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~ 021126 EVDA./\ 202724 13013 MSCDV316370 RAAU!JUZ RUEVDE'H0006 1182004-UUUU- -RUEVDJ\..A. FM GEORGE CREEL DIR OF PUBLIC AF'FAIRS DRUD 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 S'1.1ATIDI..ENT WAS ISSUED BY SECRETARY ROl'-1:tifEY TO Nt..WS MEDIA AT 4 :00 PM APRIL 28. ASSIS'fi\NT SECRETARY HYDE WILL BE TELEPHONING EACH OF THE REGIONAL J\DMINISTR..~TORS TO DISCUSS THE IMPLICATIONS OF THIS STATEMENT WITHIN THE NEXT FEW DAYS. · "SECRETARY ROMNEY I S STATEYJ.El\fT ON MODEL CITIES i, CITIES PROGRAM IS AN AM.BITIOUS EFFORT. IT SEEKS _TO . COORDINATF. A VAST ARRAY OF FEDERAL PROGRAMS, TO CONCENTRATE THEIR IMPACT ON SPECIFIC DEPRESSED URBAN DTEIGHBORHOODS, 1'..ND TO MAKE LOCAL GOVERNMENTS STRONGER AND l• ORE FLEXIB.lf:,E. l-'I':l COMMITTEE . ON MODEL CITIES OF THE COUNCIL FOR URBAN AFFAIRS HAS BEEN INTENSIVELY EXA.MJ;NING · THE PROGRAM. ITS STUDY.HAS SHOWN THAT THE PROGRAM'S GOALS ARE SOUND, BUT THAT THERE HAVE BEEN CRITICAL DEFICIENCIES IN l:TS ADMINXSTRAT!ON WHICH CALL FOR IMMEDIATE CORRECTION. AMONG _THEM: . - THE MOD:(:;t, _ ..;.FE_OERAL AGEMCIE.S . HAVE N0T.-.BEEN, StmFICIENTLY RESPONSIVE . TO LOCAL PROPOSALS REFLECTING SPECIFIC LOCAL CONDITIONS. ==IN DEVELOPING THEIR PROPOSALS, LOCAL AUTHORITIES HAVE BEEN THAT HINDERED BY UNCER_TAINTY AS TO THE AMOUNTS OF FUNDS WOULD BE AVAILABLE FROM THE FEDERAL DEPARTMENTS. ·-~FEW EFFECTIVE ATTEMPTS HAVE BEEN MADE TO SECURE THE INVOLVEMENT OF STATE GOVERNMENTS. --FEDER.AL GUIDELINES HAVE FORCED CITIES TO SET "MODEL NEIGHBORHOOD" BOUNDARIES THAT OFTEN HAVE BEEN ARBITRARY, AND T~T HAVE CREATED UNNECESSARY DIVISIONS AMONG 1"DDEL 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: ·l. THE COUNCIL FOR URBAN AFFAIRS WILL ASSUME DIRECT RESPONSIBILITY FOR INTER-DePARTMENTAL POLICY AFFECTING MODEL CITIES. 2. , SECRETARIES OF THE DEPARTMENTS INVOLVED WILL HAVE PERSONAt ' SUPERVISI ON OF THEIR DEPARTMENTS I FUNDING OF MODEL CIT.c ES ~-·· ; ·· PROPOSALS, AND WILL RESERVE PROGRAM FUNDS SPECIFICALLY FOR THAT PURPOSE. THIS WILL ENSURE THE AVAILABILITY OF DEPART-1 MENTAL FUNDS FOR MODEL CITIES, AND WILL GIVE LOCAL AUTHORITi ES A BETTER IDEA OF THE . AMOUNT AND KIND OF FUNDS THEY CAN EXPECT FROM THE VARIOUS DEPARTMENTS FOR THE: R MODEL CI TIES PLANS . ,-. �PAGE TWO RUEVDFH0006 1182004 3. ADMI NISTRAT~ON OF THE PROGRAM WILL BE FED INTO THE REORGA.i.