Progress Being Made in Implementing the Community Development Block Grant Program

CED-78-30: Published: Jan 24, 1978. Publicly Released: Jan 24, 1978.

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The Department of Housing and Urban Development (HUD) is required to determine whether grantees have a continuing capacity to carry out their approved community development programs in a timely manner. However, some communities have budgeted funds for the same projects in their first-year, second-year, and third-year applications in spite of the fact that, at the time third-year funds were requested and budgeted, little or none of the first-year and second-year funds had been spent on the projects. HUD has developed various criteria for determining whether communities move forward on approved projects; one is an analysis of tangible evidence of accomplishment and another is comparison of progress made by comparable communities. HUD should: determine whether grantees will be able to spend funds budgeted for particular projects in the budgeted period and discourage grantees from requesting additional funding for these projects in subsequent applications unless spending of the additional funds can be reasonably assured; and withhold approval of new funds for continuing projects when spending on these projects is low and no reasonable assurance exists that requested funds will be spent in the upcoming year.

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