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CED-80-80 1 (1980-03-20)

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Comptroller General


OF THE UNITED STATES                                  RELEASED


Criteria For Participation In The

Urban Development Action Grant Program

Should Be Refined



According to the Department of Housing and
Urban Development's eligibility criteria for
the Urban Development Action Grant Pro-
gram, 52 percent, or 333 of the 646, large
cities and urban counties in the United States
are severely distressed and eligible for Ur-
ban Development Action Grants.

GAO's review disclosed that the data upon
which HUD's'criteria are based is old and/or
may be unreliable. Some of the time frames
and assumptions HUD used are questionable.


Also, HUD's method of determining eligibility
does not take into account severity of distress
for most of the individual criteria. GAO's tests
of alternative methods of determining distress
indicated that about 25 of 333 currently eli-
gible cities would be replaced by about 25
cities now ineligible for Urban Development
Action Grants.


III 1120 881111  1I
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    CED-80-80
MARCH 20, 1980


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