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11/17/76 - National Association of Realtors
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1133493
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11/17/76 - National Association of Realtors
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This file contains material relating to Community Development Block Grant Program.
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Carla A. Hills Speeches
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1976
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1976-11-17
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1976
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The original documents are located in Box 2, folder "11/17/76 - National Association of
Realtors" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
NATIONAL ASSOCIATION OF REALTORS
NOVEMBER 17, 1976
IN THE YEAR SINCE WE MET IN SAN FRANCISCO, THERE HAVE
BEEN MANY CHANGES,
IN FACT, ONE OF THEM TOOK PLACE TWO WEEKS AGO YESTERDAY.
IT IS HARDLY NECESSARY TO TELL AN AUDIENCE OF REALTORS
THAT YOU WIN SOME AND YOU LOSE SOME,
THAT ASIDE, THE PAST YEAR HAS BEEN A BIG WINNER FOR YOU,
FOR THE HOUSING INDUSTRY, AND FOR HUD. WE HAVE SUCCESSFULLY
WORKED TOGETHER TO REDUCE BUREAUCRATIC INTERFERENCE.
TODAY EVEN "RESPA" IS NO LONGER A "BOO OF THE WEEK",
AND TOGETHER, WE DID STIMULATE THE FLOW OF INVESTMENT CAPITAL.
THERE CAN BE NO QUESTION BUT THAT WE ARE IN THE MIDST
OF A ROBUST HOUSING RECOVERY, IF WE FAIL TO BUILD ANOTHER
SINGLE-FAMILY HOME THIS YEAR, IT WILL BE THE FOURTH BEST YEAR
ON RECORD, AND WE HAVE ENJOYED 16 CONSECUTIVE MONTHS OF RECORDS
IN THE SALE OF EXISTING HOMES,
GERALD A FORD CIBRADA
-2-
ON THIS NOVEMBER 17TH, 1976 IN HOUSTON, WE CAN SAY WITH
EVEN MORE CONVICTION THAN EVER BEFORE: HOMEOWNERSHIP IS STILL
THE BEST INVESTMENT IN THE MONEY MARKET,
ON JANUARY 20TH, WE WILL TURN OVER A WELL WORKING MACHINE
TO OUR SUCCESSORS AND PRIOR TO THE 20TH WE WILL WORK COOPERATIVELY
TO ENSURE A SMOOTH TRANSITION. HUD AND ALL ITS PARTS ARE IN
GOOD- SHAPE. THE DEPARTMENT IS PRODUCING RESULTS -- STAFFED
WITH A FINE CADRE OF DEDICATED PROFESSIONALS WHOSE CAREERS ARE
UNAFFECTED BY THE RECENT ELECTION RETURNS,
BUT, OVER THE PAST SEVERAL YEARS THE REALIZATION HAS GROWN
THAT "GOVERNMENT" -- WHETHER FEDERAL, STATE, OR LOCAL -- IS A
DOMINANT FACTOR IN THE LIFE OF AMERICA,
IT IS COMMON KNOWLEDGE THAT ONE OUT OF EVERY SIX PAYCHECKS
IS ISSUED BY GOVERNMENT AT SOME LEVEL,
Too OFTEN, FOR A GIVEN PROBLEM -- REAL OR IMAGINED ----
A GOVERNMENT ENTITY IS CREATED TO SOLVE IT.
-3-
ONE OF THE HEALTHIEST THINGS THAT HAS HAPPENED TO THIS
NATION IS THAT THE AVERAGE AMERICAN IS BECOMING MORE AWARE
OF THE COST AND CONSEQUENCE OF GOVERNMENTAL SOLUTION.
THE STARK TRUTH OF THE VAST GOVERNMENT-SOCIO-ECONOMIC
EQUASION -- HITTING HOME TO THE AMERICAN FAMILY -- IS FORCING
A CRUCIALLY-NEEDED CHANGE IN THE SHAPE OF GOVERNANCE AT ALL
THREE TIERS -- FEDERAL, STATE AND LOCAL,
PERHAPS, THE MOST IMPORTANT LESSON LEARNED IN THE PAST
DECADE IS THAT STATE AND LOCAL PROBLEMS ARE NOT AUTOMATICALLY
SOLVED BY SHUNTING THEM OFF TO WASHINGTON.
