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This file contains material relating to waste, Suburban Sprawl, Community Development Grants, Federal Home Loan, Bank Urban Reinvestment Task Force, Neighborhood Preservation.
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7/8/75 - United States Conference of Mayors
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This file contains material relating to waste, Suburban Sprawl, Community Development Grants, Federal Home Loan, Bank Urban Reinvestment Task Force, Neighborhood Preservation.
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The original documents are located in Box 1, folder "7/8/75 - United States Conference of
Mayors" of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 1 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
UNITED STATES CONFERENCE OF MAYORS
BOSTON, MASSACHUSETTS
JULY 8, 1975
RECENTLY WE HAVE BEEN FORCED TO CONCEDE THAT WE ARE
A WASTEFUL PEOPLE. THE OIL CRISIS TAUGHT US THAT WE WASTED
ENERGY. THE ENVIRONMENTALISTS HAVE TAUGHT US THAT WE ARE
WASTING THE AIR AND WATER RESOURCES UPON WHICH WE DEPEND
FOR SURVIVAL, OUR COLLECTIVE EXISTENCE HAS BEEN ONE OF
CONSUMPTION. WE HAVE BEEN, LIKE A SPOILED CHILD, USED TO
ABUNDANCE.
Now WE KNOW THAT THE CORNUCOPIA CAN BE EMPTIED,
ABUNDANCE HAS BECOME SCARCITY, THE COST OF OUR NATIONAL
OVERINDULGENCE WEIGHS HEAVILY UPON US ALL, ENERGY
SHORTAGES ARE ALREADY A WAY OF LIFE, AND SHORTAGES OF OTHER
ESSENTIALS ARE NO LONGER DIMLY PERCEIVED DANGERS OF A FAR
DISTANT FUTURE.
BUT, IN ALL OF OUR PRESENT CONCERN ABOUT SHORTAGES,
I BELIEVE THAT THE LEVEL OF WASTE WHICH WE ACCEPT IN OUR
CITIES IS THE MOST TRAGIC AND FAR REACHING FOR OUR SOCIETY,
GERALD P. FORD LIBRARY
-2-
THE CITIES HOLD IRREPLACEABLE RESOURCES. GREAT MASSES
OF INVESTED WEALTH AND PRODUCTIVE CAPACITY AS WELL AS
HISTORY AND BEAUTY CAN BE FOUND THERE. A LARGE PROPORTION
OF OUR HOUSING STOCK IS SITUATED THERE ALONG WITH NEEDED
WATER AND SEWER LINES, FACTORIES, ROADS, SCHOOLS, TRANSPORTATION
SYSTEMS, AND UTILITIES. YET WITH ALL OF OUR WORRY ABOUT
WASTE, WE, AS A NATION, ARE EITHER ABANDONING OR UNDER-
UTILIZING ALL OF THESE ASSETS TO A SHOCKING DEGREE.
WE FORGET TOO EASILY THAT WHEN WE ABANDON A HOUSING
UNIT IN A CITY, WE ARE ALSO ABANDONING A PART OF ALL THESE
SUPPLEMENTARY ASSETS, JUST THINK THAT IN NEW YORK CITY
ALONE 35,000 UNITS OF HOUSING ARE ABANDONED EACH YEAR.
OUR YEARS OF ABUNDANCE SOMEHOW FOSTERED THE DISASTROUS
NOTION THAT CITIES COULD BE DISCARDED AND REPLACED. As OUR
CENTER CITIES GREW OLD, THOSE WHO COULD, FLED THE URBAN CORE
FOR THE NEWLY-BUILT SUBURBS, GOVERNMENT POLICIES ENCOURAGED
THIS SUBURBAN SPRAWL AND THE OUTWARD DISPERSION OF PUBLIC
AND PRIVATE INVESTMENTS.
