Even though the EZ/RC programs have expired, there is still an opportunity to take advantage of the unused EZ and RC Tax Credits, but there is a limited time for businesses to seize upon this opportunity.   EZ/RC businesses can generate refund checks by amending their prior year tax returns.  As of September 2012, an EZ and RC business has less than 6 months to amend its tax return for 2009.

To learn more about this opportunity, read illustrative examples, and see contact information, click here for HUD’s full announcement (PDF).

RETAIN FUNDING FOR LOCAL DEVELOPMENT AND INFRASTRUCTURE PROJECTS

ACTION NEEDED: Urge your members of Congress, especially those serving on the House and Senate Appropriations Subcommittees on Transportation, Housing and Urban Development and Related Agencies (T-HUD), to support the HUD Community Development Block Grant (CDBG) program as part of the final FY2013 Transportation-HUD Appropriations bill.  The members of NADO support retaining CDBG formula funds as a flexible, locally driven resource that provides valuable assistance for local community and economic development initiatives, including infrastructure and job creation projects supported by the CDBG state small cities program. 

ISSUE: The HUD Community Development Block Grant (CDBG) program continues to face cuts each year.  The program was reduced from $3.99 billion in FY2010 to $3.34 billion in FY2011 to $2.94 billion in FY2012. This continues a recent downward trend in CDBG funding since the program reached a high of $4.36 billion in FY2003.

On June 19, the House Appropriations Committee approved a FY2013 T-HUD appropriations measure (H.R. 5972) that would fund the CDBG program at $3.34 billion, approximately $400 million above FY2012 and level with the Administration’s FY2013 request.  During House floor debate of the T-HUD measure, an amendment offered by Rep. Tom McClintock (R-CA) to eliminate all funding for CDBG grants in FY2013 was soundly defeated with a 80-342 vote.

Of interest to regional development organizations, the House Appropriations Committee included report language that would examine how grantees use CDBG funds as matching dollars for other federal programs.  Specifically, the report directs HUD to detail the percentage of CDBG funds used to match other federal programs; which federal programs are being matched; the local match requirements of such federal programs; what portion of the local match requirements are being met using CDBG, by federal program; and what legal authority allows the use of CDBG as a local match, by federal program.

On April 19, the Senate Appropriations committee approved a FY2013 T-HUD appropriations measure (S. 2322) that would fund the CDBG program at $3.1 billion, approximately $150 million above FY2012 and the Administration’s FY2013 request.  It is unclear when the Senate will move the bill to the floor.

KEY TALKING POINTS:

• CDBG is an important tool used by state and local officials as they tackle their most serious community and economic development challenges, such as providing affordable housing, upgrading and building essential public infrastructure and water systems, creating small business development loan funds for local entrepreneurs and industries, and addressing local planning and technical assistance needs.
• At a time when local governments and communities are striving to overcome intensifying global economic competition, upgrade aging public infrastructure, and address the severe housing crisis, it is vital that federal policy makers continue to maintain support for the CDBG program.
• The cornerstone of the CDBG program is its locally driven, flexible, and bottom-up approach.  The program provides invaluable resources for 1,180 urban counties and cities to meet locally-identified needs.  As required by law, 30 percent of CDBG formula funding is reserved for states to assist rural communities with economic development, infrastructure improvements, and other fundamental building blocks for job creation and economic development.
• State, regional, and local officials use the CDBG program to provide valuable seed capital, gap financing, and core support for a variety of projects.  In addition, CDBG funds are typically used to leverage and attract private sector investments.  Every CDBG dollar invested in communities is leveraged, on average, by three dollars in private funding, bringing much needed business investments to distressed areas.

