Applicant Perceptions of State Priorities in the Illinois Small Cities CDBG Program: Implications for Local Targeting

The State of Illinois has targeted economic development as amajor priority in the Small Cities Community Development BlockGrant program, although the state still accepts applicationsfor public facilities and housing rehabilitation. This articleexamines the impact of this state priority on the applicationbehavior of small cities. We find that grant applicants perceivethat the state's economic development emphasis decreases theirability to be successful in obtaining housing rehabilitationgrants. This perception has had an impact on subsequent applicationbehavior. Cities no longer apply for grants that are most likelyto benefit directly those with low and moderate incomes.