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2012
Federal
Legislative
Agenda
 

Reduction of CDBG and HOME Funding

Situation Assessment

On November 18, 2011 the President signed the Consolidated and Further Continuing Appropriations Act, 2012, which establishes HUD’s budget for FY 2012. The Budget severely cuts funding for the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Programs (HOME). These cuts come on top of major cuts in FY 2011. CDBG was cut by 11 percent from FY 2011, and HOME was cut by 38 percent from FY 2011. The City of Laredo cannot overstress the importance of funding both CDBG and HOME at increased funding levels. A continued reduction of funds would have a devastating effect on the low to moderate-income citizens of this community, and throughout the nation.

Laredo’s saving grace is that the formula utilized in determining the CDBG and HOME allocations for participating jurisdictions no longer relies on outdated Census income data but on American Community Survey data which is updated annually. Consequently, Laredo expects to receive $3,349,241 in CDBG funds, an increase of 1.78% over 2011’s allocation of $3,290,569.

Similarly, Laredo anticipates to receive HOME funds of $872,890, a decrease of $27.62% from FY2011’s allocation of $1,205,985. Laredo fared well in comparison to other communities which saw reductions of up to $100%.

While use of the American Community Survey impacts Laredo’s entitlement allocations in a positive manner, it will negatively affect the project planning and implementation process of CDBG activities, such that low income eligibility of census tracts may change from one year to the next.

Target Agency

Housing and Urban Development

Contact

Thelma V. Acosta
Community Development Director

P.O. Box 1276
Laredo, Texas 78042-1276

Office (956) 795-2675
Fax: (956) 795-2689

e-mail: tacosta@ci.laredo.tx.us

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