GERALD R. FORD LIBRANA
-3-
THOSE SUBURBS HAVE NOW CONSUMED THOUSANDS OF SQUARE
MILES, THREATENING TO DEPRIVE US OF OUR RAPIDLY DIMINISHING
OPEN SPACES. AND, SUBURBAN SPRAWL HAS BROUGHT SERIOUS
ENVIRONMENTAL AND SOCIAL COSTS, INCLUDING AN EXCESSIVE
DEPENDENCE ON THE AUTOMOBILE,
HUD's RECENT STUDY OF THE COSTS OF SPRAWL DEMONSTRATES
THAT RECYCLING CITIES IS FAR LESS COSTLY THAN SUBURBAN
DEVELOPMENT IN TERMS OF CAPITAL, LAND, ENERGY AND ECOLOGICAL
EXPENDITURES. URBAN DEVELOPMENT MAY CONSUME AS LITTLE AS
50 PERCENT LESS LAND, REQUIRE 55 PERCENT LESS CAPITAL INVESTMENT,
CREATE 45 PERCENT LESS AIR POLLUTION, AND CONSUME 44 PERCENT
LESS ENERGY THAN SUBURBAN SPRAWL,
As PEOPLE FLEE THE CENTER CITY, OLD INVESTMENTS ARE
ABANDONED FOR NEW -- WHICH COST MORE -- AND REPLACING THE OLD
INVESTMENTS REQUIRES THE ADDITIONAL AND UNNECESSARY CONSUMPTION
1
OF LAND, BUILDING MATERIALS, AND FINANCIAL RESOURCES,
P.
FORD
GENALD
-4-
IT IS NOW CLEAR THAT WE CAN NO LONGER TOLERATE POLICIES
WHICH ENCOURAGE THE ABANDONMENT AND WASTE OF THE CENTRAL CITY.
JUST AS WE MUST STOP WASTING OUR AIR, WATER, AND ENERGY
RESOURCES, WE MUST ALSO STOP WASTING OUR CITIES,
THIS MEANS THAT SUBURBAN SPRAWL CAN NO LONGER COMMAND
THE SAME PROPORTION OF CAPITAL IN THE NAME OF HOUSING GROWTH,
WE CAN NO LONGER ENCOURAGE THE BUILDING OF RING UPON RING OF
HOUSING AROUND THE CENTRAL CITY WHERE IT RESULTS IN FURTHER
STRANGULATION OF THE INNER CORE,
ON "MEET THE PRESS" SUNDAY, MAYOR WHITE CALLED FOR A
NATIONAL DECISION ON THE FUTURE OF OUR CITIES. IF I MAY,
I WILL SUGGEST AN ANSWER THAT MUST BE SELF-EVIDENT TO MANY,
IF NOT MOST OF YOU,
OUR POLICIES TODAY MUST SEEK TO RECYCLE AND CONSERVE
OUR CITIES AND THE HUMAN AND PHYSICAL RESOURCES THEY CONTAIN.
DERALD of
-5-
FORTUNATELY, THE VERY FORCES WHICH NOW REQUIRE US TO
CONSERVE OUR URBAN ASSETS ALSO GIVE US THE OPPORTUNITY AND
INCENTIVE TO REVITALIZE THEM, SCARCITY AND RESULTANT HIGH
COST OF LAND, RAW MATERIALS, AND ENERGY ARE MAKING URBAN
LIVING A MORE ATTRACTIVE ALTERNATIVE FOR MANY,
ALREADY, SOME CHILDREN OF THE GENERATION THAT FLED
TO THE SUBURBS ARE RETURNING TO THE CITIES, AREAS THAT
WERE ONCE SLUMS HEADING FOR ABANDONMENT ARE NOW BEING
RESTORED BY FAMILIES NO LONGER WILLING TO BEAR THE COSTS
AND INCONVENIENCES OF SUBURBAN LIFE.
WE ARE IN AN ERA WHEN WE MUST FACE THE HARD REALITIES
OF LIMITED RESOURCES, BUT IT IS ALSO AN ERA WHEN OUR CITIES
HAVE A UNIQUE OPPORTUNITY TO REGAIN THEIR LUSTER AND REBUILD
THEIR KEY ECONOMIC, HISTORIC, CULTURAL AND SOCIAL LINKAGES.
THIS IS TRULY A TIME OF GREAT CHALLENGE FOR OUR CITIES
AND FOR ALL OF US WHO CARE ABOUT THEM. To BORROW FROM
DICKENS, IT IS INDEED "THE BEST OF TIMES AND THE WORST OF
TIMES FOR OUR CITIES".
