Box 15, Folder 3, Document 68

Box 15, Folder 3, Document 68

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202724 130433 MECDV310370

RAAUIJHZ RUEVDFHOO0O6 1182004-UUUU~-RUEVDAA.

FM GEORGE CREEL DIR OF PUBLIC AFFALRS DHUD WASH DC/HHFA/

TO RUEVDDAA/1/ REGL ADMIN DHUD ATLANTA. GA ATTN: SPECIAL ASST FOR

. PUBLIC AFFAIRS & ARA'S FOR MODEL CITIES

BT -

THE FOLLOWING STATEMENT WAS ISSUED BY SECRETARY ROMNEY TO NEWS
MEDIA AT 4:00 PM APRIL 28. ASSISTANT SECRETARY HYDE WILL BE
TELEPHONING EACH OF THE REGIONAL ADMINISTRATORS TO DISCUSS
THE IMPLICATIONS OF THIS STATEMENT WITHIN THE NEXT FEW DAYS.

"SECRETARY ROMNEY'S STATEMENT ON MODEL CITIES®

- THE MODEL CITIES PROGRAM IS AN AMBITIOUS EFFORT. IT SEEKS TO
COORDINATE A VAST ARRAY OF FEDERAL PROGRAMS, TO CONCENTRATE THEIR
IMPACT ON SPECIFIC DEPRESSED URBAN NEIGHBORHOODS, AND TO MAKE LOCAL
GOVERNMENTS STRONGER AND MORE FLEXIBGE. MY COMMITTEE ON MODEL CITIES
OF THE COUNCIL FOR URBAN AFFAIRS HAS BEEN INTENSIVELY EXAMINING THE
PROGRAM. ITS STUDY.HAS SHOWN THAT THE PROGRAM'S GOALS ARE SOUND,

BUT THAT THERE HAVE BEEN CRETICAL DEFICIENCLES IN ITS ADMINISTRATION
WHICH CALL FOR IMMEDIATE CORRECTION. AMONG THEM:

--FEDERAL AGENCIES HAVE NO? BEEN: SUFFICIENTLY RESPONSIVE
.TO LOCAL PROPOSALS REFLECTING SPECIFIC LOCAL CONDITIONS.

=--IN DEVELOPING THEIR PROPOSALS, LOCAL AUTHORITIES HAVE
BEEN HINDERED BY UNCERTAINTY AS TO THE AMOUNTS OF FUNDS
THAT WOULD BE AVAILABLE FROM THE FEDERAL DEPARTMENTS.

‘—-FEW EFFECTIVE ATTEMPTS HAVE BEEN MADE TO SECURE THE
INVOLVEMENT OF STATE GOVERNMENTS, ;

--FEDERAL GUIDELINES HAVE FORCED CITIES TO SET "MODEL
NEIGHBORHOOD" BOUNDARIES THAT OFTEN HAVE BEEN ARBITRARY,
AND THAT HAVE CREATED UNNECESSARY DIVISIONS AMONG MODEL
CITIES RESIDENTS.

THE PRESIDENT HAS APPROVED THE RECOMMENDATIONS OF THE URBAN AFFAIRS |
COUNCIL THAT THE MODEL CITIES PROGRAM BE Roe er. IN THE FOLLOWING
IMPORTANT Seer eae

1. THE couNcrL FOR URBAN AFFAIRS WILL ASSUME DIRECT RESPONSIBILITY
FOR INTER~DEPARTMENTAL POLICY AFFECTING MODEL CITIES.

2. _ SECRETARIES OF THE DEPARTMENTS INVOLVED WILL HAVE PERSONAT,

‘* SUPERVISION OF THEIR DEPARTMENTS' FUNDING OF MODEL CIT ES
PROPOSALS, AND WILL RESERVE PROGRAM FUNDS SPECIFICALLY FOR

_ THAT PURPOSE. THIS WILL ENSURE THE AVAILABILITY OF DEPART =\

' MENTAL FUNDS FOR MODEL CITIES, AND WILL GIVE LOCAL AUTHORITIES
A BETTER IDEA OF THE AMOUNT AND KIND OF FUNDS THEY CAN EXPECT

- FROM THE VARIOUS DEPARTMENTS FOR THE. R MODEL CITIES PLANS.
PAGE TWO RUEVDFHOOOS 1182004

3. | ADMINISTRATION OF THE PROGRAM WILL BE FED INTO THE REORGANIZA~
\TION OF THE REGIONAL FEDERAL OFEICES, NOW UNDERWAY. ONE EFFECT
\OF THIS WILL BE TO FACILITATE INTER-DEPARTMENTAL COORDINATION
AT THE REGIONAL LEVEL. IN THE PAST, VARIATIONS AMONG THE
FEDERAL OFFICES IN PROGRAM PROCEDURES, HEADQUARTERS LOCATIONS,
AND STRUCTURES OF AUTHORITY, HAVE HANDICAPPED WELL-INTENTIONED
FEDERAL OFFICIALS AND CONFUSED LOCAL OFFICIALS, THUS SERIOUSLY
COMPROMISING THE MODEL CITIES PROGRAM AT THE CITY LEVEL.

