Box 5, Folder 10, Document 57

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Ee Spe Cy"

May 15, 1968

Honorable H. Ralph Taylor

Assistant Secretary

Department of Housing and Urban Development
Washington, D. C. 20410

Dear Secretary Taylor:

On March 10, 1967, the City of Atlanta submitted its application
for a Comprehensive City Demonstration grant under the
Demonstration Cities and Metropolitan Development Act of 1966.
The application was developed by the HUD guidelines for these
purposes entitled "Improving the Quality of Urban Life". The
total cost of the Atlanta program was estimated for planning
purposes at $500, 690. 00.

On November 15, 1967, HUD announced the selection of Atlanta along
with 65 other cities as initial recipients of Model Neighborhood
Program grants. However, Atlanta unlike many of the other 65
cities received less than complete direct Federal funding for this
program. Atlanta's program as determined by HUD was to receive
$152,000 in direct Model Neighborhood Program grant funds

(80/20 monies) with additional Federal monies to be made available
through the CRP and 701 programs totalling $127,000. The latter
are matched on a 1/3 + 2/3 basis.

In addition, monies were also made available to Atlanta through the
EDA program totalling $100, 000 but this was completely earmarked
for economic planning purposes.

On the surface, this was an impressive outlay of Federal funds and
appeared satisfactory at the time; even moreso with the overtures
made by HUD to the internal operating procedures to be worked out

Secretary Taylor
Page Two
May 15, 1968

by HUD among its allied agencies relative to "cooperation", "Special
processing and handling of materials pretaining to this program",

etc. We, therefore, accepted this offer of Federal financial assistance
in the spirit of innovative planning and financing on the part of HUD

and proceeded to make known our intentions of retaining the original
size and scope of the local program without alteration.

Obviously, such a new Federal program is fraught with difficulties

in attempting to make it operational. Staffing arrangements alone at
the local level are monumental to say nothing of the work elements to
be undertaken. Being that as it may, HUD has since the inception of
the program promulgated certain technical memoranda which provide
a further detailing of "required" work elements. Meanwhile, our staff
has struggled along attempting to work out the necessary applications
and obtain the additional Federal monies under this circuitous financial
arrangement. 7

On March 15, 1968, the City submitted its 701 Application for Model
Neighborhood Program planning purposes + its status at present is
still ‘under going review" by HUD. An Amendatory Application for
CRP grant funds for Model Neighborhood Program planning purposes
is pending submission to HUD. Combined, each has caused the City
to spend an undue amount of time and effort in attempting to utilize
this qnique method 6# financing the Model Neighborhood Program in
Atlanta. ,

Unbf}tunately, each application has had to be written to conform to the
specifications of the reviewing agency of HUD thereby restricting and
restraining maximum benefit to the Model Neighborhood Program,
Neither of these applications provide us with the total flexibility and
wherewithal needed by the City to undertake those work elements of
the Model Neighborhood Program required by HUD in a satisfactory,
proper and expeditious manner.

It is our understanding that there are supplementary Model Neighborhodd
Program grant funds available, and additionally, HUD is currently in the
process of selecting its second round Model Neighborhood Program grant
recipients. We feel that HUD would best do well to reconsider full,
complete and direct Federal funding of those on+going Model Neighborhood

Secretary Taylor
Page Three
May 15, 1968

Programs prior to expanding this sort of malaise, With laborious

and time consuming procedures necessary for obtaining CRP and 701
grant funds for Model Neighborhood Program planning purposes;

with indications that the HUD agencies are not cooperating with each
other; with no guarantee that the processing of applications has been
given the highest priority other than the normal procedure; with the
inequitable local non-cash matching requirements we have suffered
under; we, therefore, appeal to HUD to reconsider our current financial
arrangements relative to the preparation and undertaking of the Atlanta
Model Neighborhood Program.

The City of Atlanta requests that HUD reserve and appropriate

$150, 000 in Model Neighborhood Program grant funds in lieu of the
701 and CRP Federal grant funds to be used for planning purposes in
the Atlanta Model Neighborhood Program. This additional $150, 000
in Federal grant funds would bring our base Model Neighborhood
Program grant up from $152,000 to $302,000. The formidable
obstacles we have feced to date and those that remain will be sub-
stantially reduced by favorable action on this matter on the part of

We respectfully request that this appeal be given your immediate and
sincere consideration in order that sufficient funds might be made
available for us to do a competent job and to improve the possibilities
of achieving the goals of Model Neighborhood planning in Atlanta,

Sincerely yours,

Ivan Ailen, Jr.

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