February 17, 2005

News Statement

APA Denounces Proposal Dismantling Community Development Program

WASHINGTON, DC — The American Planning Association (APA) today decried proposed changes to the federal Community Development Block Grant (CDBG) program, outlined in President Bush's 2006 proposed budget, that would virtually dismantle overnight 30 years of investing in the success of our cities, towns, counties and neighborhoods.

Under the misleading name of "Strengthening America's Communities Initiative," the administration unleashes a frontal assault on the most important federal tool for implementing local plans and building communities of lasting value.

For 30 years CDGB has supported jobs, built and repaired infrastructure, and created housing opportunity throughout the country, in communities large and small alike. Neighborhoods bearing the brunt of poverty, job loss, inadequate housing and crime have been lifted out of despair and depression as a result of the values and vision of engaged citizens reflected in plans and financed by CDBG.

During fiscal year 2004 alone, nearly 19,000 rental units and more than 112,000 owner-occupied single family homes were rehabilitated through CDBG. The program helped more than 11,000 households become homeowners at the same time it financed more than 38,000 infrastructure projects serving nine million people. In all, 13 million people were aided in 2004 through CDBG-funded projects addressing transportation, public safety, economic development, employment training, affordable housing, health services and child care needs.

Since its inception in 1974, according to the National League of Cities, CDBG has leveraged $324 billion in new private investment, returning $3 for every public dollar.

Despite its tremendous success, the administration believes CDBG and 17 other community development programs to be redundant, inefficient and expendable. Their new program would be funded at $3.71 billion — $1 billion less than what CDBG alone received last year.

Besides shortchanging the program financially, the administration wants to sharply limit the number of cities and amount of time they would be able to participate. If adopted, these restrictions would take away the program's reputation for fiscal reliability, hobbling its ability to attract and leverage private investment.

Many members of Congress, Republicans and Democrats alike, are dismayed by the proposal. U.S. Sen. Christopher Bond (R-Mo.) took one look and noted flatly that it "makes no sense."

The President says this budget is about "tough choices." He is right about that. Unfortunately, his budget is replete with the wrong ones. It is up to members of APA and like-minded organizations, including the U.S. Conference of Mayors, National League of Cities, and National Association of Counties, to make sure Congress hears our message that CDBG isn't broken and doesn't need to be replaced.

For additional information, including suggestions about how you can help make a difference, visit APA's new advocacy action center.

Contacts
Jason Jordan, Assistant Director for Government Affairs, 202-349-1005; jjordan@planning.org
Denny Johnson, Public Affairs Coordinator, 202-349-1006; djohnson@planning.org

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