PRESIDENT CLINTON TO PROPOSE $150 MILLION IN BUDGET INCREASES FOR TWO KEY HUD PROGRAMS

WASHINGTON - President Clinton will propose a total of $150 million in funding increases for two major Department of Housing and Urban Development programs that create jobs, economic development and affordable housing across the country, HUD Secretary Andrew Cuomo announced today.

In a speech to the U.S. Conference of Mayors meeting, Cuomo said the $100 million increase for the Community Development Block Grant (CDBG) program and the $50 million increase for the HOME Investment Partnerships program will be part of President Clinton's Fiscal Year 2001 Federal Budget.

In addition, the President's budget will call for another $150 million to be made available for grants to local communities under the CDBG program, because the amount of funds set aside for specific activities is being reduced from the current level.

"These programs are a wise investment in our future that benefit people and places all across our country by creating needed jobs and housing," Cuomo said. "They have a long record of success because they allow people at the local level to decide the best way to use these funds."

If President Clinton's request is approved by Congress, the funding available for local communities through the CDBG program would rise from $4.8 billion this year to $4.9 billion next year, and the funding for the HOME program would rise from $1.6 billion this year to $1.65 billion next year.

Both programs provide funding to states and municipalities and allow local communities considerable flexibility in using the funds. The projects that will receive CBDG or HOME funding are chosen by local governments - often with considerable input from the residents of the community - and then approved by HUD.

CDBG, which celebrated its 25th anniversary in 1999, helps communities create and nurture economic opportunity. Funding is used to finance community-determined projects such as job training, revolving loan funds for small businesses, and infrastructure improvements.

HOME is a housing production and rehabilitation program that increases the supply of safe and affordable housing units. Part of the HOME program's effectiveness is the matching funds that are leveraged from other resources. Typically, every dollar spent in the HOME program has been matched by an additional $1.75.

As a result, the $1.65 billion proposed for HOME will assist approximately 103,000 households by rehabilitating 45,000 units of housing; acquiring 25,000 units; building 22,000 units; and providing rental assistance for 11,000 units.