On November 13, 2012, the National Association of Counties (NACo) presented a webinar in partnership with NADO Research Foundation that discussed strategies to engage elected officials and other community leaders in community planning projects. This webinar featured innovative strategies from regional planning projects and a “clinic” to critique outreach materials submitted by a select number of HUD 2010/2011 sustainability grants recipients.  Speakers included Elisa Ortiz, Smart Growth America; Bethany Wilcoxon, Des Moines Area MPO (Iowa); and Carol Davis, New River Valley Planning District Commission (Virginia).

View the webinar recording here. For more information, contact Cindy Wasser at NACo at cwasser@naco.org or 202.942.4274.

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This webinar was produced by NACo, through a subcontract agreement with NADO Research Foundation. NADO Research Foundation provided overall guidance and project direction. The work that provided the basis for this webinar was supported by funding under an award with the U.S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. The author and publisher are solely responsible for the accuracy of the statements and interpretations contained in this publication. Such interpretations do not necessarily reflect the views of the Government.

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.

During an afternoon session at USDA, NADO member Kevin Byrd of the New River Valley PDC presented on lessons learned from the HUD sustainable communities initiative.  The forum offered an opportunity for rural leaders to provide input into the administration’s initiatives on regional innovation in rural regions.

These markups are one of the first steps of the appropriations process (final FY2013 agency and program levels will be determined later in the year), and provide a very important first glance at the initial appropriations numbers which will be used in final House and Senate negotiations over FY2013 appropriations.

Today, three appropriations subcommittees held markups—one in the House and two in the Senate.  The following is a brief overview of some of the FY2013 funding levels included in the appropriations subcommittee bills.  More details will be released in the next several days.

1. The Senate Commerce, Justice, Science Appropriations Subcommittee (which has funding jurisdiction over EDA):

• Economic Development Administration (EDA):  The Senate subcommittee bill provides $238 million for EDA, which is $20 million below the FY2012 level and $19 million above the President’s FY2013 budget request.
• The Senate subcommittee bill provides $38 million for the Salaries and Expenses account (essentially level with current funding) and $200 million for Economic Development Assistance Programs, including $25 million for the Administration’s Regional Innovation Partnership program.  Details have not yet been released for the Planning, Public Works, and Economic Adjustment Assistance accounts. 
• The House Commerce, Justice, Science Appropriations Subcommittee will hold a markup of their FY2013 bill on Thursday, March 19.

1. The Senate Transportation, Housing and Urban Development (T-HUD) Appropriations Subcommittee (which has funding jurisdiction over U.S. Department of Transportation and U.S. Department of Housing and Urban Development programs):

U.S. Department of Housing and Urban Development programs:

• Community Development Block Grant (CDBG) Program: The Senate subcommittee bill includes $3.1 billion for CDBG grant funding, $152 million above the FY2012 level. The President’s FY2013 budget request included $2.94 billion for CDBG.
• HOME Investment Partnership: The Senate subcommittee bill includes $1 billion for the HOME Investment Partnership program, which is level with FY2012 and the President’s FY2013 budget request.
• Sustainable Communities Initiative (SCI): The Senate subcommittee bill includes $50 million within HUD’s Community Development Fund for the Sustainable Communities Initiative. The funding included in the bill will provide grants for integrated housing and transportation planning efforts on both the regional and local level. No funding was provided for SCI in FY2012 and the President’s FY2013 budget request included $100 million for SCI.

U.S. Department of Transportation programs:

• Funding for Significant Transportation Projects (“TIGER” program): The Senate subcommittee bill includes $500 million for grants to support significant transportation projects in a wide variety of modes, including highways and bridges, public transportation, passenger and freight railroads, and port infrastructure. The bill requires the Secretary to allocate no less than $120 million for projects in rural communities. The funding included in the Senate bill is level with FY2012 and level with the President’s FY2013 budget request.
• Highway Investments: The Senate subcommittee bill includes $39.1 billion for the annual Federal-aid Highway program to support essential investments in roads and bridges, and is level with FY2012. (This amount supports SAFETEA-LU levels for highways)
• Transit Investments: The Senate subcommittee bill includes $2.044 billion for the transit “New Starts” program, which is $89 million above the FY2012 level.
• Rail Investments: The Senate subcommittee bill includes $1.75 billion for rail infrastructure, of which $1.45 billion is for Amtrak. Of the total amount provided, $100 million is for the High Performance Passenger Rail grant program to assist states with the improvement of existing intercity services, congestion mitigation and multi-state planning initiatives. This funding is $126 million above the FY2012 level.

1. The House Energy and Water Appropriations Subcommittee (which has funding jurisdiction over the federal-state regional commissions)

• Appalachian Regional Commission (ARC): The House subcommittee bill includes $75.317 million for the ARC, $7.05 million above the FY2012 level and $10.46 million above the President’s FY2013 budget request.
• Delta Regional Authority (DRA): The House subcommittee bill includes $11.67 million for the DRA, which is level with the FY2012 funding.  The President’s FY2013 budget request included $11.31 million for DRA.
• Denali Commission: The House subcommittee bill includes $10.67 million for the commission, level with FY2012 funding. The President’s FY2013 budget request included $10.16 million for the Commission.
• Northern Border Regional Commission (NBRC): The House subcommittee bill includes $1.425 million for the Commission, just slightly less than the FY2012 level of $1.49 million.  The President’s FY2013 budget request included $1.42 million for NBRC.
• Southeast Crescent Regional Commission: The House subcommittee bill includes $250,000 for the Commission, level with FY2012 funding. The President’s FY2013 budget request did not include funding for the Commission.

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

The FY2013 appropriations process has begun! Similar to last year’s process, Members of Congress are allowed to submit Programmatic Requests and Language Requests to the Appropriations Subcommittees regarding their FY2013 appropriations priorities. Programmatic Requests direct specific funding levels for agencies and programs while Language Requests can encourage, urge, or direct some type of action by an agency.

Rep. Robert Brady (D-PA) has begun circulating a “Dear Colleague” letter (a programmatic request) in the House urging appropriators to increase funding for HUD’s Community Development Block Grant (CDBG) program as they begin to draft the FY2013 House Transportation, Housing and Urban Development (T-HUD) appropriations bill.

The HUD CDBG program continues to face cuts each year. The program was cut from $3.99 billion in FY10 to $3.34 billion in FY11 to $2.94 billion in FY12. This continues a recent downward trend in CDBG funding since the program reached a high of $4.36 billion in FY2003. Rep. Brady’s letter asks appropriators to fund the CDBG program at $3.46 billion (which is the level that the House requested for FY12).

ACTION NEEDED:  Contact your Representatives today and urge them to sign on to Rep. Brady’s HUD CDBG appropriations letter to increase funding for CDBG in FY2013.  The deadline for Members to sign on to the letter is March 13.  Bianca Lacey is handling the letter for Rep. Brady (Bianca.lacey@mail.house.gov 202.225.4731). To view a copy of the letter, click here.

This webinar explored the unique challenges and opportunities affecting coalition building in rural and small town settings. The discussion covered such topics as building consortiums, reaching out to diverse stakeholder groups, crafting communications strategies, and grant management. Speakers included Joe McKinney and Ron Townley of the Land-of-Sky Regional Council (Asheville, NC) and Cheryal Lee Hills and Stacey Stockdill of the Region Five Development Commission (Staples, MN). A recording of the webinar is available below, or by clicking here.