By Eugene T. Lowe
April 30, 2012

The Senate Appropriations Subcommittee on Transportation, Housing and Urban Development approved its FY13 funding bill April 17 with an increase in funding for the Community Development Block Grant (CDBG) formula grant program to $3.1 billion. The funding of CDBG is $152 million above the FY12 level of $2.948 billion. The HOME Investment Partnerships program was funded at $1 billion, the same as the FY12 funding level. The full Senate Appropriations Committee, on April 19, passed the funding levels approved by the subcommittee.

Remarkably, CDBG and a number of other housing programs received funding increases even though the senate subcommittee, chaired by Senator Patty Murray (WA), had less money to work with; the FY13 allocation for the subcommittee was $53.4 billion, which is $2 billion below FY12. (The House, which has yet to consider its bill, will be working with an allocation of $51.6 billion, which is $1.8 billion less than the Senate.)

During the subcommittee markup, several senators were strongly supportive of the CDBG program. Murray, along with Ranking Member Senator Susan Collins (ME), and subcommittee member Senator Barbara Mikulski (MD) touted the benefits of the program to the nation’s communities. The Committee Report also said that, "The Committee believes that investments through CDBG are important to creating jobs and improving communities."

Other key programs funded include:

• Section 8 Tenant-based rental assistance (housing choice vouchers) funded at $19.4 billion, $482 million above FY12;

• Public housing capital funded at $1.99 billion, $110 million above FY12, and public housing operating funded at $4.541 billion, $629 million above FY12; and

• Homeless Assistance grants funded at $2.15 billion, $245 million above FY12. HUD’s Sustainable Communities Initiative would be funded at $50 million; the initiative was not funded in FY12. The Choice Neighborhoods Initiative would be funded at $120 million, the same as last year’s funding level.

The CDBG Coalition, comprised of national organizations representing local elected officials (including the Conference of Mayors), state and local government practitioners, and non-profit organizations in a letter thanked Murray and Collins for the $3.1 billion in CDBG formula grants for FY13. The Coalition said, "This increase of $152 million to the CDBG program will restore much needed program funds to State and local grantees and their non-profit partners."

All efforts will now turn to the House of Representatives, as mayors are encouraged to urge their local congressional delegations to support CDBG and HOME with increased funding levels for FY13.