R.
GERALD
-6-
THE CITIES' PROBLEMS ARE UNQUESTIONABLY SERIOUS.
THEIR CURRENT FISCAL PLIGHT IS PROFOUND. IN SOME COMMUNITIES,
THE FISCAL INTEGRITY OF LOCAL GOVERNMENT IS QUESTIONED, BUT,
THE CRISIS OF THE CITIES WILL NOT BE SOLVED BY MAKING THEIR
DEFICITS PART OF A RAPIDLY GROWING FEDERAL DEFICIT.
To THE EXTENT THAT ANY ADDITIONAL FEDERAL FUNDS COME
WITH CATEGORICAL RESTRICTIONS ON THEIR EXPENDITURE, THE
PROBLEMS OF MANY CITIES WOULD NOT BE ALLEVIATED. AND, TO THE
EXTENT THAT SUCH RESTRICTED FUNDS LEAD TO A REDUCTION OF
THE UNRESTRICTED FUNDS, THE PROBLEMS OF MOST CITIES WOULD
BE WORSENED,
THE FACTS ARE THAT IN THIS FISCAL YEAR, FEDERAL AID
TO STATES AND LOCAL GOVERNMENTS WILL BE ABOUT $56 BILLION.
ALMOST 70 PERCENT OF THAT, OR $39 BILLION, WILL BE SPENT
IN OR DIRECTLY AFFECT THE 265 STANDARD METROPOLITAN STATISTICAL
AREAS, THAT IS A 94 PERCENT INCREASE FROM JUST SIX YEARS AGO.
THE POINT OF MY REMARKS HERE IS NOT TO ARGUE WHETHER THE
LEVEL OF FEDERAL ASSISTANCE SHOULD BE RAISED TO MEET TODAY'S
CRISIS, RATHER, I WISH TO PRESS THE OBVIOUS.
GERALD
-7-
To BANDAGE OVER THE FISCAL CRISIS OF THE CITIES WITH
ADDITIONAL INFUSIONS OF FEDERAL FUNDS WOULD CERTAINLY CREATE
NEW INFLATIONARY PRESSURES, WHICH SO BADLY HURT THE CITIES,
BUT WOULD NOT CURE THE UNDERLYING CAUSES, WE NEED LONG-TERM
SOLUTIONS,
THE CITIES ARE CAUGHT IN A VISE OF DECREASING REVENUES
AND INCREASING COSTS, A PAINFUL RECESSION HAS EATEN AWAY
AT MANY BASIC SOURCES OF PUBLIC REVENUES, AND THE PROPERTY
TAX BASE HAS BEEN SERIOUSLY ERODED BY DEMOGRAPHIC AND ECONOMIC
TRENDS.
THE MOST SERIOUS OF THESE TRENDS HAS BEEN THE MOVEMENT
OF HIGHER INCOME GROUPS OUT OF THE CORE CITIES. THIS TREND
ACCELERATED AS THE PERSONAL MOBILITY PROVIDED BY MASSIVE
HIGHWAY CONSTRUCTION ACCOMMODATED SUBURBAN LIFESTYLE,
SEVENTY PERCENT OF THE NATION'S POPULATION GROWTH BETWEEN
1960 AND 1970 OCCURRED IN THE SUBURBS,
-8-
THIS FLIGHT FROM THE CITIES DESTROYED THE STABILITY
OF MANY URBAN NEIGHBORHOODS AND LEFT LARGE SEGMENTS OF
THE CITIES TO THE POOR. PRIVATE DISINVESTMENT -- FOLLOWED,
MANY ONCE PROUD NEIGHBORHOODS BECAME MARGINAL -- HEADED
FOR ABANDONMENT,
To ALL THIS WE ADD THE FACT THAT DOUBLE DIGIT INFLATION
HAS PUSHED THE COST OF PROVIDING BASIC PUBLIC SERVICES TO
STAGGERING HEIGHTS, AND UNEMPLOYMENT GENERATED BY RECESSION
HAS CREATED EVER INCREASING DEMANDS FOR THOSE SAME SERVICES,
ANY EFFORT TO ANSWER THIS COMPLEX PROBLEM REQUIRES,
ABOVE ALL, A NATIONAL COMMITMENT TO THE REVITALIZATION OF
THE CITY. WE MUST RETURN THE RESOURCES OF THE CITIES TO
PRODUCTIVE USE, ONLY THEN WILL LOCAL REVENUES INCREASE;
ONLY THEN WILL THE BURDEN OF SOCIAL SERVICE COSTS BE LESSENED.
