Community Development Block Grants head to chopping block

Los Angeles /
Mar.March 16, 2017 03:30 PM

From the New York website: The White House’s Office of Management and Budget released its fiscal year 2018 proposals this week, cutting $6.2 billion in annualized discretionary spending from HUD and eliminating the Community Development Block Grant program. It could have an outsized impact on New York City, which relies on the grants to fund critical repairs at public housing projects.

“The Federal Government has spent over $150 billion on this block grant since its inception in 1974,” reads the proposal from the office led by former congressman Mick Mulvaney, “but the program is not well-targeted to the poorest populations and has not demonstrated results.”

The Community Development Block Grant program, or CBDG, has enjoyed wide bipartisan support since President Gerald Ford signed it into law in 1975. In New York it has been employed to fund code enforcement, inspections at troubled buildings, repairs and improvements to senior housing, and economic recovery from the effects of Superstorm Sandy. For the current fiscal year, the government committed $3 billion to the program, and will receive no funding in the White House’s $40.7 billion HUD budget proposal for next year.

Stephen Glaude, CEO of the Coalition for Nonprofit Housing and Economic Development, told CNBC that he expected the program to get cut, but never expected it to be destroyed. “To come in and blatantly eliminate these programs because you’re trying to meet a budget number without talking to the stakeholders, the constituents of these programs, is a little concerning. In fact, it’s more than a little concerning. It’s actually alarming.” [CNBC] — Will Parker


Related Articles

arrow_forward_ios
Candidate Rick Caruso, Councilman Joe Buscaino and Los Angeles City Hall (Rick Caruso, Joe Buscaino, iStock, Illustration by Kevin Cifuentes for The Real Deal)
City Councilman exits race, endorses Caruso for LA mayor
City Councilman exits race, endorses Caruso for LA mayor
Steve Soboroff and U.S. Rep. Karen Bass (Getty)
Soboroff endorses Bass
Soboroff endorses Bass
Los Angeles mayoral candidates: Rick Caruso, Karen Bass and Kevin de Leon (Wikimedia, Rick Caruso, iStock)
Real estate industry all over LA mayoral money game
Real estate industry all over LA mayoral money game
530 S Mapleton Dr, Los Angeles (Zillow)
Justice Department wants Armenian ex-politician’s LA mega-mansion
Justice Department wants Armenian ex-politician’s LA mega-mansion
L.A. County Supervisor Kathryn Barger (Getty Images, iStock)
LA County to create new agency to focus on homelessness
LA County to create new agency to focus on homelessness
Rick Caruso and Karen Bass (Caruso, Wikipedia)
LA Times picks Bass after Daily News gives nod to Caruso
LA Times picks Bass after Daily News gives nod to Caruso
Assemblymember Cristina Garcia (Cristina4Congress, iStock)
Public golf courses into housing? Contentious bill slicing through state legislature
Public golf courses into housing? Contentious bill slicing through state legislature
From left: Harry Sidhu, mayor of Anaheim; Art Moreno, owner, Los Angeles Angels; Rob Bonta, state attorney general (Getty Images, City of Anaheim, iStock)
Anaheim clears way for stadium sale with $123M for affordable housing
Anaheim clears way for stadium sale with $123M for affordable housing
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...