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B-171500 1 (1973-08-27)

handle is hein.gao/gaobaafwv0001 and id is 1 raw text is: UNITED STATES GEtAL ACCOUNTING OFFI WASHINGTON, D.C. 20548 RESOURCES AND -CONOMIC DEVELOPMENT DIVISION B-171500 f, , i/ LM096086 The Honorable The Secretary of Housing and Urban Development Dear Mr. Secretary: The General Accounting Office made a survey .f the Department of Housing and Urban Development's (HUD) lanned Variations demonstration to evaluate the progress and problems being experienced by three selected cities in implementing the demonstration. Our survey was performed in Norfolk, Virginia; Waco, Texas; and Seattle, Washington. We selected these cities for survey on the basis of their size, geographical location, and the large amounts of funds allocated to them for the demonstration. We visited also the HUD regional offices in Philadelphia, Pennsylvania; and Seattle, Washington; and the HUD area offices in Richmond, Virginia; Dallas, Texas; and Seattle, Washington. On the basis of our survey work, we have reservations whether cities will be prepared for the greater responsibilities which they would be given in solving urban problems under the revenue sharing approach to urban community development--such as, under the proposed Better Communities Act now pending before the Congress. Details of our observations are presented below. PLANNED VARIATIONS DEMONSTRATION The Planned Variations demonstration, initiated by the President in July 1971, covered 20 cities which had Model Cities Programs. The demonstration was designated for a 2-year period and was designed to demonstrate the feasibility of urban community development special revenue sharing, within existing legislation. The specific objectives 6f-the demonstration were to (1) enable cities to improve their coor- dination of Federal funds in solving critical urban problems, (2) increase cities' abilities to set local priorities, and (3) reduce paperwork and overcome delay in the existing Federal categorical grant system. U r %

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