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4/14/76 - Detroit Press Club
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "4/14/76 - Detroit Press Club" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
DETROIT PRESS CLUB
APRIL 14, 1976
WHEN I BECAME SECRETARY OF HUD, THIRTEEN MONTHS AGO,
ONE OF THE FIRST MAJOR TROUBLE SPOTS THAT CAME TO MY ATTENTION
WAS THE CITY OF DETROIT.
THE LIST OF "WRONGS" HERE GENERALLY SQUARED WITH THE
HISTORY OF MANY MAJOR AMERICAN CITIES IN THE THIRD QUARTER
OF OUR NATION'S SECOND CENTURY -- BUT THERE WAS A CLASSIC
DIFFERENCE,
IN ADDITION TO THE CLOSE PROXIMITY OF MANY SUBURBAN
AND SMALLER INDEPENDENT COMMUNITIES WHICH WERE SYPHONING
OFF ITS COMMERCIAL LIFEBLOOD, DETROIT, TRADITIONALLY, HAD
BEEN A CITY WHOSE VITALITY AND PROSPERITY WAS ORIENTED TO
SINGLE FAMILY HOMEOWNERSHIP.
THUS, WHEREAS THE NATIONAL OUT-MIGRATION OF PEOPLE,
HAS A MORE GRADUAL EFFECT ON CITIES WHICH HAD LARGER NUMBERS
OF RENTAL PROPERTIES, DETROIT HAS EXPERIENCED AN EXODUS OF
FAMILIES WHO HAVE BOTH A VESTED INTEREST AND A TAX-BEARING
RESPONSIBILITY IN THE PROSPERITY OF THE CITY.
GERAL P. FORD
-2-
I WON'T PRESUME TO STAND HERE AND GIVE YOU A DETAILED
HISTORY OF YOUR OWN CITY, OUR PURPOSE, TODAY, IS TO HELP
PLAN FOR THE FUTURE OF DETROIT -- KNOWING THAT AT THIS POINT
WE CANNOT UNMAKE ALL THE PAST MISTAKES,
BUT, I THINK IT IS USEFUL FOR US TO RETRACE SOME OF
THE OLD STEPS IN THE CONTEXT OF WHERE WE ARE NOW -- AS AN
INTELLIGENT GUIDE TO WHAT WE HAVE TO DO IN THE FUTURE,
IN MAY OF LAST YEAR I APPOINTED A SPECIAL DETROIT TASK
FORCE TO DO EXACTLY THAT. I HAD READ ALL OF THE EXISTING
"HISTORY" -- BUT, I AM ENOUGH OF A REALIST TO KNOW THAT
HISTORY CAN BE INFECTED WITH THE BIAS OF THE HISTORIAN,
So I CAME HERE ON AN "UNOFFICIAL" PRIVATE VISIT IN OCTOBER,
AND IMMEDIATELY THEREAFTER, INCREASED THE STAFFING AND THE
SCOPE OF THE DETROIT TASK FORCE,
I PROMISED TO RETURN FOR A PUBLIC VISIT -- BECAUSE I
WANTED TO BE SURE THAT ALL OF US WERE TALKING FROM THE SAME
SET OF UNVARNISHED FACTS, GOOD, BAD OR UNTHINKABLE,
-3-
IT WAS APPARENT THAT THE CRITICISM OF HUD ON ITS INVENTORY
OF REPOSSESSED HOMES WAS WELL WARRANTED, AND, THAT WAS
SOMETHING WE COULD MOVE ON AT ONCE -- WHICH WE DID -- RAZING
THE USELESS, REHABILITATING THE GOOD, AND SELLING THE HABITABLE
AS FAST AS POSSIBLE,
TODAY, OF THE 9,900 HUD PROPERTIES ON HAND IN DETROIT,
7,800 CONTAIN STRUCTURES AND 1,800 ARE VACANT LOTS, OUR
INVENTORY IS DOWN 2,900 PROPERTIES FROM A HIGH OF 13,000 IN
JANUARY, 1975. WE ARE CURRENTLY SELLING 200 MORE PROPERTIES
A MONTH THAN WE ARE TAKING IN.