A CITY IS BUT THE SUM OF ITS PARTS -- ITS PEOPLE AND
ITS NEIGHBORHOODS. PRESERVING THE CITY MEANS REVITALIZING
THOSE NEIGHBORHOODS.
GERALO R. FORD
-9-
EVERY NEIGHBORHOOD IS A DYNAMIC PLACE -- SOME OF ITS
RESIDENTS WILL ALWAYS BE MOVING FOR ONE REASON OR ANOTHER.
ITS HOUSING STOCK IS IN A CONSTANT STATE OF DECLINE OR
RENOVATION. To REVITALIZE THE CITY REQUIRES POSITIVE
INTERVENTION IN THAT PROCESS OF DYNAMIC CHANGE TO ENSURE THAT
FUTURE CHANGES WILL BE FOR THE BETTER.
THERE ARE NO EASY OR ALL-PURPOSE NATIONAL ANSWERS TO
THE DIFFICULT ISSUE OF URBAN DECAY. RATHER, THE PROBLEM
IS SUSCEPTIBLE TO SOLUTION ONLY WHEN FEDERAL, STATE AND LOCAL
GOVERNMENTS WORK TOGETHER WITH THE PRIVATE SECTOR. EACH
LOCALITY WILL HAVE SPECIAL NEEDS, AND EACH SHOULD BE GIVEN
A CHANCE TO DEVELOP ITS OWN MODEL FOR URBAN PRESERVATION,
WE HAVE LEARNED THAT ANY FEDERAL EFFORT TO RECYCLE
CITY RESOURCES MUST BUILD UPON LOCALLY CONCEIVED AND DIRECTED
PLANS, OUR PHILOSOPHY AT HUD TODAY -IS TO SUPPORT LOCALLY
DEVISED MEANS FOR COPING WITH THE PROBLEM OF URBAN DECLINE.
&
FORD
-10-
DURING THE PAST YEAR, HUD HAS TAKEN SEVERAL STEPS TO
SUPPORT CITIES IN THEIR EFFORTS TO STOP URBAN DECLINE:
FIRST, WE ARE IMPLEMENTING THE COMMUNITY DEVELOPMENT
GRANT PROGRAM, WHICH WILL PROVIDE LOCALITIES WITH $2.6 BILLION
IN FEDERAL FUNDS THIS YEAR. CONGRESS HAS AUTHORIZED A TOTAL
OF $8.3 BILLION FOR THE FIRST THREE YEARS OF THIS NEW PROGRAM.
CONSISTENT WITH OUR PHILOSOPHY, LOCAL OFFICIALS ARE
ACCORDED WIDE LATITUDE IN USING THESE FUNDS. LOCAL
COMMUNITIES DETERMINE THEIR PRIORITIES FOR THEIR COMMUNITY
DEVELOPMENT, AND LOCAL COMMUNITIES DEVISE STRATEGIES AND
TACTICS TO BEST UTILIZE THEIR AVAILABLE RESOURCES.
THESE FUNDS SHOULD PROVIDE. YOUR COMMUNITIES WITH THE
LEVERAGE TO ATTRACT GREATER PRIVATE AND PUBLIC INVESTMENTS
IN COMMUNITY DEVELOPMENT AND PRESERVATION,
FORD
-11-
WE SEE OUR FIRST YEAR WITH COMMUNITY DEVELOPMENT GRANTS
AS ONE OF CONSIDERABLE SUCCESS, SEVENTY-EIGHT PERCENT OF
RECIPIENTS STATE THAT COMMUNITY DEVELOPMENT GRANTS SIGNIFICANTLY
INCREASED THEIR ABILITY TO RESPOND EFFECTIVELY TO LOCAL
PROBLEMS. EIGHTY PERCENT OF THE LOCAL OFFICIALS SURVEYED
SAID THERE WAS A MARKED REDUCTION IN THE RED TAPE WHICH USED
TO ATTEND FEDERAL ASSISTANCE. EIGHTY-FIVE PERCENT INDICATED
A WELCOME DECREASE IN FEDERAL INTERVENTION IN THE LOCAL
DECISION-MAKING PROCESS.
