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The new development program in S. 3640 could make com ndeed h amounts of desperately needed new housing available wichan a ghin minimum of relocation. Such redevelopment could al sy sto nate many land uses which may not be dangerous and dilaportant in a physical sense but which unquestionably alightings but and accelerate the decline of many older neighbou hounde

We strongly endorse the provision in title 111 that aparat ang p priation will be provided for inner city development acted should avoid the problems which ocenited in the pod wtonm tivities were added to the conventional urban ramal progr out adding new additional funds,

With regard to other specific provisione in this fall *

gest for your consideration the following progeral anel in w ka p these suggestions, Mr. Chairman we do n

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Under section 104, concerning the activities of the Council on Urban Growth in developing an urban growth policy, we suggest the addition of a subsection (7) providing for the establishment of procedures for regular consultation with advisory groups representing public and private interests, both during the formulation of a policy and in evaluation of present and future needs. We especially urge you to require consultation with those groups representing local governmental interests: cities, counties, and councils of government.

We suggest that a Federal Development Corporation is not the only tool by which to influence urban growth. Other strategies such as incentives to private activity and coordination of the location and placement of Federal installations should not be ignored. The Council should seek to develop and implement additional growth strategies which would insure that present Federal spending in our cities is not reduced.

We are particularly concerned about parity in the allocation of Federal resources for urban growth programs. In approving programs under the Community Development Corporation, an effort should be made to achieve balance in the allocation of funds so that existing communities receive a fair share of development benefits.

Under section 203 which authorizes the corporation to make grants to public entities for feasibility studies and program planning, there should be a clear statement that the local share can be either in cash or in kind. We suggest that a more equitable assistance ratio would be a 90-percent Federal share and 10-percent local share, following the pattern set under the interstate highway program.

Under section 222, the Corporation board of directors should include members appointed from among elected leaders of local, county, and State government.

I understand in the House committee, such changes either have been approved or soon will be.

Under title III, consideration should be given to implementation of a program of grants for development and staffing of new public services in inner city areas. The provision of health, counseling and other social services is imperative for the success of central city development projects.

Title IV should be expanded to include grants to local governments as well as to States and regional bodies to finance the costs of conducting population growth studies, urban development planning programs, and land use planning. Since it is the local governments that actually implement urban growth programs, they should receive assistance for necessary comprehensive planning.

In conclusion, the National League of Cities and the U.S. Conference of Mayors support S. 3640, the Urban Growth and New Community Development Act of 1970, and we wish to reemphasize our concern in the following areas:

1. The thrust of any national urban growth policy should be the alleviation of central city problems, and

2. New urban growth must be a positive tool to correct social and economic disparities, and these programs must be designed to benefit all citizens of all economic, social, national, ethnic, and racial groups. Thank you, Mr. Chairman.

The CHAIRMAN. Thank you ver mua. ver gon discas: 1. Very clear statement.

Let me ask you the: In the ear bar of your stateniela, VOL. ČScuss new communities, new towns, al, s Joma Ve love nac teste mony that says in effem that leew communities ar 17 & priorit at this time, not only because of the sa probien, mr beans the al only assimilate at the most about it permen of Læt ex-TEC OTONTI. in the next decade. Instead, we are toic & prior should be Level, To programs for existing communities.

Do you consider that philosophy, that testimiory i "ontrar 10 yours, in eorfiet vr yours!

Mr. GUNTEER. Mr. Chairman, that sounds like what we were SUVing 5 years ago. We feel that we may have been rigir then, bir to SET it today, we wolic be wrong. The mevors wert zonerned with. THE talk about new communities iest they roi ta prograns that we need in the central city, but as they studied the matter mider the feadership of Mr. Kas and that committer and really jooked at ni ha♫Ca. they came to the conclusion that one of the things the existing centra. cities need is new comunities.

The people in America neec nousing, and we can either house them. in the present central cities, we cal hate the urbal Sprav. we have had, or we can have new communities. We are probably going to do all three. And certainly new communities must be a part of it. So it is a very high priority with the mayors.