PEOPLE HAVE REDISCOVERED THE TRUTH THAT OUR CITIES AND
STATES, ACROSS THIS DIVERSE LAND, VERY OFTEN CAN DEVISE BETTER
SOLUTIONS FOR THEIR INDIVIDUAL PROBLEMS THAN CAN CONGRESS --
WHICH DEALS IN BROAD NATIONAL STATISTICS AND DEPENDS ON GRAND
NATIONAL PLANS THAT TOO FREQUENTLY MISS THE MARK,
IN ADDITION TO THE ADVERSE EFFECT WHICH MANY OF THESE
WASHINGTON-BASED MONOLITHS CAN HAVE ON THE NATIONAL ECONOMY
-- AND THE FAMILY BANK ACCOUNT -- THEY THROW OUR THREE-TIERED
FEDERAL SYSTEM COMPLETELY OUT OF WHACK,
-4-
BUT THE FEDERAL GOVERNMENT IS WHAT THE AMERICAN PEOPLE
HAVE MADE IT. IT HAS GROWN TO FIT THE EXPRESSED WILL OF THE
ELECTORATE, MANY OF ITS FUNCTIONS AND MANY OF ITS AGENCIES
HAVE SURVIVED THE VOTERS AND THE LEGISLATURES WHICH PUT THEM
INTO BEING. MANY HAVE OUTLIVED THEIR USEFULNESS, YET CARRY
ON UNDER THE PROTECTION OF STRONG SPECIAL INTEREST GROUPS --
OR VOTING BLOCS -- OR SIMPLY BECAUSE NOT ENOUGH PEOPLE CARED.
IT TOOK A LONG TIME, AND A LOT OF LEGISLATION TO CREATE
THE PRESENT TANGLE, AND IT IS NOT GOING TO CHANGE OVER NIGHT,
REGARDLESS OF CAMPAIGN RHETORIC,
ON JUNE 30TH, THE PRESIDENT'S COMMITTEE ON URBAN DEVELOPMENT
AND NEIGHBORHOOD REVITALIZATION, WHICH I CHAIR, UNDERTOOK AN
ANALYSIS OF ALL FEDERAL PROGRAMS WHICH AFFECT OUR URBAN AREAS.
OUR INITIAL REVIEW OF THE AMASSED DATA QUICKLY CONFIRMED
WHAT WE ALREADY SUSPECTED.
OVER THE PAST HALF-CENTURY, SUCCEEDING CONGRESSES HAVE
ENACTED so MANY SEPARATE CATEGORICAL PROGRAMS THAT IT DEFIES
THE INGENUITY OF ANYBODY TO DEVELOP A COORDINATED STRATEGY
FOR A HOUSTON, A Los ANGELES, A CLEVELAND, OR A PHILADELPHIA.
-5-
IN ADDITION, THERE ARE so MANY SUPPLIERS OF FEDERAL
FUNDS WITH SO MANY DIFFERENT SCHEDULES, RULES, AND REGULATIONS
THAT IT IS A PRACTICAL IMPOSSIBILITY TO DESIGN AN EFFICIENT
URBAN PLAN IN OR OUT OF WASHINGTON THAT WILL GET THE MOST OUT
OF THE FEDERAL DOLLAR.
