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

GAO assessed Delaware's implementation of the Small Cities Community Development Block Grant Program, focusing on the decisionmaking process, a comparison of State-funded activities with those funded under a previous program by the Department of Housing and Urban Development (HUD), and the perceptions held by communities and others of the success of the program in Delaware.

GAO found that the Delaware program differed from the previous HUD program in that Delaware: (1) spent twice as much on housing rehabilitation as on public facilities; (2) granted over twice the amount of awards using the same amount of funds as HUD; and (3) generally made the awards to smaller communities. Delaware targeted populations that were almost entirely comprised of low- and moderate-income persons. This was consistent with its program objectives. Delaware, HUD, and public interest group officials agreed that, in general, the Delaware program has been successful. Grantees generally said that the Delaware program was equivalent to or better than the HUD program in several areas, but that technical assistance provided by the State in preparing applications was less helpful than that provided by HUD. Grantees also characterized the State reimbursement process as slow and cumbersome. Delaware emphasized community participation in the program design process and received input from a variety of sources. Grantees were pleased with the amount of communication between themselves and the State prior to program implementation.