HUD Has Identified Performance Measures for Its Block Grant Programs, but Information on Impact Is Limited

Correspondence issued by the Government Accountability Office with an abstract that begins "Information on the overall effectiveness (or impact) of the CDBG and HOME programs is limited. According to HUD officials, the agency has faced challenges in evaluating the impact of CDBG and HOME because, among other things, such an evaluation would have to compare neighborhoods that received program assistance with those that did not. Our previous work has also identified the difficulties of evaluating the impact of block grant programs that do not represent a uniform package of activities or desired outcomes across the country, as well as the common problem of attributing differences in communities outcomes to the effect of a program in the absence of controls for other explanations. As a result, few comprehensive studies on the impact of the CDBG and HOME programs exist, but studies that focused on specific activities have generally found that each of the programs has made positive contributions. We identified two studies that attempted to examine the overall impact of the CDBG program on communities, but both studies encountered evaluation challenges due to the programs design. For example, a 1995 study that HUD considers the most comprehensive evaluation of CDBG suggests that, at that time, the program played a role in neighborhood stabilization and revitalization in a number of U.S. cities included in the study. However, the study states that it did not attempt to isolate the impact of CDBG-funded activities in these communities, in part because of the variability of CDBG activities at the community level. The three additional CDBG studies we identified focused on specific aspects of the program, such as disaster assistance, rather than the entire program. Similarly, we identified five studies of the HOME program. Two of these studies described implementation in the first 5 years of the program (fiscal years 19921996). The remaining three studies examined specific aspects of HOME and suggested some positive contributions of the program but did not evaluate its overall impact. For example, a 2008 study examined the foreclosure and delinquency rates among HOME-assisted homebuyers. It found that compared with homebuyers whose mortgages were insured by the Federal Housing Administration (FHA)a group with a similar population of lower-income, first-time homebuyersforeclosure rates were slightly lower for buyers who received HOME assistance from 2001 to 2005.