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... - - DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT . WASHINGTON, D. C. 20410 . ! OFFICE OF THE ASSISTAN_T SECRETARY FOR DEMONSTRATIONS AND INTERGOVERNMENTAL RELATIONS IN REPLY REFER TO: APR 2 2 1968 I . . Honorable Iva_~ Allen, Jr. ¥.ayor of Atlanta Atlanta, Georgia 30303 Dear ·Mayor Allen: I want to take this opportunity to i~orm you of what I believe is a lllost exciting experiment in building new housing for low- and moderateincome families within the Inner-City. Within the ne:x-t several weeks, a prime contractor, most likely a joint venture of several firms, will be selected. by the Department of Housing and Urban Development. T'nis prime contractor will be expected to supervise and manage a variety of low-cost housing experiments in perhaps as many as 20 cities, most of which now have Mod.el Cities grants. These experiments -will be carried out only in cities which are -willing to cooperate in the development of innovative techniques aimed at generating a higher level of housing construction for low-income families. !l1he prime contractor will seek out, study and evaluate new design, construction and management techniques and systems, as well as materials and components to be used in the e.A-periments. Based on analysis and. after consultation with city officials and such interested private groups as l~bor unions, neighborhood organizations, builders, architects, sponsors and educators, the contractor wlll determine the kind_of housing to be built in a specific neighborhood. T'ne goal of the overall experiment is to obtain more housing value for each dollar spent in the development of good city housing for low-income families, and to identify the obstacles to building such housing. Where such housing is to be built within a designated model neighborhood, the experiment "1ill be carried out in the context of the Model Cities planning and program implementation process. In any case, it seems essential that the groups mentioned above be consulted if this bold experiment is to work. Following the selection of the prime contractor, HUD 'Will work wl th him to select cities which seem ,to have the capacity and willingness to carr y out an e:x-perimental project for low-income housing. The Departinent will be committing not only substantial research funds in this effort, but also t ens of millions of dollars o~ . program f'unds from several program soUTces. �- 7 • 2 With the :full cooperation of all who become involved in this experiment to better the nation's housing, and to make government more responsive to the most pressing housing needs, I believe that this can be a most . significant step toward meeting the goal of a decent home in a suitable living environment f'or every· American family. / Sincerely yours, .. • 1 . . ' ' ·. . -'_· . .' . ,, . ..: . . \ I I ~ '

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/4~(!dA,/4cl'AJ; f/-N . ., .? .. H. Ralph Taylor Assistant Secretary �