By ANYBODY'S STANDARD ---- PARTICULARLY CONSIDERING THE
RECENT HISTORY OF THE HOUSING MARKET -- IT IS AN IMPRESSIVE
RECORD, AND I WISH TO THANK, PUBLICLY, MAYOR COLEMAN YOUNG
AND HUD DIRECTOR ELMER BINFORD FOR THE COOPERATIVE PUSH THAT
IS MOVING THESE VALUABLE SITES BACK INTO THE MAINSTREAM OF
DETROIT LIFE.
EVEN so, WE CONSIDER THIS PROGRAM TO BE NO MORE THAN
CORRECTIVE AT BEST. THE REAL JOB OF TURNING DETROIT BACK
INTO A PROSPEROUS, PROGRESSIVE, GROWING CITY IS FAR MORE
COMPLICATED -- BOTH IN TERMS OF PAST HISTORY AND FUTURE
OPPORTUNITY -- THAN THE PHYSICAL DIMINUTION OF HUD REAL ESTATE.
-4-
THE PROPOSITION BEFORE US -- ALL OF US IN THE PUBLIC
SECTOR AT ALL THREE LEVELS OF GOVERNMENT AND ALL OF YOU IN
THE PRIVATE SECTOR -- IS NOT WHAT THE FEDERAL GOVERNMENT
HAS TO DO TO RIGHT PAST WRONGS, BUT HOW WE MUST ACT TO PREVENT
A CONTINUING CYCLE OF WRONGS THAT KEEP PUSHING DETROIT, AS WELL
AS OTHER CITIES, FURTHER AND FURTHER BACK FROM SQUARE ONE.
AT PRESENT COUNT, I CANNOT AGREE WITH THOSE WHO CONTEND
THAT IF HUD SOLVES ITS REAL ESTATE PROBLEM IT WILL AUTOMATICALLY
SOLVE DETROIT'S PROBLEM. FOR, IF I COULD ANNOUNCE TODAY THAT
OUR DEFAULT INVENTORY WAS AT ZERO -- WITH ZERO GROWTH, THAT
ALL FHA LOANS WERE CURRENT AND ALL MORTGAGES STABLE, DETROIT
STILL WOULD BE IN DESPERATE NEED OF HELP.
I WILL AGREE THAT HUD UNDOUBTEDLY AGGRAVATED THE PROBLEMS
IT HAS RUSHED IN TO SOLVE -- BUT ITS INITIAL RESPONSE WAS
MANDATED BY CONGRESS, PROMPTED, IN TURN BY A WELL-MEANING
DESIRE TO ANSWER THE URGENT CRIES FOR HELP BY THE PEOPLE OF
THE CITIES AND THEIR GOVERNING BODIES.
IN THE END, HUD WAS AS MUCH A VICTIM OF THOSE GOOD
INTENTIONS AS THE CITY ITSELF -- AND IT WAS MORE VICTIMIZED,
IN BOTH DOLLARS AND PRESTIGE, THAN THE PEOPLE IT WAS PLEDGED
TO HELP,
-5-
AND, THAT'S WHERE HISTORY CAN SERVE US -- NOT IN DREARILY
TOTTING UP THE FAILURES, BUT BY SHOWING US THE END CONSEQUENCE
OF WHOLESALE, UNPLANNED AND ILL-CONSIDERED FEDERAL INTERVENTION
IN THE PRIVATE MARKETPLACE AND THE ESSENTIAL ECONOMY OF A
LIVING CITY,
TEN YEARS AGO, HUD WAS ANYTHING BUT THE OGRE OF THE
HEADLINES IN THE LIVES OF DETROITERS. IN FACT, THE FHA
INSURING OFFICE HERE WAS UNIVERSALLY REGARDED AS ONE OF THE
BEST AND MOST PRODUCTIVE IN THE COUNTRY -- OPERATING IN THE
TRADITIONAL MANNER OF FHA: CAREFULLY SCRUTINIZING AND
ASSESSING EVERY ASPECT OF POSSIBLE ECONOMIC RISK BEFORE
INSURING ANY PROPERTY.
