Box 15, Folder 3, Document 72

Box 15, Folder 3, Document 72

3€ ii
' 021126 EVDAA

202724 13013 MSCDV310370 c

RAAUIJHZ RUEVDFHOO00S 1182004-UUUU--RUEVDAA,

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

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

_+: .“PUBLIC AFFAIRS & ARA'S FOR MODEL CITIES

BL. .

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.
COORDINATS A VAST ARRAY OF FEDERAL PROGRAMS, TO CONCENTRATE THEIR
IMPACT ON SPECIFIC DEPRESSED URBAN NEIGHBORHOODS, AND TO MAKE LOCAL
GOVERNMENTS STRONGER AND MORE FLEXIBZEE. 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 CRITICAL DEFICIENCIES IN ITS ADMINISTRATION
WHICH CALL FOR IMMEDIATE CORRECTION. AMONG THEM:

--FEDERAL AGENCIES HAVE NO? BEEN: SUBFICIENTLY 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 i
COUNCIL THAT THE MODEL CITIES PROGRAM BE Seoree IN THE FOLLOWING
IMPORTANT RESEEGTE

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

2. _ SECRETARIES OF THE DEPARTMENTS INVOLVED WILL HAVE PERSONAL

4° 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 THELR MODEL CITIES PLANS.
PAGE TWO RUEVDFHOOOS 1182004

3.

5.

, ADMINISTRATION OF THE PROGRAM WILL BE FED INTO THE REORGANIZA-

TION OF THE REGIONAL FEDERAL OFBICES, 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.

GREATER EFFORTS WILL BE MADE TO INVOLVE THE STATE GOVERNMENTS

IN THE MODEL CITIES PROGRAM. LACKSOOF STATE INVOLVEMENT HAS
PROVEN A CRITICAL DEFICIENCY BECAUSE MANY OF THE FEDERAL FUNDS
NEEDED FOR MODEL CITIES ARE ADMINISTERED THROUGH STATE ; :
AGENCIES. OUR AIM WILL NOT BE To ADD ANOTHER ADMINISTRATIVE
LAYER BETWEEN THE CITIES AND TH 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.

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

°. -S_ADMINESTERED HAPHAZARDLY IN THE PAST AND HAS HINDERED PROGRESS

E

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. |

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.

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"
PLAN OF ATTACK ON BLIGHT AND POVERTY IN THEIR TARGET NEIGHBOR-
HOOD AS REQUIRING PROPOSALS TO IMMEDIATELY ATTACK EVERY CON-
CEIVABLE PROBLEM WITHIN THESE NEIGHBORHOODS. ‘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 SOLVE ALL. THIS ADMINSTRATION WILL COMPLETELY
SCRUTINIZE APPLICATIONS TO ELIMINATE UNWISE OR UNNECESSARY
PROPOSALS.
PAGE THREE RUEVDFHOOO6 118200

WITH THESE REVISIONS, I FEEL THAT 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 WII 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. "

NNNN
121126 EVDAA

——