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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 Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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

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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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    "ocrText": "The original documents are located in Box 1, folder \"7/8/75 - United States Conference of\nMayors\" of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 1 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library\nFINAL\nUNITED STATES CONFERENCE OF MAYORS\nBOSTON, MASSACHUSETTS\nJULY 8, 1975\nRECENTLY WE HAVE BEEN FORCED TO CONCEDE THAT WE ARE\nA WASTEFUL PEOPLE. THE OIL CRISIS TAUGHT US THAT WE WASTED\nENERGY. THE ENVIRONMENTALISTS HAVE TAUGHT US THAT WE ARE\nWASTING THE AIR AND WATER RESOURCES UPON WHICH WE DEPEND\nFOR SURVIVAL, OUR COLLECTIVE EXISTENCE HAS BEEN ONE OF\nCONSUMPTION. WE HAVE BEEN, LIKE A SPOILED CHILD, USED TO\nABUNDANCE.\nNow WE KNOW THAT THE CORNUCOPIA CAN BE EMPTIED,\nABUNDANCE HAS BECOME SCARCITY, THE COST OF OUR NATIONAL\nOVERINDULGENCE WEIGHS HEAVILY UPON US ALL, ENERGY\nSHORTAGES ARE ALREADY A WAY OF LIFE, AND SHORTAGES OF OTHER\nESSENTIALS ARE NO LONGER DIMLY PERCEIVED DANGERS OF A FAR\nDISTANT FUTURE.\nBUT, IN ALL OF OUR PRESENT CONCERN ABOUT SHORTAGES,\nI BELIEVE THAT THE LEVEL OF WASTE WHICH WE ACCEPT IN OUR\nCITIES IS THE MOST TRAGIC AND FAR REACHING FOR OUR SOCIETY,\nGERALD P. FORD LIBRARY\n-2-\nTHE CITIES HOLD IRREPLACEABLE RESOURCES. GREAT MASSES\nOF INVESTED WEALTH AND PRODUCTIVE CAPACITY AS WELL AS\nHISTORY AND BEAUTY CAN BE FOUND THERE. A LARGE PROPORTION\nOF OUR HOUSING STOCK IS SITUATED THERE ALONG WITH NEEDED\nWATER AND SEWER LINES, FACTORIES, ROADS, SCHOOLS, TRANSPORTATION\nSYSTEMS, AND UTILITIES. YET WITH ALL OF OUR WORRY ABOUT\nWASTE, WE, AS A NATION, ARE EITHER ABANDONING OR UNDER-\nUTILIZING ALL OF THESE ASSETS TO A SHOCKING DEGREE.\nWE FORGET TOO EASILY THAT WHEN WE ABANDON A HOUSING\nUNIT IN A CITY, WE ARE ALSO ABANDONING A PART OF ALL THESE\nSUPPLEMENTARY ASSETS, JUST THINK THAT IN NEW YORK CITY\nALONE 35,000 UNITS OF HOUSING ARE ABANDONED EACH YEAR.\nOUR YEARS OF ABUNDANCE SOMEHOW FOSTERED THE DISASTROUS\nNOTION THAT CITIES COULD BE DISCARDED AND REPLACED. As OUR\nCENTER CITIES GREW OLD, THOSE WHO COULD, FLED THE URBAN CORE\nFOR THE NEWLY-BUILT SUBURBS, GOVERNMENT POLICIES ENCOURAGED\nTHIS SUBURBAN SPRAWL AND THE OUTWARD DISPERSION OF PUBLIC\nAND PRIVATE INVESTMENTS.