EIGHT YEARS AGO, CONGRESS GAVE HUD A NEW SET OF DIRECTIONS
-- DEDICATED IN GOOD CONSCIENCE TO THE EXPANSION OF HOMEOWNERSHIP
OPPORTUNITIES TO THOSE ON THE LOWEST RUNG OF THE INCOME LADDER.
ASSESSMENT CRITERIA WERE CHANGED TO MEET THE CONDITIONS
OF THE INNER CITY NEIGHBORHOODS, AND A LOW DOWN PAYMENT OF
SPECIAL RISK PURCHASES WAS INSTITUTED.
-6-
THUS, SINGLE FAMILY HOMEOWNERSHIP WAS DESIGNATED, BY
CONGRESS, TO BE A PRINCIPAL FEDERAL DEVISE FOR STABILIZING
THE ERUPTING GHETTOS OF THE LATE 60's -- AND IN THE SINGLE
FAMILY HOME CITY OF DETROIT, THE HUD OFFICE BECAME ONE OF
THE MOST ACTIVE IN THE COUNTRY.
IT WAS PRAISED BY DETROIT, BY THE WHITE HOUSE AND BY
CONGRESS FOR ITS ENERGETIC RESPONSE TO DUTY -- AS IT PROCEEDED
TO INSURE IN DETROIT 66,500 INNER CITY MORTGAGES BETWEEN
1969 AND 1973.
BUT WE KNOW NOW, THAT IT WAS LIKE PUTTING A 600-POUND
JOCKEY ON A WINNING RACEHORSE.
INTERNALLY, THE SYSTEM SIMPLY COULD NOT HANDLE THAT
VOLUME OF INSURED HOUSING COMING THROUGH THE DETROIT OFFICE
WITHOUT MISSING A LOT OF DETERRING ESSENTIALS,
As WE ALSO KNOW, SUCH FRENETIC PROCESSING OF MORE EASILY
OBTAINABLE FUNDS LED TO SOME INTERNAL CORRUPTION WHICH, IN
TURN, ONLY AGGRAVATED THE LEGACY HUD WOULD INHERIT FROM THIS
NOBLE EXPERIMENT.
-7-
HUD MAY SEEM THE EVIL CULPRIT TO SOME OF ITS DETROIT
CRITICS, BUT IT WAS A TARGET OF OPPORTUNISTS DURING THAT
PERIOD OF VOLUME PRODUCTION -- AS CYNICAL OPERATORS IN THE
PRIVATE SECTOR ZEROED IN TO BILK THE POOR, BEAT THE GOVERNMENT
AND LINE THEIR POCKETS WITH THE TAXPAYERS' MONEY.
COMING OUT THE OTHER END OF THE PIPELINE, AS THE INEVITABLE
DEFAULTED PAYMENTS STARTED MOUNTING, THE SYSTEM LITERALLY WAS
SWAMPED BY THE MAGNITUDE OF WORK INVOLVED IN THE FORECLOSURE
AND REPOSSESSION OF DEFAULTED PROPERTIES -- WHICH, BY JANUARY
1973, HAD REACHED A STAGGERING HIGH OF ABOUT 1,000 PER MONTH.
HUD WOUND UP WITH MORE PROPERTIES WHICH IT NEVER WANTED
-- UNSOUND HOUSES WITH SERIOUS INTERNAL RUPTURES; HOUSES
WHICH THE NEW OWNERS COULDN'T AFFORD TO BEGIN WITH -- AND
DIDN'T HAVE THE MONEY TO MAINTAIN IN ANY EVENT.
WHO COULD BLAME THEM IF THEY WALKED AWAY? WHAT WAS
THE LOSS TO ANYBODY EXCEPT "THE GOVERNMENT" WHO CARRIED THE
RISK AND PAID OFF ALL CLAIMANTS?
