Ueberroth and Rebuild L.A.

Following the so-called Watts riot in 1965 a major problem appeared--”redlining.” To overcome the crippling effect of major financial institutions’ refusing to make funds available for rebuilding within the riot “control” zone, it was vitally important for the federal government to authorize direct loans to owners of real property that had been damaged or destroyed. Sen. Thomas H. Kuchel responded as soon as he was contacted. He assigned his legislative assistant, Leon E. Panetta, now the congressman from Northern California who is chairman of the House Budget Committee, to the problem.

After a lengthy search we found a loan broker who, being familiar with the problem and courageous enough to become involved, would prepare a professional analysis for us. On a Friday afternoon Panetta received the analysis prepared by George Smith, who once maintained his broker’s office on Western Avenue a block south of Adams Boulevard. The following Monday morning Sen. Kuchel dropped into the hopper a comprehensive bill prepared hurriedly by Panetta.

This bill was enacted into law. For the first time ever a federal agency, the Department of HUD, was authorized to make direct loans in what were characterized as “economically depressed” urban areas. But, unfortunately, HUD never utilized this special authority nor similar authority granted to it in 1968 when Sen. Edward Brooke introduced legislation almost identical to Sen. Kuchel’s.

I believe that this enabling legislation is still in effect and represents an important federal direct loan authority now when Los Angeles again has a critical need for it.

DAVID K. CARLISLE

Los Angeles