The primary objective of the Housing and Community Development Act of 1974 is the development of viable urban communities, including decent housing, a suitable living environment, and expanding economic opportunities. This report focuses on the attempts of Livonia, Michigan, to obtain funds under the act. Examined are the areas of citizen participation, assistance for eligible persons, and civil rights compliance. It is stated that in all three areas, Livonia's application for funds under the 1974 act and the process leading to its development have been deficient. One particular problem is said to have been the city's failure to affirmatively address the housing needs of non-resident workers who may wish to reside in Livonia. It is recommended that the Federal Government amend selected procedures for application for funding, and that the Livonia city government also modify parts of its application for funding in order to increase compliance with affirmative action and other civil rights legislation. Appended to the report are descriptions of several civil rights laws affecting the Housing and Community Development Act of 1974. (Author/GC)