~IZA' TION OF THE REGI ONAL FEDEF0L OFF.ICES, NOW UNDERWAY. ONE E?FECT \ ,OF THIS WILL BE TO FACILI'I'A'rE IN'l'ER-DEPART.MENTAL COORDI NATION AT Tl·lE REGIONAL LEVEL. IN THE PAST, VARIATIONS AMONG THE . FEDERAL OFFICES IN PROGRF-~M PROCEDURES, HEADQUARTERS LOCATIONS, Alm STRUCTURES OF AUTHORITY, r~~VE HAL~DICAPPED WELL=INTENTIONED FEDERAL OF'FICIALS AND CONFUSED LOGAL OFFICIJ\.LS, THUS SERIOUSLY COMPROMISING THE MODEL CITIES PROGRAM A'J..1 THE CITY LEVEL. I GREATER EFFORTS WILL BE !1ADE TO INVOLVE THE STATE GOVERNMENTS IN THE MODEL CITIES PROGP..AMo LACKOOF STATE INVOLVEMENT HAS PROVEl'i A CRITICAL DEFICIENCY BECAUSE MANY OF 'I'HE FEDERAL FUNDS NEEDED FOR MODEL CI'l'IES A.i.'Q.E ADM.!NISTERED THROUGH S'l.,ATE .. AGF..'NCIESo OUR AIM WILL NOT BE TO ADD Ai·mrrI--IER ADMINISTRATIVE LAYER BETWEEN THE CITIES AND ~':HE FEDERAL GOVERNMENT, BUT TO MAKE BETTER USE OF THE STATES 1 R~SOURCES, EXPERIENCE AND PER.SPEC= 'l1IVE. · MODEL CITIES IS INTENDBD r.1:10 BE AND WILL REMAIN A LOCAL GOVERNMENT PROGRAM CJ,,JN""TERED UPON THE MAYOR ' S OFFICE WITH A CONTINUED REQUIREMENT FOR ADEQUATE CI TI.ZEN INVOLVEMENT. 5. THE 10%.' POPUL~TION RESTRICTION ON THE SIZE OF THE TARGET NEIGHBORHOODS WILL BE DROPPED. THIS GUIDELINE HAS BEEN

' ;,"A;U\DMINISTERED HAPHAZARDLY IN THE PAST AND HAS HINDERED PROGRESS

AT THE LOCAL LEVEL. ELI!~INATING THIS GUIDELINE DOES NOT l..-IBAN THAT THE PROGRAM WT.LL 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. J I 6. PRIORITY CONSIDERATION v'l!LL BB GIVEN TO THOSE CITIES THAT SUCCESSFULLY ENLIST THE PARTICIPATION OF PRIVA~ E AND VOLUNTARY ORGANIZATIONS IN THEIR MODEL CITIES PLANS. THE INCREASED FLEXIBILITY IN ESTABLISHING PROGRAM BOUNDARIES WILL MAl<E 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 nCOMPREHF.NSIVENESS" ONLY IN THE PROGRAMS ' FIVE-YEAR PLANNING CYCLE. MANY CITIES HAVE INTERPRETED MODEL CITIES LEGI SLATION AND ADMINI STRATIVE GUIDELINES REQUIRING A" LOCAL "COMPREHENSIVE" PLAN OF ATTACK ON BLIGHT&~ POVERTY IN THEIR TARGET NEIGHBOR~ HOOD AS REQUIRING PROPOSALS TO IMMEDIATELY ATTACK EVERY CONCEIVABLE PROBLEM'. WITHIN THESE NEI GHBORHOODS. 'THIS OBVIOUSLY WOULD BE UNWORKABLE: WHJ-lT IS IMPORTAN'l.1 IS THAT CITY GOVERNMEN'l ' S SET CLEF-.R PRIORI TIES FOR ATTACKI NG THEI R PROBLEMS SO THAT THEY CAN MAKE RAPID l\ND SUB STAbfrIAL PROGRESS TOWARD SOLVING THEIR MOST URGENT RATHER THAN DISSIPATING THEIR RE SOURCES I N A VAIN EFFORT TO SOLVE ALL. THIS ADMINSTRATION WI LL COMPLETELY SCRUTINI ZE APPLICA'l'I ON'S TO ELIMINATE UNWISE OR UNNECESS ARY f PROPOSALS o / �PAGE THREE RUEVDPH0006 118200 WITH THESE REVISIONS, I FEEL THAT THE MODEL CITIES PROGRAM CAN HELP US 'TO ACHIEVE T'v'lO IMPO~TANT GOALS--A MORE RATIONAL AND CREATIVE FEDERAL-STATE-·LOCAL SYSTEM, AND CITY GOVERNMENTS TH.AT ARE MORE FI,EXIBLE AND RESPONSIVE TO THE NEEDS OF THEIR CITIZENS. . WE .M.UST REALIZE THAT ELIMINATION OF BLIGHT AND POVERTY IN OUR CENTRAL CITIES C)l..N.NOT BE ACCOMPLISHED OVERNIGHT. IT WILL BE A HARD A1'i"<D OFTEN FRUSTRATING STRUGGLE, BUT MODEL CITIES DOES OFFER US THE .MEANS OF BETTER USING OUR PRESENT RESOURCESr AND THUS TAKING AN IMPORTAN'l' SIJ.1 EP IN 'l'HAT DIRECTION. 11 NNNN 121126 EVDAA f . ! , \ I \ \ \ �