Ask Congress to Preserve Investment in Community Development
February 15, 2005
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In its proposed FY 2006 budget, the Bush Administration proposed an historic, sweeping restructuring of federal aid to municipalities for community development. The plan calls for 18 existing programs, mostly based in HUD's community planning and development program, to be consolidated into a new "Strengthening America's Communities Initiative" grant program to be administered by the Department of Commerce. Overall funding for community development would be dramatically scaled back under the plan. The popular and effective Community Development Block Grant would be eliminated outright.
Congress must approve the President's plan when it adopts the FY 2006 budget. Contact Congress today and urge your elected representatives to preserve CDBG and the federal commitment to improving America's communities. Tell Congress that CDBG should be maintained as a separate program with funding at least equal to its current allocation. Access and eligibility to CDBG funding should not be further restricted.
Funding for the new "Strengthening America's Communities" program would be pegged at $3.71 billion, however that amount represents a significant cut. FY 2005 funding for the Community Development Block Grant, one of the 18 consolidated programs, was $4.7 billion. Other consolidated programs include the Empowerment Zone / Enterprise Community and the Brownfields Economic Development Initiative.
The existing CDBG program would be eliminated. The new Commerce Department-led grant program would be based on new criteria. Administration officials indicated that the new criteria, although not yet fully defined, would likely be considerably more restrictive. The White House Office of Management and Budget also alluded to new 'accountability measures' that communities would have to meet. Officials at a HUD budget briefing stated that separate authorizing legislation outlining the program would be sent to Congress with the Commerce Department taking responsibility for drafting that proposal.
CDBG has been a critical resource for America's cities and neighborhoods for 30 years. The program has a proven track record in attracting private investment averaging a return of three private dollars to every public dollar invested.
CDBG is an essential tool for creating and sustaining affordable housing. HUD estimates that in 2004 alone CDBG directly supported the rehabilitation of 19,000 rental units and 112,000 single- family homes. Last year, CDBG resources aided more than 11,000 families to become new homeowners.
CDBG creates jobs and builds infrastructure. CDBG is the tool planners and cities use to improve neighborhoods and communities. As more communities struggle with the costs of repairing, securing and modernizing critical infrastructure, CDBG resources will be needed more than ever. Nine million Americans benefited last year from infrastructure build or repaired with CDBG funds.
Act now to save CDBG and renew our national commitment to building strong, safe, vital communities. Tell Congress to maintain CDBG as a separate program providing direct and flexible funding to local governments.
Get involved in APA's grassroots network, Planners Legislative Action Network -- PLAN, at www.planning.org/legislation. Make your voice heard directly during APA's Legislative Conference and Advocacy Day, May 11-13. Details are available at www.planning.org/legislation/2005policyconf.htm.
Posted by Admin at March 1, 2005 01:59 PM