The Community Development Block Grant (CDBG) Christy Alexander Michelle Fellows Christian Pond

Historical Context – Block Grant & Evolution of Federal Funding A large sum of money granted by the national government to a regional government with only general provisions as to the way it is to be spent Contrasted to a categorical grant Allow regional governments to experiment with different ways of spending money with the same goal in mind ‘Devolutionary’ or ‘New Federalism’

CDBG - History 1974 – Gerald Ford – Housing & Community Development Act created the CDBG program Grew out of the consolidation of eight categorical programs which communities competed nationally for funds; including: Open Space Urban Renewal Neighborhood Development Program grants Historic Preservation grants Model Cities supplemental grants Public Facilities loans Neighborhood Facilities grants Water & Sewer grants Administered by HUD until 1983 when the individual states took control of the Small Cities Program, which is now the CDBG program

CDBG – Goals “To assist in developing viable urban communities by providing decent housing, suitable living environment and expanding economic opportunities, principally for persons of low and moderate income (LMI)” All CDBG projects are required by Congressional mandate to meet at least one of three ‘National Objectives’ in order to qualify for funding The three ‘National Objectives’ are: 1. Benefit low and moderate income (LMI) persons 2. Prevention or eliminate slums or blight 3. Address urgent community development needs

How the program works CDBG funds allocated 1,100+ local and state governments based on a formula 70% for entitlement communities 30% for non-entitlement communities CDBG-funded project must be in line with two criteria must align with 1 of the 25 eligible uses for CDBG funds as authorized by the HCDA must satisfy one of three national objectives stated in the HCDA

Evolution over time CDBG funds originally distributed based upon a single formula (Formula A) 1976: HUD develops a second formula (Formula B) 1981: Allocation funds to entitlement/non- entitlement communities changes from 80/20 to 70/30 Funding: “real dollar” amounts to both entitlement & non-entitlement communities has decreased since the 1980’s. Why?

Praise & Criticism Praise “Bottom up” - States and localities are best able to decide what is best for their communities Millions have been helped - $4.2 for Hurricane Katrina recovery, for example Criticism Program has overall had difficulty demonstrating impact Formulas have resulted in inequities in certain cases Formulas are outdated and do not respond adequately to an increasingly dynamic population The program is less and less able to meet needs based on funding levels

Trends in CDBG Funding

CDBG Locally King County KC CDBG Consortium $6 million in % to shelter and housing for homeless 35% to affordable housing City of Seattle CDBG Program Office $12 million in % shelter and housing the homeless 33% Southeast Seattle

Southeast Seattle $4.3 million through the Rainier Valley Community Development Fund Community and economic development Sound Transit Light Rail

Questions?