Abstract
New communities have been offered as an alternative to suburban sprawl. Through economies of scale and a "clean-slate" development approach, a more attractive and innovative environment can be produced. The federal government became involved through the 1968 Housing Act. In order to insure the attainment of social goals, loan guarantees and grants were made available to developers. In 1970 the act was strengthened by making public developers eligible and increasing the number of grants. Now, seven years after the passage of the original act, the program appears to be a failure. Despite promises of 10 federally guaranteed new communities a year, only 14 have received commitments thus far. All of these communities are behind in their development schedules, and most are near financial collapse. While the federally guaranteed new com munities were hard hit by the economic recession, most of the blame for the current crisis can be placed on the Republican administration's implementation of the program. Categorical grants were suspended, other funds were impounded by the Office of Management and Budget, and there was little intra- or inter-agency cooperation or coordination. Due to lack of political support, the prospects for the program appear dim.
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