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![handle is hein.gao/gaobabjkb0001 and id is 1 raw text is:
COMPTRIOLLER GENERAL0)Y THC .UNITVED STATES
WA$IIIIGTON, D.C. 205-43
I ..u , , . .. ..~ A
B-130515 G 04 tch 7, 1979
The Honorable John J, Rhodes
House of Representatives
Dear Mr. Rhodes; 8q 4
This responds to your request for our consideration of a problem
raised in a letter from Josephine V, Molina, of Guadalupe, Arizona, ]PLt)3I80o
one of your constituents, Her letter is being returned as you requested.
Ms, Molina expressed concern'about the proposed purchase of the
GO Restaurant from the Guadalupe Organization, Inc., (GO) by the 2244C13
Guadalupe Town Council for $45, 000, utilizing Federal Revenue
Sharing funds, She alleges that approximately 4 to 7 years ago, an
old Army barracks was remodeled us a low-priced restaurant for
senior citizens by a group of men who were paid under a GO training
program that was federally funded. The Go Restaurant never
opened, Ms. Molina asks;
(1) Whether GO can sell the restaurant after using Federal
funds to remodel it?'
(2) If Federal funds were used to remodel the barracks,
whother the money GO receives for the restaurant
should be used to benefit the community?
S(3 Whether Federal Revenue Sharing funds may be used
to purchase the building and land without an appraisal?
As you know, Guadalupe is a community located in a poverty-area
near the cities of Tempe and Phoenix, Arizona. Giladalupe Orgahiza-
tion which is located in tvat cbmmunity, was incorported in 1964, In
1965, it became the first community action agency grantee funded in
Arizona under Title II of the Economic Opportunity Act, 42 U. S. C.
§ 2782 (1970),
While a substantial porion of GO's funding consisted .of Office of
Economic Opportunity (OEO) grant fiflds, GO had, in addition, non-
Federal soilrces of funding,. A complete history of GO's grant rela-
tionship with the OEO through the 1971-72 program year is set forth in
a report to you entitled Certain Activities Of The Guadalupe Organiza-
tion, Inc., Guadalupe, Arizona (B-130515), dated September 21, 1072.
(For your convenience, another copy is enclosed.) We noted that GO
used its own funds and borrowed money from outside sources in order](ViewImageLocal?handle=hein.gao/gaobabjkb0001&div=1&collection=&method=preview&ext=.png&size=3)