COMMUNITIES HAVE DEDICATED MORE THAN 66 PERCENT OF THESE
$2.6 BILLION IN COMMUNITY DEVELOPMENT FUNDS FOR THE PHYSICAL
PRESERVATION OF DECLINING AND BLIGHTED NEIGHBORHOODS AND FOR
THE PUBLIC SERVICES NECESSARY TO SUPPORT THESE EFFORTS.
ALSO, WE ARE FINDING THAT OVER NINE PERCENT OF THESE
FUNDS, OR ABOUT $221 MILLION, IS NOW BEING USED BY RECIPIENT
CITIES FOR REHABILITATION GRANTS AND LOANS.
IF THE RECIPIENT COMMUNITIES SUSTAIN THEIR FIRST YEAR
LEVEL OF EFFORT, IN A MATTER OF YEARS WE WILL SEE THE END
OF SUBSTANDARD HOUSING IN EVERY CITY ACROSS THE NATION,
GERALD
-12-
SECONDLY AND RELATED, HUD WILL PROVIDE MORE THAN $70
MILLION IN SECTION 312 LOW-COST FEDERAL REHABILITATION
LOANS DURING THE COMING FISCAL YEAR, REHABILITATION
FINANCING WITH COMMUNITY DEVELOPMENT FUNDS AND WITH SECTION
312 LOANS WILL TOTAL MORE THAN $290 MILLION, WHICH IS TWICE
THE AMOUNT OF SUCH FINANCING PROVIDED DURING ANY PREVIOUS
YEAR.
THIRD, OUR NEW RENTAL ASSISTANCE PROGRAM -- SECTION 8
-- WILL PROVIDE $1.6 BILLION IN HOUSING ASSISTANCE TO 400,000
LOWER-INCOME FAMILIES THIS FISCAL YEAR, THIS PROGRAM
INCORPORATES A PROMISING AND FLEXIBLE NEW APPROACH, GIVING
LOCAL COMMUNITIES CONSIDERABLE DISCRETION TO ADAPT FEDERAL
HOUSING AID TO LOCAL CONDITIONS. LOCAL COMMUNITIES LARGELY
DETERMINE TO WHAT EXTENT THE SUBSIDY WILL SUPPORT FAMILIES
IN NEWLY CONSTRUCTED, REHABILITATED, OR EXISTING UNITS.
THE SUPPORT FOR NEW CONSTRUCTION PROVIDED BY OUR NEW
RENTAL ASSISTANCE PROGRAM OFFERS THE CITIES A VALUABLE WAY
TO PUT VACANT OR UNDER-UTILIZED URBAN LAND TO PRODUCTIVE USE,
FORD
-13-
AND, BY ALSO ALLOWING A CITY TO UTILIZE ITS EXISTING
STOCK, WE HOPE TO ENCOURAGE AND ASSIST THE PRESERVATION
OF URBAN NEIGHBORHOODS.
THIS NEW RENTAL SUBSIDY PROGRAM DID NOT GET COMPLETELY
UNDER WAY UNTIL MAY OF THIS YEAR. BECAUSE OF THIS LATE
START, IN APRIL WE PROJECTED THAT OUR COMMITMENTS WOULD BE
ONLY ABOUT 40,000 UNITS FOR FISCAL YEAR 1975, WHICH ENDED
JUNE 30TH, BUT, I AM HAPPY TO SAY THAT, AS OF THE END OF
THE FISCAL YEAR, EIGHT DAYS AGO, WE HAD ACTUALLY COMMITTED
FUNDS FOR OVER 95,000 UNITS -- BETTER THAN TWICE OUR ESTIMATE.
WE ARE CONFIDENT THAT WE WILL MEET OUR COMMITMENT TO PROVIDE
ASSISTANCE TO 400,000 UNITS IN THE FISCAL YEAR WE HAVE JUST
COMMENCED.
