77th Annual Meeting

INCREASING CDBG PROGRAM FUNDING

WHEREAS, the Community Development Block Grant (CDBG) now in its 35th year is one of the nation's most effective domestic programs, especially with the respect to the flexibility it gives to local elected officials and practitioners to fashion tailored responses to their unique neighborhood revitalization, economic development and affordable housing needs; and WHEREAS according to national data compiled by HUD, between FY 2005 and 2008 more than 13.6 million persons were benefiting from public improvements made using CDBG funds; and

WHEREAS, during that same period, over 218 thousand jobs were created or retained for activities funded with CDBG funds; and

WHEREAS, CDBG has been - and continues to be - the foundation for community development for low- and moderate-income persons nationwide; and

WHEREAS, in FY 2008 alone, according to HUD data, over 95 percent of CDBG funding principally benefitted low- and moderate-income persons; and

WHEREAS, CDBG housing projects assisted 149,254 households, including providing financial assistance to new homeowners and rehabilitation assistance to the elderly and existing homeowners; and

WHEREAS, unlike the private market, CDBG-assisted homeowners have not faced the turmoil of foreclosure due to the diligent underwriting and oversight provided by CDBG grantees; and

WHEREAS, legislation has been introduced in the 111th congress authorizing $8 billion in CDBG formula funding for the program beginning in FY 2011, creating a permanent inflation index to increase funding for the program annually, and providing $5 million in annual technical assistance funds; and

WHEREAS, the federal government FY2010 budget is recommending a formula change to the CDBG program; and

WHEREAS, formula funding has declined over several years, and has been further eroded by new grantees entering the program annually causing less funds to be available for grantees overall, NOW,THEREFORE BE IT RESOLVED, that the Conference of Mayors supports CDBG formula funding in FY2010 at least at $4.5 billion; and

BE IT FURTHER RESOLVED, that the Conference of Mayors supports $8 billion in formula funding for the CDBG program beginning in FY 2011 , creating a permanent inflation index to increase funding for the program annually, and providing $5 million in annual technical assistance funding; and

BE IT FURTHER RESOLVED, that the conference of Mayors strongly advises HUD as it considers changes in the CDBG formula to permanently hold harmless cities that would lose funding by formula change.