By Eugene T. Lowe
October 1, 2012

When Congress adopted the FY2013 Continuing Resolution CR) on September 22, it also increased the Community Block Grant (CDBG) program from its current funding level of $2.948 billion to $3.248 billion. During negotiations between the Senate and House Conference on FY2012 appropriations last year, it was decided to take $300 million out of the Community Development Fund for disaster assistance, thus leaving the funding level for the CDBG formula grants program at $2.948 billion. In the FY2013 CR, Congress did not take any funds out of the Community Development Fund for disaster assistance and allowed the $300 million to be allotted to CDBG formula grants. (CDBG formula grants are funded within the Community Development Fund).

The Community Development Coalition, which is comprised of national organizations of local elected officials, including the Conference of Mayors, housing and community professionals and representatives of other national organizations, sent a letter on August 17 to both House and Senate appropriators requesting that the FY2013 CR approve an amount for the Community Development Fund “…no less than the $3.3 billion appropriated in FY2012. However, within that $3.3 billion, we strongly urge you to resist any effort to divert a portion of that fund for disaster assistance.”

The letter said further: “ in FY2012, $300 million from the Fund was used to provide assistance to states and communities ravaged by flooding and other natural disasters. This was unprecedented, as disaster assistance was historically included in supplemental appropriations bills.” The letter emphasized: “Until FY2012, disaster assistance had been properly funded from separate accounts reserved for that purpose. We respectfully urge you to utilize that precedent, if needed, in the FY2013 CR thereby allowing CDBG formula grants to be funded at $3.3 billion.”

The CR will fund CDBG and other government activities and functions through March 27, 2013.