ABSTRACT

Community Development Block Grants: Funding Issues in the 113th Congress [August 11, 2014]   [open pdf - 348KB]

"The Obama Administration's budget request for FY2014, released on April 10, 2014, included $3.143 billion for activities funded under HUD's [Department of Housing and Urban Development] CDF [Community Development Fund] account. The Administration's FY2014 budget proposal would have increased total funding for CDF activities by a modest $8 million from $3.135 billion in FY2013 to $3.143 billion. The proposed budget would have reduced funding for CDBG [Community Development Block Grants] formula grants by $280 million to $2.798 billion and would have redirected most of those funds to two other activities within the CDF account: (1) $75 million for regional planning grants, which was a component of the Administration's Sustainable Communities Initiative; and (2) $200 million for a new Neighborhood Stabilization Initiative that was intended to assist local governments to identify and demolish an oversupply of abandoned and foreclosed properties. In addition, the Administration's FY2014 budget included a proposal that doubled the Section 108 loan guarantee program's loan commitment ceiling from $229 million in FY2013 to $500 million in FY2014. In addition to an increase in the loan commitment ceiling, the Administration proposed revamping the program by charging a fee-based assessment to borrowers accessing the program, which would have eliminated the need for an appropriated credit subsidy. The House Appropriations Committee report accompanying H.R. 2610 supported the Administration's Section 108 loan guarantee proposals that recommended an increase in the loan commitment ceiling and conversion of the program to a fee-based approach."

Report Number:
CRS Report for Congress, R43208
Author:
Publisher:
Date:
2014-08-11
Series:
Copyright:
Public Domain
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Via E-mail
Format:
pdf
Media Type:
application/pdf
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