Box 15, Folder 5, Document 49

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565 Hill St. SE
Atlanta, Ga. 30312

Ivan Allen Jr., Mayor
J, C. Johnson, Director

TO s Johnny C. Johnson, Director

FROM le John E. Ferren, Economic Development bapraaked yo?
SUBJECT: Process Required for Funding Model Neighborhood, Inc.

On August 12 Dave Caldwell’asked me what procedure should be followed

by Model Cities to financially assist Model Neighborhood, Incorporated

to the tune of $6,000. Specifically, he asked me the following two

questions: ; The”

1. What will be needed in the way of amendment to the EDA contract
specifically to allow sere PE Semen of $6,000 to Model eer
hood, Inc.?

2. The City has received $25,000 of the EDA grant. It was received
at the initial phase of the eoncrect How is the additional |
money requisitioned? .

To get the answers to ehese questions,. it called.Scott Rutherford's

office in Washington, D. C. and talked to Mr. Dan Herrington.

In answer to question one, Mr. Herrington said that because the re-
maining $12,000 was not put in the original budget as a line item and
was, therefore, uncommitted, the procedure to enable us to give Mr.
Moody this money would be to have Model Neighborhood, Inc. submit a
detailed statement on how they would expend these funds, if they had
them. This would be submitted to our staff who would in turn submit
this document along with either a recommendation or otherwise to

Mr. Gordon Berry of EDA in Huntsville. Mr. Herrington suggested that
we also send an wnofficial copy to Scott Rutherford. He further sug-
gested that we make certain that we would not need this money for
line expenditures between now and March 31, 1969.

He was unable to answer question two, but said that he would like to
look into it and give us an answer in the next couple of days.

JHF svile

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