health, housing and legal
services ____ billion dollars a year.
Unless we reach a scale of sufficient size we
will find as we have found in the past our efforts are
dis~ipated by trying to reach too many people, in too
many cities, with too many programs.
Policy responsibility at the Federal level
must be focused in strengthened urban agencies.
The following programs are meant to focus resources
on increasing urban integration and enriching the lives
of those who remain in big city ghettos.
In each program
area, we have attempted to order our recommendations in
terms of some rough priorities and time phases with
employment having the highest overall priority .
Our expertise in the following program areas is
We have listed only recommendations which
seem to us to be most relevant to an overall city
Our suggestions are in no sense exhaustive.
We hope to:
Overhaul existing programs and redirect
existing resource commitments to
increase their impact on the ghetto.
Increase commitments in the most critical
program areas for implementing broad goals.
Develop new approaches to tackle those
aspects of ghetto enrichment and dispersion
not affected by existing programs.
Tie Federal assistance to disadvantaged
individuals where appriate.
The Task Force recommends the consolidation
of presently separated manpower programs into a single
comprehensive manpower grant.
This move would allow
development of sufficient local manpower programs under the
aegis of a single agency which would absorb the important
functions of recruitment, selection, and processing,
training, placem ent and follo w-up of the poor .
This st e p
would include consoli dati on of those programs administered
by the U. S. Department of Labor including institutional
training, on-the-job training, neighborhood youth corps,
concentrated employment program in the employment service
with the Vocational Rehabilitation and OEO employment
In the absence of si gnificant
consolidation programs, the Task Force recommends an
expansion and refocusing of the on-the-job training
program to provide higher subsidies to private industry
for training of the poor.
Reimbursement for tr aining
costs should be doubled and perhaps quadrupl ed and the
26 weeks presently allowed should be expanded to a full
OJT should b e provide d with a greater staff for
job developmen t and for counselin g and follow-up after
placement in a job training position.
In order to compensate for the declin e
of manufacturing and commercia l jobs in the city, the
Task Force r e commends an expansion in public employment
throu gh the n ew car eers idea as emb odi e d in the Scheuer
Ame ndment to the Economic Opportunity Act.
New careers
provides entry level employment for the poor with
meaningful upgrading in work and profes~ional training.
The Task Force recommends an increased
number of demonstration projects - of all types to test the important relationship between deficient
transportation to work sites and the willingness and
ability of city residents to accept training and employment.
The Task Force recommends a joint effort
by HUD and the Department of Labor to negotiate a nation a l
mod e l ag r e ement for employme n t with th e build i n g tr a de
unions, which would permit lar ge -scale slum rebuilding
e xperiments to make gre a ter use of slum resid ents.
r e co gn ize th a t th e i mpl ement ati on of this r e comme nda tion
would not solve any signific ant proportion of the
employment problem but it would h ave useful symbolic
v a lu e i n the ghe tto s of ce ntr a l c ities.
The De p a rtm ent
of Commerce should be involv e d to reach similar agreemen t s
wi th employe r s in the c onst r uction industry.
As a l on g-run possib i l i t y, we su ggest a
p r o gram whic h wou ld operate much like th e GI Bi ll of Rights
wh i ch would pl a ce e ntitl ements i n t h e ha nds of th e p oor t o
maximi xe persona l ch o i ce in selecting edu cational, t rainin g
and employment assistance.
Th e funds could be u sed by the
· ind i v i du a l to gain c ert ification in regul a r educat ion a l
institutions o r f or training on the j ob with the employer
receiving reimbu rsement f or hi s trai ning c os ts.
The great
advant~ge of this approach is in avoidi~g the seemi~gly
endless tangle of referrals, delays, and insensitivity
encountered in the present, fragmented system.
Any program of Federal aid for elementary
and secondary school construction should offer in_c entives
for facilities designed to increase the integration of
"Bonus" funds could be available for
educational parks within cities, suburban exchange schools
and for consolidated school districts.
Funds should also
be included for the modernization and replacement of older
school plants in central cities.
We recommend a program of educational
subsidies for low-income children which would be
administered as scholarships for use at any approved
elementary and secondary educational institution.
