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122872 1 (1983-10-26)

handle is hein.gao/gaobacxwa0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE gits PIEDEAL OFFICE U1l.DING PIPTH AND MAIN STREETS CmciNNATi, OHIo 45202 OCTOBER 26, 1983 The Honorable John Y. Brown, Jr. Governor of Kentucky Frankfort, Kentucky 40601 122872 Dear Governor Brown: Subject: Kentucky's Early Implementation of the Small Cities Community Development Block Grant Program Enclosed is our final report which describes Kentucky's decisionmaking process in implementing the Small Cities Community Development Block Grant Program as authorized by the Omnibus Budget Reconciliation Act of 1981. It also provides a comparison of 1982 State-funded activities and populations targeted with those of the Department of Housing and Urban Development (HUD) in 1980 and provides local communities' and others' perceptions of the success of Kentucky's program. Kentucky was one of seven States we visited to provide the Congress with up-to-date infor- mation 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 Kentucky. Essentially, we found that Kentucky's 1982 Small Cities Program differed from the HUD-administered program. HUD last administered the program in 1980; Kentucky administered it in 1981 as part of a HUD demonstration program. HUD devoted a large share of Small Cities Program funds to neighborhood revitaliza- tion activities such as property acquisition and clearance, relocation assistance, and housing rehabilitation. Kentucky shifted some funding away from these activities and into economic development projects. Also, under Kentucky's program, grants were supplemented by substantially more funds than under HUD's program--about $139 million versus about $13 million, respectively. (See enc. III.) Furthermore, on the basis of information in the grantee application files, 72 percent of the persons expected to benefit from the 1982 State-approved projects were of low and moderate (384807)

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