Status of the Youngstown, Ohio, Community Development Block Grant and Urban Development Action Grant Eligibility

GAO reviewed the conditions the Department of Housing and Urban Development (HUD) placed on Youngstown, Ohio's, ability to receive Community Development Block Grant (CDBG) funds and its rescission of the city's eligibility for the Urban Development Action Grant (UDAG) Program.

GAO believes HUD officials acted within their authority when they placed conditions on 1979 CDBG and rescinded the city's UDAG eligibility. The city had not met the goals for assisted housing for low- and moderate-income families as set out in its Housing Assistance Plan. However, it has made progress in meeting its commitment for low- and moderate-income housing and other conditions placed on the 1979 CDBG. As a result, HUD released some of the funding and expects to release the balance within a few days. UDAG eligibility could be reinstated in the near future if the city demonstrates actual performance in providing low- and moderate-income housing. HUD officials stated that to restore eligibility in the UDAG program, the city must: (1) satisfy all of the conditions which have been imposed on the CDBG entitlement grant; (2) initiate the construction of 204 units of assisted housing for low- and moderate-income persons outside areas of impaction; and (3) refile for eligibility to the program. Two grants previously approved will not be affected by the rescission.