[Comments on Use of CDBG Funds to Match EDA Economic Adjustment Grant]

B-239907: Published: Jul 10, 1991. Publicly Released: Jul 10, 1991.

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In response to a congressional request, GAO commented on the use of Community Development Block Grant (CDBG) funds to match an Economic Development Administration economic adjustment grant. GAO noted that the Department of Housing and Urban Development's attempt to apply CDBG program rules to Buffalo's economic adjustment grant caused an irreconcilable conflict which ultimately necessitated breaking down the revolving loan fund into three separate loan programs, each under different rules, denying Buffalo its statutory right to use the CDBG funds as nonfederal matching funds.

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