I HAVE REVIEWED 103 FEDERALLY-FUNDED LOAN AND GRANT
PROGRAMS WHICH PRIMARILY AFFECT OUR URBAN AREAS AND WHICH
CARRY A PRICE TAG OF ROUGHLY $50 BILLION A YEAR, SIXTY-THREE
OF THESE ARE DIRECT GRANT PROGRAMS -- OF WHICH ONLY 4 ARE
BROAD BLOCK GRANT PROGRAMS WHICH GIVE SUBSTANTIAL DISCRETION
TO LOCAL OFFICIALS. THE OTHER 59 FUND PROJECTS IN THE NARROW
CATEGORIES FAVORED BY CONGRESS. THE REMAINING 40 ARE
MISCELLANEOUS LOAN PROGRAMS,
SIGNIFICANTLY, LOCAL GOVERNMENTS ARE ELIGIBLE, DIRECT
APPLICANTS IN BARELY ONE-FOURTH OF ALL THESE PROGRAMS WHICH
PRIMARILY AFFECT LOCALITIES,
ALL OTHER PROGRAM FUNDS ARE DISTRIBUTED TO THE STATES
OR TO SPECIAL-PURPOSE LOCAL AGENCIES,
-6-
A BRIEF RECAP OF THE HUD EXPERIENCE ILLUSTRATES THE
ADVANTAGE TO THE CITY, TO THE STATE, TO THE FEDERAL GOVERNMENT,
AND, NOT LEAST OF ALL, TO THE TAXPAYERS, OF GIVING BROAD
DISCRETION WITH FEDERAL FUNDING,
PRIOR TO AUGUST 1974, HUD HAD 7 CATEGORICAL GRANT PROGRAMS
THAT ARE NOW CONSOLIDATED UNDER OUR BLOCK GRANT PROGRAM --
EACH HAD ITS OWN SET OF REQUIREMENTS, REGULATIONS, AND
TIMETABLES. WATER AND SEWERS; URBAN RENEWAL; OPEN SPACE FOR
PARK DEVELOPMENT; MODEL CITIES -- ALL OF THEM WELL-MEANING
BUT WITHOUT ANY ALLOWANCE FOR GREATER COMMUNITY NEEDS THAT
MIGHT LIE OUTSIDE OF THE STRICT SPECIFICATIONS OF THE SPECIFIED
7 CATEGORIES.
THE RESULT WAS CONFUSION, FRUSTRATION AND INTERMINABLE
DELAYS --- OFTEN OUTLASTING LOCAL ADMINISTRATIONS, OR MISSING
THE MOMENT FOR EFFECTIVE CORRECTIVE ACTION,
To MAKE SENSE OUT OF THIS MORASS, THIS ADMINISTRATION
DEVELOPED THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM,
UNDER THE PROGRAM, LARGE CITIES AND URBAN COUNTIES RECEIVE
UNFETTERED FUNDS WHICH THEY SPEND, FOR THEIR LOCALITIES'
MOST URGENT COMMUNITY DEVELOPMENT NEEDS,
-7-
REGULATIONS HAVE BEEN CUT FROM 2600 PAGES TO ABOUT 100
PAGES; APPLICATIONS FROM 1400 PAGES TO ABOUT 50 PAGES; AND
REVIEW TIME FROM AN AVERAGE OF 26 MONTHS TO AN AVERAGE OF
45 DAYS. WE ARE NOW PROVIDING TWICE AS MUCH FUNDING TO
TWICE AS MANY UNITS OF GOVERNMENT -- AND WE ARE DOING IT
WITH FEWER HUD EMPLOYEES.
- BUT, MOST IMPORTANT, WE ARE PROVIDING LOCAL COMMUNITIES
WITH VITALLY NEEDED FUNDS -- ON TIME AND IN TIME,
IT IS MY STRONG BELIEF THAT OUR CITIES CAN, AND WILL,
MOVE FORWARD IF THE FEDERAL ESTABLISHMENT SHIFTS EMPHASIS
FROM CATEGORICAL THINKING TO BLOCK GRANT PLANNING,
THEN FUNDING IS PUT BEYOND THE NARROW PERSPECTIVE OF
SOME "EXPERT" IN WASHINGTON, WHO CANNOT POSSIBLY GRASP THE
INDIVIDUAL DIFFERENCES OF THE THOUSAND UPON THOUSAND OF
LOCALITIES ACROSS OUR VAST COUNTRY.
THE EVIDENCE, IN FACT, IS so STRONG -- THAT I SUGGEST
THAT A FORWARD-LOOKING APPROACH TO FEDERAL GRANT PROGRAMS
SHOULD BUILD ON FOUR PRINCIPLES:
-8-
FIRST, WE SHOULD PREFER BLOCK GRANTS TO CATEGORICALS
FOR ALL THE REASONS I HAVE STATED HERE -- PARTICULARLY IN
GIVING LOCAL PEOPLE MORE CONTROL OVER THE RESOURCES THAT
AFFECT THEIR LIVES,
SECOND, FUNDING SHOULD BE PROVIDED THROUGH THE ELECTED
CHIEF EXECUTIVE OFFICERS OF STATES AND LOCALITIES BOTH TO
ASSURE COORDINATION IN THE USE OF AVAILABLE FUNDS AND
ACCOUNTABILITY TO THE PEOPLE AFFECTED.
THIRD, CITIZEN PARTICIPATION SHOULD BE A RULE RATHER
THAN AN EXCEPTION IN FEDERAL GRANT PROGRAMS, WHICH WILL
INCREASE GOVERNMENTAL ACCOUNTABILITY, THE CORNERSTONE OF
OUR DEMOCRACY.
