Summary: The Department of Housing and Urban Development (HUD) has no authority to decree that only states may apply for certain grants to aid the homeless, a step HUD took last year after having earlier awarded grants to cities, counties, tribes, and nonprofit groups. The Supplemental Assistance for Facilities to Assist the Homeless program was created in 1987 as a competitive grant program to (1) supplement two other McKinney Act programs and (2) fund comprehensive, innovative programs that meet the immediate and long-term needs of homeless individuals and families. Since the program was established five years ago, HUD has awarded grants totaling $37.5 million, making it HUD's smallest assistance program for the homeless. Beginning in fiscal year 1991, only states were eligible to apply for program grants. Although HUD's intent was to use limited program funds more effectively, GAO does not believe that the agency had the authority to limit eligibility. Recent HUD initiatives, if properly implemented, should lead to more effective and efficient program management. Furthermore, grantees from fiscal year 1987 are meeting the objectives outlined in their grant applications, and the target populations stipulated by Congress are being served.
