WASHINGTON, DC - In an effort to help revitalize local neighborhoods and support economic development and affordable housing programs throughout the state, U.S. Senator Jack Reed today announced that Rhode Island will receive a total of $10,615,796 in federal aid from several programs, including $7,425,199 from the Community Development Block Grant (CDBG) program, $1,606,658 from the Home Investment Partnership (HOME) program, $583,215 from the Emergency Shelter Grant (ESG) program, and $1,000,724 from the Housing Opportunities for Persons With AIDS (HOPWA) program.  Each program is administered by the U.S. Department of Housing and Urban Development (HUD).

“When these federal funds are leveraged with local resources, Providence, Cranston, and Pawtucket will be able to strengthen infrastructure and help businesses boost economic development,” said Senator Reed, the Ranking Member of the Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD), which appropriates these funds, and a senior member of the Banking Committee, which has jurisdiction over CDBG, HOME, ESG, and HOPWA.  “I’m proud to help deliver these funds and I look forward to working with our cities and towns to help them address their most pressing needs, enhance their neighborhoods, and boost Rhode Island’s economy.”

Senator Reed also noted that under President Trump’s proposed FY 2018 budget, CDBG and HOME are completely eliminated, and funding for ESG and HOPWA funds are below FY 2017 levels.  However, through his partnership with Senator Susan Collins (R-ME), the Chairman of the THUD subcommittee, Senator Reed worked to protect funding for the programs in the FY 2018 Senate Transportation, Housing and Urban Development and Related Agencies bill.

CDBG provides local communities with a flexible source of federal funding to address a wide range of neighborhood development needs.  The funds may be used for capital-improvement projects or distributed to non-profit organizations to increase housing, supportive service, and job opportunities.  Eligible communities may also apply to the state, which annually allocates the federal CDBG funds through a competitive process.  CDBG funds may also be used to address a variety of needs from revitalizing distressed areas by improving streetscapes and sidewalks and supporting small businesses, to removing blight and assisting with infrastructure projects.  Several Rhode Island cities will split over $7 million from this round of CDBG funding, including: Cranston ($1,011,456), Pawtucket ($1,732,661), and Providence ($4,681,082).

HOME is the largest federal block grant to state and local governments designed exclusively to expand the supply of quality, affordable housing for working families.  Providence will receive $1,199,134 in HOME funds, while Pawtucket will receive $407,524.

ESG provides annual grants to state and local governments, as well as private entities, to upgrade and expand emergency homeless shelters.  In this round of funding, Providence will receive $427,127 in ESG funds, while Pawtucket will receive $156,088.

Providence will also receive $1,000,724 in HOPWA funds, which help communities and nonprofit organizations offer housing assistance and related supportive services to low-income individuals who have been diagnosed with HIV/AIDS.