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CEPr..l~TMi0: !-~T OF H O LJ SI 1-! G A l'-l D UR!:-3A N OEVE L.OPMENT Vlt, 5t-li i'1GT0t{, D. C . ?.0,1i0 OF'F I CE OF TH E /..,S$ l <; Tt..N T SE CR L TA !.: Y r,· oR MOD E L C ! T!F.:. S f->. MO GOVL:Rt,-lMENT AL R F~ LA TI O t.J~ ORIGINl\L IN R E rLY R L t0 ER - ----- -·---- October 21 , 1 969 TO: J .. J). Br2.1n a 11 , ,~ssi stnnt S e cr e:ta1-:-y, ]JOT Mr . Ric h o nJ Natha n r As sistant Direct.or , BOB Arnold R. We ber, Assistant ~ccr~tary , DOL Frank Carlucci, Act ing Dirc c to r 1 CAP , JEO Robe r t A. Podest~, Assist a nt Secr0ta ry , Con mer ce Lewis Butler , As sista n t Secr eta ry, nmv Chri t opl i i2r DeMuth , Staff Assistant to the Pres ident Chu r le s H. Rogov in, Adminict r tor, LBJ'I.A , J u st i ce 0 F ROM: Fl oyd H. Hy de , Ass ~s tan t SUB.J: Improving th e Man~gcmcnt o f the Model Citi P:r.og rum : Se c·-,ta ry, MCG! . P A Propos al 1 am :_nc los.in9 for y our revim·J a HUD- c ncl.m:-s,-"d 11 Propos8 l for I mprov :ci Man ageme nt of th e r,!ocl c 1 Ci.t ics Progru.m. 11 I t :i,s b ased u po n th ~ ass umption t.)Ht rcc1 s onabJ.c process and pe?r fon nancc er i tc:t ia ~a n be:: es ta.bl ished -and corn.municat ed t o the cities so t hRt the l eve l of suppleme nt a l fu nd o b l ig ations can b e determ .' ned by measu ring a ci t y ' s progres s a nd effort in re l ation to these criteria. It is a lso bQsed on t he proros ition that the Model Cities process i s~ means o f inc reasi11g the capacity of l ocal governm ~nt to deal with its urba n problem. , a n d th~t the effect ive appli c a tion of 1 imited resour.-ces by the Federal Gciv er:rune nt ca n b e h e lpful in dcmon ~trati1g that fac t . In th is connection , the HOD propo sc:il should be b e n eficia l to tlic Mod0 l Cit Los-connected effort s of other departmen ts and aqcncics . ·.rhe Model Ci t j cs approac h h os the po t e n t i .J. l of increasing the effcc t ivnn ess of nny i nC i vidual categoric a l c3rant } roj c ct 1.)y l .y ing it in t o a coordi natQd, r a tion,..lJ. l oca l effor t to so lv e related probl e ms . The determinr1t5 on of the mor(! prom i sing lo .a l .Model · Cities programs s l1ould be hel. Iul in appl11 ing other ava ilc::iblc Federal re sourc ~s as WQl l. The jnl'lqrncn t proc(:Sf-; conLemplntcd b y HUD wo1.1 l d main" a i n a role Ser th<2 r;,~J inn21 l and \\1a s}1i1 ·s1 Lo n intcr.::iy 12ncy rov iew COF!nli ti·r ··c..5:'; . U- \S , 1 lso '. ,uqq,~.,,tr:::d L.!1 ;:l·i th(i j:.,:;sistant ro : �2. Se cr eta ries Work ing Group tak e o n t h e major responsibility for determinino those ci ti es in which to concentra te suppl -, ment al fund s over a nd abov e wh a t: a ci t y would norma lly rec ei ve, as we ll a s o t her priority assis t a nce. I would like to sc h edule a m_ eti ng o f the Ass is tant Sec r e tari e s Worki ng Group to di scuss th i s pr o posa l on Fr i daj , October 31, 1969 at 4 :00 p . m., Room 8 202. It is Secre t ary Romney ' s i nte ntion to take th e proposalr togeth er wit h th e com1nents b y the ASWG , t o the Under Se c r cta r ies Group and the n ~o the Urban Affairs Council . If the approach appears to be appropr i ate , HUD wo ul d l ike to p u t it into op e ration as quickly as possi bl • I loo k forward to your comme nts on t h e proposal u.t the Oc ober 31 meet ing. I f yo u r o wn Depar tme nt has had any exper ienc c yo u could share \-Jith HUD v.1i t h respe ct to this t ype of appro<'1c h to fund i11g r this in f orma tion would be great ly appreciateci.

. .( As s ist ~nt Secretary ' �