PROVIDENCE, RI --In an effort to help spur job creation and revitalize local neighborhoods, U.S. Senator Jack Reed (D-RI) today announced that Rhode Island will receive over $25.75 million in federal funding through the Community Development Block Grants (CDBG) program, the Home Investment Partnership (HOME), the Emergency Shelter Grants (ESG), and the Housing Opportunities for Persons with HIV/AIDS (HOPWA) program. Reed, a senior member of the Banking Committee, which oversees these HUD programs, helped secure these funds in the Fiscal Year 2011 year-end spending bill, known at the “Continuing Resolution,” which the U.S. Senate passed on April 14, 2011 to prevent a government shutdown.
“This is a flexible source of federal funding that will help create jobs and boost economic development in neighborhoods and communities throughout Rhode Island. These targeted investments will help get more people working again. They will enable cities and towns to increase affordable housing, upgrade public facilities, and partner with non-profits to address some of their greatest needs,” said Reed.
During the debate over the Continuing Resolution, House Republicans proposed a 62% cut to the CDBG program, which would have slashed it by $2.9 billion in fiscal year 2011. Senator Reed pushed back hard and worked with his fellow members on the Appropriations Committee to try and maintain $3.984 billion for CDBG in fiscal year 2011. In the end, a compromise was reached and the program was cut by 16%.
The fiscal year 2011 budget provides the following allocations for Rhode Island-run HUD programs:
East Providence: $748,762
Rhode Island State Program: $4,752,890
Rhode island State Program: $4,846,572
Rhode Island State Program: $356,534
TOTAL FOR ALL FOUR PROGRAMS: $25,753,778
The CDBG program provides local municipalities with a flexible source of federal funding to address a wide range of neighborhood development needs. The money may be used for capital-improvement projects or distributed to non-profit organizations that benefit the community.
The HOME program helps to expand the supply of quality, affordable housing to working families by providing federal grants to state and local governments to fund housing programs.
The ESG program provides annual grants to state and local governments as well as private entities to upgrade and expand emergency homeless shelters.
HOPWA provides grants to local communities, states, and nonprofit organizations so they can offer housing assistance and related supportive services to low-income individuals who have been diagnosed with HIV/AIDS.
These programs are administered by the U.S. Department of Housing and Urban Development (HUD).