FOURTH, HUD LAST MONTH STARTED TO IMPLEMENT A DEMONSTRATION
URBAN HOMESTEADING PROGRAM, AFTER CONVENING A CONFERENCE OF
LOCAL OFFICIALS TO ASK THEIR ADVICE ABOUT THE DESIGN AND
IMPLEMENTATION OF THE PROGRAM, THE FEDERAL GOVERNMENT WILL
NOW SUPPORT A -LIMITED NUMBER OF LOCALLY DESIGNED HOMESTEADING
PROGRAMS BY PROVIDING PARTICIPATING CITIES WITH HUD-HELD
PROPERTIES OF POSITIVE VALUE AND REHABILITATION FINANCING.
HUD WILL BE WORKING WITH THE PARTICIPATING CITIES IN ESTABLISHING
AN OVERALL STRATEGY FOR THE PRESERVATION OF TARGETED NEIGHBORHOOD
-14-
FIFTH, HUD HAS IMPLEMENTED A PROPERTY DISPOSITION PROGRAM,
WHEREBY CITIES CAN RECEIVE, AT NO COST, HUD-HELD PROPERTIES.
THIS PROGRAM PROVIDES ANOTHER RESOURCE FOR INNOVATIVE COMMUNITY
USE,
SIXTH, HUD IS EXPERIMENTING WITH LEASE-PURCHASE AGREEMENTS,
AS ANOTHER MEANS OF DEALING WITH ITS INVENTORY OF FORECLOSED
HOMES. THE EXPERIMENTAL PROGRAMS IN TAYLOR, MICHIGAN AND
DALLAS, TEXAS INVOLVE LEASES OF ACQUIRED PROPERTIES TO LOWER-
INCOME FAMILIES FOLLOWED BY OPPORTUNITIES FOR THOSE FAMILIES
TO ASSUME HOMEOWNERSHIP.
IN THE FUTURE, WE WILL SEEK TO COORDINATE HUD's PROPERTY
DISPOSITION TECHNIQUES MORE CAREFULLY WITH THE COMMUNITY
DEVELOPMENT PROGRAMS OF THE AFFECTED LOCALITY, BOTH THE
HOUSING ASSISTANCE AND COMMUNITY DEVELOPMENT PLANS, WHICH THE
CITY MUST FILE TO OBTAIN FEDERAL ASSISTANCE, SHOULD ADDRESS
THE PROBLEM OF DISPOSING OF HUD AND CITY OWNED PROPERTIES,
THOSE HOUSING ASSETS MUST BE CONSIDERED.
CENATO R. FORD
-15-
SEVENTH, HUD IS CO-SPONSORING WITH THE FEDERAL HOME
LOAN BANK AN URBAN REINVESTMENT TASK FORCE, RECENTLY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE CONTROLLER OF THE
CURRENCY AND THE FEDERAL RESERVE BOARD AGREED TO BECOME
MEMBERS OF THIS TASK FORCE, THE TASK FORCE HAS DEVELOPED
A NUMBER OF DEMONSTRATION NEIGHBORHOOD PRESERVATION PROGRAMS,
WHICH ILLUSTRATE HOW THE FINANCIAL COMMUNITY CAN BE VERY
USEFULLY INVOLVED IN LOCAL CONSERVATION PROJECTS.
IN ADDITION, THE TASK FORCE HAS NEIGHBORHOOD HOUSING
SERVICE PROGRAMS OPERATING IN 11 CITIES. IT BRINGS TOGETHER
THE CITY, COMMUNITY RESIDENTS, LOCAL FINANCIAL INSTITUTIONS
AND THE TASK FORCE MEMBERS TO PROVIDE A CONCENTRATED EFFORT
TO IMPROVE A SPECIFIED NEIGHBORHOOD, IN MOST CASES, THE
CITY AGREES TO PROVIDE CODE ENFORCEMENT AND IMPROVED PUBLIC
SERVICES, THE FINANCIAL INSTITUTIONS AGREE TO MAKE LOANS,
PRIVATE AND TASK FORCE FUNDS PROVIDE MONIES FOR A HIGH RISK
LOAN FUND, AND LOCAL CITIZENS GROUPS PROVIDE THE NECESSARY
INVOLVEMENT AND ENTHUSIASM,
at
FORD
-16-
FOR THE FUTURE, HUD IS TAKING A HARD LOOK AT FORECLOSURES
AND THE RESULTING COSTS TO CITIES AND THEIR NEIGHBORHOODS,
THE EMERGENCY HOUSING Act OF 1975 SIGNED BY THE PRESIDENT LAST
WEEK GIVES US NEW AUTHORITY TO DEAL WITH THE DIFFICULT PROBLEMS
OF DEFAULTS AND FORECLOSURES.
