This historical report was produced in response a congressional directive which directed HUD to report to Congress on the adequacy, effectiveness, and equity of the formula for allocation of funds under Title 1 of the Housing and Community Development Act of 1974 in regards to the data derived from the 1990 decennial census. The authors point to three main reasons why the 1990 Census data reduces targeting of resources to communities most in need: 1) the population variable directs funds to growing communities which tend to be healthy and away from shrinking communities who are in need of assistance; 2) the growth lag variable directs resources to communities which may be healthy but are growing less than other entitlement communities; 3) the pre-1940 housing variable which allocated funds towards communities which have healthy economic bases and were able to maintain their old housing and away from distressed communities which had to remove abandoned old housing from their housing stock.

This report is part of the collection of scanned historical documents available to the public.