"Bonus" funds could be available for schools which are
integrated or are experimental.
Sizer recommendations (see paper)
Special recommendations for urban veterans
We give the strongest endorsement to
Department of Defense Manpower programs, such as
. "Proj e ct 100,000" and "Project Transition" .
We recommend a stepped-up outreach
activities in the Veterans Administration to trace
those with the greatest need for assistance at the
point of separation and especially after separation.
We urge FHA and VA loans to servicemen
and veterans to finance proposed or existing individually
owned on e -family units in pr~ects containing five or
more units.
We recommend that VA be given a special
mandate and the capacity to assist ghetto v e terans in
obtainin g such urban skills as planning, social service
work and community developm e nts.
Incom e mainten a nce and we lf a re
Any well conceived strategy for the city
requires substantial increases in consumer demand.
City dwe llers ne e d a sustain e d and substantial upward
movement in payme nt lev e ls for
unemployment compensation
we lf a re p ayme nts
minimum wa ge
The present welf a re syst e m must be
alt ere d t o make i t a mo re e ffe ctive instrume nt in de ali n g
with gh ett o depe nd e nc e .
Altering AFDC man in the house
requirements to permit
Altering outside income requirements
to eliminate the in-effect 100%
income tax rate and thus encourage
We should move towards having a l~rger
proportion and perhaps all welfare payments at the
Federal level.
Continued reliance on localities and
states for a share places an added strain on their
frequently regressive tax systems and inhibts the
development of more r e asonable national standards for
Public Facilities
We urge greater use of the location of
public facilities - both Federal and Fede rally support e d as a lev e r in s e curin g a ctu a l int eg ration, op e n housin g
and employment opportunities.
Those facilities which can
be located in cities, especially community colleges and
hospitals, should b e consid e r e d a part of overall
dev e lopm e nt and city enrichme nt pl a ns .
Public employ me nt
for low-income groups should be related to any n e w
facilit y - includin g those in th e suburbs .
This n ew f ocus
o f re spo ns ibili ty s h oul d b e come a ma jo r conc ern d f t he
Se c re t aries o f HEW an d HUD .
The Department of Housing and Urban
Development should be given a primary role in
coordinating all Federal urban capital investment as
part of national integration and enrichment strategies:
To achieve integration there must be
continued emphasis on compliance with desegregation
guidelines in housing financed through the Federal
mortgage programs.
This is especially important in
suburban developments which will account for 90% of the
new housing ov e r the next 25 years.
The flow of resources into financing
housing is affected by interest rates, alternative
investment opportunities, and oth e r forces, some of which
are greatly influenced by Feder a l policy.
Lower interest rates to stimulate a ~inimum
annu a l construction rate in housin g should be a national
Th e eff e cts of low interest rates on the
supply of low- and moderate-housing "swamps" the effects
of Federal "housing progr ams" as such .
Investme nt inc e ntiv es such as t a x credits
and d e pr e ci a tion sch e dul es should b e a p pli e d t o hou s in g
in th e s ame way th a t th e y a r e a pp li e d to oth er c a pit a l
goo d s.
Every mechanism for maintaining a constant flow of
investment into housing should be explored by the
These might include the issuance of
longer term certificates at higher interest rates to
attract the investing power of pension funds and
insurance companies.
Certificates-should be issued
by the Federal National Mortgage Association.
The Task Force recommends expanded use of
devices such as leased,scattered site public housing
rehabilitated through use of the "turnkey" approach with
purchase options for the tenants.
Homeownership incentives for central city
ghetto resid ents simil ar to the Veterans' Administration's
no-down payment programs should be offer ed .
The Task-Force recommends that the multi-
family mort gage operations be separated ;·from the present
Federal Housing Administration which would then b e
charged with insuring only single-family mortgages.
In the absence of such surgery, we believ e th a t the age
and inflexibility of most FHA officials renders any
alternative recommendation unworkable.
Special Recommenda tions on the Community Action Program_
The Task Forc e believes the community action idea
is a major innovation in Federal programming and reflects
the emphasis on demonstration and experimentation which
is critical for increasing our problem-solving capacity.
The Community Action Program should be retained within
an independent OEO with its charter for flexible and
innovative programs.
