Letter to Shaun Donovan, Secretary of Housing and Urban Development - Regarding Community Development Block Grants for Troy
Letter
Dear Secretary Donovan,
I write to you to share my concern about the U.S. Department of Housing and Urban Development's (HUD) forthcoming legislative package to reform the Community Development Block Grant Program (CDBG). HUD's planning documents for "Moving CDBG Forward," as well as the Administration's FY2014 budget, included proposals for ending the practice of grandfathering cities in the CDBG Entitlement Communities program. Grandfathering has allowed cities that have held a population above 50,000 for two consecutive years, but have since dropped below a population of 50,000, to keep their annual CDBG allocation from HUD. One of the cities that would be most impacted by this proposal to end grandfathering would be Troy.
Last year, the population of Troy dropped to 49,946 -- just 54 under the minimum threshold of 50,000 to qualify for the Entitlement Communities program. If Troy were to be removed from the program, it would lose approximately $2.5 million in federal investment per year.
In Troy, CDBG dollars have helped fuel the city's redevelopment efforts. For example, over the past few years, CDBG funding has helped Troy rehabilitate over 20 vacant buildings, paint twelve derelict building facades, construct fourteen new single family homes, and repave streets and sidewalks. Troy is currently formulating their next five year plan, but it is difficult to plan with the uncertainty around their future CDBG eligibility. Were Troy to be made ineligible for an annual CDBG allocation, they would have to compete with an ever-decreasing pot of state funding, rather than receiving a predictable annual amount directly from HUD.
CDBG is an invaluable resource to our communities across New York State. I look forward to engaging in a dialogue about making CDBG a strong program for future generations, but I will be unable to support a proposal that would eliminate the grandfathering of cities like Troy from the Entitlement Communities program.
Thank you for your time and consideration. If you have any questions or concerns please feel free to contact me or my staff in my Washington, D.C. office.
Sincerely,
Charles E. Schumer
U.S. Senator
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