Developmental activities now funded by categorical grants could be continued and expanded, if so desired, by the local community-but without the "matching" requirement that now strains local budgets. Restrictions are few Cities would merely have to state in advance how they plan to use their funds. There would be an end-of-year audit to determine how the money was expended and to insure the funds were used for the purpose of urban development. Discrimination in the use of funds would be prohibited. A smooth transition At President Nixon's direction, the Department of Housing and Urban Development has already begun to coordinate various programs, as well as decentralize decision-making under the current system of categorical grants. This helps lay the foundation for Urban Community Development Revenue Sharing. Federal support in urban developmental activities between now and the proposed effective date for the new program, January 1, 1972, would not lessen. All commitments and reservations for assistance would be honored. However, new applications for conventional projects would be discouraged; instead, greater emphasis would be placed on programs which provide a natural transition to a Revenue Sharing arrangement. As soon as the effective date of Revenue Sharing is announced, the Administration would work out transition arrangements with each community so that neither a funding gap nor a period of double funding would occur. to your about Urban What are the advantages of the new system? Urban Community Development Revenue Sharing replaces four current programs. Although each-Urban Renewal, Model Cities, Neighborhood Facilities and Rehabilitation Loans-were created to do an effective job, they proved to be fragmented, wasteful and weighted with red tape and paperwork. President Nixon's plan calls for a simplified system where State and local governments could, if they wished, continue these programs or elect to put the money to work where it is more needed. There would be a more equitable distribution of money based on a formula that establishes the needs of cities. The cities would no longer be required to match Federal funds. Do State and local governments have the capacity to use these funds wisely? The Federal government has no monopoly on wisdom or honesty. Local leaders have already demonstrated the capacity to deal skillfully with developmental questions when they have had the resources and freedom to do so. The responsibility for making decisions about local community developmental activities should be returned to the State and local level so that problems could be dealt with expeditiously Who would decide how funds would be used? Local government officials, those most readily accessible to voters in the communities. Recipient governments would only have to publish a statement of objectives and projected use of funds. This would permit the public to make sure the local program responds to local needs. An end-of-year audit would also be required. Will civil rights be protected? Yes. There could be no discrimination in the use of Urban Community Development Revenue Sharing funds, and the rights of all persons to equitable treatment would be protected. Any monies expended under this program would be considered as Federal financial assistance within the meaning of Title VI of the Civil Rights Act of 1964. What activities would be allowed with Urban Community Development Revenue Sharing funds? Recipients would be urged to devise their own programs to suit their own needs in support of community development. In addition, all of the activities eligible for support under the present categorical grants, including: • Acquiring land for a wide range of development purposes Constructing public works, neighborhood facilities, streets, parks and playgrounds • Enforcing housing codes Rehabilitating residential properties Demolition of buildings and clearing of land Providing relocation payments and assistance for those displaced by Community Development activities Providing Model Cities services activities Administration will no longer be fragmented and based on the rise and fall of specific projects. Red tape will be cut because Federal applications and requirements will no longer have to be prepared, filed or met. Local needs would no longer be shaped to rigid Federal standards. Rather, Federal community development support would be shaped to suit local needs and priorities. Which present programs would be included under the new systems? ̧ Four categorical grant programs: Urban Renewal, Model Cities, Neighborhood Facilities, and Rehabilitation Loans. All the sub-categories covered by urban renewal would naturally be included. Local governments could, if they wish, continue or expand all of these programs. Would HUD continue to administer any categorical assistance programs? Yes. Open space grants, water and sewer grants, and public facility loans would remain. These activities could also be undertaken with shared revenues, if the community so desired. The New Community Development Corporation would not be directly involved under the new Act. |