A first step toward employing performance criteria
in distributing scarce CAP funds should be taken.
These crit e ria should include the CAP's innovative
capacity, its ability to coordin a te other relevant agencies
and to op e rate its own programs.
Demonstration funds should be incre a sed accomp anied
by ti ghter research controls applied to projects.
Guid e lines to insur e CAP participation in Mod e l Cities
plannin g and execution should be promulgat e d.
Th e dev e lopment of commun i ty action agencies as parts
of th e local politic a l and gove rnm ent a l s y st em should be
encour age d .
Reforming the administration of federal urban programs to
provide simplification, flexibility and decentralization
The Problem
The American federal system is being slowly strangled by
the complexity of contemporary intergovernmental relations.
Cities and states are fighting a losing battle to extract ·
maximum advantage from a bewildering variety of federal assistance
Administrative shortcomings seriously compromise the
prospects of many of the imaginative federal programs developed
in recent years.
The Task Force has grave doubts about the
capacity of this over-burd ened system to manage the new efforts
needed to move th e ghetto resident into the mainstream of
American society.
By accident rath er than design, th e federal governmen t has
created an extremely categorical, fragm ented, and complic ate d
approach to urb an programming.
Each program area t ends to
develop its own set of sp ec ific program goals and controls, a
clos e r e lationship wi th a specialized clientei"e, and a narro w
perspectiv e on th e problems of cities and suburbs.
Because the
feder a l government seeks to achieve general policy objectiv es
through highly detai led pro gram controls, most federal programs
are characterized by an ov ercen tr aliza tion of detai l , administrative rigidity, long delays in processing applications, a multiplication of required cons ents , a failure to inno vate , and a
lack of responsiv e ness to speciali zed loc a l ne ed s.
confront delay and confusion in the funding of their programs;
they witness an inability of federal agencies to work with
one another in making sense of federal programs in urban areas.
The burdens of an already overloaded system of intergoverrimental relations have been multiplied by the rapid expansion of
federal domestic prqgrams during the past seven years.
Most of
the new programs are categorical and involve detailed federal
program controls.
In an effort to advance laudable national
policy goals, such as metropolitan coordination and highway
safety, additional detailed requirements have been imposed on
existing programs.
The net effect has been to complicate further
the bureaucratic maze that stands between federal resources and
.urban problems.
The Task Force is especially concerned about the failure
of the federal government to build sufficient flexibility and
opportunities for state and local discretion and innovation into
the federal aid system.
Many of the problems of large city
ghettos are quantitativ e ly and qualitatively different from
those of the poorer neighborhoods of smaller cities .
to many of our most vexing urban problems are neither obvious
nor universally applicable.
Yet relatively few fed e ral progr ams
permit the d eve lopmen t of locally-determined str ateg ies for
cities and metropolitan areas.
In its str ess on local innovation and flexibility, the
Model Citi es Program represents a welcome departure from the
rigid programmatic approach.
By emphasizing systematic planning
and coordination of federal categorical grant programs, Model
Cities seeks to reduce overlap and dupl{cation of effort.
constituent-agency relations, formula grants, inflexible requirements, and specialized administrative practices tax the
ability of any city to tie these many disparate strands into
an effective program.
In addition, Model Cities program standards
are added to those required by the component programs without
any compensating simplication of the process whereby a~plications
for assistance are approved.
Innovation, flexibility, and
coordination are easily stymied by a process whose practical
effect is to pyr am id requirements, multiply consents, and
increase the time lag in bringing r e sources to bear against
The Task Force is impressed with neither the record nor the
potential of existing instruments for securing interagency
coordination of grant programs, such as Bureau of the Budget
intervention to resolve interagency conflict, interagency
committ ee s, the me tropolitan expediter, and HUD's convenor
Th e Administration's experience with the community
action program and the neighborhood centers unhappily indic ates
that substantial coordination cannot b e achi eved at th e federal
level withou t substantial ch anges in the grant-in-aid me chanism .
