AbstractNote: At the time of the August congressional recess the conference committee for the Housing and Community Development Act of 1977 had reached con-census on major features of the legislation, but re-mained deadlocked over a Senate proposed “impaction adjustment” to the CDBG funding distribution for-mula to provide additional funds for communities with high concentrations of older housing units. Funds for the impaction adjustment would come from the authorizations provided for a supplemental urban development action grant (UDAG) program. It is virtually certain that the issue will be resolved and that Community Development legislation will be signed into law in the early fall. Based upon the House and Senate bills, the major features of the A c t are apparent at this time. Readers should check the accuracy of this report for possible changes in conference and/or floor amendment prior to final passage.