Box 5, Folder 10, Document 56

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OFFICE OF THE ASSISTANT SECRETARY IN REPLY REFER TO:

FOR DEMONSTRATIONS AND INTERGOVERNMENTAL RELATIONS

APR 22 1968

Honorable Ivan Allen, Jr. ih Li, Snid
Mayor of Atlanta LY
Atlanta, Georgia 30303 ee eae

Dear Mayor Allen:

I want to take this opportunity to inform you of what I believe is a
most exciting experiment in building new housing for low- and moderate-
income families within the Inner-City. Within the next several weeks,
@ prime contractor, most likely a joint venture of several firms, will
be selected by the Department of Housing and Urban Development. This
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 Model 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 con-
struction for low-income families.

The prime contractor will seek out, study and evaluate new design, con-
struction and management techniques and systems, as well as materials
and components to be used in the experiments. Based on analysis and
after consultation with city officials and such interested private

groups as labor unions, neighborhood organizations, builders, architects,
sponsors and educators, the contractor will determine the kind of housing
to be built in a specific neighborhood. The goal of the overall ex-
periment 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 will be carried out in the context of the Model Cities
planning and program implementation process. In any case, it seems essen-
tial that the groups mentioned above be consulted if this bold experiment
is to work. Following the selection of the prime contractor, HUD will
work with him to select cities which seem to have the capacity and will-
ingness to carry out an experimental project for low-income housing. The
Department will be committing not only substantial research funds in this
effort, but also tens of millions of dollars of program funds from sev-
eral program sources.
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 enviromment for every American family.

Sincerely yours,
H. Ralph Taylor Aco: dhlaclenp, fps

Assistant Secretary


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