Providence, RI

VICE PRESIDENT Scott Stevenson Los Angeles County

SECRETARY-TREASURER Nancy Haney Lubbock, TX

IMMEDIATE PAST PRESIDENT Roslyn M. Phillips Jacksonville, FL

EXECUTIVE DIRECTOR NATIONAL COMMUNITY DEVELOPMENT ASSOCIATION

Chandra Western 522 21st Street, NW Suite 120 Washington. DC 20006 . Tel: (202) 293-7587 . Fax: (202) 887-5546 E-mail: ncda@ncdaonline.org Website

Affiliated with the National League of Cities and

February 25,2005

Mr. Paul W. Caruso Board of Supervisors Chair County of Stanislas 10 10 Tenth Street Modesto, CA 95354

Dear Mr. Caruso:

This letter is alert you to the possible loss of your community's entire community development budget. In his F Y 2006 budget, President Bush has proposed the elimination of the Community Development Block Grant Program (CDBG). You realize the tremendous impact these funds have in your community and the important role federal programs play in the economic future of our nation as a whole. If the CDBG program is eliminated, will your city be able to continue to provide the services and programs that your citizens have come to count on? Most could not.

As a mayor, you are also very aware of how hard your community development staff works to ensure that CDBG and perhaps the HOME programs are administered in accordance to HUD guidelines. But, Mayor, what you may not be aware of is that your community development staff could be in a position to better educate you on your role in keeping programs like CDBG a viable tool for local governments and other mayors, like yourself. Membership in the National Community Development Association (NCDA) is a way for them to ensure that you and the legislative body of your community will always be apprised, and kept up-to-date on issues and in this case, the crisis, that could gravely impact your city.

NCDA serves its members in a variety of ways. It actively advocates- with an insider's ear- member concerns and ensures that these issues are brought before Congress and the Administration. Because NCDA is affiliated with the U.S. Conference of Mayors and the National League of Cities, we are well connected with the political side as well as the programmatic side of community development. With the help of these two powerhl organizations, and other advocacy groups, in FY 2001, we successfully advocated for and received $5.1 billion in CDBG funds and $1.8 billion in HOME for FY2001. This was a tremendous success in very tough budget year. Now we face the biggest challenge in the 30- year history of the CDBG program, its complete elimination. And we need your help. Only though a directed, concentrated effort, from the local level will we be able to save this program, and the continued viability of America's cities. Locally elected officials can put a face on CDBG, and engage members of Congress from one elected official to another. A grass roots approach, and continued dialogue with members of Congress is the only way to save CDBG.

MISSION. . . To assist local governments to achieve high-quality, locally responsive programs for making communities

better places t o live and work, particularly for low and modmte income people.

February 25,2005 Page Two

W e ask you to join over 450 o f your fellow mayors and their housing and community development administrators from around the country as we fight for this great program. With membership in NCDA your community development staff will receive the most relevant information on current legislative and administrative developments which affect the Community Development Block Grant (CDBG), the HOME Investment Partnerships (HOME) program and other federal community development and housing programs. NCDAYs very capable staff will provide you sample letters, program information, and fact sheets to send to your Congressional delegations and fellow mayors as we, collectively, support CDBG and various other housing and community development initiatives that could negatively impact local governments.

NCDA successfilly serves its members in a variety of ways, but without the combined voices of its member communities, we could not be as effective:

w Professional staff- At the forefront of NCDA's efforts to meet the needs of its members is a professional and responsive staff that relays accurate, concise, and timely information from the nation's capital. NCDA prides itself on keeping its members well-informed about current regulatory and legislative issues affecting community development and affordable housing programs. NCDA staff functions as your voice in Washington.

w Conferences - NCDA's annual Winter and Spring conferences and Executive Symposium serve as important forums for members to discuss and originate the legislative and administrative priorities of the Association. These meetings also provide members with an opportunity to network with one another and exchange experiences and ideas that can enhance their own local housing and community development efforts.

w NCDA Publications -

NCDA WASHINGTON REPORT, a semi-monthly newsletter that contains up-to-date information on important legislative and regulatory activities that impact the programs our members care about.

DISASTER PREPAREDNESS GUIDEBOOK FOR COMMUNITY DE VELOPMENT PROFESSIONALS, a comprehensive manual written with the Community Development Director as the "go to" person in your community in times of disaster, natural or otherwise. This guidebook addresses how local officials can assist their citizens in times of disaster. There is a complete list of state, local and federal agencies that provide assistance and how they interact with local govements. NCDA has discovered that in times of disaster, many citizens look to the community development agency as they know that there is grant assistance available. And, it has been the case that with a federally declared disaster, the CDBG program is often the vehicle for federal assistance to flow tp the local government.

Training -

CDBG Basics: Training for Practitioners, NCDA has developed a successful3-day, CDBG basics course targeted to local government staff who have worked within the program for less than three years. This comprehensive overview of the CDBG program provides participants with a basic understanding of the program: 1) how the CDBG program evolved, 2) Congressional intent, 3) how amendments affect the statute, and 4) a thorough understanding of the HUD regulations. The course also includes real life project examples- how to determine eligibility and national objective, how grantees work with subrecipients, the importance of monitoring and financial recordkeeping and overall, how to administer a clean and creative CDBG program.

February 25,2005 Page Three

HOME Training, NCDA will design a training to fit your needs.

rn NCDAonline - (www.ncdaon1ine.org) Put simply, NCDAonline is the Association's interactive information center. Legislative and Regulatory Alerts are posted on the main page and distributed via e-mail to members. NCDAonline maintains a host of direct links to other vital community development and affordable housing related websites, such as HUD, THE FEDERAL REGISTER, The White House, Congressional sites, and other national advocacy groups sites as well.

Access to experts - NCDA is affiliated with the U.S. Conference of Mayors and the National League of Cities. We also work with NAHRO, NACCED, NACo, the Campaign for Housing and Community Development Funding. These groups and NCDA's member practitioners continue to be the "go to guys and gals" that federal policy makers seek out for consultation.

Discounts on seminars, conferences, and various resource materials.

Enclosed, please find a packet of materials that will give you with a better idea of the advantages that NCDA membership can provide. I also invite you to visit our website at www.ncdaonline.orq for more information and services the Association has to offer. I am confident that you will enjoy the many benefits that membership in NCDA can bring your community.