07V830
-8-
WELL, NOW WE KNOW WHO THE LOSERS ARE; THEY TRULY ARE
ALL OF US: THE POOR PEOPLE WHOSE DREAM WAS DESTROYED; THE
BUSINESS COMMUNITY WHOSE REPUTATION WAS TARNISHED BY THE
CYNICAL FREEBOOTERS; DETROIT; HUD; CERTAINLY THE FEDERAL
GOVERNMENT, AND ULTIMATELY ALL OF AMERICA, BECAUSE OUR FAILURES
IN DETROIT NOT ONLY CHEAT THE TAXPAYERS BUT SPREAD DOUBT OF
OUR ABILITY AS A NATION TO MAKE OUR SYSTEM OF DEMOCRACY WORK
FOR ALL AMERICANS.
IF WE SEE IN THE RELENTLESS PURSUIT AND PROSECUTION OF
THE LEGAL WRONGDOERS IN THE DETROIT SCANDAL, A PUBLIC CLEANSING
OF THE AIR -- FINE, CERTAINLY, I HAVE PLEDGED HUD STAUNCHLY
TO THAT PURPOSE. BUT, THAT IN ITSELF IS NEITHER A FITTING END
NOR A FRESH BEGINNING TO OUR COMMON TASK,
So, LET'S START BY VIEWING DETROIT -- AS WE MUST VIEW
ANY URBAN ENTITY -- AS A CITY OF PEOPLE. A HEALTHY CITY IS
A CITY OF ALL KINDS OF PEOPLE IN EVERY INCOME STRATA,
PROVIDING ENERGY, CREATIVITY, PERSONAL INVOLVEMENT AND,
EARNING POWER,
-9-
I HAVE STACKS OF STATISTICS ON WHAT IS HAPPENING IN
OUR CITIES. I CAN TELL YOU LOTS OF THINGS ABOUT DETROIT
THAT YOU ALREADY KNOW -- LIKE THE DEPARTURE OF AMERICAN
MOTORS, KRESGE INTERNATIONAL, FTD, HILTON HOTELS, THE
THREE A's. THAT 10 PERCENT OF YOUR TOTAL CITY PARCELS ARE
VACANT; THAT BETWEEN 1970 AND 1974 HOUSING UNITS DECREASED BY
80,000 UNITS OR ABOUT 15 PERCENT; THAT 21 PERCENT OF YOUR TOTAL
COMMERCIAL UNITS ARE VACANT,
WHAT IS TOO OFTEN MISSING IN THE STATISTICAL DOCUMENTATION
OF A PROBLEM IS THE POSITIVE SUGGESTION FOR DOING SOMETHING
ABOUT SOLVING IT. How DO WE RESTORE THE TRADITIONAL BALANCE
OF PEOPLE NECESSARY TO REVITALIZE THE CITY? WE ALL KNOW WHICH
END OF THE TAX-BEARING MIX OF PEOPLE HAS LEFT TOWN, BUT DO WE
HAVE ANY PLANS FOR WINNING THEM BACK?
IN TRUTH, CITIES WITH DETROIT-LIKE PROBLEMS IN MANY PARTS
OF THE COUNTRY ARE STARTING TO WRITE THEIR OWN NEW HISTORIES
OF URBAN OPPORTUNITY -- BOTH FOR CITY DWELLERS AND FOR
COMMERCIAL OPERATIONS, AND, IN THE LONG RUN, OPPORTUNITY FOR
THE CITIES THEMSELVES, THE RECENT CONFERENCE OF THE LEAGUE
OF CITIES WAS ALIVE WITH NEW THINKING ON THIS COMMON PROBLEM.