\nGERALD R. FORD LIBRANA\n-3-\nTHOSE SUBURBS HAVE NOW CONSUMED THOUSANDS OF SQUARE\nMILES, THREATENING TO DEPRIVE US OF OUR RAPIDLY DIMINISHING\nOPEN SPACES. AND, SUBURBAN SPRAWL HAS BROUGHT SERIOUS\nENVIRONMENTAL AND SOCIAL COSTS, INCLUDING AN EXCESSIVE\nDEPENDENCE ON THE AUTOMOBILE,\nHUD's RECENT STUDY OF THE COSTS OF SPRAWL DEMONSTRATES\nTHAT RECYCLING CITIES IS FAR LESS COSTLY THAN SUBURBAN\nDEVELOPMENT IN TERMS OF CAPITAL, LAND, ENERGY AND ECOLOGICAL\nEXPENDITURES. URBAN DEVELOPMENT MAY CONSUME AS LITTLE AS\n50 PERCENT LESS LAND, REQUIRE 55 PERCENT LESS CAPITAL INVESTMENT,\nCREATE 45 PERCENT LESS AIR POLLUTION, AND CONSUME 44 PERCENT\nLESS ENERGY THAN SUBURBAN SPRAWL,\nAs PEOPLE FLEE THE CENTER CITY, OLD INVESTMENTS ARE\nABANDONED FOR NEW -- WHICH COST MORE -- AND REPLACING THE OLD\nINVESTMENTS REQUIRES THE ADDITIONAL AND UNNECESSARY CONSUMPTION\n1\nOF LAND, BUILDING MATERIALS, AND FINANCIAL RESOURCES,\nP.\nFORD\nGENALD\n-4-\nIT IS NOW CLEAR THAT WE CAN NO LONGER TOLERATE POLICIES\nWHICH ENCOURAGE THE ABANDONMENT AND WASTE OF THE CENTRAL CITY.\nJUST AS WE MUST STOP WASTING OUR AIR, WATER, AND ENERGY\nRESOURCES, WE MUST ALSO STOP WASTING OUR CITIES,\nTHIS MEANS THAT SUBURBAN SPRAWL CAN NO LONGER COMMAND\nTHE SAME PROPORTION OF CAPITAL IN THE NAME OF HOUSING GROWTH,\nWE CAN NO LONGER ENCOURAGE THE BUILDING OF RING UPON RING OF\nHOUSING AROUND THE CENTRAL CITY WHERE IT RESULTS IN FURTHER\nSTRANGULATION OF THE INNER CORE,\nON \"MEET THE PRESS\" SUNDAY, MAYOR WHITE CALLED FOR A\nNATIONAL DECISION ON THE FUTURE OF OUR CITIES. IF I MAY,\nI WILL SUGGEST AN ANSWER THAT MUST BE SELF-EVIDENT TO MANY,\nIF NOT MOST OF YOU,\nOUR POLICIES TODAY MUST SEEK TO RECYCLE AND CONSERVE\nOUR CITIES AND THE HUMAN AND PHYSICAL RESOURCES THEY CONTAIN.\nDERALD of\n-5-\nFORTUNATELY, THE VERY FORCES WHICH NOW REQUIRE US TO\nCONSERVE OUR URBAN ASSETS ALSO GIVE US THE OPPORTUNITY AND\nINCENTIVE TO REVITALIZE THEM, SCARCITY AND RESULTANT HIGH\nCOST OF LAND, RAW MATERIALS, AND ENERGY ARE MAKING URBAN\nLIVING A MORE ATTRACTIVE ALTERNATIVE FOR MANY,\nALREADY, SOME CHILDREN OF THE GENERATION THAT FLED\nTO THE SUBURBS ARE RETURNING TO THE CITIES, AREAS THAT\nWERE ONCE SLUMS HEADING FOR ABANDONMENT ARE NOW BEING\nRESTORED BY FAMILIES NO LONGER WILLING TO BEAR THE COSTS\nAND INCONVENIENCES OF SUBURBAN LIFE.\nWE ARE IN AN ERA WHEN WE MUST FACE THE HARD REALITIES\nOF LIMITED RESOURCES, BUT IT IS ALSO AN ERA WHEN OUR CITIES\nHAVE A UNIQUE OPPORTUNITY TO REGAIN THEIR LUSTER AND REBUILD\nTHEIR KEY ECONOMIC, HISTORIC, CULTURAL AND SOCIAL LINKAGES.