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In 1957, the Washington State Legislature adopted a "Urban Renewal Act" enabling cities of Washington to take action to prevent, arrest, and eliminate blight. After the US Housing Act of 1959 authorized the Housing and Home Finance Administration within the Department of Housing and Urban Development to make grants to localities for the preparation of Community Renewal Programs, Seattle formed a Community Renewal Program Committee. The federal Community Renewal Programs were designed to assist cities in the development of long-range comprehensive plans for city-wide renewal, inventorying existing "blight" both residential and non-residential, assessment of public facilities, streets, schools, parks and playgrounds, and libraries, and to assess the urban renewal treatment needed to "recapture, or create anew the good environment."

Seattle City Council authorized an application for the federal Community Renewal Program (CRP) in 1962 (Ordinance 91682) and the contract between Housing and Home Finance Agency and the City of Seattle was signed January 25, 1963. The CRP number was Wash. R-12 (CR). The total amount was for $201,491, of which federal monies constituted $134,329 (or two third of the total amount) and $67,162 was made up by City appropriations and contributed staff services. Subcontracts were let for economic studies, field surveys, and statistical work, as well as for analyzing 1960 census data. Although the Planning commission suggested the administration of the grant be transferred to their office, it remained in the Urban Renewal Office within the Executive Department until 1969 when entire Urban Renewal Division was transferred to the newly created Department of Community Development.

The goal of the Community Renewal Program was to conduct a two-year study to develop a 10-year urban renewal program with an emphasis on community rehabilitation. Specifically the study was focused on: understanding "blight" in Seattle, which included: determining the role of private enterprise, and analyzing the potential re-use of land. Other goals included: learning what public efforts are needed, reviewing codes and ordinances relating to urban renewal; and establishing priorities for urban renewal projects in Seattle. The CRP was renewed as a support function for the Model Cities project in 1969.

Frank McChesney was hired in 1962 as project director for the Community Renewal Program; he was previously in charge of Pittsburgh's CRP. He was promoted to Senior Urban Renewal Planner in 1963. Other individuals hired as Urban Renewal Planners included Assistant Community Renewal Planner Tom Bay, Junior Community Renewal Planners William Wallace, Edward Shaw, and King Katz.

The City contracted with the University of Washington for electronic data processing and various other consultants for other pieces of the grant. Other public agencies participating in the CRP included various City departments : building, Engineering, Health, Parks, Fire, Police, the City Planning Commission, the Seattle housing Authority, The Seattle School District, the Puget Sound Regional Planning council, the Port authority and the Puget Sound Regional Transportation Study.

Other urban renewal projects in the 1960s included: Yesler-Atlantic, University-Northlake, South Seattle, and the Pike Place Market.