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Topic of the Day: Community Development Block Grant
The Community Development Block Grant (CDBG), one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development. CDBG, like other block grant programs, differ from categorical grants, made for specific purposes, in that they are subject to less federal oversight and are largely used at the discretion of the state and local governments and their subgrantees. CDBG funds are allocated to more than 1,100 local and state governments on a formula basis, at $4.7 billion in FY2005. Larger cities and urban counties, called "entitlement communities," are required to prepare and submit a "Consolidated Plan" that establishes goals for the use of CDBG funds. Grantees are also required to hold public meetings to solicit input from the community, ensuring that proposed projects are aligned with the community's most urgent needs. Proposed CDBG projects must be consistent with broad national priorities for CDBG activities that benefit low- and moderate-income people, the prevention or elimination of slums or blight, or other community development activities to address an urgent threat to health or safety. CDBG funds may be used for community development activities (such as real estate acquisition, relocation, demolition, rehabilitation of housing and commercial buildings), construction of public facilities and improvements (such as water, sewer, and other utilities, street paving, and sidewalks), construction and maintenance of neighborhood centers, and the conversion of school buildings, public services, and economic development and job creation/retention activities. CDBG funds can also be used for preservation and restoration of historic properties in low-income neighborhoods. The Community Development Block Grant (CDBG) was enacted in 1974 by president Gerald Ford through the Housing and Community Development Act of 1974 and took effect in January 1975. It had bipartisan support, reportedly because liberal legislators shared its goal of extinguishing poverty and "urban blight" and conservative legislators appreciated the control it placed in the hands of private investors and the reduction it made in the role of the government. Cities automatically qualified for the grant if they met the requirements, but were required to submit allocation reports (showing to whom and where the money was spent) and quarterly reports to the United States Department of Housing and Urban Development. HUD's records were disputed, and there were complaints that Southern cities, in particular, spent grant money in affluent neighborhoods. CDBG funds were distributed in such a way as to generate a bias against older (declining) frostbelt cities, cities that were losing population to the sunbelt.
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| Regina's Column |
Talk to a Housing Counselor
(03/01/2010)
Want advice on buying a home, renting, default, foreclosure avoidance, credit issues or reverse mortgages? HUD sponsors housing counseling agencies throughout the country to provide free or low cost advice. Search online for a housing counseling agency near you, or call HUD's interactive voice system at: (800) 569-4287. If you are facing foreclosure and want the assistance of a housing counselor, search the list of Foreclosure Avoidance Counselors or visit the Making Home Affordable program Q&A for Borrowers. Consumer Fees for Housing Counseling Foreclosure prevention counseling and homeless counseling services are available free of charge through HUD's Housing Counseling Program. Housing Counseling agencies participating in HUD's Housing Counseling Program are not permitted to charge consumers for these specific housing counseling services. Counseling recipients should not pay for these services. However, housing counseling agencies are permitted to charge reasonable and customary fees for other forms of housing counseling and education services, including pre-purchase, reverse mortgage, rental, and non-delinquency post-purchase counseling services, provided certain conditions are met: Agencies must provide counseling without charge to persons who demonstrate they cannot afford the fees; Agencies must inform clients of the fee structure in advance of providing services; Fees must be commensurate with the level of services provided. You should contact your local HUD office if you encounter housing counseling agencies that you believe are not complying with these requirements.
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| Past "Regina's Column" Articles |
| FHA Overview (11/03/2009) |
| Housing Choice Voucher Program (formerly Section 8) (10/13/2009) |
| Beware of Foreclosure Rescue Scams - Help Is Free! (08/10/2009) |
| Implementation of the Recovery Act of 2009 (07/22/2009) |
| Making Home Affordable Program (05/13/2009) |
| Tips for avoiding Foreclosure Scams (01/14/2009) |
| Servicemembers Civil Relief Act (01/08/2009) |
| Cunsumer Advisory re: Foreclosure Rescue Scams (12/03/2008) |
| HUD's Public Housing Program (11/16/2008) |
| Avoiding Foreclosure: When a Lender Won't Work with You (11/04/2008) |
| Senior Housing, what you should know. (10/22/2008) |
| FHA Available Programs to Homeowners for Rehabilitation of Properties (10/16/2008) |
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