Federal Aid for Los Angeles

It was a great joy for me to take part last Saturday in the Nickerson Gardens Youth Summit and the 50th anniversary of Estrada Courts. The great strides made by resident management groups in these and other public housing communities are creating opportunities for youth who deserve a better future and families to get a stake in the American dream of homeownership.

The coverage of my visit raised questions regarding the exact nature of the federal aid I announced. Allow me to clear up those questions here. First, I announced seven Homeownership and Opportunity for People Everywhere (HOPE) planning grants in L.A., totaling nearly $2 million. These grants will help resident groups build an equity stake in their neighborhoods through homeownership and business ownership opportunities. Once they’ve developed viable HOPE plans these groups can qualify for implementation grants for rehabilitation and other “fixed” costs. That’s why it’s imperative that Congress fully fund the President’s request of $1 billion for HOPE in 1993 to meet the long-term development needs of residents in our inner cities.

Second, I announced the availability of HUD funding of more than $150 million to Los Angeles, including: $62.5 million in Community Development Block Grant funding; $35.6 million in HOME grant funding; and $24.1 million in public housing rehabilitation funds. This amount also includes $29.3 million for 600 new Section 8 certificates and vouchers, which the city will administer to families adversely affected by the riots.

The purpose of my trip was not just to announce the amount of money President Bush and Congress are authorizing for residents and minority businesses to play a strong role in the recovery, but to make sure the money is used and spent to empower people directly as opposed to empowering bureaucrats and developers. Mayor Tom Bradley’s announcement of a new joint venture involving a 51% resident-owned construction firm under new HUD rules is a perfect example of the kind of local involvement we seek. That’s why Mayor Bradley, the Conference of Black Mayors, President Bush, and I all agree on the urgent need for enterprise zones.

As I said to the residents both at Nickerson Gardens and at Estrada Courts, this time we must rebuild Los Angeles using the talents and potential of minority contractors, minority businesses, and minority men and women. It is time to flood the inner cities with capital and expanded entrepreneurial opportunities because, as President Bush said in L.A.: “Our aim must not simply be to recreate what we had, but to build something better. There can be no return to the status quo.”

JACK KEMP, HUD Secretary, Washington