\nTHIS IS TRULY A TIME OF GREAT CHALLENGE FOR OUR CITIES\nAND FOR ALL OF US WHO CARE ABOUT THEM. To BORROW FROM\nDICKENS, IT IS INDEED \"THE BEST OF TIMES AND THE WORST OF\nTIMES FOR OUR CITIES\".\nR.\nGERALD\n-6-\nTHE CITIES' PROBLEMS ARE UNQUESTIONABLY SERIOUS.\nTHEIR CURRENT FISCAL PLIGHT IS PROFOUND. IN SOME COMMUNITIES,\nTHE FISCAL INTEGRITY OF LOCAL GOVERNMENT IS QUESTIONED, BUT,\nTHE CRISIS OF THE CITIES WILL NOT BE SOLVED BY MAKING THEIR\nDEFICITS PART OF A RAPIDLY GROWING FEDERAL DEFICIT.\nTo THE EXTENT THAT ANY ADDITIONAL FEDERAL FUNDS COME\nWITH CATEGORICAL RESTRICTIONS ON THEIR EXPENDITURE, THE\nPROBLEMS OF MANY CITIES WOULD NOT BE ALLEVIATED. AND, TO THE\nEXTENT THAT SUCH RESTRICTED FUNDS LEAD TO A REDUCTION OF\nTHE UNRESTRICTED FUNDS, THE PROBLEMS OF MOST CITIES WOULD\nBE WORSENED,\nTHE FACTS ARE THAT IN THIS FISCAL YEAR, FEDERAL AID\nTO STATES AND LOCAL GOVERNMENTS WILL BE ABOUT $56 BILLION.\nALMOST 70 PERCENT OF THAT, OR $39 BILLION, WILL BE SPENT\nIN OR DIRECTLY AFFECT THE 265 STANDARD METROPOLITAN STATISTICAL\nAREAS, THAT IS A 94 PERCENT INCREASE FROM JUST SIX YEARS AGO.\nTHE POINT OF MY REMARKS HERE IS NOT TO ARGUE WHETHER THE\nLEVEL OF FEDERAL ASSISTANCE SHOULD BE RAISED TO MEET TODAY'S\nCRISIS, RATHER, I WISH TO PRESS THE OBVIOUS.\nGERALD\n-7-\nTo BANDAGE OVER THE FISCAL CRISIS OF THE CITIES WITH\nADDITIONAL INFUSIONS OF FEDERAL FUNDS WOULD CERTAINLY CREATE\nNEW INFLATIONARY PRESSURES, WHICH SO BADLY HURT THE CITIES,\nBUT WOULD NOT CURE THE UNDERLYING CAUSES, WE NEED LONG-TERM\nSOLUTIONS,\nTHE CITIES ARE CAUGHT IN A VISE OF DECREASING REVENUES\nAND INCREASING COSTS, A PAINFUL RECESSION HAS EATEN AWAY\nAT MANY BASIC SOURCES OF PUBLIC REVENUES, AND THE PROPERTY\nTAX BASE HAS BEEN SERIOUSLY ERODED BY DEMOGRAPHIC AND ECONOMIC\nTRENDS.\nTHE MOST SERIOUS OF THESE TRENDS HAS BEEN THE MOVEMENT\nOF HIGHER INCOME GROUPS OUT OF THE CORE CITIES. THIS TREND\nACCELERATED AS THE PERSONAL MOBILITY PROVIDED BY MASSIVE\nHIGHWAY CONSTRUCTION ACCOMMODATED SUBURBAN LIFESTYLE,\nSEVENTY PERCENT OF THE NATION'S POPULATION GROWTH BETWEEN\n1960 AND 1970 OCCURRED IN THE SUBURBS,\n-8-\nTHIS FLIGHT FROM THE CITIES DESTROYED THE STABILITY\nOF MANY URBAN NEIGHBORHOODS AND LEFT LARGE SEGMENTS OF\nTHE CITIES TO THE POOR. PRIVATE DISINVESTMENT -- FOLLOWED,\nMANY ONCE PROUD NEIGHBORHOODS BECAME MARGINAL -- HEADED\nFOR ABANDONMENT,\nTo ALL THIS WE ADD THE FACT THAT DOUBLE DIGIT INFLATION\nHAS