GROUPS CALL FOR FULL FUNDING OF HUD'S BUDGET, INCLUDING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

SAN FRANCISCO - Members of the U.S. Conference of Mayors, the National Association of Counties and the National Community Development Association today called on Congress to fully fund President Clinton's proposed $28 billion budget for the Department of Housing and Urban Development, including $4.775 billion for the Community Development Block Grant Program.

HUD Secretary Andrew Cuomo joined members of the groups in San Francisco today to celebrate the 25th Anniversary of the Community Development Block Grant (CDBG) Program. Cuomo said HUD's programs, which are helping to improve the lives of millions of Americans, will be able to help even more people with the $2.5 billion budget increase proposed by President Clinton for Fiscal Year 2000. This includes a $25 million increase for CDBG.

Congress is considering proposals to cut HUD's budget next year.

CDBG funds go to 842 local communities and 147 counties, plus an additional 3,000 small cities and counties across the nation. CDBG funds are distributed to every locality with a population of over 50,000, and to every county with a population of at least 200,000. States also receive CDBG funds for distribution to small towns and rural counties. HUD estimates 1999 CDBG funds will be used to rehabilitate or build 198,000 homes and create 145,000 jobs.

"The Community Development Block Grant Program is one of the most successful ways the federal government provides funding for economic development and housing programs to communities across the nation," Cuomo said. "For 25 years, CDBG funds have built and rehabilitated homes, fueled business development to create jobs, and improved the overall health of our nation's communities. Instead of trying to impose a one-size-fits-all program on every locality, CDBG funds programs designed by each individual community to best meet unique local needs."

"Mayor Brown is an outstanding example of a local official who has effectively used CDBG funds to improve housing and spark economic development and community revitalization," Cuomo said. "His efforts have created new opportunity for the people of his city."

"CDBG funds have contributed to San Francisco's lower than average unemployment rate," said Brown, who is also Chairman of the Housing and Community Development Committee of the U.S. Conference of Mayors. "Most recently, we've used CDBG funds to support Visitacion Valley, where more than 200 low-income people have received job training and placement."

In 1999, San Francisco will receive more than $25 million in CDBG funds from HUD. Over the past 25 years, the city has received $598 million from CDBG.

In the last 25 years, HUD has provided $87 billion in CDBG funds nationwide. Communities report that about 90 percent of CDBG funds are used to help people with low- and moderate-incomes.

Salt Lake City Mayor Deedee Corradini said: "Salt Lake City has mixed CDBG funds with local funding and community support to create Our House, a unique child care center for homeless and low-income children. Our House provides a stable, nurturing environment for the most vulnerable members of the community. We could not have done this without CDBG."

Reno Mayor Jeff Griffin said: "One of the biggest issues facing Reno is how to provide affordable housing for working families. CDBG money is helping low- and moderate-income owners maintain their properties through housing rehabilitation, as well as helping low- and moderate income renters become first-time homeowners."

Atlanta Mayor Bill Campbell said: "The rapid growth Atlanta has experienced in the last two decades has posed many challenges to our city. CDBG funding has helped us meet these challenges, and made Atlanta a better place to live and work."

Peter McLaughlin, Chairman of the Large Urban County Caucus of the National Association of Counties and a County Commissioner from Hennepin County, MN, said: "The CDBG Program is an investment in a better America. At a time when our nation is enjoying record surpluses, it makes no sense to cut a program that will contribute to the future well-being of people and communities throughout our nation."

Leona Plaugh - President of the National Community Development Association, which represents municipal community development officials - and a community planning official with the City of Columbia, SC, said: "A strong CDBG Program is vital to keeping communities across the nation strong and healthy. Cuts in this program would end important local initiatives and hurt many hard-working families by denying them help to get homes and jobs."

The Housing and Community Development Act of 1974 created CDBG to help local communities set their own priorities for using federal funds. CDBG funds can be used for a variety of activities that are directed towards neighborhood revitalization, economic development, and improved community facilities and services.

Local governments develop a Consolidated Plan outlining the strategy for distributing CDBG and other non-competitive formula funds from HUD throughout the community. The Consolidated Planning process, developed by Cuomo when he served as HUD Assistant Secretary for Community Planning and Development, ensures that local residents have strong input into the creation of comprehensive, community-based housing and economic development plans. The process gives communities maximum local flexibility, while reducing burdensome regulatory requirements.