Help save the CDBG program by adding your voice with ours. Help keep NCDA on the cutting edge of community development by joining the Association today. Join by March 3 1" and receive three months free. If you have any questions, please don't hesitate to contact us. We can be reached at (202) 293-7587, or e-mail us at ncda@,ncdaonline.org.

/ Co-Chair, Membership Committee and Community Development Director Monroe, Louisiana

B"./&- Mari Piedad Martinez

Co-Chair, Membership ~ommit t& and Community Development Director McAllen, Texas

ATTACHMENTS AVAILABLE EROM YOUR ,GLERK

INCDAonline: - NCDA's newest effort to provide its members with timely information is NCDAonline (www.ncdaonline.oe), the official website for the Association. Put simply, NCDAonline is the Association's interactive information center. Legislative and Regulartory Alerts are posted on the NCDAonline main page and distributed via e-mail to members. Along with online versions of NCDA Washington Report and HOMEWORKS, NCDAonline maintains a host of direct links to other vital community development and affordable housing related websites, such as HUD, The Federal Register and other national advocacy groups. Online benefits include access to a practitioner's Forum where you can pose various CD/housing related questions or concerns and receive responses from member-practitioners; an online Job Board where you can post openings in your agency or seek out new opportunities; and for those interested in locating specialized, CD or affordable housing related professional services, the latest addition to NCDAonline is our online Yellow Pages can put you in touch with every-thing from trainers to software developers to lead-based paint abatement specialists.

ICDBGANDOTHERPROGRAM GUIDEBOOKS -which summarize major legislative changes to housing and community development programs and provide iihow-to" instruction on a specific topic or administrative issue. Other important technical and informational publications are provided to members without charge.

I Access to experts, federal policy makers, and other housing and community development practitioners from across the country.

I Discounts on seminars, conferences, and various resource materials.

Impact The National Community Development

Association (NCDA) works through its members to impact the federal legislative and regulatory process. We involve our members, through the committee system, in formulating and implementing of public policy affecting the community development and housing arena. Due to the significant hands-on experiences of our membership, Congress regularly consults NCDA to obtain "real world assessments of new federal housing and community development initiatives to devise responsive and flexible tools for communities.

National Community Development Week

Since 1987, through the efforts of the National Community Development Week campaign, NCDA in conjunction with the U.S. Conference of Mayors, the National League of Cities, the National Association of Counties, the National Association of Housing & Redevelopment Officials, and the Council of State Community Development Agencies has highlighted the achievements of the CDBG program. This effort provides an ideal opportunity to educate new lawmakers, and re-educate veteran legislators, on the importance of the CDBG program as a critical revitalization tool for neighborhoods across our nation. As a result of our efforts, CDBG is now one of the most well-recognized and respected urban assistance programs in the nation.

Eg p.k s w ;:h Z'=: " F 5 0 5.0 EL" ,=p 0 5' ~ a ; a ? " 3 F L I I - s - . r 2 0 5 3 - 5 a $ 3 gg 0 f L v r K 5' m m g % R 3 w CD m z 3 0 s x 5. mm

NCD PRESIDENT VICE PRESIDENT SECRETARY-TREASURER IMMEDIATE PAST PRESIDENT EXECUTIVE DIRECTOR

Am~ntha K C~nott~ Scott Stevenson Nancy Haney Roslyn M Phllhps Chandra Western Providence, RI Los Angeles County, CA Lubbock, TX Jacksonville, FL

FROM: CHANDRA WESTERN VICKI WATSON KAREN PARKER

DATE: February 15,2005

NCDA Annual Conference; May 16-21,2005 at the Hyatt Regency Hotel in Austin, Texas CDBG Basics Training for Practitioners: May 16-18,2005, Hyatt Regency Hotel in Austin, Texas

I L

I FEATURED ARTICLES

J President Releases,FYO6 Budget; CDBG Eliminated J House Moves Forward with the Re-Org of the VA-HUD Subcommittee; Senate Rejects

Plan J The "Save the CDBG Program" Coalition Gears Up for Massive Assault on Propos

Elimination J What is the Proposed Elimination of CDBG Really About? J NCDA Notes: CDBG Basics Training for Practitioners Agenda; NCDA Annual

Conference DraB Agenda and Registration Form J Job Announcements J Attachments: Strengthening America's Communities Initiative; List of Programs

--

PRESIDENT RELEASES FY06 BUDGET; CDBG ELIMINATED

President Bush sent a clear message to Congress in his State of the Union address regarding his FY06 budget: domestic spending will be squeezed again this year. The President told the assembled congressional members that his 2006 budget will call for cutting or eliminating "more than 150 government programs that are not getting results, or duplicate current efforts, or do not fulfill essential priorities. The principle here is clear: a taxpayer doIlar must be spent wisely, or not at all." Mandatory spending, which includes Social Security, Medicare and Medicaid - or entitlement spending - accounts for 56% of the Federal budget and will consume almost two- thirds of the budget in 10 years. Instead of tackling these ballooning entitlement programs, the President has instead chosen, once again, to cut discretionary spending. Please note, however, that the Department of Defense and the Department of Homeland Security are not a part of these proposed cuts. In fact, they will receive an increase in FY06. Discretionary programs provide an easy target for cuts in the President's budget because their funding must be renewed through the appropriations process annually.

NATIONAL COMMUNITY DEVELOPMENT ASSOCIATION

522 2lst Street N.W., Suite 120, Washington, D.C. 20006 *Telephone: (202) 293-7587 -Facsimile: (202) 887-5546 E-mail: ncda@ncdaonline.org . Website: www.ncdaonline.org

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NCDA WASHINGTON REPORT February 15,2005 9 Page 2

Unlike discretionary spending, mandatory spending programs run on automatic pilot unless Congress acts to change them. In order to change the programs, Congress must enact legislation which can be done through the budget "reconciliation" process, which involves writing a budget resolution that outlines cuts, then following up later in the year with legislation to enact those cuts. "It is those entitlement programs which we as a Congress have an obligation to try to fix today so that they don't end up bankrupting our children and our children's children tomorrow," Judd Gregg, Chair of the Senate Budget Committee said. Still, the entitlement programs are considered "sacred" on the Hill and Congress would have to be ve y serious about opposing cuts to the discretionary programs in order to even think about re- shaping the entitlement programs.

