THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

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, CDBG is the Federal government’s efforts to help more than 1, 100 entitlement cities, urban counties, States and their non-profit partners meet the needs of low and moderate-income communities; and

WHEREAS, CDBG helps to fund a wide range of activities, including home ownership assistance, housing rehabilitation, public governments, public services, and economic development projects; and

WHEREAS, according to HUD, over 95 percent of FY07 CDBG funding went to activities principally benefiting low and moderate-income persons; and

WHEREAS, CDBG housing projects assisted 151, 107 households in FY07, including financial assistance to new homeowners and rehabilitation assistance to the elderly and other existing homeowners; and

WHEREAS, the CDBG helped create and retain 42, 231 jobs in FY07 and provided vital public services to over 24 million persons;and

WHEREAS, the impact of past cuts have had a negative impact and proposed cuts will exacerbate the problem for communities that rely on CDBG funding to serve their most vulnerable residents, principally low and moderate-income persons; and

WHEREAS, the CDBG formula allocation was funded at $4.41 billion in FY01; and

WHEREAS, the formula allocation has decreased by $820 million –or approximately 18 percent – with a five percent cut in FY05, 10 percent cut in FY06, and a three percent cut in FY08; and

WHEREAS, the FY09 HUD budget would reduce the formula funding by$659 million (18 percent), cutting the formula allocation by almost 37 percent in just five years; and

WHEREAS, the cuts to the formula allocation, programs and projects funded by CDBG, and the number of residents served by these activities, have also been cut; and

WHEREAS, in these hard economic times, CDBG can help state and local governments to assist the community development needs of some of the nation’s most vulnerable communities and citizens,

NOW, THEREFORE, BE IT RESOLVED, the U.S. Conference of Mayor surges Congress to support the nation’s communities and low and moderate-income citizens by funding CDBG with at least $4.1 billion in formula funds in FY 2009; and

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 over the next several years.