HUD allocates $1 billion in Recovery Act funding to support state and local community development MortgagePress.comHUD, Shaun Donovan, American Recovery and Reinvestment Act of 2009, Community Development Block Grant
In an effort to stimulate community development and job growth,
U.S. Housing and Urban Development Secretary Shaun Donovan has
allocated $1 billion in funding to nearly 1,200 state and local
governments through the American Recovery and Reinvestment Act of
2009 (Recovery Act). These grants will be provided through HUD's
long-standing Community Development Block Grant (CDBG) Program and
will primarily benefit low- to moderate-income persons living in
these communities.
CDBG enables state and local governments to undertake a wide
range of activities intended to create suitable living
environments, provide affordable housing and create economic
opportunities. Under the Recovery Act, recipients shall give
priority to prudent projects that can award contracts based on bids
within 120 days of the grant agreement.
"Today, we make another investment in the economic recovery of
our cities, counties and states," said Donovan. "President Obama
and I are anxious to put this money to work for long-term,
sustainable community development. And like this Administration,
American taxpayers expect these funds to be spent prudently so they
can quickly contribute to America's economic revitalization and
growth."
President Obama directed all Recovery Act funding to be spent
responsibly and in a transparent manner in order to provide a
necessary economic boost, create jobs, and strengthen America's
middle class. With today's announcement, HUD is reminding CDBG
grantees that while the program has historically supported a wide
variety of public improvements, the Recovery Act prohibits certain
activities including "any casino or other gambling establishment,
aquarium, zoo, golf course, or swimming pool."
In a letter to CDBG recipients of Recovery Act funds, Donovan
wrote, "In accepting these funds, it is imperative that you be good
stewards of these precious taxpayer dollars by focusing your
efforts on the Recovery Act goals of investing in infrastructure
that will create or sustain jobs in the near-term and generate
maximum economic benefits in the long-term."
Since 1974, CDBG has provided more than $123 billion to state
and local governments to target their own community development
priorities. The rehabilitation of affordable housing and the
construction and improvement of public facilities have
traditionally been the largest uses of CDBG funds although the
program is also an important catalyst for job growth and business
opportunities. Annual CDBG funds are distributed to communities
according to a statutory formula based on a community's population,
poverty, and age of its housing stock, and extent of overcrowded
housing.
For more information, visit www.hud.gov.
