Planning and Development Services Department
TO: David L. Corliss, City Manager
FROM: Margene K. Swarts, Assistant Director, Development Services
CC: Scott McCullough, Director, Planning and Development Services
DATE: February 23, 2011
RE: 2011 HUD Budget Information
Community Development Staff have been made aware of several U.S. Department of Housing and Urban Development (HUD) budget issues (see attached letter) with regard to housing and community development programs for the 2011 Federal fiscal year. The federal fiscal year begins October 1 of each year and currently, concerning the 2011 budget and HUD programs, is operating under a Continuing Resolution (CR) set to expire on March 4, 2011. The House passed its version of the 2011 CR on February 19, 2011 and includes cuts of approximately $100 billion in housing and community development programs including 60% for the CDBG program, Public Housing Capital fund (40%) and Section 8 program (20%). After the Presidents’ Holiday recess, the Senate will begin hearings and consideration of the 2011 HUD budget as well.
The City of Lawrence has been a participant in the CDBG program since its inception in 1976. Literally millions of dollars have been spent in the community helping low and moderate income citizens, neighborhoods, and the city at large by upgrading housing, installing or upgrading infrastructure such as streets, sidewalks, water and sewer lines, and parks, as well as supporting neighborhood associations and social service agencies that serve the low and moderate income population. In the current program year which began August 1, 2010, CDBG funds were used to complete exterior building improvements to the Boys and Girls Club and the Social Service League, install and replace sidewalks in various neighborhoods, install weatherization improvements including attic insulation, storm windows and weatherstripping of doors to 83 homeowners, complete comprehensive housing rehabilitation for four homeowners, emergency and furnace repairs for eight homeowners, and support various social service agencies and neighborhood associations for a total of approximately $500,000.
Since 2006, the City’s CDBG grant has fluctuated around $825,000 annually, with 2010 being the highest at $873,000. A decrease of 60% in the CDBG program would severely limit the activities available for and benefitting low and moderate income persons in this community. Staff is of the opinion that a reduction in funding will hamper the benefits of the program, impacting those of low and moderate income and the agencies that serve them the most.
Staff requests that the City Commission consider communicating the City’s opposition to major cuts to housing and community development programs to the Kansas federal delegation.
Action Requested:
Authorize the Mayor to sign the attached letters opposing significant decreases to housing and community development programs, including CDBG, HOME, Public Housing and Section 8 and forwarding the letter to the Kansas federal delegation.