PUSHED THE COST OF PROVIDING BASIC PUBLIC SERVICES TO\nSTAGGERING HEIGHTS, AND UNEMPLOYMENT GENERATED BY RECESSION\nHAS CREATED EVER INCREASING DEMANDS FOR THOSE SAME SERVICES,\nANY EFFORT TO ANSWER THIS COMPLEX PROBLEM REQUIRES,\nABOVE ALL, A NATIONAL COMMITMENT TO THE REVITALIZATION OF\nTHE CITY. WE MUST RETURN THE RESOURCES OF THE CITIES TO\nPRODUCTIVE USE, ONLY THEN WILL LOCAL REVENUES INCREASE;\nONLY THEN WILL THE BURDEN OF SOCIAL SERVICE COSTS BE LESSENED.\nA CITY IS BUT THE SUM OF ITS PARTS -- ITS PEOPLE AND\nITS NEIGHBORHOODS. PRESERVING THE CITY MEANS REVITALIZING\nTHOSE NEIGHBORHOODS.\nGERALO R. FORD\n-9-\nEVERY NEIGHBORHOOD IS A DYNAMIC PLACE -- SOME OF ITS\nRESIDENTS WILL ALWAYS BE MOVING FOR ONE REASON OR ANOTHER.\nITS HOUSING STOCK IS IN A CONSTANT STATE OF DECLINE OR\nRENOVATION. To REVITALIZE THE CITY REQUIRES POSITIVE\nINTERVENTION IN THAT PROCESS OF DYNAMIC CHANGE TO ENSURE THAT\nFUTURE CHANGES WILL BE FOR THE BETTER.\nTHERE ARE NO EASY OR ALL-PURPOSE NATIONAL ANSWERS TO\nTHE DIFFICULT ISSUE OF URBAN DECAY. RATHER, THE PROBLEM\nIS SUSCEPTIBLE TO SOLUTION ONLY WHEN FEDERAL, STATE AND LOCAL\nGOVERNMENTS WORK TOGETHER WITH THE PRIVATE SECTOR. EACH\nLOCALITY WILL HAVE SPECIAL NEEDS, AND EACH SHOULD BE GIVEN\nA CHANCE TO DEVELOP ITS OWN MODEL FOR URBAN PRESERVATION,\nWE HAVE LEARNED THAT ANY FEDERAL EFFORT TO RECYCLE\nCITY RESOURCES MUST BUILD UPON LOCALLY CONCEIVED AND DIRECTED\nPLANS, OUR PHILOSOPHY AT HUD TODAY -IS TO SUPPORT LOCALLY\nDEVISED MEANS FOR COPING WITH THE PROBLEM OF URBAN DECLINE.\n&\nFORD\n-10-\nDURING THE PAST YEAR, HUD HAS TAKEN SEVERAL STEPS TO\nSUPPORT CITIES IN THEIR EFFORTS TO STOP URBAN DECLINE:\nFIRST, WE ARE IMPLEMENTING THE COMMUNITY DEVELOPMENT\nGRANT PROGRAM, WHICH WILL PROVIDE LOCALITIES WITH $2.6 BILLION\nIN FEDERAL FUNDS THIS YEAR. CONGRESS HAS AUTHORIZED A TOTAL\nOF $8.3 BILLION FOR THE FIRST THREE YEARS OF THIS NEW PROGRAM.\nCONSISTENT WITH OUR PHILOSOPHY, LOCAL OFFICIALS ARE\nACCORDED WIDE LATITUDE IN USING THESE FUNDS. LOCAL\nCOMMUNITIES DETERMINE THEIR PRIORITIES FOR THEIR COMMUNITY\nDEVELOPMENT, AND LOCAL COMMUNITIES DEVISE STRATEGIES AND\nTACTICS TO BEST UTILIZE THEIR AVAILABLE RESOURCES.