Box 15, Folder 3, Document 59

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HUD-No. 69-0359 FOR RELEASE:

Phone (202) 755-6980 A. M. Papers



Secretary George Romney, of the U.S. Department of Housing
and Urban Development, today announced the tender of a $5.2
million Model Cities contract to Seattle, Washington.

Seattle has also been given assurances for substantial funds
from other programs administered by HUD, and the Department of
Health, Education and Welfare, the Department of Labor, and the
Office of Economic Opportunity.

Today's action by Secretary Romney will enable the city to
begin its first year action phase under its comprehensive five-
year Model Cities program. State, local and private resources
will also be used by the city in its concentrated, coordinated
attack on the serious social, economic and physical problems
within the Model Cities area.

Of the $5,200,000 in Model Cities supplemental funds, approx-
imately $1,200,000 will generate $10,100,000 in capital construc-
tion, Secretary Romney said. HUD has approved a neighborhood
development program for Seattle as well as a neighborhood facili-
ties project, parks and urban beautification, 100 units of low-
rent public housing on scattered sites under the leased housing
program, 25 units of rehabilitated housing, and 100 new houses
under FHA's new mortgage insurance program.

HEW has stated that, in addition to substantial HEW funds
which presently provide health, education and welfare services
to the Seattle Model Cities area, HEW has indicated the poten-
tial availability of $2,095,600. HEW will continue its ongoing
efforts with Seattle to make these funds available to carry out
the plan, to the extent possible under existing program legisla-
tion. Included are programs for dropout prevention, for teacher
training, the Teacher Corps, maternal and infant care,for the
elderly, and for treating the mentally retarded.

A total of $2,347,000 for a Concentrated Employment Program
in Seattle,funded by the Department of Labor, will provide work
training, work experience and other manpower services for Model
Cities area residents. The Office of Economic Opportunity in-
dicated that it expects to maintain the present $2.4 million
level of annual funding for Community Action Program activity
within the Seattle Model Cities area for the coming year.

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Secretary Romney, who is the Chairman of the President's
Cabinet Committee on Voluntary Action, noted the extensive
private involvement in the Seattle program. Besides the con-
tributions of private groups in the planning process, which is
expected to grow during the action stages, volunteer help is
available from such organizations as the Seattle Chamber of
Commerce, the American Medical Association, Seattle-King County
Labor Council, the King County Bar Association, Boeing, and the
Weyerhaeuser Corp. The United Good Neighbor Fund, the Urban
League, and other private agencies were represented on the
Advisory Council.

"The largest volunteer contribution has been the neighbor-
hood residents themselves," Secretary Romney said.

Commenting on the decision to tender a contract, Secretary
Romney explained that this was done after a careful review of
the Seattle comprehensive plan. The plan was thoroughly studied
and analyzed both by the Regional and Washington Interagency
Review Committees representing those Federal Departments and
Agencies with urban aid programs.

"During the past several months, Seattle has done an ex-
cellent job in revising its proposals and improving its capa-
bility to operate in the first year action program," he said.
"Other comprehensive plan approvals and contract tenders are
following a similar process and additional announcements will
be made over the next several weeks."

A total of 150 communities in 45 States, the District of
Columbia and Puerto Rico are participating in the Model Cities
program. The first applications for planning grants were
approved in November 1967.

Attached is a summary of Seattle's comprehensive plan which
includes descriptions of first year action programs using Model
Cities supplemental funds.

For further information: Walter Hundley
Director,Model Cities Agency
1700 E. Cherry
Seattle, Washington 98122
(206) 583-5700

Honorable Floyd Miller
Mayor, City Hall
Seattle, Washington 98122

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