By Eugene T. Lowe
November 21, 2005

Although the Conference Report on the fiscal 2006 Transportation-Treasury- Housing appropriations bill has not yet been filed, Congress has agreed to fund the Community Development Block Grant (CDBG) formula program at $3.778 billion; last year the program was funded at $4.1 billion. The overall Community Development Fund is funded at $4.22 billion, which is below last year’s funding of $4.7 billion.

Over the last several months, the CDBG Coalition, which includes the Conference of Mayors and several other national organizations representing state and local appointed and elected officials and several national public interest groups, had focused on the funding level of the CDBG formula grant program (the funds that go directly to local governments). In its version of the spending bill, the House funded the formula grant program at $3.887 billion, while the Senate funded the program at $3.774 billion.

During floor debate on the Senate bill, several senators offered an amendment to increase CDBG and two other housing programs by $200 million each. Senator Christopher Bond (MO), Chair of the Transportation, Treasury, Judiciary, and HUD Appropriations Subcommittee objected to the amendment. Senators Patrick Leahy (VT) and Norm Coleman (MN), two of the amendment’s sponsors, agreed to withdraw the amendment when Bond said that additional money for the programs would be sought in the House and Senate conference. But only a few million more dollars was found in the conference leaving the CDBG formula grant program with $300 million dollars less than last year.

In addition to the cut in CDBG, the HOME Investment Partnerships program was funded at $1.775 billion, which is $14 million less than last year’s funding. HOPE VI, the severely distressed public housing program, was funded at$100 million, $43 million less than in the last fiscal year.

There were some funding increases. Homeless Assistance Grants were increased by $100 million. The Housing Opportunities for Persons with AIDs (HOPWA) program was increased by $8 million to $289 million. The conference committee took the Senate request for the public housing operating fund at $3.6 billion, and compromised between the House and Senate recommended funded for the public housing capital fund at $2.46 billion.