Schumer: Troy Should Not Be Cut Off From Federal Funds Helping To Revitalize City Because Of A Miniscule Population Dip

Press Release

Today, while standing at the intersection of 3rd and 4th Streets in Troy, U.S. Senator Charles E. Schumer launched his campaign to prevent the Department of Housing and Urban Development (HUD) from reforming the Community Development Block Grant Program (CDBG) in a way that would remove Troy from eligibility and deprive the City of approximately $2.5 million per year in funds it relies on. Currently, cities must have a population of at least 50,000 to be eligible for these community development programs, and cities like Troy -- whose population recently slipped to 49,946 people -- have been allowed to maintain their eligibility through a "grandfathering" provision. HUD is currently considering ending the practice of grandfathering cities that have slipped below 50,000, and is slated to present a legislative package of reforms to Congress later this year. Schumer said that any proposal to strip Troy of CDBG eligibility is dead on arrival in the Senate, and he will do everything in his power to oppose it and prevent it from being included in HUD's recommendations to Congress. The CDBG Program is a highly-flexible federal grant program that provides communities with resources to address a wide range of unique community development needs, like essential youth programs, blight removal efforts, crime prevention initiatives, and much more.

"Federal community development block grant dollars have helped turn Troy around in a big way, helping the city leverage private financing and complete a number of hugely beneficial community projects," said Schumer. "But just as the resurgence of Troy is picking up steam, HUD is considering reforming the grant program to deny cities like Troy these crucial funds. It makes absolutely no sense to take away the very funding that is driving the rebirth of Troy just because the population dipped slightly below 50,000 people. So, I'm putting HUD on high alert right now that I will staunchly oppose any proposal to remove Troy's eligibility for yearly CDBG funds."

Schumer stood at the intersection of 3rd and 4th Streets in Troy, at the center of a neighborhood which has just undertaken over $2 million in improvements with the help of CDBG funds. He detailed a number of local projects in Troy that have received CDBG funds and how they have helped turn around areas of the City. He was joined by Troy Mayor Lou Rosamilia, members of the City Council and residents of South Troy.

In order to be eligible for an automatic annual allotment of CDBG funds as an "entitlement city," a city must have a population of at least 50,000 people. Recently, Troy slipped just below the minimum threshold with a population of 49,946. Previously, in 2011, Troy's population was 50,072. Under current eligibility rules, Troy can continue to receive CDBG funds directly from HUD due to the "grandfather" provision. However, the Department of Housing and Urban Development is considering ending the practice of grandfathering cities, instead making the 50,000-person population threshold a hard cap. This change was proposed in the Administration's FY2014 budget but was never enacted. This year, the Administration is directing HUD to propose a package of legislative reforms to the CDBG program to Congress, and HUD is again considering removing the grandfathering provision for entitlement cities. Cities or towns under 50,000 can still receive CDBG dollars, but they must compete for funds from the overall allocation to the state, and typically receive much smaller awards. Entitlement cities like Troy currently receive an annual allotment directly from HUD; ending such an arrangement would make it much more difficult for Troy to secure CDBG funds.

Schumer said that such a hard cap would be unfair to cities like Troy, which makes great use of the CDBG funds and only just slipped below the minimum population requirement. In fact, Troy is currently in the process of finalizing its five-year plan for how to spend its allotment of CDBG funds, and it is difficult for the city to plan without having certainty regarding their "entitlement" status. In addition, any change made after Troy has already developed its plan would make it difficult for Troy to execute its proposed programs.

Schumer highlighted that the funds are playing a critical role in supporting Troy's economic growth, and cutting the city off from the funds now could stunt the progress that is being made. Therefore, Schumer launched a campaign to fight the elimination of Troy from the program, saying to HUD that he would staunchly oppose any proposal to Congress to reform CDBG that includes the end of the grandfathering provision for cities like Troy. Schumer sits on the Banking Committee, which would likely have jurisdiction over any proposed changes to the CDBG eligibility rules. Schumer also noted that the Senate is currently considering whether to confirm President Obama's nominee for Secretary of HUD, current Mayor of San Antonio Julian Castro, and Schumer has encouraged Castro to preserve the current "entitlement" program for cities like Troy as part of the ongoing confirmation process.

Schumer gave examples of past projects that Troy was able to undertake thanks to CDBG funds, including the following in South Troy:

· Rehabbed six vacant buildings

· Painted twelve derelict building facades

· Constructed fourteen new single family homes

· Re-paved various streets and sidewalks.

Schumer noted that Troy is currently in the process of developing a five-year plan for how to spend its CDBG funds. Troy's previous five-year plan aimed to tackle issues like homelessness, aging infrastructure and lack of affordable housing. The current five-year plan is being developed under the assumption that Troy will continue to be an "entitlement" city and not need to compete with other cities for CDBG funding.

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