BERMED
-10-
AND, BECAUSE I'D LIKE YOUR QUESTION AND ANSWER PERIOD
TO DEAL WITH POSITIVE LOCAL ACTION OFPORTUNITIES, AS WELL AS
LOCALLY ACUTE PROBLEMS, PERMIT ME TO OFFER A FEW UPBEAT
OBSERVATIONS:
I REJECT TWO SCHOOLS OF ABSOLUTISM IN THE RELATIONSHIP
BETWEEN OUR CITIES AND THE FEDERAL GOVERNMENT: FIRST, THE
ONE WHICH HOLDS THAT WE CAN CURE ALL THE ILLS OF URBAN
AMERICA WITH THE SIMPLE INFUSION OF FEDERAL FUNDS -- AND I
OFFER DETROIT AS A CASE IN POINT -- AND, SECOND, THE SCHOOL
THAT SAYS THE FEDERAL GOVERNMENT SHOULD STAY COMPLETELY OUT
OF LOCAL AFFAIRS, BOTH ARE ABSURDITIES,
THE ONLY WAY WE'RE EVER GOING TO MAKE THE APPARATUS
WORK IS THROUGH TOTAL COMMUNICATION AND TOTAL COOPERATION
BETWEEN THE PUBLIC AND PRIVATE SECTORS -- AND AMONG THE
BRANCHES OF GOVERNMENT AT ALL THREE LEVELS,
I ALSO REJECT ALL OF THE OBITUARIES I'VE READ ABOUT
DETROIT. A TOUR OF OUR JOINTLY SPONSORED HARMONY VILLAGE
REDEVELOPMENT AREA, NOT ONLY CONFIRMS THE VALIDITY OF FEDERAL-
LOCAL COOPERATION -- IT PROVES MOTOR CITY TO BE VERY MUCH ALIVE,
-11-
THE FIRST HOPE FOR OUR CITIES IS THE DEDICATION AND
PRACTICALITY OF FORWARD-LOOKING LOCAL LEADERS HERE AND IN
CITIES ALL OVER THE UNITED STATES -- WHO REFUSE TO CONCEDE
VICTORY TO THE CREEPING MONSTER OF URBAN DISEASE.
IF STATISTICS CAN DEPRESS US, THEY CAN ALSO ENCOURAGE
US WHEN THEY ARE GOING OUR WAY. AND THE DEMOGRAPHICS OF
1976 -- ABETTED BY THE NEW REALITIES OF 21st CENTURY LIVING
-- ARE SENDING UP THE RIGHT SIGNALS FOR URBAN REBIRTH.
WHAT SALES MANAGER FROM ANY NATIONAL COMPANY HAS NOT
HEARD HIS REGIONAL MANAGER SAY: "Yes, BUT MY TERRITORY IS
DIFFERENT"? As DETROIT IS DIFFERENT FROM ALL OTHER CITIES,
IT ALSO HAS CHARACTERISTICS THAT ARE SIMILAR TO OTHER URBAN
CENTERS,
FOR, NO MATTER WHERE IT IS PHYSICALLY LOCATED, THE NEW
SUBURB IS AN EXPENSIVE PROPOSITION -- AND GETTING MORE so AS
SUBURBAN EXPANSION RUNS HEADLONG INTO ENVIRONMENTAL
RESTRICTIONS AND RESOURCE SHORTAGES,
-12-
AND, WE KNOW IT TAKES ALMOST 50 PERCENT LESS OF
EVERYTHING -- LAND, LABOR, MONEY AND ENVIRONMENTAL DISRUPTION
TO REHABILITATE A CITY NEIGHBORHOOD THAN TO BUILD A NEW
SUBURB.
LET US TALK ABOUT SOME OF THE POSITIVE THINGS WE CAN
DO, TOGETHER, TO GIVE PEOPLE SPECIFIC REASONS FOR STAYING IN
OR MOVING BACK TO DETROIT.
THE FACT IS THAT DETROIT HAS LAND AND HOMES WHICH ARE
GREAT BARGAINS, AND CAN CAPITALIZE ON THIS FACT.
TAKE THE PROUD COOPERATIVE EFFORT ALREADY UNDERWAY WHICH
DOES JUST THAT -- HARMONY VILLAGE.
THE THOUGHT, THE PLANNING, THE FOLLOW THROUGH AND THE
OBJECTIVE OF THIS REHABILITATION PROJECT WHICH WILL ENCOMPASS
1,000 HOMES -- CONTAIN THE ESSENCE OF INTERGOVERNMENTAL-
PRIVATE CITIZEN COOPERATION AT ITS BEST.
