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RCED-85-77 1 (1985-03-11)

handle is hein.gao/gaobabeyq0001 and id is 1 raw text is: REPORT BY THE U. S. General Accounting Office The Urban Development Action Grant Application Selection System: Basis, Criticisms, And Alternatives From April 1978 through fiscal year 1983, the Urban Development Action Grant (UDAG) Program of the Department of Housing and Urban Development (HUD) provided $2.7 billion to eligible distressed metropolitan communities to assist them in alleviating physical and economic deterioration. By fiscal year 1984, however, more qualifying applications were being submitted by communities than there were funds available. As a result, HUD implemented a competitive application selection system designed to assign higher ranking to legislatively mandated priorities such as poverty, pre-1940 housing, and the number of permanent jobs to be created. The system resulted in UDAG funding changes in every subregion of the country. Some city officials complained that too much emphasis has been placed on selection factors related to the community, such as the amount of pre- 1940 housing and poverty. These officials believe that more weight should be given to project factors, such as permanent jobs. GAO selected three alternatives to the current point allocation system and found that award recipients would have been different. Such changes would, however, have reduced the targeting of benefits to communities with the greatest need, as defined by statutory and regulatory criteria. 126416 GAO/RCED-85-77 MARCH 11, 1985 ICOU N'

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