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.l X 021126 EVDAA 202724 13013 MSCDV31G3.70 RAAUIJHZ RUEVDFH0006 1182004~UUUU.--RUEVDAA. FM GEORGE CREEL DIR OF PUBLI C AFFAIRS DHUD WASH DC/HHFA/ TO RUEVDDAA/1/ REGL ADMIN DHUD ATL.l\NTA-GA A~TN: SPECIAL ASST FOR · · _.-·J?.TJBLIC AFFAIRS & ARA'S FOR MODEL CITIES BT THE FOLLOWING STATEJ.'iENT WAS ISSUED BY SECRETIL~Y ROMNEY TO NEWS .trJ.EDIA AT 4:00 PM APRIL 28. ASSISTANT SECRETARY HYDE WILL BE TELEPHONING EACH OF THE REGI ONAL _ADMINISTRATORS TO DISCUSS THE IMPLICATIONS OF THI S STATEMENT WITHIN THE NEXT FEW DAYS. · "SECRETARY .ROMNEY'S STP..TEM.ENT ON MODEL CITIESi' · THE MODEL CITIES PROGRAM IS AN AMBITIOUS EFFORT. IT SEEKS TO . COORDINATE A VAST ARRAY OF FEDERAL PROGRAMS, TO CONCE.i.~RATE THEIR IMPACT ON SPECIFIC DEPRESSED URBAN NEIGHBORHOODS, AND TO l~~.$B LOCAL GOVERNMENTS STRONGER AND MORE FLEXIBLE. l/fY COMMITTEE . ON MODEL CITIE$ OF THE COUNCIL FOR URBAN Jl.FFAIRS HAS BEEN IN'l1 ENSIVELY EXA..tvn;NING 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 CORRECTI ON. AMONG THEM : -.:.F:JilDERAL AGE?~€IE.S. HAVE N0T 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 TUE FEDERAL DEPARTMENTS . ·--FEW EFFECTIVE ATTEMPrS HAVE BEEN MADE 1I'O SECURE ~.rtlE INVOLVEMENT OF STATE GOVERNMENTS. --FEDERAL GUIDELINES HAVE FORCED CITIES TO SET "MODEL NEIGHBORHOOD" BOUNDARIES THAT OFTEN HAVE BEEN ARBITRARY, AND T~T 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 REVISED IN THE FOLLOWING IMPORTANT RESPECTS: -1. THE COUNCIL FOR URBAN AFFAIRS WILL ASSUME DIRECT RESPONSIBILITY FOR INTER-DSPARTMENTAL POLICY AFFECTING MODEL CITIES. 2 • . SECRETARIES OF THE DEPARTMENTS INVOLVED WILL HAVE PERSONAL

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, SUPERVISION OF THEIR DEPARTMfill"'TS' FUNDING OF MODEL CI'lY ES . PROPOSALS, AND WILL RESERVE PROGRAM FUNDS SPECIFICALLY FOR THAT PURPOSE. THIS WILL ENSURE THE AVAILABILITY OF DEPART-I 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 VARI.OUS DEPARTMENTS FOR THEI R MODEL CITIES PLANS. �PAGE TWO RUEVDFH0006 1182004 3. ADMINISTRA'l 'lDON OF THE PROGRAM 'WILL BE FED I11TO THE REORGMU ZA--:- '\TION OF THE REGIONAL FEDEP0,L OFFI CES, NOW UNDERWAY. ONE EFFECT \OF THIS WILL BE TO FACILI 'I'ATE I NTER-DEPARTMENTAL COORDINATION ~T THE REGIONAL LEVEL. IN THE PAST, VARIATIONS AMONG THE FEDERAL OFFICES IN PROGRAM PROCEDURES, HEADQUARTERS LOCATIONS, AND STRUCTURES OF AUTHORITY, H~.VE HAl~DICAPPED WELL~INTENTIONED FEDERAL OFFICIALS AND CONFUSED LOGAL OFFICIALS, THUS SERIOUSLY COMPROMISING THE MODEL CITIES PROGRAM AT THE CITY LEVEL. I GREATER EFFORTS WILL BE MZ\DE TO INVOLVE THE STATE GOVERNMENT S IN THE MODEL CITIES PROGP..AM . LACKOOF STATE INVOLVEMENT HAS PROVEN A CRI'I'ICAL DEFICIENCY BECAUSE MANY OF THE FEDERAL FUNDS NEEDED FOR MODEL CI'I' I ES A.'l:'?.E ADMINISTERED THROUGH STATE .. AGENCIES. OUR AIM WILL NOT BE 'I 0 ADD Ai'10 THER ADM.I.NI STRATIVE LAYER BETWEEN THE CITIES AND THE FEDERAL GOVERNI".i.ENT, BUT TO l'I.AKE .BETTER USE OF THE STATES 1 RESOURCES, EXPERI ENCE AND PERS PEC,:: 'I'IVJJ: • . tmDEL CITIES IS INTENDED TO BE AND WILL REMAIN A LOCAL GOVERNMEl\f'i' PROGRAM CEN'l.'ERED UPON THE .MAYOR I S OFFICE WI'l'H A . CONTINUED REQUIREMENT FOR ADEQUATE CI TI.ZEN INVOLVEMENT. 1 5. THE 10%: POPULA'I1ION RESTRICTION ON THE SIZE OF THE TARGET NEIGHBORHOODS WILL BE DROPPED. THIS GUIDELINE HAS BEEN ~-_;, "\:.ADMINISTERED HAPHAZARDLY IN rrHE 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 PARTICULARLY POOR AND BLIGHTED NEIGHBORHOODS, BUT LOCAL OFFICIALS WILL BE GIVEN GREATER LATITUDE IN DRAWING PROGRAM BOUNDARIES THAT CONFORM TO LOCAL CONDITIONS. \ 6. PRI0PITY CONSIDERATION WILL BE GIVEN TO THOSE CITIES THAT SUCCESSFULLY ENLIST THE PARTICIPATION OF PRIVA'EE AND VOLUNTARY ORGANIZATIONS IN THEIR MODEL CITIES PLANS. THE INCREASED FLEXIBILITY IN ESTABLISHING PROGRAM BOUNDARIES WILL MAKE IT EASIER FOR THESE ORGANIZATIONS TO CIDNTRIBUTE. 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 REQUI RrNG A- LOCAL "COMPREHENSIVE" PLAN OF ATTACK ON BLIGHT AND POVERTY IN THEIR TARGET NEIGHBORHOOD AS REQUIRING PROPOSALS TO I M!.JJ.EDI ATELY ATTACK EVERY CON- -CEIVABLE PROBLEM WITi-II!!-i THESE NEI GHBORI-IOODS . 'I1I:i:S OBVI OUSLY WOULD BE UNWORKABLE : WHAT IS IMPORTAN11 IS THAT CI TY GOVERNMENrS SET CLEll..R PRI ORI TIES FOR ATTACKI NG THEIR PROBLEMS SO-THAT THEY CAN MAKE RAPI D AND SUBSTANTIAL PROGRESS TOWARD SOLVING THEIR MOST URGENT RATHER THAN DI SSI PATING THEIR RESOURCES IN A VAIN EFFORT TO SOLVE ALL. THI S ADMINSTRATION WILL COMPLETELY SCRUTINIZE APPLICA'I1I ONS TO ELI MINATE UNWISE OR UNNECESSARY f PROPOSALS o �PAGE THREE RUEVDFH0006 118200 WITH THESE REVISIONS , I FEEL THAT THE MODEL · CITIE S PROGRAM CAN HELP US ·To ACHIEVE TWO IMPORTANT GOALS--A MORE RZ~TIONAL AND CREA.TIVE FEDERAL-STATE-·LOCAL SYS'l'Ei."1, AND CITY GOVERNMENT S THA'r ARE MORE FDEXIBLE AND RESPONSIVE TO THE NEEDS OF THEIR CITIZENS • . WE MUST REALIZE THAT ELIMINATION OF BLIGHT AND POVERTY IN OUR CENTRAL CITIES Cl1..NNO'I! BE ACCOMPLISHED OVERNIGHT. IT WILL BE A HARD AND OFTEN FRUSTfil\.TI NG STRUGGLE, BUT MODEL CITIES DOES OFFER US THE lli.EJ.\..NS OF BETTER USING OUR PRESENT RESOURCES,, Al\1'1) THUS TAKING AN IMPORTAN'I' STEP IN 'fi-IAT DIRECTION. 11 NNNN 121126 E\"'DAA 1 J ! l i I \ \ \ -~- -------

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