The following amendments were offered to the FY13 T-HUD Appropriations bill:

HUD Community Development Block Grant (CDBG) program:

So far, there have been three amendments offered and voted on that pertain to the HUD CDBG program:

• McClintock Amendment to H.R. 5972, FY2013 T-HUD Bill: The amendment offered by Rep. Tom McClintock (R-CA) proposed to eliminate all funding for CDBG grants in FY2013.  The amendment was defeated by a 80-342 vote.
  • To view the roll call vote, click here
• Chaffetz Amendment to H.R. 5972, FY2013 T-HUD Bill: The amendment offered by Rep. Jason Chaffetz (R-UT) proposed to reduce CDBG by $396 million (reducing it to FY2012 levels).  The amendment was defeated by a 157-267 vote.
  • To view the roll call vote, click here
• Diaz-Balart Amendment to H.R. 5972, FY2013 T-HUD Bill: The amendment offered by Rep. Mario Diaz-Balart (R-FL) proposed to increase the proportion of CDBG funds available for public services from 15 percent to 25 percent. The amendment was withdrawn and no vote was held.

HUD HOME program:

• Flake Amendment to H.R. 5972, FY2013 T-HUD Bill: The amendment offered by Rep. Jeff Flake (R-AZ) proposed to reduce funding for the HOME program by $200 million (reducing it to the FY2012 level).  The amendment was defeated by a 178-242 vote.
  • To view the roll call vote, click here

ESSENTIAL AIR SERVICE AMENDMENT

• McClintock Amendment to H.R. 5972, FY2013 T-HUD Bill: The amendment offered by Rep. Tom McClintock (R-CA) proposed to eliminate all funding ($114 million) for the Essential Air Service.  The amendment was defeated by a 164-238 vote.
  • To view the roll call vote, click here

Contact your members in the U.S. House of Representatives and urge them to continue to support the HUD Community Development Block Grant (CDBG) program during floor consideration of the House FY2013 Transportation, Housing and Urban Development (T-HUD) appropriations bill.

If you are concerned about other programs funded under the T-HUD appropriations bill including HUD’s HOME Program (House proposes $200 million increase) and the Sustainable Communities Initiative (similar to last year, the House proposes no funding), or programs funded by the U.S. Department of Transportation, now is the time to weigh in with your House Representatives.

BACKGROUND ON CDBG AND LEGISLATIVE UPDATE:

Tomorrow (June 27), the U.S. House of Representatives will consider the FY2013 Transportation, Housing and Urban Development (T-HUD) appropriations bill (which funds programs under the U.S. Department of Transportation, the U.S. Department of Housing and Urban Development, and related agencies).

The HUD Community Development Block Grant (CDBG) program has faced drastic cuts over the last several years.  The program was reduced from $3.99 billion in FY2010 to $3.34 billion in FY2011 to $2.94 billion in FY2012. This continues a recent downward trend in CDBG funding since the program reached a high of $4.36 billion in FY2003. For FY2013, the Administration proposed to fund CDBG at $2.9 billion which is the lowest amount recommended for CDBG since the late 1980s.

So far this year, things are looking more positive for the CDBG program.

On June 19, the House Appropriations Committee approved a FY2013 T-HUD appropriations measure that would fund the CDBG program at $3.34 billion, approximately $400 million above the FY2012 level and the Administration’s FY2013 request. Of interest to regional development organizations, the House Appropriations Committee included report language that would examine how grantees use CDBG funds as matching dollars for other federal programs.  Specifically, the report directs HUD to detail the percentage of CDBG funds used to match other federal programs; which federal programs are being matched; the local match requirements of such federal programs; what portion of the local match requirements are being met using CDBG, by federal program; and what legal authority allows the use of CDBG as a local match, by federal program. To view the House FY2013 T-HUD appropriations report, click here.

On April 19, the Senate Appropriations committee approved a FY2013 T-HUD appropriations measure that would fund the CDBG program at $3.1 billion, approximately $150 million above the FY2012 level and the Administration’s FY2013 request.  It is unclear when the Senate will move the bill to the floor. To view the Senate FY2013 T-HUD appropriations report, click here.

NOTE:  It is important to remember that the upcoming sequestration (automatic, across-the-board cuts to all federal discretionary programs), which is scheduled to occur starting January 2, 2013, would make additional cuts to the CDBG program.

