Title
Letter of Support FY 12 Federal Budget Priorities for the CDBG and HOME Programs (B)
This item requests City Commission approval to authorize the Mayor to sign and submit a letter to the U.S. Senate and U.S. House of Representatives supporting the continued funding of the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) in FY12.
Explanation
The CDBG program provides annual grants on a formula basis at approximately $4 billion dollars to entitlement cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. For over 35 years, CDBG has been one of the longest running and successful grant programs in the nation. CDBG is one of the most effective federal domestic programs to revitalize communities with proven results. It helps fund a wide range of activities, including job-creating economic development projects; community policing; housing-related assistance; and public projects such as water and sewer improvements, street and sidewalk repairs, and the remediation of environmental contamination. It helps fund public facilities including fire stations and youth and senior centers; as well as vital local services and activities that benefit millions of elderly Americans, low-income children, and the disabled, including meals on wheels, improvements to nursing homes, child care, after-school enrichment programs, and programs for abused and neglected children.
The HOME Program provides formula grants to States and localities that communities use often in partnership with local nonprofit groups to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income households. HOME is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households. Each year it allocates approximately $2 billion among the States and hundreds of localities nationwide. The program was designed to reinforce several important values and principles of community development such as: 1) flexibility to empower people and communities to design and implement strategies tailored to their own needs and priorities; 2) emphasis on consolidated planning expands and strengthens partnerships among all levels of government and the private sector in the development of affordable housing; 3) technical assistance activities and set-aside for qualified community-based nonprofit housing groups builds the capacity of these partners; and 4) requirement that local governments match 25 cents of every dollar in program funds mobilizes community resources in support of affordable housing. HOME Program funding is a vital piece in financing numerous affordable housing developments, many of which would not be able to go forward and many of which would not provide housing for low-income families without HOME assistance. HOME supports making development financing feasible and achieving deeper income targeting. It also enables for-profit and non-profit developers to provide affordable housing in their communities.
Historically, the City has funded many projects using CDBG and HOME funding through the years. On an annual basis, part of the City's CDBG and HOME Program funds were set aside for the City sponsored projects such as affordable housing programs and services, block grant administration, public infrastructure, recreation and parks improvement, and the homeless capital initiative (GRACE One Stop Homeless Assistance Center). The remaining portion of CDBG and HOME funds were made available to non-profit service providers and other public agencies to provide affordable housing, community and economic development programs and services.
The CDBG and HOME Program funding is being threatened for further cuts at the federal level at a time when many local governments are struggling to keep budgets balanced. In FY11, after much debate at the federal level, the CDBG Program budget was reduced by 16.2% and the HOME Program was reduced approximately 9%. This funding reduction threat continues into the FY12 budget year with further proposed cuts to the CDBG and HOME Programs. Any cuts or elimination of these funding resources will severely impact the lives of our low and moderate-income citizens who rely on CDBG and HOME funded programs. Further, any reduction in the CDBG and HOME Program funding would severely slow down and/or eliminate thousands of local and state projects and programs that are directly contributing to local and regional recovery.
CDBG and HOME funding is a vital resource to our community, providing funding for projects and services that directly impact the lives of our low- and moderate-income citizens. For reference, attached is a CDBG/HOME Program Fact Sheet providing a summary of some of the accomplishments of important projects within the Gainesville community that have been funded with CDBG and HOME Program funding. Without CDBG and HOME funding these projects could not have been assisted. CDBG and HOME Program funding provides the flexibility to fund a variety of program activities, including leveraging and attracting additional resources to projects. This combination of CDBG and HOME with other resources adds to our local economy through the purchase of goods and services and adds to the betterment of the lives of our local citizenry through improved neighborhoods and services.
Though cuts to the CDBG and HOME programs would have a minor impact on reducing the federal budget deficit, they will slow and eliminate thousands of projects that leverage public and private funds into new jobs and developments of lifelong worth to the community. The CDBG and HOME Program funding goes to service providers, builders, contractors, and local businesses who transform the neighborhoods in which they conduct business. Continued funding for CDBG and HOME Programs is crucial for our community as it connects private sector growth to the revitalization of entire communities. Additionally, CDBG and HOME funding is important to local government budgets and to the low and moderate-income households served by these programs. If not for CDBG and HOME, many projects centered around public services, infrastructure, housing rehabilitation, nutrional support, economic development and the homeless would not be funded locally. Across the nation, local government budgets are stretched and have been for a number of years. Without CDBG and HOME, the City of Gainesville does not have the resources available to fund the aforementioned program activities at a meaningful level, which would result in a devastating impact on the Gainesville community.
Presently, HCD staff is also working with the Citizens Advisory Committee for Community Development (CACCD) and the outside agencies to submit support letters to the U.S. Senate and U.S. House of Representatives regarding the continued funding of the CDBG and HOME Programs.
Fiscal Note
There will be no fiscal impact for signing the letter of support for the continued funding of the CDBG and HOME Programs.
Recommendation
The City Commission: 1) approve City of Gainesville support for continued funding of the CDBG and HOME Programs and authorize the Mayor to draft a letter of support; and 2) authorize the City's Lobbyist to monitor the funding status of the CDBG and HOME Programs.