1960s
Summary
Public unrest over the Vietnam War and civil rights issues lead to the vision of the "Great Society," which promises programs and agencies to finance revitalization of inner-city neighborhoods, jobs for minorities and the poor, citizen participation in local decision making, and additional housing for low- and moderate-income families. Limited public sector capacity mobilizes the private sector, local nonprofit organizations, and community-based groups to help solve housing and urban development problems.
Influences
- Assassinations: John F. Kennedy (1963), Martin Luther King, Jr. (1968), Robert Kennedy (1968).
- Urban riots highlight the problems of minorities incentral cities (e.g., Watts Riot, 1965).
- There is a significant increase in literature critical of housing and urban development approaches:
- The Federal Bulldozer, Martin Anderson, criticizing urban renewal (1964).
- Silent Spring, Rachel Carlson (1962).
- The Other America, Michael Harrington (1962), highlights the problems of poverty.
- Death and Life of American Cities, Jane Jacobs (1961), advocates for preserving strong central cities.
- Martin Luther King, Jr. "I have a dream" speech (1963) galvanizes the civil rights movement.
- "White flight" from central cities continues.
- Airplanes and airports become a primary mode of long-distance transport.
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Policies and Programs
- Federal government adopts environmental laws for projects receiving federal funding (National Environmental Policy Act, 1969).
- Public rent cap at 25% of income (Brooke Amendment, 1969).
- Congress outlaws discrimination in public accommodations (Civil Rights Act, 1964, and Fair Housing Act as Title VIII of the Civil Rights Act, 1968).
- Rental subsidy programs are created and 10-year goal is set for constructing 6 million low- and moderate-income units (Housing Act, 1968).
- National Register of Historic Places is established (National Historic Preservation Act, 1966).
- Model Cities Program coordinates cross-functional planning and community involvement (Demonstration Cities and Metropolitan Development Act, 1966).
- Economic Opportunity Act (1964) launches the "war on poverty."
- Presidential Executive Order outlaws housing discrimination in federal activities (1962).
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Institutional Roles
- Government National Mortgage Corporation (GinnieMae) expands financing for moderate-income housing (Housing Act, 1968).
- FannieMae is privatized (1968) to expand the secondary finance market and to facilitate and expand the flow of private capital to the housing mortgage market.
- Government and foundations encourage local nonprofit and community-based groups to sponsor lower-income housing and inner-city local economic development through Community Development Corporations (CDCs).
- Kaiser Commission documents need for more publicly assisted low-income housing.
- National Association of Housing Partnerships attracts corporate investment in low-income housing.
- Office of Management and Budget orders more intergovernmental cooperation, requiring state and sub-state regional agency reviews of federally assisted projects (Circular A-95, 1968).
- New federal agencies are created: Office of Economic Opportunity, 1964; Department of Housing and Urban Development, 1965; Department of Transportation, 1966; Environmental Protection Agency, 1967.
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Methods, Tools, and Practices
- Metropolitan service districts are created to improve service delivery.
- Public housing operating subsidies are authorized to keep public housing agencies financially viable.
- Model Cities program strategies and plans help develop coordinated assistance programs.
- Environmental impact statements come into widespread use.
- Regional transportation planning.
- Cities become active in master and neighborhood planning and invest in mass transit systems.
- Busing is used to integrate school systems.
- Repossessed FHA-insured houses are sold to anyone, regardless of race.
- Low-interest federal loans are used to build or rehabilitate affordable housing in redevelopment areas.
- Developers experiment with new town development (e.g., Columbia, Reston).
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Lessons and Outcomes
- Model Cities program reinforces ghetto neighborhoods and limits economic and racial integration.
- Legislative reapportionment at state level results in additional funding to cities.
- Federal government provides capital costs of public housing to autonomous local authorities, but rents fail to cover operating costs.
- Concentrations of low-income residents in high-rise public housing are socially dysfunctional and economically non-viable.
- Redevelopment program experience demonstrates that cities have unique problems and strengths that must be reflected in development planning.
- Nonprofit and limited-dividend developers build rental housing for moderate-income families.
- Public housing residents become increasingly very low income.
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