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122870 1 (1983-10-24)

handle is hein.gao/gaobacxvy0001 and id is 1 raw text is: 

                     UNITED STATES GENERAL ACCOUNTING OFFICE
                               REGIONAL OPPICE
                               as cout.Ae aTrW . W..
                             A'n.ANTA, GeonasA 30043


                                               OCTOBER 24, 1983

The Honorable George C. Wallace
Governor of Alabama
State Capitol
Montgomery, Alabama   36130
                                                 122870
Dear Governor Wallace:

     Subject:  Alabama's Early  Implementation of the Small
               Cities Community Development  Block Grant Program

     Enclosed is our final report which describes  Alabama's
decisionmaking process  in implementing the Small Cities Commu-
nity Development Block Grant Program as authorized  by the
Omnibus Budget Reconciliation Act of  1981.  It also provides a
comparison of State-funded activities and populations  targeted
in 1982, with those of the Department of  Housing and Urban
Development (HUD) in  1981, and provides perceptions of local
communities and others relative to  the success of Alabama's
program.  Alabama was one of seven States we visited  to provide
the Congress with up-to-date information on  States' progress in
implementing their Small Cities Program.  We previously  sent you
a copy of our overall report to the Congress,  States Are Making
Good Progress in Implementing the Small Cities  Community
Development Block Grant Program  (GAO/RCED-83-186, Sept. 8,
1983), which incorporated the results of our work  in seven
States.  The enclosed report details the results  of our review
in Alabama.

     Essentially, we found that the projects  and activities
funded by Alabama were similar to the Small Cities  Program BUD
administered in 1981.  Both the State and HUD  concentrated fund-
ing on public facilities, housing rehabilitation,  and economic
development projects.  However, we observed  some differences
between Alabama's and HUD's programs.  As  a percentage of total
funds awarded, housing rehabilitation decreased  7 percentage
points (from 22 to  15) and public facilities increased 28 per-
centage points (from 46 to 74).  Alabama awarded  105 grants in
1982, while HUD awarded 59 in  the previous year.  The average
size of a State grant was $161,544, while  the average HUD grant
was $479,624.  Also, about 90 percent of Alabama's  grants and
about one-fourth of HUD's grants were supported  by other funds.
State-awarded grants were supported by $16.7 million  in other
funds in 1982, and HUD-awarded grants were  supported by $2.8
million in other funds in  1981. In addition,  according to


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