KEY TALKING POINTS FOR CDBG:

• CDBG is an important tool used by state and local officials as they tackle their most serious community and economic development challenges, such as providing affordable housing, upgrading and building essential public infrastructure and water systems, creating small business development loan funds for local entrepreneurs and industries, and addressing local planning and technical assistance needs.
• At a time when local governments and communities are striving to overcome intensifying global economic competition, upgrade aging public infrastructure, and address the severe housing crisis, it is vital that federal policy makers continue to support the CDBG program.
• The cornerstone of the CDBG program is its locally driven, flexible, and bottom-up approach.  The program provides invaluable resources for 1,180 urban counties and cities to meet locally-identified needs.  As required by law, 30 percent of CDBG formula funding is reserved for states to assist rural communities with economic development, infrastructure improvements, and other fundamental building blocks for job creation and economic development.
• State, regional, and local officials use the CDBG program to provide valuable seed capital, gap financing, and core support for a variety of projects.  In addition, CDBG funds are typically used to leverage and attract private sector investments.  Every CDBG dollar invested in communities is leveraged, on average, by three dollars in private funding, bringing much-needed business investments to distressed areas.

Contact your members in the U.S. House of Representatives and urge them to continue to support the HUD Community Development Block Grant (CDBG) program during floor consideration of the House FY2013 Transportation, Housing and Urban Development (T-HUD) appropriations bill.

If you are concerned about other programs funded under the T-HUD appropriations bill including HUD’s HOME Program (House proposes $200 million increase) and the Sustainable Communities Initiative (similar to last year, the House proposes no funding), or programs funded by the U.S. Department of Transportation, now is the time to weigh in with your House Representatives.

BACKGROUND ON CDBG AND LEGISLATIVE UPDATE:

Tomorrow (June 27), the U.S. House of Representatives will consider the FY2013 Transportation, Housing and Urban Development (T-HUD) appropriations bill (which funds programs under the U.S. Department of Transportation, the U.S. Department of Housing and Urban Development, and related agencies).

The HUD Community Development Block Grant (CDBG) program has faced drastic cuts over the last several years.  The program was reduced from $3.99 billion in FY2010 to $3.34 billion in FY2011 to $2.94 billion in FY2012. This continues a recent downward trend in CDBG funding since the program reached a high of $4.36 billion in FY2003. For FY2013, the Administration proposed to fund CDBG at $2.9 billion which is the lowest amount recommended for CDBG since the late 1980s.

So far this year, things are looking more positive for the CDBG program.

On June 19, the House Appropriations Committee approved a FY2013 T-HUD appropriations measure that would fund the CDBG program at $3.34 billion, approximately $400 million above the FY2012 level and the Administration’s FY2013 request. Of interest to regional development organizations, the House Appropriations Committee included report language that would examine how grantees use CDBG funds as matching dollars for other federal programs.  Specifically, the report directs HUD to detail the percentage of CDBG funds used to match other federal programs; which federal programs are being matched; the local match requirements of such federal programs; what portion of the local match requirements are being met using CDBG, by federal program; and what legal authority allows the use of CDBG as a local match, by federal program. To view the House FY2013 T-HUD appropriations report, click here.

On April 19, the Senate Appropriations committee approved a FY2013 T-HUD appropriations measure that would fund the CDBG program at $3.1 billion, approximately $150 million above the FY2012 level and the Administration’s FY2013 request.  It is unclear when the Senate will move the bill to the floor. To view the Senate FY2013 T-HUD appropriations report, click here.

NOTE:  It is important to remember that the upcoming sequestration (automatic, across-the-board cuts to all federal discretionary programs), which is scheduled to occur starting January 2, 2013, would make additional cuts to the CDBG program.

