Federal Foundation Assistance Monitor

(COMMUNITY DEVELOPMENT) First Round of CDBG Stimulus Produces $360M

HUD officials continue the flow of stimulus money to local communities, the latest being a $360 million jolt to nearly 700 Community Development Block Grant states and entitlement cities nationwide on July 16.

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The funds are the first round of money awarded as part of $1 billion made available through the CDBG program allocation in the American Recovery & Reinvestment Act of 2009 (ARRA), signed in February. The grant recipients are roughly half of the 1,400 total who ultimately will receive money, distributed via formula this spring.

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Other states and local governments are expected to receive the remainder of the CDBG-R money in the coming weeks. Recipients of the funds from state and local governments are expected to be able to start award competitive contracts under a bidding process within 120 days.

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Secy. Shaun Donovan wrote in a letter to the state and local governments reminding them of the need to spend the money wisely by investing in infrastructure development that will create or keep jobs in the near-term, while creating long-term economic benefits.

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The City of Chicago receives by far the largest single allocation in this round of the program, $22.45 million. Cleveland is second at $6.4 million, followed by Baltimore ($6.22 million), San Francisco ($5.72 million) and Boston ($5.36 million).

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Chicago

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The Chicago CDBG-R plan contains eight projects, three of which are work-related programs costing a combined $13.55 million. The most expensive project is the Green Jobs Work Experience & Job Training Program, which will use $5.62 million of CDBG-R funds to pay stipends of 210 participants in a work experience and job training program. The money also will be used to purchase materials and supplies in the areas of arboriculture/horticulture; energy retrofits and electronics recycling. Another $4.55 million will be used to finance the Building Deconstruction Work Program, by paying stipends for 140 workers in a job training program to deconstruct buildings, process materials and prepare them for reuse in buildings. About $3.37 million will be used to provide 230 disadvantaged persons with paid work experience in support services in grounds maintenance and landscaping.

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On the development side, $2.5 million will be used to cover purchase and rehabilitation costs in the Troubled Buildings Initiative Distressed Condominium Program. The effort is designed to convert distressed multi-unit condominums into affordable rental housing for moderate- and low-income families.

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Baltimore

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Officials in Maryland's largest city spread its $6.22 million across 30 projects, the most-expensive being a $950,000 award to Poppleton Co-Op, which will rehabilitate properties for rental use by low- and moderate-income households. The second most-expensive is a $940,000 commitment to stabilize and preserve architectural and historic properties in low-income neighborhoods. Baltimore Development Corp. will receive $800,000 for an economic development/façade loan program.

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San Francisco

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City officials are spending $5.72 million on two items -- $3.4 million to the Tenderloin Neighborhood Development Corp.-220 Golden Gate Associates LP to redevelop the Central YMCA building and $2.3 million to the San Francisco Redevelopment Agency to install a pump at a station that will convey stormwater runoff from a Mission Bay drainage basin site. The YMCA redevelopment is expected to result in the reuse of the building, turning it into 172 units of housing for the chronically homeless and for development of an on-site wellness center run by the city's Department of Public Health.

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Info: Mercedes Marquez, assistant secy., Office of Community Planning & Development, 202/708-2690

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