Alabama's Early Implementation of the Small Cities Community Development Block Grant Program

GAO described Alabama's decisionmaking process in implementing the Small Cities Community Development Block Grant Program, compared State-funded activities and populations targeted in 1982 with those of the Department of Housing and Urban Development (HUD) in 1981, and provided perceptions of local communities relative to the success of Alabama's program.

GAO found that projects and activities funded by Alabama were similar to the Small Cities Program HUD administered in 1981 and that both Alabama and HUD concentrated funding on public facilities, housing rehabilitation, and economic development projects. However, under Alabama's programs, funding for housing rehabilitation decreased while funding for public facilities increased. Alabama awarded more grants than HUD did the previous year, although the average Alabama grant was smaller than the average HUD grant. About 90 percent of Alabama's grants and 25 percent of HUD grants were supported by other funds. Alabama, HUD, and regional planning commission officials generally viewed the Alabama Small Cities Program favorably compared with the former HUD program. GAO noted that Alabama used the flexibility allowed by the program in designing the its program and identifying its communities' development needs.