FINALLY, HUD IS ACTING AS A CLEARINGHOUSE TO ASSIST
LOCAL COMMUNITIES IN THEIR PRESERVATION ACTIVITIES, WE
RECENTLY PUBLISHED A NEIGHBORHOOD PRESERVATION CATALOGUE,
DESCRIBING 100 OF THE MOST INNOVATIVE AND SUCCESSFUL PRESERVATION
INITIATIVES WHICH THE CITIES HAVE DEVELOPED. I DO NOT WANT
TO BREAK IN AT THIS POINT WITH A FULL-BLOWN COMMERCIAL, BUT
I STRONGLY RECOMMEND THAT EACH OF YOU SECURE A COPY OF THIS
PUBLICATION,
WE HAVE SCHEDULED A SERIES OF 10 REGIONAL PRESERVATION
STRATEGY WORKSHOPS, TO BE ATTENDED BY THE DIRECTORS OF MANY
OF THE PROGRAMS IDENTIFIED IN THE CATALOGUE, THESE STEPS
SHOULD GIVE LOCAL COMMUNITIES ADDITIONAL TOOLS FOR CONSTRUCTING
WORKABLE APPROACHES TO URBAN PRESERVATION.
GERALD R. FORD LICENSE
-17-
IN ADDITION TO HUD's EFFORTS, THE PRIVATE SECTOR IS
BEGINNING TO SUPPORT URBAN REVITALIZATION. MORE AND MORE
PRIVATE LENDERS ARE PARTICIPATING, WITH THE ENCOURAGEMENT
OF CITY FATHERS, TO CREATE REVOLVING LOAN FUNDS FOR INNER
CITY REHABILITATION.
OF SUBSTANTIAL POTENTIAL IMPORTANCE IS THE RECENT
AFL-CIO AGREEMENT THAT A LOWER WAGE RATE SHOULD APPLY TO
REHABILITATION WORK THAN TO NEW CONSTRUCTION.
ALL OF THESE ACTIONS SHOW A GROWING PUBLIC AWARENESS
OF THE NEED TO USE PRODUCTIVELY THE RESOURCES OF OUR CITIES.
UNDENIABLY, FEDERAL RESOURCES ARE IMPORTANT. BUT THE
FEDERAL GOVERNMENT CANNOT ASSUME THE ENTIRE BURDEN. THERE
MUST BE A COORDINATED EFFORT TO REVITALIZE THE URBAN ENVIRONMENT
BY ALL PARTIES, PRIVATE AND PUBLIC, HAVING A STAKE IN THE HEALTH
OF OUR URBAN CENTERS,
EACH LEVEL OF GOVERNMENT MUST PARTICIPATE ACCORDING
TO ITS CAPACITIES.
-18-
THE STATES HAVE A MOST IMPORTANT ROLE IN THE PROCESS
OF URBAN REVITALIZATION. STATE GOVERNMENTS HAVE A FAR
GREATER VARIETY OF INCOME GENERATING DEVICES AT THEIR COMMAND
THAN DO THE CITIES, THIS CAPACITY TO GENERATE REVENUE AND TO
TAP SUBURBAN WEALTH PROVIDES THE STATES WITH THE FINANCIAL
CAPACITY TO AID LOCAL COMMUNITY DEVELOPMENT.