WHILE IT IS HUD-FUNDED AND ENTHUSIASTICALLY SUPPORTED,
THE CONCEPT OF HARMONY VILLAGE WAS LOCALLY PERCEIVED, LOCALLY
DIRECTED, LOCALLY IMPLEMENTED AND IS LOCALLY CONTROLLED.
-13-
IT IS AN IDEA WHOSE TIME HAS COME -- AND IT CAME ABOUT
AS AN IDEA JOINTLY SPONSORED BY THE MICHIGAN STATE HOUSING
DEVELOPMENT AUTHORITY (MSHDA), THE NORTHWEST DETROIT NON-
PROFIT HOUSING CORPORATION AND THE CITY OF DETROIT. IT WAS
PRESENTED TO HUD AS A TOTAL CONCEPT BACKED BY A PLAN OF
ACTION IN OCTOBER OF 1974.
IN BRIEF, THE "MSHDA" PROJECT INVOLVES THE RECLAMATION
AND PRESERVATION OF AN EIGHT SQUARE MILE "NEIGHBORHOOD" IN
NORTHWEST DETROIT. HUD IS PROVIDING SUBSTANTIAL, REHABITABLE
HOUSING FROM ITS INVENTORY PLUS $2 MILLION, THUS FAR, IN
IMPROVEMENT GRANTS; MSHDA IS PROVIDING THE EXPERTISE, LEGAL
WORK AND SALES PUSH IN TRANSFERRING THE PROPERTIES TO PRIVATE
INVESTORS; NORTHWEST DETROIT HOUSING CORPORATION IS MANNING
AND MANAGING THE MODEL HOMES, PROVIDING ROUND-THE-CLOCK
SECURITY AND COUNSELING PROSPECTIVE HOMEOWNERS.
HUD's PRICE OF THE PROPERTIES TO THE STATE WAS DELIBERATELY
LOW TO ASSURE THE MAXIMUM OF IMPROVEMENT AND STILL PRODUCE A
REHABILITATED HOME THAT FAMILIES OF LOW AND MODERATE MEANS CAN
AFFORD. AND MSHDA's CONTROL OF TRANSFERS ASSURES THAT THE
CONTRACTING INVESTORS WILL PROVIDE THE BEST QUALITY OF
REHABILITATION WORK. THE NORTHWEST CORPORATION ASSURES THAT
THE PROPERTIES WILL BE SAFEGUARDED AND THAT THE APPLICANT
FAMILIES WILL PRESENT A REASONABLE RISK.
-14-
BUT A NEIGHBORHOOD IS MORE THAN HOUSES AND PEOPLE, So,
THE CITY OF DETROIT -- THE FOURTH PARTNER IN THIS COOPERATIVE
EFFORT -- IS USING ITS COMMUNITY BLOCK GRANT FROM HUD TO
PROVIDE STREET LIGHTS, CURBING AND LANDSCAPING, AND TO IMPROVE
ESSENTIAL SERVICES TO THE INHABITANTS OF HARMONY VILLAGE.
THUS, EACH MEMBER OF THIS PARTNERSHIP QUARTET PRODUCED
A KEY ELEMENT THAT THE OTHERS WERE NOT EQUIPPED TO PROVIDE
AS WELL. WE KNOW THAT LACK OF SUCH ELEMENTARY SAFEGUARDS AS
PROPERTY SECURITY, WORK QUALITY CONTROL, STRONG LOCAL COMMITMENT,
AND EXPERT LOCAL KNOWLEDGE WAS A MAJOR CONTRIBUTING FACTOR IN
HUD's EARLIER FAILURE TO DEAL SUCCESSFULLY WITH ITS INVENTORY
REHABILITATION PROBLEM. PROPERTIES WERE VANDALIZED EVEN BEFORE
HUD REGAINED TITLE -- AND IMPROVEMENTS (TO SAY NOTHING OF
MATERIALS) WERE RIPPED OFF AS SOON AS THEY WERE ON THE SITE.
HARMONY VILLAGE IS AN INNOVATIVE ATTEMPT TO STABILIZE
AND REVITALIZE AN EXTENSIVE NEIGHBORHOOD THAT IS A VITAL PART
OF THE DETROIT COMMUNITY,
THESE ARE GOOD HOUSES. UNDER THIS COOPERATIVE ACTION
PLAN THEY WILL BE GIVEN THE KIND OF REHABILITATION THAT WILL
MAKE THEM INTO EXCELLENT HOMES -- AS THEY ONCE WERE.
