HUD Challenge, the official Departmental magazine, is published monthly by the Office of Public Affairs of the U.S. Department of Housing and Urban Development. Use of funds for printing was approved by the Director of the Bureau of the Budget, May 19, 1970. It serves as a forum for the exchange of ideas and innovations between HUD staff throughout the country, HUD-related agencies, institutions, businesses, and the concerned public. As a tool of management, the magazine provides a medium for discussing official HUD policies, programs, projects, and new directions. HUD Challenge seeks to stimulate nationwide thought and action toward solving the Nation's housing and urban problems. Material published may be reprinted provided credit is given to HUD Challenge. Subscription rates are $6.00 yearly domestic, and $7.50 for foreign addresses. Paid subscription inquiries should be directed to: Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Manuscripts concerning housing and urban development are welcome. Send all editorial matter to: Editor, HUD Challenge, Room 4282, Department of Housing and Urban Development,

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PAGE 3: Secretary George Romney delivers a New Year Message that reflects the accomplishments of 1971 and the hopes for 1972.

PAGE 4: Equal economic opportunity programs have been developed and encouraged by the HUD Equal Opportunity staff in an effort to increase the number of minority contactors in the Nation.

PAGE 23: The Akron (Ohio) Metropolitan Housing Authority has been providing public housing in record numbers over the last three years through the use of modular units and dynamic applications of HUD programs.

PAGE 27: A Section 236 project in Denver will be the first under a HUD-subsidized program to be planned, sponsored, and developed by Mexican-Americans.

PAGE 29: In recent months the Office of Equal Opportunity has established policy guidelines to insure equal opportunity to minority homeseekers.

NEXT MONTH:

The Department of Housing and Urban Development three years later will be the topic of the February 1972 issue dealing with the activity, accomplishments, and future of the Department under Secretary George Romney.

COVER: The stark contrasts of the black and white photograph by Washington, D.C., freelance photographer Michael Woodlon represent inner-city life for three youngsters standing on the fourth floor combination balcony and fire escape of their tenement in Northwest

HUD Issues First National Registry of Minority Construction Contractors... Mexican-American Builders Get $2.5 million HUD Contract... HUD Workshops in Seven Cities Aid Small and Minority Businessmen... HUD Manual Helps Minority Businessmen... Minority Contractors Complete First HUD-Assisted Project...

These headlines relate to press accounts of HUD-sponsored activities that insure jobs for minorities through HUD-assisted contracts and improve opportunities for small and minority businessmen in HUD programs. The full impact of HUD's activities in the two-year-old program aimed at developing economic opportunity for minorities is more difficult to assess. It is an ongoing role made more difficult because HUD

does not let any Federal contracts, but can only encourage the use of contracts that offer opportunities for members of minority groups.

Behind much of the news about these efforts, is Samuel J. Simmons, HUD Assistant Secretary for Equal Opportunity. According to him, "What HUD does to insure economic opportunity in projects derived from HUD programs is fundamental to achieving all other goals of the Department. It relates to basic human needs such as housing and improved physical environments in our cities and other areas of minority concentration, including Indian reservations where about half (827,000) of the Nation's Indian population live."

The goal is more equitable distribution of receipts from the $4 billion of annual construction derived from HUD activities. Last year the Office of Equal Opportunity at HUD helped make some $40 million in construction opportunities available to minority housing entrepreneurs. This was an improvement over previous annual activity, but woefully disproportionate to the total housing produced in this country last year, which totaled $40 billion.

The gravity of the problem is outlined in a report prepared recently by the Department of Commerce. According to this report, dollar receipts for minority construction contractors totaled $947 million in 1969-only one percent of the $92,291 billion total receipts. Black contractors received about $464 million, or one-half of that one percent. Spanish surnamed contractors claimed $300 million, or another third of that one percent, and the remaining $183 million. went to minorities in other racial or ethnic groups.

As chairman of an Interagency Task Force on Minority Construction Opportunities as well as head of the economic opportunity effort at HUD, Mr. Simmons has structured a program designed to remedy four basic impediments to small business and minority involvement in the construction trades. These are: difficulty in obtaining bid, performance, and payment bonds; inadequate front-end capital; general lack of management and technical skills; and lack of opportunities for contracts. The economic opportunity program seeks to blunt the effects of these stumbling blocks through information and opportunities.

Expanded Opportunity

In June 1970, HUD announced publication of the first Registry of Minority Construction Contractors. Joining Secretary Romney in announcing