The massive effort need ed to overcome the problems pos ed
by the ghetto will be financed l argely by some form of federal
To the degree that such grants are programmatic,
the Task Force is convinced that it is absolutely essential to
streamline and simplify the distributivi mechanisms.
of extending and expanding categorical aids, the Administration
should stress consolidation, decentralization, and flexibility.
In the opinion of the Task Force, however, fragmentation,
administrative complexity and rigidity, overcentralization of
de tail, inadequate coordination, and lack of innovation are
endemic to the programmatic approach.
Even the most imaginative
reforms are likely to have only a marginal impact if grant
programs continue to multiply at th e ir present rate.
Of course,
this growth rate would be accelerated if all the Task Force's
recommenda tions were transl ated into ind ividual grant programs.
An increased fed er al commitment to urban problems and a
national effort focused on ghetto def iciencies requires a
substanti al reorientation o f roles and responsibilities in th e
federal system.
The Admini s tration b egan this task with th e
development of th e Poverty and Mode l Citi es progr ams .
The Task
Force believes th e time has come to expand the application of
these conc ep ts through th e developme nt of a highly fl ex ibl e ,
loc~lly - based s yst em of grants-in - aid which substitutes general
purpos e assistance for progr amma tic gr ant s and n a tiona l p er formance standards for detailed program c ont ro l s.
It should a l s o b e not e d that the r ec ommend a tions h av e b een
design e d to p e rmit th e partial applic a tion of th e s e concepts.
Thus, the implementation of these proposals may be staged over
time, with the most promising program areas selected for initial
It also will be possible to retain _federal program
standards in those areas where such controls are deemed in the
national interest.
Application, processing, and revi ew procedures should
be streamlined in all non-formula grant-in-aid programs.
goals of internal program reform should be: (a) to simplify
application procedures through the development of standardized
methods; (b) to r e duce sh~rply the time between application and
approval or rejection of a grant request; (c) to reduce multiple
cons ents; (d) to check the trend toward pyramiding requireme nts;
and ( e ) to employ standardized revi ew and audit procedures .
Responsibility for the implementation of this recommendation
should be lodg e d in th e Bureau of th e Budget.
Gr ea ter u se s hould be made o f earmarking of grants to
facilitate the fundin g of programs lik e Mode l Cities and
community action which cut across pro gram and agency lines .
This dev ice should be u sed to enh ance the focu sing of fed e ral
res ou rces on ghetto problems.
Whenever possible, new grant programs should b e merg e d
with exist ing programs .
Con so lidation of r e lat ed grant pro grams,
along the lin es of the Partnership in Health Act of 1966 , s hould
be giv en high priority.
Gr ant consolida tion reduc es the numb er
of separate negotiations which any jurisdiction would have to
carry on in order to design relatively comprehensive local programs.
Provision should be made for consolidated
for two or more related grants administered within a single
Such intra-agency grants would permit a state or
local agency to deal with a single representative of the
appropriate department wh en applyin g for r e lated gr ants.
Impl ement a t io n o f this r e comme nd a t ion r e qui res the e s tabli s hmen t
of an intra-agency grant office within each department, prefe r a bly
in the off ic e of the s e cret ary.
The intra-agency gr ant off i ce
woul d r e c eiv e and p roc ess the a ppli cati on for an i n tr a-age n cy
grant, coordinate th e revi ew of the application with th e
appropri a t e ag enci e s within th e d e p a rtmen t to insu re th a t
pro gram s t and a r ds we r e be ing me t, and a ct as the f ina l gr a n t in g
authority, subj e ct to appropri a te r ev i ew at the d ep a rtm e nt a l
leve l .
Pr ov i sions s h ould b e made f o r c on so li dated app l ications
for two or mor e related grants administered by agencies in two
or mo re de p a rtments.
Such in ter- a ge n c y grants woul d p ermi t a
state or local agency ~o deal wit h a sing l e federal agency when t he
federal grants needed to finance a compreh ensive project are
adminis t ered by t wo or more depa rtm en ts.
Imp l emen t ation o f
this recommendation requires the d es ignation o f an agency to
rec eive application s for inter-ag ency grants, to coor din ate th e
review of the application with the appropriate agencies to insure
- -
that program standards are being met, and to act as the final
granting authority, subject to appeal by the appropriate
departmental heads.
