Box 22, Folder 18, Document 5

Box 22, Folder 18, Document 5

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ITEMS OF INTEREST RELATED TO HUD RAISED AT HEARINGS OF
RIBICOFF SUBCOMMITTE® ON EXECUTIVE REORGANIZATION

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December 2, 1966

JAMES M. HESTER, President, New York University

Mr. Hester evaluated the contributions which New York University

and similarly situated educational institutions are making to the
improvement of urban conditions. The shortage of available financial
resources created by a lack of support from public sources was :
seen as the major obstacle to the broadening of the university role

in urban affeirs.

1. The Improvement of Research on Urben Problems

President Hester stated that the effectiveness of university research
into urban problems was limited by the need to proceed on a project-
by-project basis. The availability of funds edecuate to finance long-
term programs would lead to an increased university research contribu-
tion.

2. The Need for Greater University Participation in the Administration
of Federal Government Frosrans Atrecting the City



senator Ribicoff stressed that the solution of urban problems depends
upon the recruitment of qualified persons to carry out programs which
Congress has authorized. Unless the University can increase its
supply of such personnel, the objectives of recently enacted laws
will not be realized. ‘

President Hester replied that N.Y.U.. was fulfilling its responsibiliv:
to the city within the framework of existing financial resources.

GEORGE STERNLIZB, Professor, Rutgers University Urban Studies Center

Mr. Sternlieb maintained that federal programs aimed at alleviating
substandard housing conditions have not achieved their objectives
because federal housing policy has not teken into eccount the
realities of the urban ghetto situation. The primary emphasis in
urban rehabilitation should be on the response of the persons living
in slum conditions to the measures designed to help then. |

1. Public Ipnorance of FHA programs

Mr. Sternlieb declared that the small ghetto landlord usually does
not know that FHA assistance is available. The awareness of
programs is limited to large property owners.
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2. The Imoact of FHA standards on Urban Rekebilitation

Mr. Sternlieb emphasized that the adoption of more sensible financing
arrengements in the field of low income housing was imperative. A
property owner in the ghetto who sought to bring his parcel up to
FHA standards would commit "economic suicide". The FHA stendards
Were aescribed as completely divorced from the housing market and
the capacity of the neighborhood to sustain such housing.

3. The Need for an Increased Emohasis on the Promotion of Home
Ownership

Mr. Sternlieb maintained thet the experience with the public housing
program indicated that better physical facilities will not produce by
themselves a corresponding improvement in living conditions. The Ghetto
resident will not support urban rehabilitation unless it promises to
lead to some type of home ownership.

hk. The Desirability of Greater Administration Avereness of Urban
Problems

Senator Ribicoff criticized the failure of executive departments
generally to concern themselves with the conditions thet their programs
are designed to affect. He declared that the testimony of Mr. Sternlieb
would enlighten Secretary Weaver end his associates in the Cabinet.

LEE S. STERLING, Executive Director, American Property Rights Association,
New York City

Mr. Sterling testified that the abolition of rent controls and the
compulsory re-education of welfare recepients would be a large st
toward the solution of New York City's housing problem. He deman
that New York City receive no demonstration cities money until rent
control and welfare abuses were abolished.

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