This President's message of "squeezing domestic spending" was certainly carried forth in his FY06 Budget, which proposes the elimination of the CDBG program, including the Section 108 loan guarantee administrative costs and credit subsidy. The President proposes the creation of a new Strengthening America's Communities (SAC) Initiative (see attachment) at the Department of Commerce. CDBG was fbnded at $4.703 billion in FY05 with $4.1 10 in formula grants. Section 108 loan guarantee was funded at $7 million in FY05 for administrative costs, with $275 million in credit subsidy. The funding for CDBG as well as 17 other Federal economic development programs (see attachment) would be consolidated into a $3.7 1 billion program. Previously these 18 programs represented $5.8 billion in funding. CDBG as we know it will no longer exist under this new Initiative, which will have new eligibility criteria and

distribution factors. We don't even know if the program will be formula-allocated or if local communities will receive any of the funds.

In addition to CDBG and Section 108, HUD7s economic development programs would also be eliminated and the hnding transferred to the Department of Commerce. This transfer includes the Brownfields Redevelopment Program (funded at $24 million in FY05), Urban Empowerment Zones (funded at $10 million in FY05), an the Rural Housing and Economic Development Program (funded at $24 million in FY05).

In order to create the SAC Initiative, legislation would have to be enacted by Congress. This does not appear likely this year, as Commerce does not expect to send legislation to the Hill until the Summer. We're hearing from the Hill that this is much too late in the year to expect approval of the legislation since both the House and Senate authorizing subcommittee and Full committees which have jurisdiction over Commerce would have to approve the legislation. Furthermore, the legislation would have to be conferenced and approved by both chambers before it is sent to the President for his signature. After that lengthy process, regulations must be promulgated before the program can start. However, appropriators could by-pass the authorizing committee altogether and attach the legislation to an appropriations bill. This seems unlikely, however.

Action Needed!

NCDA's members must get ready to help fight against the elimination of the CDBG Program!

NCDA WASHINGTON REPORT February 15,2005 Page 3

NCDA staff wants to thank all of the members for sending in program, project and subrecipient information. Even before the President released his FY 2006 budget, there were many rumors about potential cuts to the CDBG program. The Save CDBG Coalition had already formed to combat any cuts to the program. Much of the information was used to provide anecdotal evidence, to the press and interested supporters of the successful projects that the program funds. Members were alerted to these rumors and the local public interest groups and their business council colleagues came together to determine a strategy to save the program.

NCDA is working on several fronts to save CDBG, however, most our efforts to save the program are with the Save CDBG Coalition. (See the article below that describes these efforls)

FY06 Budget Continued What happens to the set-asides within CDBG? The Section 107 Grants would be lumped into one large University Programs category and transferred to HUD's Office of Policy Research and Development with a recommended finding level of $29 million, a decrease of $17 million from last year's level of $46 million. The Section 107 set-aside for Department of Hawaiian Home Lands will be eliminated. This small set-aside was h d e d at $9 million last year. Last year, Congress provided $1 million in CDBG technical assistance funds, but the President's budget provides no fbnding for CDBG technical assistance in FY06.

The National American Indian Housing Council would be moved to the Office of Public and Indian Housing (PIH) with no

recommended funding for FY06, while the Indian Community Development Block Grant would also move to PIH with a recommended funding level of $58 million, a decrease of $10 million from last year. The Self-Help Homeownership Opportunity Program (SHOP) would remain within CPD and be funded at $30 million in FY06, an increase of $5 million from last year. Youthbuild would be transferred to the Department of Labor and fbnded at $62 million, the same level as last year. The Capacity Building - NCDI set-aside within CDBG (funded at $34 million in FY05) would be transferred to the Strengthening America's Communities (SAC) Initiative within Commerce.

The following set-asides that are normally funded within CDBG would be completely eliminated: ED1 Special Purpose Projects (a.k.a., pork projects) (funded at $292 million in FY05), Housing Assistance Council (funded at $3 million last year), Neighborhood Initiative Demonstration (funded at $42 million in FY05), Transfer to the Working Capital (funded at $3 million in FY05), and National Council of LaRaza (funded at $5 million in FY05).

What will remain at the Office of Community Planning and Development (CPD) at HUD? The HOME program would remain at CPD and be funded at $1.741 million in FY06, a decrease of approximately $109 million from last year. This funding level includes $10 million in technical assistance funds (down from $18 million in FY05) and $1 million for MUD'S Working Capital Fund, leaving $1.730 in formula funding for the program in FY06, a slight decrease of $17 million from last year. Housing counseling would be transferred to HUD's Housing Programs Division and

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funded at $40 million, the approximate level as last year. The FY06 Budget provides $200 million for the American Dream Downpayment Initiative (ADDI). This would be funded in addition to the HOME program and not as a set-aside within the program. The President has proposed this same level of funding for ADDI for the past four years only to have Congress severely decrease the appropriations for the program (ADDI was finded at $87 million in FY04 and at $49.6 million in FY05). The Housing Opportunities for Persons with AIDS (HOPWA) Program would also remain at CPD with a proposed funding level of $268 million, a decrease of $14 million from last year's funding level of $282 million.

CPD would also continue to administer HUD's Homeless Assistance Grants. The budget proposes $1.440 million for the grants in FY06, an increase of $199 million fkom last year's level of $1.24 1 billion. Included in this funding level is $1 million for HUD's Working Capital Fund, $12 million for technical assistance and management information systems, and $25 million for a new Faith- Based Prisoner Re-entry Initiative.

This new Faith-Based Prisoner Re-entry Initiative would have to be authorized by Congress. NCDA was told by HUD staff that the Department will propose consolidation and streamlining of its Homeless Assistance Grants in FY06. This would not mean that the programs would be folded into a block grant and formula-allocated to grantees. The same "continuum of care'' application process would remain in place. It would mean, however, the three programs (Supportive Housing Program, Shelter Plus Care, and Section 8 SRO) would be statutorily combined into one program with the same program requirements. HUD plans to

NCDA WASHINGTON REPORT February 15,2005 O Page 4

include the Samaritan Initiative proposal into this one program as well. It is HUD's intent to submit legislation to Congress this year to accomplish the consolidation of its homeless assistance programs. NCDA is supportive of such a consolidation effort in order make the programs more easily administered by grantees.

