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Review of Urban Development Action Grant Program

Published: May 23, 1979. Publicly Released: May 23, 1979.
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The Urban Development Action Grant Program (UDAG) provides development funds to states to assist physically and economically distressed cities and urban counties. A review was made of the administration of this program by the Department of Housing and Urban Development, addressing the amount of private investment stimulated, the number of permanent jobs created or retained, and the degree to which the grantees' tax bases were expanded. "Leverage" occurs when the UDAG investment generates a greater amount of private investment, and, therefore, economic growth. Analysis of the levered private investment should take into account all public funds that are in evidence and applicable to the project. Fact sheets, GAO analysis of the jobs created, tax revenues generated, and the leverage ratio are presented for each of the 17 UDAG projects reviewed.

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