President’s Budget Offers Hope, Raises Questions

The president’s proposed 2010 budget outline offers a glimmer of hope for funding housing and community development programs yet it raises questions about how restrictive these programs will be managed.

The president’s budget document is not as detailed as past budget documents in articulating funding levels for various programs. For example, there is no information on the proposed funding levels for the public housing programs, for the HOME Investment Partnership program or the Emergency Grant Shelter program. However, the outline provides a glimpse to the scope of support offered to these programs and the mandates to be imposed on them.

The portion pertaining to the Department of Housing and Urban Development (HUD) includes $7.5 billion for HUD on top of the $13.6 billion included in the stimulus bill, the American Recovery and Reinvestment Act of 2009 (ARRA). However, the documents indicate the administration will proceed with administrative and legislative initiatives which could result in greater restrictions for those administering the program.

For example, the administration is proposing $4.5 billion for the community development block grant (CDBG) program but also includes language which indicates targeting of these resources will be proposed this spring. The document also indicates the administration will propose increased funding for the Housing Choice Voucher program and unidentified changes to correct “inefficiencies”.

During the campaign the administration expressed support for initiatives which will pit resident advocates against administrators of these programs. They include a restoration of the one-for-one replacement rule and regional approaches to addressing housing issues. While all parties in the affordable housing industry welcome additional funds; however, they will come with a price.


CDFI Director Applauds Work of Industry in Presentation

Donna Gambrell, Director the Community Development Financial Institutions Fund, told the CDFI community at its 2009 Coalition meeting that the increased funding to the program and increased allocation for the New Market Tax Credit Program is a recognition of “the important work being done within the industry”.

Gambrell said the American Recovery and Reinvestment Act of 2009 includes $100 million to enhance the lending capacity of CDFIs and provides $3 billion in additional authority for the New Markets Tax Credit program. The stimulus bill also contains language which waives the matching requirement on CDFI Program awards.

“We at the CDFI Fund recognized that challenges facing the philanthropic community and lending community have made it difficult for CDFIs to obtain the matching fund requirements,” she said. “Congress also acknowledged this and waived the matching funds requirement for the stimulus funding to enable CDFIs to quickly make use of these funds.”

She encouraged participants to find innovative ways to serve the community and become successful financial lenders. She said CDFIs have “a significant role to play in helping this country once again get back on the path to economic prosperity.”

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