The CHAIRMAN. I would agree with you. I an not contesting what you said at all. I think we are going to have to have them if we provide adequate housing for the American famines as we say we would do.

Now. Secretary Romney has questioned the establishment of a council in the Office of the Presidem and also a Community Development Corporation as a part of HUD. He says it is a further proliferation of the Federal Government, or rather of Federal agencies. What do you say to this?

Mr. GUNTHER. No. I think. Mr. Chairman, that the bill and the philosophy behind it clearly try to put these things in the right places. The Domestic Affairs Council under Mr. Ehrlichman or whoever runs it in the future has got a basic policy job of trying to sort out Federal programs. When it comes to developing the communities across the country, that is the charge of HUD. And the Banking and Currency Committees of the House and Senate need it to be in HUD. If you let it be set up by the President, you have no congressional review, no congressional responsibility.

I think that Mr. Romney, or whoever is Secretary of Housing and Urban Development, ought to have a responsible role as the Chairman of this Corporation, and your committee, and the committee in the House, ought to call him up here from time to time and ask him how he is doing. The only way to do it is for you to authorize it and create it.

The CHAIRMAN. Well, thank you very much. We appreciate your presentation.

Mr. GUNTHER. Thank you, Mr. Chairman.

The CHAIRMAN. Mr. William E. Finley, vice president of the Rouse Co., Columbia, Md.

Would you come around, Mr. Finley?

48-279 0-70-pt. 2-26

STATEMENT OF WILLIAM E. FINLEY, VICE PRESIDENT THE ROUSE CO., COLUMBIA. MD.

Mr. FINLEY. Good morning. Mr. Chairman.

My name is William E. Finley, senior vice president, the Rouse Ca Our organization is a private corporation dedicated to the building of new communities.

I gather the reason we have been invited here today is because we have probably had the most intensive experience and what seems the most successful experience in the United States in financing, planning. and building a new city of over 100,000 people. We are aware of the fact that as the Nation grows, there is a clear need for new communities, both near existing metropolitan areas and beyond eras muting distance of metropolitan areas.

We are also aware of the fact that private enterprise itself anot accomplish the task of the building enough new communities where they are needed and when they are needed.

The good fortune we had in being able to acquire a site, now some 18,000 acres, between Baltimore and Washington was the result of as much luck as skill. The fact we were able to finance the project through the assistance of major life insurance companies was a mark of their long-term wisdom and their confidence in us and in the project. But I do not believe that such similar partnerships are likely to be able to acquire land and finance new communities at a scale suicient to divert enough of the population of the future away from existing metropolitan areas.

I think that this is a propitious time to talk about the fact that new cities are critical because old cities are getting too big. The whole problem, just this very week, of a dirty cloud of air hanging over the east coast resulting in sickness and other disasters is strong evidence of the fact that there is literally only so much air above large cities. And it is possible for cities to get too big, witness the case of New York, and that unless there is a national policy which directs the enormous growth which is assuredly coming to small towns and to new towns, we are going to be in much more trouble than we already are by the end of the century. The world is not going to come to an end as far as we know in the year 2000 and we have other future citizens to be concerned about.

We talk, all of us, about the next 100 million people. Well, there are going to be several hundred million beyond that. And unless the United States establishes a policy of urbanization as proposed in this mechanism in this bill, we are going to be faced with too many New Yorks and too many Los Angeleses that are both coming to the edge of unlivability.

I think it is fair to say that even Joseph Stalin with his powers in the Soviet Union was unable to stop the growth of Moscow. And Moscow has continued to grow to a point where it is almost to the point of being unmanageable. The principle behind this fact is that growth cannot be stopped by fiat even in a dictator's land. Instead, it must be redirected by incentives and by policies and governments willing to carry them out.

This bill, I believe, would encourage the bringing into being botl public and private entities with the specific task of building new