Analysis of Community Development Block Grant Drawdown Rates

GAO reviewed the drawdown rates at which entitlement grantees are spending the Department of Housing and Urban Development's (HUD) Community Development Block Grant funds.

GAO found that: (1) there was a backlog of about $3.4 billion in unspent block grant funds for formula entitlement grantees as of April 30, 1980; (2) HUD has taken a number of actions both internally and with grantees to promote spending of block grant funds; and (3) the HUD Inspector General has identified numerous instances of improper or questionable use of block grant funds and has reported that monitoring and evaluation of block-supported activities by HUD and grantees has been inadequate, but he has not established that the emphasis on drawdown has caused inefficient spending as this issue has not been included as a specific step in his audits. The emphasis HUD is putting on spending block grant funds in directives and guidance to its administrators and to entitlement communities creates the potential for ineffective and inappropriate use of such funds. Initiatives by HUD in the area of improved monitoring can help reduce this problem, if properly implemented.