KEY TALKING POINTS FOR CDBG:

• CDBG is an important tool used by state and local officials as they tackle their most serious community and economic development challenges, such as providing affordable housing, upgrading and building essential public infrastructure and water systems, creating small business development loan funds for local entrepreneurs and industries, and addressing local planning and technical assistance needs.
• At a time when local governments and communities are striving to overcome intensifying global economic competition, upgrade aging public infrastructure, and address the severe housing crisis, it is vital that federal policy makers continue to support the CDBG program.
• The cornerstone of the CDBG program is its locally driven, flexible, and bottom-up approach.  The program provides invaluable resources for 1,180 urban counties and cities to meet locally-identified needs.  As required by law, 30 percent of CDBG formula funding is reserved for states to assist rural communities with economic development, infrastructure improvements, and other fundamental building blocks for job creation and economic development.
• State, regional, and local officials use the CDBG program to provide valuable seed capital, gap financing, and core support for a variety of projects.  In addition, CDBG funds are typically used to leverage and attract private sector investments.  Every CDBG dollar invested in communities is leveraged, on average, by three dollars in private funding, bringing much-needed business investments to distressed areas.

In an effort to foster the creation and implementation of regional development strategies, the U.S. Department of Housing and Urban Development (HUD) established a new Office of Sustainable Housing and Communities to provide seed capital and technical assistance for local governments, nonprofits, and private sector leaders to join forces to pursue new community and economic development opportunities.  The initiative is driven and controlled by local elected officials, in partnership with other local private sector, educational, and nonprofit partners.  It is about using public sector resources more effectively, fostering interagency and intergovernmental collaboration, and improving local conditions for long-term economic growth.

During this congressional briefing, HUD grantees from northern Maine, south Florida and the multi-state region of Memphis discussed how their coalitions are working to improve local conditions for job creation and economic development.

Joe C. McKinney, Executive Director of the Land-of-Sky Regional Council (Asheville, NC) and NADO Board Member, facilitated the briefing.  Land-of-Sky Regional Council is coordinating GroWNC, Western North Carolina’s regional planning process. Guest presenters included: 

• Shelley Poticha, Director for the Office of Sustainable Housing and Communities
  • U.S. Department of Housing and Urban Development (Washington, DC)
• Northern Maine Development Commission (Caribou, ME)
  • Michael Eisensmith, Director of Regional Planning
  • Ryan Pelletier, Director of Economic and Workforce Development
• South Florida Regional Planning Council (Hollywood, FL)
  • James F. Murley, Executive Director
• Greater Memphis Chamber of Commerce (Memphis, TN)
  • Dexter Muller, Senior Vice President

To view a copy of the presentation, click here.

written by Jennifer Walsh, NADO Associate Legislative Director

View the NADO power point presentation.

• In Wisconsin, the Northwest Regional Planning Commission and the West Central Wisconsin Regional Planning Commission have worked with the state to consolidate HUD CDBG loan programs into more productive regional lending pools, resulting in reduced administrative barriers, increased capacity, and streamlined processes to achieve efficiencies.  More importantly, they have increased business lending activity for technology companies, manufacturing firms and other area businesses.
• The Southern Oregon Regional Economic Development Inc . (SOREDI), based in Oregon, helps small businesses and entrepreneurs through the Jefferson Grapevine innovation network that provides technical assistance and resources to businesses, and  connects them to potential investors. SOREDI also assists businesses through the Southern Oregon Angel Investment Network, a group of accredited investors seeking equity investments in early-stage companies.
• In Colorado, the Region 9 Economic Development District promotes business growth through a partnership program called the Growth Company Initiative.
• In Texas, the Southern Plains Association of Governments manages a number of federal small business loan funds to have a big impact on the 15-county region.

The report includes information about each programs financing, successes and challenges, impact, and more.

Download the report.

The report is a product of the NADO Research Foundation’s work with the Small Business Administration (SBAHQ-10-I-0317) and should not be construed as an endorsement of any products, opinions or services.  All SBA-funded projects are extended to the public on a non-discriminatory basis.

Separately, this year’s Community Challenge grants may be used for a number of efforts which promote sustainability at the local and neighborhood levels, such as amending or replacing master plans, zoning and building codes to promote mixed-use development, building affordable housing, or rehabilitating older buildings.  $3 million of Community Challenge funds will be set aside for jurisdictions with populations less than 50,000.  Pre-applications for the Regional Planning Grants are due by August 25, and applications for the Community Challenge Planning Grants are due September 9.  Additional information concerning these grant opportunities is available here.