\nTHESE FUNDS SHOULD PROVIDE. YOUR COMMUNITIES WITH THE\nLEVERAGE TO ATTRACT GREATER PRIVATE AND PUBLIC INVESTMENTS\nIN COMMUNITY DEVELOPMENT AND PRESERVATION,\nFORD\n-11-\nWE SEE OUR FIRST YEAR WITH COMMUNITY DEVELOPMENT GRANTS\nAS ONE OF CONSIDERABLE SUCCESS, SEVENTY-EIGHT PERCENT OF\nRECIPIENTS STATE THAT COMMUNITY DEVELOPMENT GRANTS SIGNIFICANTLY\nINCREASED THEIR ABILITY TO RESPOND EFFECTIVELY TO LOCAL\nPROBLEMS. EIGHTY PERCENT OF THE LOCAL OFFICIALS SURVEYED\nSAID THERE WAS A MARKED REDUCTION IN THE RED TAPE WHICH USED\nTO ATTEND FEDERAL ASSISTANCE. EIGHTY-FIVE PERCENT INDICATED\nA WELCOME DECREASE IN FEDERAL INTERVENTION IN THE LOCAL\nDECISION-MAKING PROCESS.\nCOMMUNITIES HAVE DEDICATED MORE THAN 66 PERCENT OF THESE\n$2.6 BILLION IN COMMUNITY DEVELOPMENT FUNDS FOR THE PHYSICAL\nPRESERVATION OF DECLINING AND BLIGHTED NEIGHBORHOODS AND FOR\nTHE PUBLIC SERVICES NECESSARY TO SUPPORT THESE EFFORTS.\nALSO, WE ARE FINDING THAT OVER NINE PERCENT OF THESE\nFUNDS, OR ABOUT $221 MILLION, IS NOW BEING USED BY RECIPIENT\nCITIES FOR REHABILITATION GRANTS AND LOANS.\nIF THE RECIPIENT COMMUNITIES SUSTAIN THEIR FIRST YEAR\nLEVEL OF EFFORT, IN A MATTER OF YEARS WE WILL SEE THE END\nOF SUBSTANDARD HOUSING IN EVERY CITY ACROSS THE NATION,\nGERALD\n-12-\nSECONDLY AND RELATED, HUD WILL PROVIDE MORE THAN $70\nMILLION IN SECTION 312 LOW-COST FEDERAL REHABILITATION\nLOANS DURING THE COMING FISCAL YEAR, REHABILITATION\nFINANCING WITH COMMUNITY DEVELOPMENT FUNDS AND WITH SECTION\n312 LOANS WILL TOTAL MORE THAN $290 MILLION, WHICH IS TWICE\nTHE AMOUNT OF SUCH FINANCING PROVIDED DURING ANY PREVIOUS\nYEAR.\nTHIRD, OUR NEW RENTAL ASSISTANCE PROGRAM -- SECTION 8\n-- WILL PROVIDE $1.6 BILLION IN HOUSING ASSISTANCE TO 400,000\nLOWER-INCOME FAMILIES THIS FISCAL YEAR, THIS PROGRAM\nINCORPORATES A PROMISING AND FLEXIBLE NEW APPROACH, GIVING\nLOCAL COMMUNITIES CONSIDERABLE DISCRETION TO ADAPT FEDERAL\nHOUSING AID TO LOCAL CONDITIONS. LOCAL COMMUNITIES LARGELY\nDETERMINE TO WHAT EXTENT THE SUBSIDY WILL SUPPORT FAMILIES\nIN NEWLY CONSTRUCTED, REHABILITATED, OR EXISTING UNITS.\nTHE SUPPORT FOR NEW CONSTRUCTION PROVIDED BY OUR NEW\nRENTAL ASSISTANCE PROGRAM OFFERS THE CITIES A VALUABLE WAY\nTO PUT VACANT OR UNDER-UTILIZED URBAN LAND TO PRODUCTIVE USE,\nFORD\n-13-\nAND, BY ALSO ALLOWING A CITY TO UTILIZE ITS EXISTING\nSTOCK, WE HOPE TO ENCOURAGE AND ASSIST THE PRESERVATION\nOF URBAN NEIGHBORHOODS.\nTHIS NEW RENTAL SUBSIDY PROGRAM DID NOT GET COMPLETELY\nUNDER WAY UNTIL MAY OF THIS YEAR. BECAUSE OF THIS LATE\nSTART, IN APRIL WE PROJECTED THAT OUR COMMITMENTS WOULD BE\nONLY ABOUT 40,000 UNITS FOR FISCAL YEAR 1975, WHICH ENDED\nJUNE 30TH, BUT, I AM HAPPY TO SAY THAT, AS OF THE END OF\nTHE FISCAL YEAR, EIGHT DAYS AGO, WE HAD ACTUALLY COMMITTED\nFUNDS FOR OVER 95,000 UNITS -- BETTER THAN TWICE OUR ESTIMATE.