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CED-80-110 1 (1980-06-26)

handle is hein.gao/gaobabmtn0001 and id is 1 raw text is:        RELEASED RESTRICTED - Not to be released outside the General
             liAccountg Offce except on'he basis of specific approval

                       ole CCctic 01 Co                            02
         .....~ ~  ~E STATE )  I [D' fGENERAL ACCOUNTING OFFICE

                          WASHINGTON, D.C. 20548

                                               IN REPLY
                                               RDEFR to.
COMMUNITY AND ECONOMIC
DEVEOLPM ENT DIVISION
      B- 199 280JUE,190                                  f IIIIIIi


    ,,The Honorable Doug Walgren                            120258
      House of Representatives

      Dear Mr. Walgren:

           Subject:   tatus of the Department of Housing and
                   Qrban Development's Urban Development
                     Action Grant for the Parkway Center
                     Shopping Mall in Pittsburgh, pg   4 -rri
                     (CED-80-110)

           Based on your t    st of March 6, 1980, we reviewed the
      Department of Housing and Urban Development's (HUD's) pre-
      liminary approval of an urban development action grant
      (UDAG) supporting the proposed Parkway Center Shopping Mall
      in Pittsburgh, Pennsylvania. As agreed when we briefed you
      on May 28, 1980, this report summarizes our findings on the
      status of this project, including our observations on (1)
      the propriety of the intended use of the grant funds for
      this type of project and (2) the approval process HUD used
      in this instance.

           HUD's January 10, 1980, announcement of the $4.6 million
      grant to the city of Pittsburgh for the Parkway Center
      Shopping Mall was based on a preliminary application approval.
      The final grant agreement, which establishes actual grant
      conditions, had not been executed as of June 19, 1980. In
      addition, a detailed environmental assessment had not yet
      been completed. HUD does not plan to release funds for the
      project before the environmental assessment, including traffic
      mitigation measures, and an economic analysis of the project's
      effect on other nearby shopping centers are completed.

           It appears that HUD followed its normal operating
      procedures in giving this application preliminary approval,
      and that the type of project involved--a new commercial
      shopping center--is similar to several other projects that
      received UDAGs in other locations in the country. Although
      HUD's Pittsburgh area office recommended against approval
      in its November 30, 1979, analysis of the project, the HUD

                               ... / J(384810)

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