ABSTRACT
The urban development action grant (UDAG) program allocates grants to units of local government to promote private investment in distressed areas. Grants are made only for particular projects in which some public improvement or financial concession is needed to secure participation of a private investor. In each round, Housing and Urban Development (HUD) selects projects on the basis of the merit of the proposal and the degree of economic stress in the city or urban county applying for the grant. A jurisdiction may win several grants if it comes out ahead of other cities competing in a particular round. The reconciliation act reauthorized the UDAG program for fiscal years 1982 and 1983. The HUD appropriation for fiscal year 1982 granted $440 million in budget authority to the UDAG program. The Reagan administration has recommended an additional 8 percent reduction in UDAG's fiscal year 1983 budget authority below Congressional Budget Office current policy level.
