The Title VII Bilingual Education Act was enacted in 1968 and reauthorized in 1988 to counteract the low academic achievement of limited-English-proficient students (LEPs). Through a competitive grant program, funds are provided to local education agencies (LEAs) to establish programs to serve LEP students. Based on findings of a national study that examined the impact of Title VII grants on LEA capacity building, i.e., the institutionalization of effective strategies for serving LEP populations, this paper describes respondents' perceptions of the capacity-building effectiveness of their districts. Four self-administered questionnaires were mailed to 201 superintendents, 204 project directors, and 322 principals from 550 school districts with project grants for the 1987-88 academic year. A total of 205 usable responses were obtained. Approximately one-half of the three groups combined reported that their districts' capacity-building efforts had been very effective. However, the majority of principals rated their districts as "somewhat effective." Each group shared similar and accurate perceptions of program accomplishments, which included identifying and assessing LEP students, recruiting and training bilingual staff, developing bilingual materials, integrating students with regular instructional programs, and securing mainstream support. Two tables are included. (LMI)