This historical publication is the second report in the Brookings monitoring study of the CDBG program. The study which was based off of field analysis by resident observers in 61 jurisdictions stressed the political effects of the program, particularly its impact on decentralization. The main findings of the report were that the changes to the dual formula improved the targeting of funds to the neediest cities, there was a decentralization of decision-making, local governments were more likely to prevail over HUD on substantive issues as opposed to procedural issues, local legislatures and citizens became more involved in the decision-making process after the first year, the range and severity of local problems tends to influence the development strategy of communities, and the kinds of programs are significantly different from the previous programs under categorical grants.

This report is part of the collection of scanned historical documents available to the public.