\nWE ARE CONFIDENT THAT WE WILL MEET OUR COMMITMENT TO PROVIDE\nASSISTANCE TO 400,000 UNITS IN THE FISCAL YEAR WE HAVE JUST\nCOMMENCED.\nFOURTH, HUD LAST MONTH STARTED TO IMPLEMENT A DEMONSTRATION\nURBAN HOMESTEADING PROGRAM, AFTER CONVENING A CONFERENCE OF\nLOCAL OFFICIALS TO ASK THEIR ADVICE ABOUT THE DESIGN AND\nIMPLEMENTATION OF THE PROGRAM, THE FEDERAL GOVERNMENT WILL\nNOW SUPPORT A -LIMITED NUMBER OF LOCALLY DESIGNED HOMESTEADING\nPROGRAMS BY PROVIDING PARTICIPATING CITIES WITH HUD-HELD\nPROPERTIES OF POSITIVE VALUE AND REHABILITATION FINANCING.\nHUD WILL BE WORKING WITH THE PARTICIPATING CITIES IN ESTABLISHING\nAN OVERALL STRATEGY FOR THE PRESERVATION OF TARGETED NEIGHBORHOOD\n-14-\nFIFTH, HUD HAS IMPLEMENTED A PROPERTY DISPOSITION PROGRAM,\nWHEREBY CITIES CAN RECEIVE, AT NO COST, HUD-HELD PROPERTIES.\nTHIS PROGRAM PROVIDES ANOTHER RESOURCE FOR INNOVATIVE COMMUNITY\nUSE,\nSIXTH, HUD IS EXPERIMENTING WITH LEASE-PURCHASE AGREEMENTS,\nAS ANOTHER MEANS OF DEALING WITH ITS INVENTORY OF FORECLOSED\nHOMES. THE EXPERIMENTAL PROGRAMS IN TAYLOR, MICHIGAN AND\nDALLAS, TEXAS INVOLVE LEASES OF ACQUIRED PROPERTIES TO LOWER-\nINCOME FAMILIES FOLLOWED BY OPPORTUNITIES FOR THOSE FAMILIES\nTO ASSUME HOMEOWNERSHIP.\nIN THE FUTURE, WE WILL SEEK TO COORDINATE HUD's PROPERTY\nDISPOSITION TECHNIQUES MORE CAREFULLY WITH THE COMMUNITY\nDEVELOPMENT PROGRAMS OF THE AFFECTED LOCALITY, BOTH THE\nHOUSING ASSISTANCE AND COMMUNITY DEVELOPMENT PLANS, WHICH THE\nCITY MUST FILE TO OBTAIN FEDERAL ASSISTANCE, SHOULD ADDRESS\nTHE PROBLEM OF DISPOSING OF HUD AND CITY OWNED PROPERTIES,\nTHOSE HOUSING ASSETS MUST BE CONSIDERED.\nCENATO R. FORD\n-15-\nSEVENTH, HUD IS CO-SPONSORING WITH THE FEDERAL HOME\nLOAN BANK AN URBAN REINVESTMENT TASK FORCE, RECENTLY THE\nFEDERAL DEPOSIT INSURANCE CORPORATION, THE CONTROLLER OF THE\nCURRENCY AND THE FEDERAL RESERVE BOARD AGREED TO BECOME\nMEMBERS OF THIS TASK FORCE, THE TASK FORCE HAS DEVELOPED\nA NUMBER OF DEMONSTRATION NEIGHBORHOOD PRESERVATION PROGRAMS,\nWHICH ILLUSTRATE HOW THE FINANCIAL COMMUNITY CAN BE VERY\nUSEFULLY INVOLVED IN LOCAL CONSERVATION PROJECTS.\nIN ADDITION, THE TASK FORCE HAS NEIGHBORHOOD HOUSING\nSERVICE PROGRAMS OPERATING IN 11 CITIES. IT BRINGS TOGETHER\nTHE CITY, COMMUNITY RESIDENTS, LOCAL FINANCIAL INSTITUTIONS\nAND THE TASK FORCE MEMBERS TO PROVIDE A CONCENTRATED EFFORT\nTO IMPROVE A SPECIFIED NEIGHBORHOOD, IN MOST CASES, THE\nCITY AGREES TO PROVIDE CODE ENFORCEMENT AND IMPROVED PUBLIC\nSERVICES, THE FINANCIAL INSTITUTIONS AGREE TO MAKE LOANS,\nPRIVATE