Preliminary CDBG and HOME Estimates
$77.8 million in CDBG for NJ $25 million in HOME Funds
In mid-December, Mercedes Márquez, HUD Assistant Secretary for Community Planning and Development (CPD) , sent a memo to every jurisdiction receiving CDBG and HOME formula-based grants. The memo provides jurisdictions with preliminary estimates of the amount of CDBG and HOME they might receive in FY12.
Click here for the proposed HOME and CDBG allocations for NJ.
FY12 is the first year that the formulas, which determine the amount of CDBG and HOME funds jurisdictions are to receive, will be based data from the annual American Community Survey (ACS), as well as from the 2010 decennial census. Please see below for links to spreadsheets that estimate the percentage change in CDBG and HOME formula allocations for each jurisdiction attributed to the use of ACS.
Because formula allocations of Emergency Solutions Grants (ESG) are based on the prior yearâs CDBG formula allocation, ESG grantees will not be impacted until FY13.
Congressional FY12 appropriations for CDBG and HOME were reduced by 11% and 38%, respectively. A third spreadsheet linked to below shows the estimated combined effect of the reduced appropriations and the new census data. These figures are just preliminary estimates, and that formal notification of actual formula grant amounts will be provided later.
The CDBG program has two formulas rooted in statute. Jurisdictions receive an amount based on the formula that is most favorable to them.
Formula A has three factors: the extent of poverty, with a weight of 2; the extent of housing overcrowding, with a weight of 1; and total population, with a weight of 1.
Formula B also has three factors: the age of the housing stock, with a weight of 2.5; the extent of poverty, with a weight of 1.5; and the extent of the lag in population growth, with a weight of 1. In short, the more poor people live in a jurisdiction, and the worse the housing stock, the more CDBG funds a jurisdiction receives.
The HOME statute called on HUD to devise a formula and provided general guidance. HUDâs formula has six factors.
Four factors have a weight of 0.2: number of households in poverty; occupied rental units with at least one housing problem, such as paying more than 30% of income for rent; rental units built before 1950 and occupied by poor households; and a measure of the cost of rehabilitating rental housing that has housing problems.
The two other factors have a weight of 0.1: vacancy-adjusted rental units with a household head in poverty, and population multiplied by net per capita income.
Click here for a new CPD webpage.
Click here for Mercedes Márquezâs memo.
Click here for a spreadsheet estimating CDBG formula changes for each jurisdiction due to the use of ACS data. Click here for a spreadsheet estimating HOME formula changes for each participating jurisdiction due to the use of ACS data.
Click here for the spreadsheet estimating grant allocations for both CDBG and HOME due to FY12 appropriations in combination with the ACS data.
Click here for Monarchâs previous article on the HUD FY 12 approprations.
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