Box 8, Folder 21, Document 7

Box 8, Folder 21, Document 7

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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ee! A PEACHTREE SEVENTH BUILDING, ATLANTA, GEORGIA 30323
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January 20,
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REGION Ill

IN REPLY REFER To:

Office of the Regional Administrator
3DM

Mr. Johnny C. Johnson

_ Director
City Demonstration Agency
673 Capitol Avenue
Atlanta, Georgia 30315

Dear Mr. Johnson:

Subject: Expenditure of Planning Grant Funds Prior
to Execution of Grant Contract

I refer to recent conversations between Mr. David Caldwell of
your staff and Mr. Thomas E. Williams, Model Cities Coordinator
for Atlanta, concerning the expenditure by the CDA of planning
grant funds beyond the period specified in the approved Planning
Budget. As you know, your revised Planning Buiget, which was
approved by HUD on September 12, 1968, covers the perted from
December 1, 1967 through January 31, 1969. However, since the
grant budget for the first year execution phase of your program
may not be executed until after January 31, 1969, all eligible

- planning costs may and should continue to be paid for under the
planning budget (both the Federal Planning Grant and the non-
Federal contribution) until such time as planning funds are
exhausted or until the grant contract is executed, whichever is
earliest.

Sincerely yours,

Cae "4 "Re Ge ?

Earl H. Metzger, Jr.
Assistant Regional Administrator
for Model Cities

- x JAN 22 1969