AND TASK FORCE FUNDS PROVIDE MONIES FOR A HIGH RISK\nLOAN FUND, AND LOCAL CITIZENS GROUPS PROVIDE THE NECESSARY\nINVOLVEMENT AND ENTHUSIASM,\nat\nFORD\n-16-\nFOR THE FUTURE, HUD IS TAKING A HARD LOOK AT FORECLOSURES\nAND THE RESULTING COSTS TO CITIES AND THEIR NEIGHBORHOODS,\nTHE EMERGENCY HOUSING Act OF 1975 SIGNED BY THE PRESIDENT LAST\nWEEK GIVES US NEW AUTHORITY TO DEAL WITH THE DIFFICULT PROBLEMS\nOF DEFAULTS AND FORECLOSURES.\nFINALLY, HUD IS ACTING AS A CLEARINGHOUSE TO ASSIST\nLOCAL COMMUNITIES IN THEIR PRESERVATION ACTIVITIES, WE\nRECENTLY PUBLISHED A NEIGHBORHOOD PRESERVATION CATALOGUE,\nDESCRIBING 100 OF THE MOST INNOVATIVE AND SUCCESSFUL PRESERVATION\nINITIATIVES WHICH THE CITIES HAVE DEVELOPED. I DO NOT WANT\nTO BREAK IN AT THIS POINT WITH A FULL-BLOWN COMMERCIAL, BUT\nI STRONGLY RECOMMEND THAT EACH OF YOU SECURE A COPY OF THIS\nPUBLICATION,\nWE HAVE SCHEDULED A SERIES OF 10 REGIONAL PRESERVATION\nSTRATEGY WORKSHOPS, TO BE ATTENDED BY THE DIRECTORS OF MANY\nOF THE PROGRAMS IDENTIFIED IN THE CATALOGUE, THESE STEPS\nSHOULD GIVE LOCAL COMMUNITIES ADDITIONAL TOOLS FOR CONSTRUCTING\nWORKABLE APPROACHES TO URBAN PRESERVATION.\nGERALD R. FORD LICENSE\n-17-\nIN ADDITION TO HUD's EFFORTS, THE PRIVATE SECTOR IS\nBEGINNING TO SUPPORT URBAN REVITALIZATION. MORE AND MORE\nPRIVATE LENDERS ARE PARTICIPATING, WITH THE ENCOURAGEMENT\nOF CITY FATHERS, TO CREATE REVOLVING LOAN FUNDS FOR INNER\nCITY REHABILITATION.\nOF SUBSTANTIAL POTENTIAL IMPORTANCE IS THE RECENT\nAFL-CIO AGREEMENT THAT A LOWER WAGE RATE SHOULD APPLY TO\nREHABILITATION WORK THAN TO NEW CONSTRUCTION.\nALL OF THESE ACTIONS SHOW A GROWING PUBLIC AWARENESS\nOF THE NEED TO USE PRODUCTIVELY THE RESOURCES OF OUR CITIES.\nUNDENIABLY, FEDERAL RESOURCES ARE IMPORTANT. BUT THE\nFEDERAL GOVERNMENT CANNOT ASSUME THE ENTIRE BURDEN. THERE\nMUST BE A COORDINATED EFFORT TO REVITALIZE THE URBAN ENVIRONMENT\nBY ALL PARTIES, PRIVATE AND PUBLIC, HAVING A STAKE IN THE HEALTH\nOF OUR URBAN CENTERS,\nEACH LEVEL OF GOVERNMENT MUST PARTICIPATE ACCORDING\nTO ITS CAPACITIES.\n-18-\nTHE STATES HAVE A MOST IMPORTANT ROLE IN THE PROCESS\nOF URBAN REVITALIZATION. STATE GOVERNMENTS HAVE A FAR\nGREATER VARIETY OF INCOME GENERATING DEVICES AT THEIR COMMAND\nTHAN DO THE CITIES, THIS CAPACITY TO GENERATE REVENUE AND TO\nTAP SUBURBAN WEALTH PROVIDES THE STATES WITH THE FINANCIAL\nCAPACITY TO AID LOCAL COMMUNITY DEVELOPMENT.