New Initiatives within HUD The new Faith-Based Prisoner Re-entry Initiative would be a four-year, $300 million Initiative designed to help individuals leaving prison make a successful transition to community life and long-term employment. The program will offer a range of job training, housing, and mentoring services aimed at helping to reduce recidivism and ensure that former prisoners are reintegrated into society. The President's budget provides $75 million for this Initiative in 2006, including $25 million within HUD. Both the Department of Health and Human Services and the Department of Labor would each receive $25 million in FY06 to administer a portion of the program. HUD's portion would be allocated through the existing "Continuum of Care" process. Congress needs to approve legislation to enact the program, however, and it's not certain if such legislation will be enacted this year, due to Congress' focus on more major issues.

The President wants to add 5.5 million new minority homeowners by 2010 and increase the supply of affordable homeownership units by 7 million over the next 10 years. Besides using ADDI to assist in this effort, the President is proposing two other initiatives: The Zero Downpayment Mortgage and the Payment Incentives Initiative. The Zero Downpayment Mortgage would provide 100 percent financing, including downpayment and closing

NCDA WASHINGTON REPORT February 15,2005 O Page 5

costs, to those first-time buyers with a strong credit record. The Payment Incentives Initiative would assist borrowers with limited or weak credit records in purchasing a home. The President is estimating that these two programs will assist over 250,000 families achieve homeownership.

The President is proposing the creation of a Single Family Homeownership Tax Credit to increase the supply of single-family affordable homes. The budget estimates that 50,000 new homes could be created annually under this program. The tax credits would be administered in the same manner as the existing Low-Income Housing Tax Credit (LIHTC). State housing finance agencies will award the tax credits to developers of single- family developments that are located in census tracts with a median area income of 80 percent or less. The homes created through these tax credits will be sold to homebuyers in the same income range. According to the budget, the credits may not exceed 50 percent of the cost of constructing a new home or rehabilitating an existing property. Like the LIHTC, each state would have a homeownership credit ceiling adjusted for inflation each year and equal to the greater of 1.75 times the State population or $2 million. In total, the budget estimates that this tax credit, will provide $2.5 billion over 5 years.

Again, all of these new initiatives have to be approved by Congress and this does not appear likely this year.

Other Program Areas

Public Housing The President's FY06 Budget proposes to cut the Public Housing Capital Fund by $252 million in FY06, from $2.579 billion in FY05

to $2.327 billion in FY06. According to the Council of Large Public Housing Authorities (CLPHA), this is the seventh year in a row the Department has proposed to cut the Capital Fund below its all-time high of $3 billion in FY99; representing almost a 20% cut since 200 1.

The budget calls for $3.4 billion for the Public Housing Operating Fund. The level for FY06 is not an increase from the funds appropriated in FY05 because the FY05 funds were based on a calendar shift, which allowed for one-time budget savings. The actual annualized level for FY05 is $3.4 billion. This represents only 89% of actual operating costs of public housing authorities, however. The budget provides a $10 million set-aside for a bonus program for PHAs that move tenants to self- sufficiency.

HOPE VI The budget, once again, provides no funding for HOPE VI in FY06. In addition, the budget calls for the rescission of $143 million in funding appropriated for the program in FY05. HUD insists that the program has met its goal of demolishing 100,000 units of public housing, but advocates argue that the program was also created to help distressed communities and empower the families that live in those communities, either by moving up into a better unit, or moving out of the community altogether. Congress strongly supports this program and we can expect to see some level of funding provided for HOPE VI in FY06

Section 8 The HUD budget requests $15.85 billion for the Section 8 housing choice voucher program in FY06, an increase of approximately $1 billion from last year. This amount is funded,

I

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NCDA WASHINGTON REPORT February 15,2005 O Page 6

in part, with $4.2 billion in forward appropriations. Of the $15.85 billion, the budget provides $14.1 billion for voucher renewals, $1.3 billion for administrative fees, $55 million for the Family Self-Sufficiency Program, and $45 million for a central reserve fund for emergency items. The distribution of the funds for renewals will be based on a pro- rata share of each agency's FY05 budget and a 2006 annual adjustment factor plus the cost of any tenant protection vouchers.

Section 202 - Housing for the Elderly The budget cuts this program by $5 million, from $746 million in FY05 to $741 million in FY06. It also reduces project rental assistance contracts from five years to three years.

Section 811 - Housing for Persons with Disabilities The President's budget cuts Section 81 1 in half, from $238 million in FY06 to $120 million in FY05. No funds are provided for the new construction of housing units. Up to $35 million can be used for new tenant-based assistance and the remaining funds are targeted for tenant-based contract renewals.

Lead-Based Paint Hazard Reduction The budget reduces funding for lead hazard reduction from $154 million in FY05 to $1 19 million in FY06.

Fair Housing and Equal Opportunity The budget would cut the Fair Housing Assistance Program from $26 million to $16 million and cut the Fair Housing Initiatives Program from $20 million to $16 million.

THE "SAVE THE CDBG PROGRAM" COALITION GEARS UP FOR MASSIVE ASSAULT ON PROPOSED ELIMINATION

In the last issue of the NCDA Washington Report, we reported that a group of housing and community development industry representatives; USCM, NCDA, NLC, NACo NAHRO, COSCDA, NACCED, LISC, and ENTERPRISE, met to share information, determine a strategy for combating a 50% cut and try to assess what a new subcommittee re- organization would do to HUD in general and CDBG specifically. Every meeting held was based on supposition, and "what ifs." We really could do little except plan the Press Conference, until the President officially released his budget.

On Monday February 7, President Bush released his FY 2006 budget which proposed the complete elimination of the CDBG program. Needless to say, the entire coalition was stunned into silence. None of us could believe it. In fact, many still have not grasped the enormity of the situation.

At HUD's budget briefing, there was no discussion of why, or what the reasons were for the elimination of CDBG, except that there was a description of the proposal in the Department of Commerce section of the President's budget: the Strengthening America's Communities Initiatives.

With all the newspaper reports on a CDBG transfer to the Department of Commerce with less funding, people still don't get the fact that whatever the program that is proposed to be created within the Commerce Department, IT WILL NOT BE CDBG!!! We don't know

what it will be, and our discussions will not include any reference to programs that may or may not be created at the Commerce Department. The fact is, that the President has eliminated, "zeroed out" the hnding in the Community Development Fund under which the CDBG program falls in HUD's budget. It can't get any more plain than that. The President has proposed the elimination of the CDBG program.

