Community Development: Block Grant Economic Development Activities Reflect Local Priorities: RCED-94-108

Pursuant to a legislative requirement, GAO reviewed the Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) program, focusing on: (1) how program funds are used for economic development activities; (2) the impediments to using program funds; (3) the proper use of program funds; (4) the types and quality of jobs resulting from the program; and (5) the performance indicators for measuring the effectiveness of economic development activities under the program.
GAO found that: (1) annual appropriations for the Community Development Block Grant Program range between $2.2 billion to $4.5 billion; (2) grant funds targeted for economic development activities are a small percentage of the total program funding; (3) grantees have identified impediments to using grants for economic development activities such as confusion over grant rules, a significant administrative and documentation burden, and difficulty in using grants for job retention activities, but HUD has implemented remedies for two of the three impediments; (4) HUD and community groups question whether program funds have been properly used to benefit low- and moderate-income people, assist for-profit businesses, and safeguard public loans; (5) there are no criteria for defining job quality or performance indicators for measuring the effectiveness of grantees' economic development activities; (6) Congress has given local communities discretion over establishing standards for job quality and the effective use of economic development funds; and (7) although HUD expects to publish proposed guidelines to help grantees define economic development performance indicators, grantees could benefit from learning about the procedures and criteria other grantees have used in promoting job quality.

• Format: Paperback
• Language: English
• ISBN: 1287259146
• ISBN13: 9781287259145
• Release Date: July 2013
• Publisher: Bibliogov
• Length: 74 Pages
• Weight: 0.33 lbs.
• Dimensions: 0.1" x 7.4" x 9.7"