\nOUR 1974 ACT REQUIRES THAT COMMUNITIES, AS A CONDITION\nTO OBTAINING FEDERAL FUNDS, SUBMIT BOTH COMMUNITY DEVELOPMENT\nAND HOUSING ASSISTANCE PLANS. THAT REQUIREMENT PROVIDES AN\nOBVIOUS MECHANISM FOR THE ALLOCATION OF STATE COMMUNITY\nDEVELOPMENT FUNDS TO SUPPLEMENT THOSE OF THE FEDERAL GOVERNMENT.\nA FEW STATES ARE ALREADY PROVIDING SUCH SUPPLEMENTARY FUNDING,\nMORE MIGHT BE ENCOURAGED TO DO so BY THE BLOCKS OF VOTERS\nTHAT YOUR CITIES REPRESENT.\nBUT, THE KEY ELEMENT IN THE PROCESS OF URBAN REVITALIZATION -\nIS THE CITY, As MAYOR CARVER SAID SUNDAY, \"THE FEDERAL\nGOVERNMENT\nCANNOT SOLVE ANY OF THE PROBLEMS OF /URBAN\nAMERICA] UNLESS LIT HAS] THE FULL AND COMPLETE COOPERATION\nOF THE CITIES.\"\nGERALD\n-19-\nHUD's STRATEGY FOR URBAN PRESERVATION REQUIRES LOCAL\nGOVERNMENT TO BE THE CATALYST TO AGGREGATE AN EFFECTIVE\nMASS OF FUNDS AND RESOURCES.\nIT IS THE CITY THAT MUST COORDINATE THE USE OF AVAILABLE\nRESOURCES -- FEDERAL, STATE, AND LOCAL AND PRIVATE --- IN A\nCAREFULLY THOUGHT-OUT PLAN FOR NEIGHBORHOOD AND COMMUNITY\nPRESERVATION. IT IS THE CITY THAT IS MOST CAPABLE OF LEVERAGING\nPUBLIC FUNDS TO PROMOTE PRIVATE REINVESTMENT IN THE URBAN CORE,\nTHESE RESPONSIBILITIES REQUIRE AN ECONOMIC PLANNING :\nCAPACITY, FOR THAT REASON, THIS PAST YEAR, HUD SPONSORED\nIN NEW ORLEANS AND SAN FRANCISCO, COMPREHENSIVE ECONOMIC\nPLANNING EXPERIMENTS. THESE EXPERIMENTS DEMONSTRATED THE\nUSEFULNESS OF ECONOMIC PLANNING CAPACITY TO LOCAL DECISION-\nMAKING. THE NEED FOR SUCH ECONOMIC ANALYSIS OF PUBLIC INVESTMENT\nDECISIONS HAS BECOME INCREASINGLY IMPORTANT WITH THE WIDE\nLATITUDE AFFORDED LOCALITIES UNDER THE COMMUNITY DEVELOPMENT\nGRANT PROGRAM,\n-20-\nHUD HAS MADE OTHER EFFORTS TO STRUCTURE ITS COMMUNITY\nDEVELOPMENT ACTIVITIES TO BE SUPPORTIVE OF THE LOCAL DECISION-\nMAKING PROCESS. FOR INSTANCE, NEXT YEAR WE WILL PERMIT GREATER\nCOORDINATION BETWEEN THE TIMING OF OUR DISBURSEMENT OF FEDERAL\nCOMMUNITY DEVELOPMENT FUNDS AND YOUR LOCAL BUDGETING PROCESS.\nTHIS SHOULD MAKE YOUR LEVERAGING STRATEGIES MORE SUCCESSFUL,\nTHE FEDERAL GOVERNMENT CAN ADOPT A NATIONAL POLICY TO\nENCOURAGE URBAN CONSERVATION AND RECYCLING OF OUR CITIES,\nWE CAN MAKE DECISIONS CAREFULLY so AS NOT TO ENCOURAGE\nSUBURBAN SPRAWL OR CITY DECAY,\nBUT IN THE FINAL ANALYSIS, THE SUCCESS OF URBAN CONSERVATION\nWILL BE DETERMINED BY THE EFFECTIVENESS OF LOCAL DECISION-\nMAKERS IN DEVISING PRESERVATION STRATEGIES SUITED TO THE NEEDS\nOF THEIR OWN COMMUNITIES.\nNo CHALLENGE DURING THE NEXT DECADE IS GREATER THAN THE\nREVITALIZATION OF URBAN AMERICA. HUD STANDS READY TO JOIN\nWITH YOU IN MEETING THAT CHALLENGE,\n07/020"
}