The collective message of the "Save the CDBG program" Coalition is that:

1. The President has proposed the Elimination of the CDBG Program.

2. The President has used OMB's determination that the CDBGprogram is ineffective, to justifi its elimination.

3. HUD 's own data shows the program 's effectiveness with outstanding accomplishments within the program. Its overall low-mod benefit is over 94%.

4. We feel that the President is not tryirg to strengthen America's Cities, he is weakening them by eliminating the last federal program that was designed to address the needs of cities, improving the overall quality of life, by addressing housing, infrastructure, social services, and economic opportunities, primarily for low and moderate income persons; that cities could not otherwise provide.

5. Retain the CDBGprogram, and fund the program at $4.7 billion overall, and $4.350 billion in formula funding.

NCDA WASHINGTON REPORT February 15,2005 9 Page 7

create and define a message that supports CDBG and HUD programs, while not pitting one HUD program against another, and ensuring that the message puts a human face on CDBG. Each group took on various assignments. The "elected officials" would take the lead in planning Washington media events, and local media events, with the assistance of "practitioner groups" NCDA and NACCED, to provide local project information and profiles in key Congressional districts.

So far, NCDA's assignment has been to provide city project and program data, along with lists of subrecipients from specific communities for upcoming press conferences and media events. At this point, we feel that the target information should come from communities, and states to their House and Senate members. This will be the first step of the overall campaign. We have drafted a press release that will focus on the devastation to local programs, beneficiaries and local economies should the program be eliminated. On the NCDA web site is a briefing package of information to assist communities and their elected officials in contacting their Congressional Delegations.

+ A sample press release for members

+ A sample letter to Congress

' A sample letter for subrecipients to send to Congress

+ An updated CDBG Fact Sheet for members to combine with their own project information.

+ A sample OP-ED piece for local papers The Mayors, County Executives, City Councilors met with their media people to

NCDA WASHINGTON REPORT February 15,2005 9 Page 8

+ A sample Resolution to be approved by your local jurisdiction and sent to your congressional members

' We also have a "Dear Mayor" letter from the President of USCM, Don Plusquellic.

Our Hill contacts tell us it is imperative that our members and their subrecipients call, e- mail and fax information to local and national Congressional offices. It takes up to three weeks for regular mail to get to members of Congress in Washington. The next couple of weeks will be crucial as Congress goes on recess on February 21-25,2005. This is a good time to contact them. It is very important, for NCDA members and their subrecipients to contact their Congressional Delegations. The Budget Committees will draft their budget Resolutions during the first week of March. These resolutions will set the tone and direction for the rest of the appropriations process.

The Coalition meets weekly to discuss strategy and plan the next media events. As we hear of local media events, we will contact members in those areas. The Coalition held a major press event on February 8, with USCM, NLC, and NACo taking the lead. The Press Event was held at the National Press Club in Washington, D.C. and included inspiring and emotional testimonies from several mayors and county officials on protecting and filly funding the CDBG program in FY06. The press event can be viewed on our web site at: htt~://www.ncdaonline.org

In addition to our work with the Coalition, NCDA is involved in protecting the program on the Hill. NCDA, along with USCM, NLC, NACo, COSCDA, LISC and NACCED, are

working with the Northeast-Midwest Coalition of the Senate to hold a briefing for Congressional members and their staff on CDBG as well as to spearhead a sign-on letter to the Budget Committee. A copy of the letter is attached to this newsletter. Basically, the letter calls for CDBG to remain within HUD and seeks $4.7 in funding for CDBG in FY06. We have gained the support of six prominent senators who have agreed to shepherd the CDBG Support Letter through the Senate. These senators include: Senator Leahy (D-VT), Senator Reed (D-RI), Senator Sarbanes (D- MD), Senator Bond (R-MO), Senator Coleman (R-MN), and Senator DeWine (R-OH).

These same senators will shepherd a similar letter through the Senate during the appropriations process that will be sent to the Senate Appropriations Committee. The above- named senators will send out the CDBG Support Letter to their colleagues today. Our goal is to collect at least 60 signatures by the end of next week. The CDBG Support Letter to the Budget Committee is intended kill any support for the President's Strengthening America's Communities Initiative in the Senate. Senate staff feel that 60 signatures will kill the President's Strengthening America's Communities Initiative and ensure full support for CDBG to remain at HUD. They feel that we need to pound this Initiative in the ground quickly, so that we can put it to rest and move forward with other business. We will need your help in ensuring that Senators sign-on to the attached letter by February 25. Please have your Mayor, County Executive, or City Council member contact your Senator directly to seek their signature to this letter. We will call you, as needed, to gain support from those Senators that have not signed on.

NCDA WASHINGTON REPORT February 15,2005 O Page 9

The next letter, the CDBG Support Letter to the Appropriations Committee, is intended to obtain $4.7 billion in funding for the program in FY06.

NCDA, along with USCM, NACo, NLC, NACCED, COSCDA, and LISC are also working with the Northeast-Midwest Coalition of the Senate to hold a congressional briefing on CDBG. The briefing is scheduled for March 1 at 2 p.m. and is intended to educate congressional staff on the program as well as spotlight the need to protect the program in FY06. Senate staff have requested that we send press articles from our members on supporting and protecting the program in FY06. Please e-mail your community's press articles to us at cdbg@ncdaonline.org

The Campaign for Housing and Community Development Funding has suggested an industry-wide sign-on letter in support of CDBG. NCDA will take the lead in getting as many signatures as possible. We will work at getting this done before the Budget Resolution is drafted. Stay tuned for more of our strategy efforts to save the CDBG program, as they take shape.

Grassroots Strategy for Preserving CDBG and Restoring Its Funding

The Administration's FY 2006 budget proposes the complete elimination of the Community Development Block Grant (CDBG) program, not its transfer to the Department of Commerce. The new program proposed for Commerce, at a substantially reduced funding level for the programs "consolidated," bears no resemblance to CDBG as we know it. The next several weeks will be critical in laying the groundwork for pressing Congress to preserve the CDBG program at HUD and funded at $4.7 billion,

including no less than $4.35 billion in formula funding.