OUR 1974 ACT REQUIRES THAT COMMUNITIES, AS A CONDITION
TO OBTAINING FEDERAL FUNDS, SUBMIT BOTH COMMUNITY DEVELOPMENT
AND HOUSING ASSISTANCE PLANS. THAT REQUIREMENT PROVIDES AN
OBVIOUS MECHANISM FOR THE ALLOCATION OF STATE COMMUNITY
DEVELOPMENT FUNDS TO SUPPLEMENT THOSE OF THE FEDERAL GOVERNMENT.
A FEW STATES ARE ALREADY PROVIDING SUCH SUPPLEMENTARY FUNDING,
MORE MIGHT BE ENCOURAGED TO DO so BY THE BLOCKS OF VOTERS
THAT YOUR CITIES REPRESENT.
BUT, THE KEY ELEMENT IN THE PROCESS OF URBAN REVITALIZATION -
IS THE CITY, As MAYOR CARVER SAID SUNDAY, "THE FEDERAL
GOVERNMENT
CANNOT SOLVE ANY OF THE PROBLEMS OF /URBAN
AMERICA] UNLESS LIT HAS] THE FULL AND COMPLETE COOPERATION
OF THE CITIES."
GERALD
-19-
HUD's STRATEGY FOR URBAN PRESERVATION REQUIRES LOCAL
GOVERNMENT TO BE THE CATALYST TO AGGREGATE AN EFFECTIVE
MASS OF FUNDS AND RESOURCES.
IT IS THE CITY THAT MUST COORDINATE THE USE OF AVAILABLE
RESOURCES -- FEDERAL, STATE, AND LOCAL AND PRIVATE --- IN A
CAREFULLY THOUGHT-OUT PLAN FOR NEIGHBORHOOD AND COMMUNITY
PRESERVATION. IT IS THE CITY THAT IS MOST CAPABLE OF LEVERAGING
PUBLIC FUNDS TO PROMOTE PRIVATE REINVESTMENT IN THE URBAN CORE,
THESE RESPONSIBILITIES REQUIRE AN ECONOMIC PLANNING :
CAPACITY, FOR THAT REASON, THIS PAST YEAR, HUD SPONSORED
IN NEW ORLEANS AND SAN FRANCISCO, COMPREHENSIVE ECONOMIC
PLANNING EXPERIMENTS. THESE EXPERIMENTS DEMONSTRATED THE
USEFULNESS OF ECONOMIC PLANNING CAPACITY TO LOCAL DECISION-
MAKING. THE NEED FOR SUCH ECONOMIC ANALYSIS OF PUBLIC INVESTMENT
DECISIONS HAS BECOME INCREASINGLY IMPORTANT WITH THE WIDE
LATITUDE AFFORDED LOCALITIES UNDER THE COMMUNITY DEVELOPMENT
GRANT PROGRAM,
-20-
HUD HAS MADE OTHER EFFORTS TO STRUCTURE ITS COMMUNITY
DEVELOPMENT ACTIVITIES TO BE SUPPORTIVE OF THE LOCAL DECISION-
MAKING PROCESS. FOR INSTANCE, NEXT YEAR WE WILL PERMIT GREATER
COORDINATION BETWEEN THE TIMING OF OUR DISBURSEMENT OF FEDERAL
COMMUNITY DEVELOPMENT FUNDS AND YOUR LOCAL BUDGETING PROCESS.
THIS SHOULD MAKE YOUR LEVERAGING STRATEGIES MORE SUCCESSFUL,
THE FEDERAL GOVERNMENT CAN ADOPT A NATIONAL POLICY TO
ENCOURAGE URBAN CONSERVATION AND RECYCLING OF OUR CITIES,
WE CAN MAKE DECISIONS CAREFULLY so AS NOT TO ENCOURAGE
SUBURBAN SPRAWL OR CITY DECAY,
BUT IN THE FINAL ANALYSIS, THE SUCCESS OF URBAN CONSERVATION
WILL BE DETERMINED BY THE EFFECTIVENESS OF LOCAL DECISION-
MAKERS IN DEVISING PRESERVATION STRATEGIES SUITED TO THE NEEDS
OF THEIR OWN COMMUNITIES.
No CHALLENGE DURING THE NEXT DECADE IS GREATER THAN THE
REVITALIZATION OF URBAN AMERICA. HUD STANDS READY TO JOIN
WITH YOU IN MEETING THAT CHALLENGE,
07/020