The Housing and Community Development Act of 1974 represents recent congressional action designed to improve the housing and living conditions of the nation's poor. Like the 1974 act, the older Federal model cities program (1968-72) was designed to benefit low and moderate income families, provide alternative uses for available funds, and allow city governments discretion in determining how money would be spent. The Michigan Advisory Committee to the United States Commission on Civil Rights has analyzed the history, intent, structure, implementation, regulation, and results of both laws, as well as the opinions of primary participants in both programs in the State of Michigan. The Committee has found that in terms of citizen participation, low income and minority individuals have had fewer opportunities to participate in decisionmaking under the newer act than they had under model cities legislation. Secondly, communities have increased the amount of resources going to physical development and decreased the amount for public service projects. This shift in funding has not been due to changing community needs, but primarily to the dismantling of citizen participation procedures prevalent under the model cities program. Both administrative and legislative actions are necessary to correct these inequities. (Author/GC)