The first committees in Congress to address the issue will be the House and Senate budget committees who will begin work on the FY 2006 congressional budget resolution in the next couple of weeks. That resolution will set the overall ceiling on domestic spending in FY 2006. It makes certain assumptions (not binding) within the ceiling as to approximate funding levels for programs like CDBG. Our first objective is to insure that the budget category that includes CDBG has sufficient funding to accommodate it. Once the budget resolution is adopted, probably in April, the focus then shifts later this spring to the appropriations committees, followed by floor action over the summer and into the early fall. In addition, any changes to, or shift of, CDBG must be authorized by the respective House Financial Services and Senate Banking Committees, so a parallel effort will be needed with those committees. An ongoing effort will need to be sustained over the course o f the year. A single communication bv a stakeholder will not be enouah.

It is essential that local elected officials (particularly republicans) and elected officials of subrecipients take the threat to CDBG seriously and commit to the elements of this strategy as appropriate. They must become engaged and vocal at the local level, with the media, and in pressuring members of Congress. Below is a suggested set of actions that elected officials of cities and counties and elected officials of subrecipients can take locally to implement this strategy. Please share this strategy with the appropriate (non CDBG- funded) intergovernmental or administrative staff and ask them to take the lead in coordinating this effort.

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NCDA WASHINGTON REPORT February 15,2005 O Page 10

Practitioners should determine the impact of the elimination of the CDBG in their jurisdiction. Quantify, and put a human face, on the adverse impact.

Encourage the chief elected or other elected official(s) to hold a press conference, along with the business community and other stakeholders, to dramatize the adverse impact of the proposal. Involve beneficiaries, or potential beneficiaries, as the human face(s).

Encourage the chief elected or other official(s) to meet with the editorial board of the local newspaper(s) to discuss and encourage editorial(s) in support of the program.

Utilize the local cable channel to talk about the impact of the administration's proposal and include case studies of successful projects.

Encourage the governing body of the jurisdiction to adopt the attached sample resolution. Particularize it to show the adverse impact on the jurisdiction if CDBG is eliminated or its funding drastically cut.

Send a letter by fax or email (don't mail as it will never be received in time) to members of the jurisdiction's congressional delegation (House and Senate). A draft is attached. Note: Calling 202-225-3 121 will connect you to the Capitol switchboard. Operators will connect you to individual congressional offices where email addresses and fax numbers can be obtained. Please describe the jurisdiction's program and show the adverse impact on the community if

funding were eliminated.

Encourage elected official(s) to call members of the delegation as a follow up to their emaillfax. Encourage the elected officials of subrecipients (cooperating jurisdictions, non profits, etc.) to emaiVfax a letter to members of their congressional delegation. A sample letter is attached. Be sure it's tailored to the particulars of the sub recipient's activities. In addition, encourage the governing body of the jurisdiction to adopt the attached sample resolution. Encourage telephone follow up to the emaillfax.

To dramatize CDBG at work in the community, develop and place on-site signs identifying project(s) assisted with CDBG.

Set up meetings with members of Congress, who will be back in their districtslstates the week of February 2 lst for the President's day recess, to discuss how CDBG is working in the jurisdiction. Set up a tour of CDBG-funded activities. Invite the local press to attend the project tour.

National Community Development Week is March 28h - April 3rd. Members will be back in their districtslstate. If you haven't already done so, set up a meeting with them to discuss the proposal and set up a tour of CDBG-funded activities.

If the above two activities are not possible to schedule, and if you haven't already done so, set up meetings with the congressional districustate office staff members to discuss the importance of maintaining and restoring funding for CDBG. The local staff is the eyes

NCDA WASHINGTON REPORT February 15,2005 O Page 11

and ears of members and can be very helpful and responsive.

As we move closer to key events in the legislative process we will set up a hotline to make grassroots contacts and encourage specific members to make key contacts.

Please, please share with us copies of letterslemails and resolutions so that we can make appropriate follow up with congressional offices. Thanks for doing your part in this critical effort.

HOUSE MOVES FORWARD WITH OF THE VA-HUD SUBCOMMITTEE; SENATE REJECTS PLAN

Despite opposition from the Senate, the House is going forward with its plan to eliminate the VA-HUD-IA Appropriations Subcommittee and transfer the jurisdiction of these agencies to several subcommittees. "These changes will make it a little easier to get our work done on time and under budget," said Rep. Jerry Lewis (R-CA), Chairman of the House Appropriations Committee.

Rep. Tom DeLay (R-TX) has been the driving force behind the House reorganization of the VA-HUD-IA Subcommittee, primarily as a means to protect NASA, a very large employer in his district, from having to compete with funding with the Veterans Administration. According to Rep. Obey (D-WI), DeLay pushed Lewis to dissolve the VA-HUD-IA Subcommittee because senior GOP appropriators crossed DeLay last year on the NASA budget. Rep. James Walsh (R-NY), chairman of the subcommittee last year, passed a FY05 appropriations bill that cut funding for

NASA and provided increases to veterans' healthcare. Not to be out maneuvered, DeLay deliberately kept the bill from coming to the House floor for a vote and forced increases for NASA in negotiations on a year-end omnibus. "The originating purpose [of the reorganization] was to engage in payback to the subcommittee that tried to squeeze NASA," Obey has been quoted as saying.

Under the House plan, 13 subcommittees would be reduced to 10 subcommittees, as follows: Agriculture chaired by Rep. Henry Bonilla @-TX); Defense chaired by Rep. C.W. Bill Young (R-FL); Energy and Water chaired by Rep. David Hobson (R-OH); Foreign Operations chaired by Rep. Jim Kolbe (R-AZ); Interior and Environment chaired by Rep. Charles Taylor (R- NC); Homeland Security chaired by Rep. Harold Rogers (R-KY); Labor, Health, Human Services and Education chaired by Rep. Ralph Regula (R- OH); Military Quality of Life and Veterans. Affairs chaired by Rep. James Walsh (R-NY); Science, State, Justice and Commerce chaired by Rep. Frank Wolf (R-VA); and Transportation, Treasury and Housing Chaired by Rep. Joe Knollenberg (R-MI).

Veterans Administration will be transferred to the newly formed Military Quality of Life and Veterans Affairs Subcommittee. NASA will be transferred to the newly formed Science, State, Justice and Commerce Subcommittee. HUD will be transferred to the newly formed Transportation, Treasury and Housing Subcommittee. Independent Agencies will be disbursed throughout these three subcommittees. Americorps will be transferred to Labor-HHS.