AND, FINALLY, MULTI-YEAR FUNDING SHOULD BE THE RULE, so
THAT OUR COMMUNITIES CAN INTELLIGENTLY PLAN INTO THE FUTURE
AND, AT THE SAME TIME, TAKE ADVANTAGE OF TIMELY OPPORTUNITIES
TO GET THE MOST EFFECTIVE RETURN ON THEIR AVAILABLE FUNDS,
I DO NOT CLAIM THAT THESE FOUR PRINCIPLES ARE THE BE-ALL
AND END-ALL FOR EVERY FEDERAL PROGRAM, BUT, I BELIEVE THAT
OUR CONSTITUENCIES WOULD FARE A LOT BETTER IF THESE BECAME
THE GUIDING PRINCIPLES OF FUTURE FEDERAL PROGRAM PLANNING,
-9-
THEIR COMMON OBJECT IS TO ENHANCE THE SPECIAL CAPABILITIES
OF EACH LEVEL OF GOVERNMENT AND ENABLE EACH TO BE MORE
RESPONSIVE AND EFFICIENT,
BECAUSE, EVEN AS THERE ARE THREE TIERS OF GOVERNMENT,
THERE ARE THREE DISTINCT TIERS OF EXPERTISE AND THREE TIERS
OF OPERATION -- ALL THREE OF WHICH ARE NEEDED TO MAKE OUR
FEDERAL SYSTEM WORK WELL,
THUS, ALTHOUGH LOCAL GOVERNMENTS ARE THE BEST SITUATED
TO SOLVE LOCAL PROBLEMS, THEY ARE THE LEAST CAPABLE OF
GENERATING SIGNIFICANT AMOUNTS OF REVENUE. THE VAST MAJORITY
OF REVENUES RAISED AT THE LOCAL LEVEL COME FROM PROPERTY
TAXES, AND WE KNOW THAT OVERTAXATION OF PROPERTY SERVES TO
HALT LAND DEVELOPMENT, OR ENCOURAGE DISINVESTMENT,
AND, WHILE IT IS THE FEDERAL GOVERNMENT THAT HAS THE
MOST EFFICIENT MEANS OF GENERATING REVENUES AND SETTING
NATIONAL GOALS, WHETHER THAT BE THE GOAL OF A DECENT HOME
FOR EVERY AMERICAN OR OF PRESERVING OUR NATION'S HOUSING STOCK,
IT IS THE STATE GOVERNMENT THAT BRINGS REGIONALISM TO LOCAL
GOVERNMENTAL DECISION-MAKING, AND PROVIDES A SAFEGUARD AGAINST
INEQUITIES IN LOCAL RESOURCE ALLOCATION.
-10-
IN PLANNING FOR THIS NATION'S URBAN FUTURE WE CANNOT
IGNORE THE NEED TO INTEGRATE THE POLITICAL AND ECONOMIC
DESTINIES OF OUR CITIES WITH THEIR SUBURBS, THE STATE CAN
CONTRIBUTE MUCH TO THAT NEEDED FEAT OF POLITICAL-PHYSICAL
CONSOLIDATION.
THE STATE LEGISLATURE OF MINNESOTA, FOR EXAMPLE, MADE
POSSIBLE THE MINNEAPOLIS-ST. PAUL METROPOLITAN COUNCIL,
WHICH IS CHARGED WITH THE COORDINATION OF COMMUNITY AFFAIRS
IN THE TWIN-CITY AREA AND HAS SUBSTANTIAL RESPONSIBILITY
FOR FUNCTIONS RANGING FROM THE PLACEMENT OF LOW-INCOME
HOUSING TO THE LOCATION OF SEWAGE TREATMENT PLANTS,
IT IS BY MINNESOTA STATE LAW, THAT THE PROPERTY TAX
BENEFITS FROM NEW COMMERCE AND INDUSTRY IN THE METROPOLITAN
AREA ARE DISTRIBUTED AMONG ALL THE COMMUNITIES IN THAT LOCALITY,
IT WAS THE STATE OF INDIANA WHICH ENABLED INDIANAPOLIS
AND MARION COUNTY TO ESTABLISH AN EFFICIENT, AND INCOME-
EQUITABLE, UNITARY GOVERNMENT.
WHERE WE HAVE ACHIEVED A REAL INTERGOVERNMENTAL PARTNERSHIP
-- AS WE HAVE IN SOME AREAS BASED UPON THE SHEER INGENUITY OF
PEOPLE AT EACH LEVEL -- WE HAVE SEEN EXCITING PROGRESS,
-11-
THAT THE WIND OF CHANGE IS BLOWING IS APPARENT ALL
ACROSS OUR GREAT NATION, IN BOSTON, AN ENERGIZED DOWNTOWN,
SUPPORTED BOTH BY A GOVERNMENT CENTER AND THE RECENTLY
RENOVATED QUINCY AND FANEUIL HALL MARKETS; IN BALTIMORE,
A NEW CONVENTION CENTER COMPLEX; IN ANNAPOLIS, THE RECLAMATION
OF THE HARBOR MARKET; IN NEW YORK, THE REBIRTH OF THE OLD
FINANCIAL DISTRICT; IN PHILADELPHIA, INDEPENDENCE MALL.
