The FY2011 Continuing Resolution significantly reduced funding for the CDBG and HOME programs compared to last year. The CDBG overall funding was reduced by more than $600 million or approximately 16.5 percent while the HOME program funding was reduced by more than $200 million or approximately 11.7 percent.
“These programs are absolutely critical to communities all across this country,” said HUD Secretary Shaun Donovan. “The 2011 budget agreement required tough choices, and we would not have made many of them in better circumstances, but beginning to live within our means is the only way to protect those investments that will help America win the future and compete for new jobs.As we work under the challenges of our nation’s deficit, we must also understand that these programs are absolutely essential in promoting community development, producing affordable housing, helping our homeless and even supporting long-term disaster recovery.”
HUD’s FY 2011 formula-based block grant programs include:
$ 3.3 billion in Community Development Block Grant (CDBG) funds;
$ 1.6 billion in HOME Investment Partnerships (HOME) funding;
$ 160 million in Emergency Shelter Grant (ESG); and
$ 298 million for Housing Opportunities for Persons with AIDS (HOPWA). $ 5.4 billion TOTAL
Since 1974, HUD’s Community Development Block Grant(CDBG) Program has provided approximately $132 billion to state and local governments to target their own community development priorities. The rehabilitation of affordable housing and the improvement of public facilities have traditionally been the largest uses of CDBG although the program is also an important catalyst for job growth and business opportunities. Annual CDBG funds are distributed to communities according to a statutory formula based on a community’s population, poverty, and age of its housing stock, and extent of overcrowded housing.
HOME (HOME Investment Partnerships Program is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, HOME has produced 381,883 rental units, assisted 428,373 homebuyers, rehabilitated 197,780 owner-occupied units, and helped 242,768 tenants. In the past two decades, HOME produced more than one million homes for low income families. HOME funding is cost-effective, leveraging nearly $4 in other investments for each HOME dollar spent.
Emergency Shelter Grants(ESG) provides homeless persons with basic shelter and essential supportive services. It can assist with the operational costs of the shelter facility, and for the administration of the grant. ESG also provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs. HUD will allocate ESG funds in a two-stage process: (1) $160 million will be immediately allocated under the existing Emergency Shelter Grants regulations; and (2) at least $65 million will be allocated once HUD publishes the new Emergency Solutions Grant regulations.
HUD’s Housing Opportunities for Persons with AIDS(HOPWA) grants are distributed to states and cities based on the number of AIDS cases reported to the Centers for Disease Control and Prevention. The grants provide resources for operating community residences and providing rental assistance and support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program also helps many communities develop strategic AIDS housing plans and fill in gaps in local systems of care. A stable home environment is a critical component for low-income persons managing complex drug therapies and potential side effects from their treatments.
HUD is instituting several important program priorities in the upcoming year. First, the Department’s consolidated planning process will be enhanced. Largely unchanged since the mid-1990s, the ‘Con Plan’ will be simplified by integrating HUD’s technology systems and eliminating the need to prepare a separate annual performance report. Second, HUD’s Office of Community Planning and Development is moving rapidly to implement its unified OneCPD technical assistance process which is particularly important as many local governments continue to struggle with budgetary pressures resulting from the economic downturn. Finally, HUD is again urging grantees to consider the needs of returning veterans and their families in the design and administration of these formula programs.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.