CDBG Stories

For more than 30 years, CDBG has been responsible for helping to build communities of lasting value. President Bush's proposed 2006 budget would virtually dismantle the CDBG program. The following stories were shared by APA members to help illustrate the importance and benefits of CDBG.

From Sue Schwartz, FAICP, AICP President, Housing and Community Development Department, Greensboro, North Carolina

Impacts on City of Greensboro Programs and Partners

What we fund:
Community Development Block Grant Funds (CDBG) funds enable the City of Greensboro to bring a number of services to vulnerable neighborhoods and populations in Greensboro. These services and programs include:

1. Increased tax revenue, reduced crime and a cleaner environment through neighborhood revitalization. Since 1974, almost 450 dilapidated and unsafe housing units have been removed, 440 new homes constructed, 400 existing homes repaired, 9 contaminated properties remediated, 11 parks added or upgraded and several daycares, clinics, senior centers and neighborhood businesses constructed with CDBG assistance.
2. Housing rehabilitation, lead paint removal, and emergency repair. In the program's history, 1,500 homeowners and 25 rental units have received home repair assistance-saving people from living in dilapidated housing. Moreover, CDBG has helped Greensboro leverage federal grants, such as the $3 million Lead Based Paint Grant, which has removed lead paint poison from 200 low income houses with children in the last two years.
3. Affordable housing development. 569 building sites have been provided for affordable housing construction, which has leveraged more than $20 million in private investment.

What we lose when CDBG is cut:
Unless local government is willing to supplement current programs in the absence of CDBG, citizens will lose programs and services intended to help low to moderate income people and neighborhoods, the homeless and struggling businesses. It is estimated that.

1. Every year, another 30 low income and elderly homeowners will not receive basic repairs to faulty roofs, heating systems and electrical systems to make them safe.
2. No neighborhood revitalization activities will be initiated.
3. 5 new or emerging businesses each year within the poorest section of our city would not have access to the business capital and technical assistance they need to survive and expand.

CDBG Summary of Impacts

1. Reduces your tax bill.
   1. Revitalization and redevelopment increase property tax values which in turn reduces the tax burden on property owners citywide
   2. Infill housing and redevelopment utilize infrastructure that already exists, so taxpayers do not pay to maintain existing streets AND pay for new ones
2. Employs your business.
   1. Housing development and economic development assistance create hundreds of jobs for engineers, contractors, construction workers, real estate agents and building suppliers
   2. Low interest business loans assist new and expanding businesses which create new jobs and services.
3. Shortens your commute.
   1. Economic development assistance, infill development and redevelopment support businesses nearer to where you live
   2. Redevelopment and infill development create livable residences near businesses and jobs so you can have a choice where to live
4. Makes your city healthier.
   1. Brownfield redevelopment removes environmental contamination from neighborhoods and abandoned industrial sites which affects groundwater and soil safety
   2. Lead Paint funds removes dangerous lead based paint from houses with young children
   3. Revitalized parks and neighborhood sidewalks get people active and walking, this reduces health care costs and obesity
5. Reduces crime and its causes.
   1. Neighborhood revitalization keeps troubled areas safe and viable which deters crime
   2. Affordable housing prevents at risk families from becoming homeless
   3. Neighborhood programs and new/upgraded parks keep kids busy and out of trouble and provide a positive outlet for energy
   4. Homeless assistance provides shelter for an estimated 2,000 people currently living on Greensboro's streets
   5. Substance abuse assistance keeps people functioning in their jobs and in their families so they do not turn to crime

2004 and 2003 Summaries:

2004: The City of Greensboro received a 2004-2005 Community Development Block Grant allocation of $2,296,000, and adds to that $550,000 in program income, for a total of $2,846,000. Neighborhood Development projects were 30% of expended funds. 14% was expended on Economic Development and 36% on Affordable Housing.

2003: The City of Greensboro received a 2003-2004 Community Development Block Grant allocation of $2,357,000, $500,000 in program income, and $250,000 in reprogrammed funds, for a total of $3,107,000. During the year, $627,978 of CDBG funds, 26% of expenditures, was expended for affordable housing, including homeowner rehabilitation programs, affordable housing programs and emergency shelter assistance. $746,669, 40% of expenditures, was expended towards the objective of completing neighborhood revitalization activities.

From Michael Southard, AICP, Community Development Director, Shawnee, Oklahoma:
Shawnee, Oklahoma, is a small entitlement city of 30,000 operating the CDBG program since its inception. During those 30 years, the CDBG program has accomplished much in the lives of the citizens of our community, promoting economic development, removing neighborhood blight, developing transitional shelters for the homeless, providing housing for battered women, rehabilitating a house which is used for examining sexually abused children in an emotionally safe environment, constructing safe walkways to elementary schools, building affordable housing to first time home buyers, and rehabilitating hundreds of owner-occupied houses. Shawnee doesn't have a "handout program" and seeks program income whenever possible. Below is an excerpt from a letter sent to our office that voices the gratitude and hopes exemplified by our customers/recipients.

"I really don't know how or even where to begin this letter. My wife and myself are at a loss for words on how to express our gratitude and heart felt appreciation for what your organization has done for us and our children.

Our previous dwelling would have never been suitable for our large family no matter how much we might have tried. But now, thanks to your organization we are able to provide our children with a beautiful, efficient, safe and affordable home that will give all of us a more quality of life.

Life is a struggle for everyone and with all that is happening in the world today it only makes the struggle more complicated. What you have done for us is nothing short of a miracle. Your program has made what used to be our dreams become our reality.

As the time of completion draws nearer our excitement grows bigger. We are without question the six happiest people in Shawnee today and we owe it all to your organization.

As I stated earlier, finding the words to express our gratitude and our appreciation would take a lifetime. So ,I will just close this letter saying thank you and God Bless You All."

As a small community with a small tax base, it is already a struggle to provide necessary services to our citizens. Without the entitlement program, Shawnee would not be able to continue our neighborhood revitalization and housing rehabilitation programs. The quality of the lives of the lower income families in our community would be greatly stressed.

Vanitha Murthy:
I agree that cutting out CDBG is almost a suicide. For example, the CDBG grants have helped eliminate blight in a lot of poor Atlanta neighborhoods, brought back some private investors into the downtown area. Additionally, downtown area is also getting a new aquarium, and is just vibrant with prosperity,again bringing a lot of folks back into the downtown area, and has encouraged intown living. The elimination of the CDBG program would be leading to urban exodus and encouraging the onset of urban destruction.