REHABILITATION OF NEIGHBORHOODS IS SPREADING NOT ONLY
FOR LOW-AND-MODERATE INCOME CITIZENS BUT ALSO IN MIDDLE-CLASS
ETHNIC NEIGHBORHOODS SUCH AS ON STIRLING STREET IN BALTIMORE
AND MANCHESTER IN PITTSBURGH; AND IN WEALTHY NEIGHBORHOODS
LIKE GEORGETOWN IN WASHINGTON, BEACON HILL IN BOSTON, AND
SOCIETY HILL IN PHILADELPHIA -- EACH CONTRIBUTING TO THE
ECONOMIC HEALTH AND CULTURAL DIVERSITY OF ITS CITY,
THE LIST IS BRIGHT AND SEEMINGLY ENDLESS -- AND IF I
DIDN'T MENTION ONE OF YOUR FAVORITE EXAMPLES OF PROGRESS
FOR PEOPLE IN YOUR OWN COMMUNITY, CREDIT THE LAPSE TO TIME,
NOT INTENT.
LAST WEEK, IT WAS MY HONOR TO PRESENT HUD's BIENNIAL
DESIGN AWARDS FOR EXCELLENCE IN URBAN DEVELOPMENT, THERE
WERE MORE THAN 9 RUNNERS-UP FOR EACH OF THE 25 AWARDS AND
IT WAS A VERY TOUGH CALL FOR OUR PANEL OF DISTINGUISHED JUDGES,
-12-
WE HAVE A RE-AWAKENED AMERICA ON THE MOVE! CREATING
CITIES FOR PEOPLE,
THESE LOCAL INITIATIVES WE CELEBRATE AS "BREAK-THROUGHS"
CAN BECOME STANDARD PROCEDURE FOR OUR CITIES IF A SET OF
PRINCIPLES SUCH AS I SUGGEST ARE USED TO STRENGTHEN
INTERGOVERNMENTAL CAPACITY TO DEAL EFFECTIVELY WITH THE
PROBLEMS OF OUR CITIES AS THEY EXIST TODAY,
SURELY, IT IS TIME TO EXPLODE THE OLD MYTH THAT OUR
CITIES CAN BE RUN FROM WASHINGTON, AND AS LEADERS IN YOUR
OWN COMMUNITIES YOU MUST BE IN THERE HANDLING THE EXPLOSIVES,
IT IS SIGNIFICANT THAT THE TRIUMPHS OF NEIGHBORHOOD
REVITALIZATION IN ALL PARTS OF THE COUNTRY HAVE IN COMMON
ONE ESSENTIAL INGREDIENT OF SUCCESS:
ALL OF THEM HAVE COME ABOUT THROUGH LOCAL INITIATIVE,
LOCAL PLANNING AND LOCAL INVESTMENT. NOT ONE OF THEM COULD
HAVE MADE IT WITHOUT PRIVATE RESOURCES, PRIVATE INVOLVEMENT
AND PRIVATE RESOLVE, NONE WOULD SURVIVE WITHOUT THE
VOLUNTARY PARTICIPATION OF PRIVATE CITIZENS,
-13-
IN EACH CASE, THE PRINCIPAL ROLE OF THE STATE AND THE
FEDERAL GOVERNMENT HAS BEEN SUPPORTIVE, NOT PRE-EMPTIVE,
AND THAT IS A NATIONAL URBAN POLICY THAT TRULY WORKS BECAUSE
IT IS SQUARELY BASED ON OUR SYSTEM OF FREE ENTERPRISE --
WHICH IS WHAT DISTINGUISHES OUR FORM OF GOVERNMENT FROM
THOSE ENDURED BY A MAJORITY OF THE WORLD'S PEOPLE.
- AND, IF EVER THE SPIRIT OF FREE ENTERPRISE -- AND PROOF
OF ITS PRODUCTIVITY -- IS ALIVE IN AMERICA -- IT TRULY SHINES
IN THIS ASSEMBLAGE.
THAT IS WHY, AS SECRETARY OF HUD, I HAVE CONSIDERED IT
ONE OF MY GREATEST PLEASURES TO KNOW THE REALTORS BETTER,
AND TO WORK IN PARTNERSHIP WITH YOU.
THANK YOU so MUCH.