-15-
BUT THE ULTIMATE SUCCESS OF THE VENTURE DEPENDS ENTIRELY
ON THE PEOPLE OF DETROIT AND WE HAVE FAITH THAT BY WORKING
TOGETHER THIS PROGRAM WILL WORK,
OUR SALE OF HUD-OWNED CLEARED PROPERTIES TO THE CITY OF
DETROIT AT $1 A LOT IS ANOTHER EXAMPLE OF FORWARD-THINKING
FEDERAL/LOCAL COOPERATION. To QUOTE BACK TO YOU SOME WORDS
FROM THE DETROIT FREE PRESS EDITORIAL OF APRIL 7TH:
"BOTH PARTIES DID GET A GOOD DEAL IN THE
HUD-CITY ARRANGEMENT TO TURN OVER THE HOUSING
AGENCY'S VACANT LOTS TO DETROIT.
"HUD STOPS CARRYING THE LOTS ON ITS BOOKS,
WIPES OUT IS MAINTENANCE COSTS, AND ELIMINATES
MANY OF THE HEADACHES IT HAS SUFFERED AS IT
TRIED TO PEDDLE THE LOTS AT A PRICE.
"AND THE CITY OF DETROIT BECOMES THE OWNER
OF THOUSANDS OF PARCELS OF LAND THAT MAY NOT BE
WORTH MUCH NOW, BUT HAVE GREAT POTENTIAL IN THE
YEARS AHEAD.
-16-
"IT IS BETTER THAT THE CITY OWN THE LOTS
THAN ANYONE ELSE, FOR THEN THE CITY CAN DECIDE
WHAT HAPPENS TO THEM.
"IDEALLY, THE VACANT LOTS THAT NOW MAKE
PARTS OF DETROIT LOOK LIKE A WASTELAND WILL ONE
DAY BE REDEVELOPED, EITHER FOR HOUSING OR
COMMERCIAL-INDUSTRIAL USES THAT WILL PUMP VITAL
TAX DOLLARS BACK INTO THE CITY'S WRUNG-OUT
POCKETS."
OBVIOUSLY, WE AT HUD, WERE PLEASED WITH THIS EDITORIAL
-- AS WE HAVE BEEN WITH YOUR STORIES ON HARMONY VILLAGE. NOT
THAT HUD IS THE DARLIN' OF DETROIT'S NEWSROOMS, BY ANY STRETCH
OF A COLUMN INCH.
BUT, THE STORIES I LIKE BEST ARE THE UPBEAT REPORTS ON
DETROIT'S GAINS IN THE BATTLE LINED WITH LOSSES; AND THE
OPTIMISM OF MANY DETROIT LEADERS ABOUT THE FUTURE OF YOUR
CITY -- NOT ONLY BECAUSE THEY HELP STRENGTHEN OUR RESOLVE AT
HUD, BUT BECAUSE THAT KIND OF THINKING, WRITING, AND TALKING
IS INDISPENSABLE IF PEOPLE ARE GOING TO HAVE THE CONFIDENCE
TO CAST THEIR LOT WITH DETROIT'S FUTURE -- AND THEY CAN'T
HAVE THAT CONFIDENCE IF ALL THEY HEAR AND READ IS A DISMAL
LIST OF DETROIT'S PROBLEMS,
-17-
THE URBAN REVITALIZATION PROCESS IS A GEOMETRIC DESIGN.
STEADY GROWTH AND IMPROVEMENT -- LIKE DECLINE AND DECAY --
SPREAD FROM NEIGHBORHOOD TO CONTIGUOUS NEIGHBORHOOD. AND
THE PATTERN OF GROWTH, AS THE PATTERN OF DECLINE, IS TIED TO
THE ECONOMIC STABILITY OF THE NEIGHBORHOOD AND THE CITY,
AND THAT IS WHY THE LAND BANK CONCEPT IS so VITAL TO
DETROIT. THE BARGAIN THE CITY CAN OFFER PROVIDES TREMENDOUS
POTENTIAL FOR ATTRACTING PEOPLE AND INDUSTRY TO ITS BOUNDARIES.
