FY2013 HUD CDBG Appropriations Update

Posted on: July 5th, 2012 by NADO Admin

ACTION NEEDED:

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. (http://appropriations NULL.house NULL.gov/uploadedfiles/hrpt-112-ap-fy13-thud NULL.pdf)

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. (http://www NULL.gpo NULL.gov/fdsys/pkg/CRPT-112srpt157/pdf/CRPT-112srpt157 NULL.pdf)

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.
This entry was posted in Housing and Urban Development, Latest News and tagged , , . Bookmark the permalink.