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Recognizing that "our present processes of urban community development programs were wasteful and destructive and that our existing urban development programs were contributing to that waste and destruction",l the U. S. Congress enacted the Housing and Urban Development Act of 1970 with the stated objective "the development of a national urban growth policy". The most inno 2 vative portion of this legislation was Title VII of this Act which authorizes the Department of Housing and Urban Development (HUD) to guarantee loans of up to $50 million to public or private developers of new communities. The Congress looked towards new communities as a strategy to avoid the continuing problems of increased, unplanned urban growth and the associated inefficient and wasteful use of land resources, pollution of air and water, inefficient and expensive public services and facilities and segregation of people by 3 income and race • The Office of New Communities Development (ONCD) was established in the U. S. Department of Housing and Urban Development (HUD) to implement a strong new communities program.