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

To assist a congressional subcommittee in its consideration of the reauthorization of the Community Development Block Grant Program, GAO assessed preliminary results of seven States' implementation of the Small Cities Block Grant Program as authorized by the Omnibus Budget Reconciliation Act of 1981. GAO reported that all seven States obtained public comments in designing their Small Cities Programs and complied with the public participation certifications and adhered to their funding distribution objectives and selection criteria. The State-administered programs differed from the HUD-administered programs in that the amount of housing rehabilitation funded decreased, while either public facilities or economic development activities increased; and the percentage of low- and moderate-income persons reported to benefit from the State-administered programs was lower in six of the seven States. GAO also found that both grantees and unsuccessful applicants generally viewed the seven State-administered programs favorably.