4. GREATER EFFORTS WILL BE MADE TO INVOLVE THE STATE GOVERNMENTS
IN THE MODEL CITIES PROGRAM. LACKCOF STATE INVOLVEMENT HAS
PROVEN A CRITICAL DEFICIENCY BECAUSE MANY OF THE FEDERAL FUNDS
NEEDED FOR MODEL CITIES ARE ADMINISTERED THROUGH STATE :
AGENCZES. OUR AIM WILL NOT BE TO ADD ANOTHER ADMINISTRATIVE
LAYER BETWEEN THE CITIES AND THE FEDERAL GOVERNMENT, BUT TO
MAKE BETTER USE OF THE STATES'RESOURCES, EXPERIENCE AND PERSPEC-
TIVE. MODEL CITIES IS INTENDED TO BE AND WILL REMAIN A LOCAL
GOVERNMENT PROGRAM CENTERED UPON THE MAYOR'S OFFICE WITH A
CONTINUED REQUIREMENT FOR ADEQUATE CITIZEN INVOLVEMENT.

5. THE 10% POPULATION RESTRICTION ON THE SIZE OF THE TARGET
NEIGHBORHOODS WiLL BE DROPPED. THIS GUIDELINE HAS BEEN

*. XLADMINESTERED HAPHAZARDLY IN THE PAST AND HAS HINDERED PROGRESS
AT THE LOCAL LEVEL. ELIMINATING THIS GUIDELINE DOES NOT MEAN
THAT THE PROGRAM WILL BE EXPANDED CITYWIDE WITHIN EACH CITY.
ITS PURPOSE WILL REMAIN THAT OF FOCUSING RESOURCES ON PARTICU-
LARLY POOR AND BLIGHTED NEIGHBORHOODS, BUT LOCAL OFFICIALS WILL
BE GIVEN GREATER LATITUDE IN DRAWING PROGRAM BOUNDARIES THAT
CONFORM TO LOCAL CONDITIONS. |

6. PRIORITY CONSIDERATION WILL BE GIVEN TO THOSE CITIES THAT
SUCCESSFULLY ENLIST THE PARTICIPATION OF PRIVATE AND VOLUNTARY
ORGANIZATIONS IN THEIR MODEL CITIES PLANS. THE INCREASED
FLEXIBILITY IN ESTABLISHING PROGRAM BOUNDARIES WILL MAKE IT
EASIER FOR THESE ORGANIZATIONS TO CONTRIBUTE.

7. LOCAL GOVERNMENTS WILL BE ASKED TO ESTABLISH CLEAR PRIORITIES
IN DEVELOPING THEIR MODEL CITIES PROPOSALS, AND TO STRIVE FOR
"COMPREHENSIVENESS" ONLY IN THE PROGRAMS' FIVE-YEAR PLANNING
CYCLE. MANY CITIES HAVE INTERPRETED MODEL CITIES LEGISLATION
AND ADMINISTRATIVE GUIDELINES REQUIRENG A LOCAL “COMPREHENSIVE”

F PLAN OF ATTACK ON BLIGHT AND POVERTY IN THEIR TARGET NEIGHBOR-
HOOD AS REQUIRING PROPOSALS TO IMMEDIATELY ATTACK EVERY CON-
CEIVABLE PROBLEM WITHIN THESE NEIGHRORHOODS. ‘THIS OBVIOUSLY
WOULD BE UNWORKABLE: WHAT IS IMPORTANT IS THAT CITY GOVERN-
MENTS SET CLEAR PRIORITIES FOR ATTACKING THEIR PROBLEMS SO THAT
THEY CAN MAKE RAPID AND SUBSTANTIAL PROGRESS TOWARD SOLVING
THEIR MOST URGENT RATHER THAN DISSIPATING THEIR RESOURCES IN
A VAIN EFFORT TO SCLVE ALL. THIS ADMINSTRATION WILL COMPLETELY
SCRUTINIZE APPLICATIONS TO ELIMINATE UNWISE OR UNNECESSARY
PROPOSALS.
PAGE THREE RUEVDFHO006 118200.

WITH THESE REVISIONS, I FEEL TRAT THE MODEL CITIES PROGRAM CAN HELP
US TO ACHIEVE TWO IMPORTANT GOALS--A MORE RATIONAL AND CREATIVE
FEDERAL-STATE~LOCAL SYSTEM, AND CITY GOVERNMENTS THAT ARE MORE
FLEXIBLE AND RESPONSIVE TO THE NEEDS OF THEIR CITIZENS... WE MUST
REALIZE THAT ELIMINATION OF BLIGHT AND POVERTY IN OUR CENTRAL
CITIES CANNOT BE ACCOMPLISHED OVERNIGHT. IT WILdt BE A HARD AND
OFTEN FRUSTRATING STRUGGLE, BUT MODEL CITIES DOES OFFER US THE
MEANS OF BETTER USING OUR PRESENT RESOURCES, AND THUS TAKING

AN IMPORTANT STEP IN THAT DIRECTION."

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