As part of the 2011 budget, HUD proposes $150 million for the Catalytic Investment Competition Grants program. Using the authorities of CDBG, this new program will provide capital to bring impactful and innovative economic development projects to scale and to capitalize targeted and meaningful investments for neighborhood and community revitalization. Unlike CDBG, consortia including high capacity non-governmental entities may apply along with governmental entities.
Across the country, jurisdictions are suffering from the current economic conditions or from long term decline. Our partners frequently voice their difficulty in accessing the capital to jump start large scale transformative projects in the most distressed neighborhoods. For the first time under CDBG, HUD will target the hardest hit neighborhoods and provide a tool for economic development projects focused on job growth and economic recovery. This program will create an economic link to housing and community development activities. Just as HOPE VI provided the seed funding to begin modernizing public housing stock, the Catalytic Investment Competition will provide resources to bring impactful economic development projects to scale and begin revitalizing distressed neighborhoods.
