The U.S. Conference of Mayors


WHEREAS, the Community Development Block Grant (CDBG) program was signed into law by President Gerald Ford as the centerpiece of the Housing and Community Development Act of 1974; and

WHEREAS, the primary objective of the program is the development of viable communities by providing decent housing and suitable living environments, and expanding economic opportunities for low-and moderate-income persons; and

WHEREAS, the CDBG program has considerable flexibility to allow urban, suburban, and rural communities to carry out a broad range of activities that are tailored to their unique affordable housing and neighborhood revitalization needs; and

WHEREAS, throughout its 32-year old history, the CDBG program has been a partnership among all levels of government, the business community, and the nonprofit sector to carry out activities that improve the lives and neighborhoods of low-and moderate-income families; and

WHEREAS, according to HUD, over 95 percent of FY2006 funding was allocated to activities principally benefiting low-and moderate-income persons and their neighborhoods; and

WHEREAS, also according to FY2006 HUD data, CDBG provided housing assistance to 179,835 housing projects, created or retained 55,957 jobs for low-and moderate-income persons, provided essential public services to an estimated 11 million households; and

WHEREAS, CDBG formula grants were cut by 10 percent in FY2006 from $4.1 billion to $3.71 billion, and also cut in FY2005 by five percent, resulting in a 15 percent cut in two years; and

WHEREAS, CDBG formula grants remained at the same funding level in FY2007 as FY2006, $3.71 billion; and

WHEREAS, a survey on the impact of the CDBG cuts released by 20 organizations, including the Conference of Mayors, on March 15, 2006 found that reduced formula allocations between FY2004FY2006 has had a substantial negative effect on the 68 percent of all state programs and 28 percent of all entitlement communities that responded to the survey; and

WHEREAS, the survey found that CDBG cuts to cities, counties and states between FY2004 - FY2006 has led to 5,588 fewer businesses, 5,843 fewer homeowners, 5,064,408 fewer low-and moderate-income persons served, 255,569 fewer elderly persons served, 391,823 fewer children and youth served, 253,187 fewer persons with special needs served, 196,150 fewer homeless persons served, 50,046 fewer units of rehabilitated housing, and 1251 city and county improvement projects(water and sewer, street and sidewalks, fire stations, public facilities) canceled or delayed; and

WHEREAS, the administration's FY2008 budget request proposes to cut nearly $1billion in CDBG formula funding; and

WHEREAS, on March 9, 2007, fifty-two members of the Senate sent a letter to the Budget Committee urging it to include sufficient funding to permit CDBG formula grants to be funded at $4.1 billion in FY2008; and

WHEREAS, the Conference of Mayors in its 10-Point Plan released in January, 2007 calls for CDBG formula funding to be doubled to $8 billion;

WHEREAS, mayors contend that the additional funding of $8 billion would address the delayed projects and activities which have come about because of cuts to CDBG, and further build on the proven record of an effective affordable housing and revitalization program;

NOW, THEREFORE, BE IT RESOLVED, that the U.S. Conference of Mayors strongly supports that formula funding for the Community Development Block Grant (CDBG) program be increased to no less than $4.1 billion in FY2008;

BE IT FURTHER RESOLVED, that the U.S. Conference of Mayors also strongly supports that formula funding for the CDBG program be doubled to at least $8 billion.

2007 The U.S. Conference of Mayors
Tom Cochran, Executive Director
1620 Eye Street, NW, Washington, DC 20006
Tel. 202.293.7330 ~ Fax 202.293.2352