The Task Force believes that the inter-
agency grant coordinating function should be assigned to the
same agency which is designated as the principal federal urban
agency, as recommended in Part III above.
Legislation to
implement this recommendation would not authorize the waiver
of statutory provisions such as eligibility for -grants, matching
ratios, or program duration.
Performance standards should be substituted for detailed
program standards wherever feasible.
Standards should be simple,
general, quantifiable where possible, and applicable to a wide
variety of contexts.
Performance standards should relate to
general societal goals rather than to specific program objectives.
Thus, a housing performance standard might be the proportion of
substandard dwelling units, not the number of public housing
National performance standards should focus on the
urban goals of integration and enrichment.
The substitution of performance standards for program
controls should be accompanied by the pooling of funds in existing
grant programs.
An essential first step in pooling is the
establishment of functional pooling arrangements which permit
the unrestricted use of funds in a general functional area, such
as housing, manpower training, health, or transportation.
housing, for example,public housing, urban renewal, and rent
supplement funds would be pooled, to be employed by the
appropriate local or state agency to implement a comprehensive
housing program.
All programmatic restrictions would be removed.
from the use of pooled funds; thus, funds derived from the
public housing program might be used to finance .rent supplements,
rehabilitation, code enforcement, or some other locally devised
strategy designed to overcome housing deficiencies.
Where federal funds are functionally pooled, the basic
requirement for eligibility should be a comprehensive program 1n
the functional area which relates local deficiencies and needs to
the ~ppropriate national performance standards.
housing, manpower, health, or transportation programs should be
developed by the appropriate local or state agency.
programs would specify local deficiencies in terms of national
standards, set forth program goals to meet the national standards,
and indicate in a general way the projects to be undertaken to
reach the program goals during the life of the comprehensive
When all funds functionally pooled are from programs
within a single agency or departm ent, th a t agency or departm e nt
should approve the comprehensiv e program and monitor its impl e mentation .
When functional l y pooled funds are drawn from two
or more departm ents, the principal federal urban agency recommended
�,, .
in Part III should approve the comprehensive program and monitor
its implementation.
Provision should also be made for the pooling of federal
funds across functional lines.
Unde r this type of arrangement, some
or all of the federal aid flowing into a neighborhood, municipality,
county, metropolitan area, or state would be pooled, with all
programmati c restrictions removed from the use of the pool ed
Eligibility for general pooling should be based on the
preparation by the appropriate local or state unit of a general
development program based on national performance standards.
General development programs would be similar to the comprehensive functional programs discussed in the previous recommenda tion, except that their scope would be substantially bro ader .
General dev e lopment programs would b e approved by the principal
federal urban agency recommended in Part III, which would also
monitor the implementation of the general development program.
To facilitate the preparation of compr e hensive functional
programs and general development pro grams, federal technical
assistance and pl a nning aid should be expanded.
In the case o f
compr ehens iv e function a l progr ams involving two or more a ge nci es ,
and in all instances of general development program prep a ration,
technic a l assist an c e and planning aid should be funn e l e d throu gh
th e p r incip a l fe de r a l urb an age ncy a s r e commend e d in Pa rt III.
As a first step toward implemen tin g t he previou s recomme nd a tions,
t he federa l governmen t s houl d f ina nce the prepar a t io n of a
number of comprehensive functional programs and general development programs by a variety of local and state units.
The federal government should initiate a program of
. general purpose assistance to local and state governments.
recommend that two types of general purpose grants be developed
deficiency grants and incentive grants.
Deficiency grants are general purpose formula
grants designed to provide supplemental federal assistance
for local units, the ma gnitud e of which would be related
to need and capability.
An equalization formula to
accomplish this purpose would be based on population, per
capita incom e , tax bas e , tax effort, and perhaps other
measur e s of social, economic, and infr as tructure d ef iciencies.
Defici en cy grants could be used by the r e cipi e nt local or
state unit for any public purpose consistent with a general
developm ent program.
Eligibility for deficiency grants
would be det e rmin e d by the princip a l f ede ral agency recommended
in Part III through its approval of a general development
progr am.
