Community Development Block Grant Program Administration

The advent of the Reagan administration's "New Federalism" initiatives in 1981 impacted state government in numerous ways. One example of this new era in intergovernmental relations is the transfer of responsibility of the Small Cities Community Development Block Grant Program from the U.S. Department of Housing and Urban Development to state governments. This volume provides an overview of the Small Cities CDBG program, an analysis of its politics, and an examination of the grant award processes established by the states. It concludes with an assessment of the consequences of state assumption for program activities, outcomes, and administration. Assessing the program transfer within the context of theories and practices of intergovernmental relations and policy execution, the book provides rich contextual information and a thorough comparison of implementation activities and outputs in seven states.

The Community Development Block Grant (CDBG) program provides funding for housing, economic development, and other community development activities. In fiscal year 2006, Congress appropriated about $4.2 billion for the program. Administered by the Department of Housing and Urban Development (HUD), the CDBG program provides funding to metropolitan cities and urban counties, known as entitlement communities, and to states for distribution to nonentitlement communities. This report discusses (1) how recipients use CDBG funds, including the extent to which they comply with spending limits, (2) how HUD monitors recipients' use of CDBG funds, and (3) how HUD holds recipients that have not complied with CDBG program requirements accountable. To address these objectives, we visited 20 recipients, analyzed HUD data, and interviewed HUD staff.

The Community Development Block Grant (CDBG) program is the federal government’s principal community development program. In FY 2012, Congress provided CDBG with approximately $3 billion for activities such as housing, economic development, and neighborhood revitalization. While a provision reducing the amount grantees can use for administration was considered but not enacted, this report examined grantees’ use of administrative funds up to the allowed 20% of program funds. It discusses (1) the types of activities subject to the 20% limit and grantees’ use of their administrative funds; (2) trends in funds available to grantees for CDBG administration and the impact of these trends on grantees’ administrative spending; and (3) HUD’s reporting on compliance with the limit. Tables and figures. This is a print on demand report.