City Council Supports Resolution Backing CDBG, HOME Programs
Aug 3rd, 2011
COMMUNITY DEVELOPMENT BLOCK GRANT/HOME/ESGFACT SHEET
The US Congress is proposing deep cuts to the U.S. Department of Housing and Urban Development FY2012 Budget.
The impact to the City of Mobile would be:
Substantial loss of its Community Development Block Grant-CDBG ($2.6 million), HOME ($1.3 million), and Emergency Shelter Services-ESG ($129,000) allocation, which is approximately $4.09 million per year. Mobile has received over $46 million since 2002 in CDBG, HOME and ESG funds; these are used to provide infrastructure improvement, housing and economic development and human services to low-income neighborhoods and residents.
A loss of CDBG and HOME programs such as, homeowner rehabilitation, home buyer education programs, housing modifications for persons with disabilities, homeownership assistance (down payment and closing costs), and energy efficiency improvements. Housing development partners receiving HOME funds for housing development in 2011 are MLK Avenue, HABITAT, and Volunteers of America SE, funded at more than $1.5 million.
A loss of economic and small business development and retention, and the creation of new jobs funded at $280,000 in FY 2011.
More than 6,000 low-moderate income residents will no longer receive assistance through human services agencies, funded by the City of Mobile at $791-555 in 2011. These agencies provide the City of Mobile’s neediest residents with a safety net and opportunities for becoming self-sufficient. The agencies are: Housing First, Inc., Senior Services – VIA, Dumas Wesley, Mobile Housing Board (Sweet P), Mobile Housing Board (Boys and Girls Club), Boys and Girls Clubs-Kiwanis (Club Branch), Dumas Senior Transportation, United Methodist Inner City Mission, Independent Living Center, United Methodist Inner City Mission (Mockeries Place), Family Promise, Loaves and Fish, Penelope House, Catholic Social Services, Mockeries Place, Sybil Smith Village.
Loss of contract opportunities and jobs by contractors and businesses that work on CDBG and HOME-related projects. For example, in 2011, the City will award more than $3 million in contracts to contractors for massive street resurfacing, public facilities improvement, and parking lots’ resurfacing. These projects generate jobs and have multiplier effects in our local economy.