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on the financial skin of t�eir teeth an�i, car►s�quent'y, resisted any f.�rther financial commitrnentv if they can xeasonably avoid them. Schools are the one thin�, howeve�-, ihaG pec�ple g�nerally seemed read� and willing to contribute to heavily. �Pi majo� xnis�ing ingredient which could possibly have reduced the ma�ni�tude of the suburbar problems vvas adequate development capital. Basic facilities, such� aa, wat�r �nd sew�age systems, well developed sGhool syst�ms, good trans�ortation systems , as well a� o�her desirable features such as parks, all require initia�lly large investments. These inv�stments, of course, are to be pdid for over several decades. I3i�t �1k the initial stage of urbanization, tr,�ere are too few people to findnce these large capital outlay�. For exan-�pl�e, a number of builders sttated they v�vould be willing to put in water a.nd sewage systerris but they simply lack the financial� capital to do so. '��ey also stated that they find i� difficult to get aciequate financing from the lendirig institutions except' a�t costly rates. The lenders are reluctan�t to loan on ventures that are questionable financially. Presumably, many of t�hem still r�member the Iate 1920's when vast acreages in ��nany rnetropolitan areas were serviced with water and sewage systems, curb and gutter, and l�ard surface strcets but d:3 not develop because of over-:-ubdivision and economic depression in the thirties. The shorta e of develo ment ca o the ma'or rob ems in brin in tal which prevails today Presents one � about more cohereiit and orderl urban deve o ment. Un ortunat�ly, when the time comes that people� are�inancia ly a�e to make improvements in their lar�er environm��nt, th�y find themselves with few real alternati�res. Frequently, xt is v�ery expensive to acquire land for school�, parks, �nd oth�r public facilities, and often the availa��.e sites are poorly located. It is almost impossible t� bring about mor� �ohesive and integrated devel.opment. At best, a ca�mmunity cari only hope ta solve its most pressing Problems. r'inancin ir� Urban Renewal A reas � A problem of capital exists in the ol er areas o the central cities. However, need for development capital, ;�>eople i� these ai•eas ne�d rehab�litation leans. Inadequate financine for these need been a significant factor in £urther�.ng thE cities. Without capltal on terms people areas will continue to decline. �hortages also insl.ead of a moxtga�e and s has_app� rentl� ecline of many areas o the can afford, these and �other The major rPason why lenders (including FHA and VA) are reluctant to loan in blighted and deteriorating areas is obvious. However, the fact that they are reluctant has the unfortunate result of helping to bring about the results which they predict. Their action has the character of a self-fulfilling prophecy. This attitude of the lenders concerning investments in old�r areas extends beyond the redevelopment areas into the rehabilitation areas and some conserva�ion areas. There is em- pirical evidence to Yndicate that many lenders either do not make loans or do so at a prerriium in those areas designated as redevelopment, rehabilitation, partial rehabilitation, and priority conservation. In 33