IN THE GEOMETRICS OF NATIONAL URBAN DECLINE, THOSE INDUSTRIES
WHICH MIGHT HAVE ELECTED TO STAY WITH A GIVEN CITY -- TOO OFTEN
-- WERE TAXED RIGHT OUT OF IT, AND NEED AN ECONOMIC INCENTIVE
TO RETURN.
MORE AND MORE CITIES ARE BEGINNING TO SHOW A WILLINGNESS
TO PROVIDE SUCH INCENTIVES TO HOLD ON TO THE BUSINESSES THEY
HAVE AND TO ATTRACT OTHERS.
POSTPONING TAX REVENUES AS AN INVESTMENT IN THE FUTURE
IS A COMMON DEVICE,
SURELY, IT MEANS MUNICIPAL BELT TIGHTENING -- BUT WHAT
IS THE TAX POTENTIAL OF AN EMPTY STORE OR PLANT OR HOUSE THAT
SITS THERE AND ROTS?
-18-
THUS, THE KENTUCKY LEGISLATURE IS BEING ASKED TO ALLOW
A 5-YEAR MORATORIUM ON PROPERTY TAXES FOR RENOVATED DWELLINGS,
WILMINGTON, HARTFORD AND BOSTON HAVE PROVIDED TAX
ABATEMENT ON RESTORATION WORK,
ST. LOUIS IS OFFERING ABATED TAXING ON NEW AND EXPANDING
BUSINESS WITHIN ITS METROPOLITAN BOUNDARIES.
AND, THERE ARE OTHER LEVERS OF INVENTION.
CITY PLANNERS IN CHICAGO, GALVESTON, PHILADELPHIA AND.
PORTLAND HAVE FOUND THAT WHERE THE PRIVATE LENDERS HAVE
RETREATED FROM LENDING IN A NEIGHBORHOOD, THEY CAN INCREASE
PRIVATE INVESTMENT INCENTIVES WITH INTEREST SUBSIDIES, LOAN
GUARANTEES, HIGH RISK LOAN POOLS OR SEED MONEY GRANTS,
THIS IS NOT A PLEA TO UNSHACKLE HUD FROM ITS DETROIT
RESPONSIBILITIES. WE ARE COMMITTED TO ASSISTING IN THE
RE-CREATION OF A HEALTHY DETROIT COMMUNITY AS A WHOLE.
BUT WE ALL KNOW THAT THE FORCES THAT AFFECT THE CITY
OF DETROIT ARE WELL BEYOND THE CONTROL OF HUD AS A SOLE
AGENT OF CHANGE. WITHOUT THE KIND OF PRIVATE CAPITAL AND
CONCERN THAT BUILT THIS CITY TO BEGIN WITH, GOVERNMENT FUNDS
ALONE CANNOT REVITALIZE AND STABILIZE DETROIT -- OR ANY
OTHER AMERICAN CITY,
-19-
FROM TIME TO TIME, IN THIS BICENTENNIAL YEAR, WE MAY
LOOK AT THE PAST WITH A CERTAIN AMOUNT OF UNDERSTANDABLE
NOSTALGIA, BUT, WE CAN'T REBUILD OUR GREAT CITIES WITH
YESTERDAY'S TOOLS AND YESTERDAY'S IDEAS,
IF WE'RE GOING TO WIN IN DETROIT -- OR IN URBAN AMERICA
ITSELF, WHICH NOW HOUSES MORE THAN 70 PERCENT OF OUR EXPANDING
POPULATION -- ALL THREE LEVELS OF GOVERNMENT AS WELL AS THE
PRIVATE SECTOR WILL HAVE TO DO IT TOGETHER -- IN A RESOUNDING
COOPERATIVE COMMITMENT TO THE REAL JOB IN THE REAL WORLD OF
THE FUTURE,
THANK YOU,