Given th e magnitud e of th e gh e tto probl em , th e
Task Force r e comme nds an initial outlay of$
for defici ency grants, which would provide$
per gh et to
dwell er.
Inc en tiv e grants are gen e ral purpose grants
distributed by the principal federal agency recommended in
Part III.
Incenti ve grants could be used to suppl eme nt pool ed
funds ·or interagency grants.
The availability of general
purpose agency grants should enhance the ability of the
principal federal agency to promote inter-agency grants,
pooling arrangements, and comprehensive functional and
. general development programs.
A significant proportion
of incentive grants should be used to stimulate the prepara- ·
tion and implementation of general development programs which
give high priority to ghetto problems, especially integration.

Increasing knowledge of solutions to urban problems
The Problem
The Task Force believes that if this society were
ready to commit the resources required for its cities,
new technologies and knowledge could make our efforts
more effective and relevant than is presently possible.
We emphasize the advantages of the Federal government
as a funder, controller and evaluater of demonstrations
and experiments - an advantage which is readily apparent
in the aerospace industry.
This advantage is presently
being dissipated by fragmentation of problems by agency
mission, lack of long-term financing of experimentation
and basence of sensitive feedback mechanisms to influence
In addition, the efficiency of our
efforts to solve urban problems may be limited by . the
small scale of our programs and even demonstrations.
The flexibility and emphasis on innovation
characteristic of the Model Cities Program should be
exploited by conc e ntrating resources - as far as possible on 4 or 5 cities and/or metropolitan areas capable of
implementing we ll-structured and cont r olled experiments.
To achieve this wo uld require at least the following:
�- -
-- Assignment of responsibility for the design
and evaluation of the experiments to the new Assistant
Secretary for Research and Development in DHUD.
-- Informal allocation of resources from a ge ncies
other than HUD, (for example, project demonstration
monies in HEW and Labor) for use in the selected cities.
-- An aggressive Federal role in providing
technical assistance to thes e. "key" cities'.
The creation and fundin g of an institute for
basic urb an r e search, along the lines of RAND or IDA in
th e de fense area.
The institute should be Federally
funded, independent of day-to-day departmental control
and able to und e rt a ke long-term research projects.
· Initially, the institute would not undertake operation
or fundin g of action projects, but would concentrate on
basic rese a rch into urban economics, data collection and
analysis, etc.
A stren gthen e d and be t t e r-financed demonstration
and exp e ri me nta t ion rol e for DHUD and its Assist a nt
Secr e tary for Re se a rch and Deve lopment .
This should
includ e th e abilit y to fin anc e long-t e rm proj e cts
ind ep enden t of f isc a l year r es trictio n s and deve lo pmen t
an d a c ti on p ro j ec t s in fi e lds other than h ousi ng.
A h i gh
premium should be p l aced on j oint funding with o ther
agencies for projects cutting across several service
The evolution of a developmental orgariization
which can undertake large-scale investments in new
systems, such as new housing ideas.
This institution
might be developed by the Assistant Secretary for Research
and Development in DHUD.
It should have the funds,
flexibility and authority to underwrite construction of
new types of schools or hospitals or houses on a scale
large enough to make a difference.
This agency also
could expend the developmental work done by OEO in basic
manpower and health iystems, or combine them with the
physical elements of a sector.
The first target of
large-scale development should be constructing more
efficient and flexible low-and moderate-income housing.
The capacity of local and state governments to
undertake research and development should be increased
with the aid of positive Fed era l action.
Subsidies to
regional or urban universities are one means of achieving
this; financing of research staffs for governors and
mayors is another.
Federal programs, such as Model Cities
and Community Action, which stimulate innovative and
experimental action projects should be expanded as the
best hope ' for building local development capacity.
I -
We believe the natural advantage enjoyed by
the Federal government for financing and evaluating
research and development should be strengthened in
all departments.
Within department, R&D otitputs
should feedback to the Secretary to insure that R&D
projects affect on-going programs and policies and open
new directions.
Responsibility for monitoring government ~
wide urban R&D activity should be centralized either in
the Executive Office or in HUD.
Without centralizat i on,
th e r e sults of r e sear ch in one a ge ncy are not like ly to
become inputs in the policy-making of another.

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