In late 1967, Congress passed the Green Amendment, which required that a CAA must be designated as the official CAA for that area by local elected officials in order to operate in that community.  After designation, OEO could then recognize the CAA and provide funds.  After months of negotiations, over 95 percent of the existing CAAs were designated.  In several large cities, the CAA was taken over by the mayor and turned into a public agency.

Congress also passed the Quie Amendment, which required that CAA boards of directors be composed of one-third elected officials appointed by them, at least one third low-income representatives selected by a democratic process, and the balance from the private sector.

By 1968, there were 1,600 CAAs covering 2,300 of the nation's 3,300 counties.  OEO also required many small, single-county CAAs to join together into multicounty units.   Buy 1969, about 1,000 CAAs had been designated under the Green Amendment and recognized by OEO, reorganized to meet the Quie Amendment criteria, and consolidated in accordance with OEO policy.  Almost all of these CAAs are in existence today and operate the programs.

These amendments had a positive effect on most CAA boards, though the issue of increasing the influence of local elected officials on the board of directors was a significant issue to the leaders of poverty groups which had been operating independently.  The formal connection of the political, economic, and community power structures proved to be a tremendous strength.  In many places, the CAA's board became the arena for local officials, the business sector, and the poor to reach agreement on the policies, self-help activities, and programs to help the poor in their community.