The Transportation, Treasury and Housing Appropriations Subcommittee would be chaired by Rep. Joe Knollenberg R-MI). Knollenberg

I

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NCDA WASHINGTON REPORT February 15, 2005 Page 12

has served on the VA-HUD-IA Appropriations Subcommittee for many years and is certainly knowledgeable of HUD's programs. His district includes several CDBG entitlement communities, including Oakland County, Farmington Hills, Pontiac, and Waterford Township. NCDA has asked for a meeting with his staff to discuss CDBG.

Senator Thad Cochran (R-MS), Chairman of the Senate Appropriations Committee, met with Senate Republican appropriators on Thursday to discuss the House proposed reorganization of the subcommittees. In a resounding "no" Senate appropriators rejected the House proposal. "No. Hell no," said Larry Craig (R-ID). "We're talking about convenience, and we're also talking about people that have very little knowledge of the appropriations process trying to reorganize it," said Senator Ted Stevens (R- AK), in an apparent stab at Tom DeLay.

If the two chambers go their separate ways, however, it would certainly increase the potential for an omnibus appropriation bill at the end of the year; something appropriators want to avoid. "No omnibus, " DeLay said earlier. "We ain't doing an omnibus. Never again." Despite this rhetoric, it appears the two chambers are heading towards an omnibus because each will have a different sub-committee structure that will not allow for joint work on appropriations issues. The only way to solve the dilemma is through an omnibus bill, since it by-passes the subcommittee structure altogether. "We should start writing an omnibus now," said a Senate Appropriations Democratic aide. Congress has passed an omnibus appropriations measure every year since 200 1.

NCDA NOTES

CDBG BASICS: TRAINING FOR PRACTITIONERS

A CDBG Basics: Training for Practitioners course will be conducted in conjunction with NCDA 2005 Annual Conference being held at the Hyatt Regency Hotel on May 16- 1 8. Please find the agenda and registration form attached to this newsletter. We hope to see you there.

ATTACHMENTS AND JOB ANNOUNCEMENTS

+ President Bush 's Strengthening America 's Communities Initiative

+ Programs to be Consolidated Under the Strengthening America's Communities Initiative

+ CDBG Support Letter to Senate Budget Committee

+ NCDA 2005 Annual Conference Agenda and Registration Form

Wni ted j3 to tee ji§ena tre WASHINGTON, DC 20510

February 16,2005

Support the Community Development BloekGra~t Prwg~am

Dear Colleague:

Please join us in requesting that the Budget Committee provide $4.732 billion to support the Community Development Block Grant Program (CDBG) in the fiscal year 2006 budpt resolution and to retain the program within the Department of Housing and Urban Development.

CDBG is the centerpiece of the Federal government's efforts; to help states and localities meet the needs of low-income communities. CDBG hnds vital housing rehabilitation, supportive services, public improvements and economic development projects in communities across the nation. It also serves more than 1,100 entitlement communities, urban counties and states, and more than 3,000 rural communities. CDBG is one of the most effective Federal domestic programs to help revitalize neighborhoods with proven results.

Last year, for example, Vermont was able to use CDBG granits to re'nib'iiiltate over"Z& of affordable housing and help create or preserve over 150 jobs, raisjing the standard of living across Vermont. In Minnesota, CDBG grants helped fbnd the Main Street Program which revitalized downtown St. Paul, creating thousands ofjobs and bringing people b-ad-r* tkt?ity; i 7ha -c hundreds of similar stories across the nation, from New Hampshire to Oregon but in each of them the message is the same: CDBG funds are critical building blocks for improving our communities, our neighborhoods and our economy.

We hope that you will join us in supporting this valuable community development program by signing the letter to Budget Chairman Gregg and Ranking Memb+er Conrad. For more information, or to sign this letter, please have your staff contact Kris Sam with the Northeast- Midwest Senate Coalition at 224-0606, Andrew Siracuse in Senator Coleman's office at 4-5641, or Chanda Betourney with Senator Leahy's office at 4-4242, by Friday, February 25,2005.

Sincerely, I

Nonn Coleman

Christopher S. Bond ,

Mike DeWine Paul S. Sarbanes

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WASHINGTON, DC 20570

February XX, 2005

The Honorable Judd Gregg Chairman Committee on the Budget United States Senate Washington, DC 205 10

The Honorable Kent Conrad Ranking Member Committee on the Budget United States Senate Washington, DC 205 LO

Dear Chairman Gregg and Ranking Member Conrad:

The Community Development Block Grant (CDBG) Program funds housing rehabilitation, supportive services, public improvements and economic development projects in communities across the nation. CDBG serves more than 1,100 entitlement communities, urban counties and states, and more than 3,000 ma1 communities. We urge the Budget Committee to maintain the Federal government's cunent commitment to community development programs at the Department of Housing and Urban Development and support a budget allocation of $4.732 billion in Function 450 for CDBG, Section 108 economic development loan guarantees, and the Brownfields Economic Development Initiative.

HUD is the FederaI Department principally responsible for community economic development, CDBG is the centerpiece of the Federal government's efforts to help states and localities meet the

needs of low-income communities. Section 101 of the Housing and Community Development Act created the CDBG program to consolidate a number of complex and overlapping programs of financial assistance in order to encourage community development activities which are consistent with comprehensive local and areawide development planning; to further the national housing goal of a decent home and a suitable living environment for every American family; and to foster the undertaking of housing and community development activities in a coordinated and mutually supportive manner by Federal agencies and programs, as well as by communities. HUD7s community development programs coupled with HUD's housing and homeless programs and supportive services, provide communities with a comprehensive approach to serving the needs of residents, CDBG is the glue that holds other Federal programs serving low-income communities together.

The Strengthening America's Community proposal aims to create strong accountability standards, offer flexibility to communities and create a more unified federal approach. These goals are already hallmarks of the CDBG program. On the 30Ih Anniversary of CDBG in 2004, HUD Deputy Secretary Roy Bernardi said the following about the program:

HUD has a long history of 'being there' and providing help for people, particularly those with the greatest needs- our lower income constituents. CDBG has certainly been there, during boom years and most importantly in times of tightening budgets, which place greater demands on existing services. We must continue to support and build upon programs that work, those that have a proven record of flexibility and the ability to fit in with locally determined needs. CDBG is such a program and ranks among our nation's oldest and most successful programs. It continues to set the standard for all other block grant programs.

Page Two Letter to the Budget Committee FY2006 Community Development Block Grant Funding

The Strengthening America's Communities proposal would recreate a block grant program similar to CDBG within the Department of Commerce. The Department of Cornmeme, however, does not have the vital infrastructure or institutional capacity to provide a comprehensive approach to neighborhood development. Replicating HUD's CDBG program within the Department of Commerce would require rebuilding HUD's %~hstructure" and would result in inefficiencies, greater complexity and less aid to fewer cities, an approach which does not serve America's communitie:~ or taxpayers. CDBG's success depends on a locally driven, citizen participation process that provides flexibility and does not take a "one-size-fits-all" approach. The needs of Nashua, New Hampshire; ]Bismarck, North Dakota; Cincinnati, Ohio, and, Kansas City, Missouri are very different fiom the needs of Miami, Florida; El Paso, Texas; Pueblo, Colorado; or San Diego, California. CDBG is capable of addressing the diverse needs of these communities whether it is housing rehabilitation, homeowrnership, supported services for the elderly or children, business development or infrastructure improvem~ents.

CDBG is one of the most effective Federal domestic programs to revitalize neighborhoods with proven results. Over 95 percent of CDBG funds went to activities principally benefit:ing low- and moderate-income persons. Twenty-eight percent of CDBG funds supported housing iactivities in distressed communities, 24 percent supported public improvements, 15 percent went to the provision of public services, and 7 percent supported economic development activities. In FY2004, CDBG housing projects assisted 168,938 households. Public service projects hnded with CIDBG served 13,3 12,63 1 individuals. Economic development programs hnded by CDBG in fiscal 2004 created or retained 90,637 jobs for Americans and public improvement projects benefited 9,453:,993 persons. CDBG also has a strong record in business retention: CDBG ensured that over 80 percent of the businesses assisted through the program were still in operation after three years.

Thank you for your consideration. We look forward to working with you to emsure that communities across the country can provide good jobs, affordable housing, and public services to meet the needs of all Americans.

Sincerely,

Norm Coleman

Jack Reed

Mike DeWine

Patrick J. Leahy

Christopher S. Bond

Paul S. Sarbanes

I

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President Bush Proposes Strengthening America's Communities Initiative

9 America's changing economy is strong and getting stronger. But America's economic strength is not felt equally throughout the Nation. In low-income communities and in communities where traditional industries do not employ as many workers as they did a generation ago, opportunity can appear out of reach. President Bush believes that communities can make the transition to vibrant and strong economies because of the entrepreneurial spirit, vision, and hard work of those who live there. The job of government is to inspire, to help remove barriers to growth, to be accountable for taxpayer dollars, and to ensure results for programs aimed at making a difference in peoples' lives.

9 Building on existing economic and community development efforts, the President will propose a new initiative to help strengthen America's transitioning and most needy communities, while making better use of taxpayer dollars by reforming and restructuring many of the existing Federal economic and community development programs. The President's initiative, to be proposed in his Fiscal Year (FY) 2006 budget, will consolidate 18 existing programs, simplify access to the Federal system, set new eligibility criteria, and establish strong accountability standards all in exchange for the flexible use of the funds so that communities most in need will be assisted. The new $3.71 billion unified grant-making program will better target assistance and achieve greater results for low-income persons and economically-distressed areas.

Current Problems Facing Federal Economic and Communitv Develo~ment Programs

P Seven Federal agencies currently provide $16 billion through 35 grant, loan, and tax incentive programs for economic and community development efforts. The current system forces communities to navigate a maze of Federal departments, agencies, and programs in order to access economic and community development assistance programs, each imposing a separate set of standards and reporting requirements. In addition, some programs duplicate and overlap one another, and some have inconsistent criteria for eligibility and little accountability for how funds are spent.

9 Many communities no longer in need of assistance continue to receive funding, undermining the purpose of some programs - to help distressed communities. For example, the Community Development Block Grant (CDBG) program at the Department of Housing and Urban Development (HUD) was created to serve distressed communities, but 38 percent of the funds currently goes to communities and States with less poverty than the national average.

The goal of Federal economic and community development programs is to create the conditions for economic growth, robust job opportunities, and livable communities, thereby encouraging improvement and reduction of a community's need to rely on perpetual Federal assistance.

9 Most of these programs lack clear goals or accountability measures, and thus cannot sufficiently demonstrate their measurable impact on economic and community development, as determined in a review by the Office of Management and Budget (OMB).

White House Office of Management and Budget 2/3/2005

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The President's Current Efforts to Help Communities in Transition

> President Bush has introduced a new approach to economic and community development by highlighting the need to help communities transition to a 21st century economy. His plan includes:

o Creating new Opportunity Zones to assist America's transitioning neighborhoods, which are areas that have lost a significant portion of their economic base as a result of our changing economy and are now in the process of transitioning to a more diverse, broad-based, 21s' century economy, as well as communities with persistent poverty;

o Establishing new education and job training programs to help workers develop the skills needed to succeed in today's economy;

o Introducing tax incentive proposals for the development of single-family housing in low-income areas; and

o Revitalizing former brownfields, which are abandoned or underutilized industrial properties where redevelopment is hindered by possible environmental contamination and potential liability. Redevelopment of these properties is creating jobs and returning productive property to local tax rolls.

The President's Action to Strenqthen America's Communities P The President will propose to provide flexible funding to those communities most in need in exchange for

meeting strong accountability measures. In addition, he will propose to provide incentives to communities that are already reducing barriers to economic development. The Administration will make better use of taxpayer dollars by consolidating programs and funding into a unified and targeted program.

> President Bush will propose to consolidate a subset of the Federal government's economic and community development programs, transforming them into a new, two-part program: (1) The Strengthening America's Communities Grant Program, a unified economic and community development grant program, and (2) The Economic Development Challenge Fund, a bonus program for communities, modeled after the Millennium Challenge Account. Funding from duplicative and ineffective programs would be used for the new, two-part program. The combined economic and community development programs (as well as the separate Opportunity Zones program) will be administered by the Commerce Department.

Strenuthenina America's Communities Grant Prouram

o This new $3.71 billion consolidated grant-making program will provide funding to communities most in need of assistance by setting new eligibility criteria determined by job loss, unemployment levels and poverty.

o Through this program, communities will be required to meet specific accountability measures to track progress towards the program's goals. These measures include increasing job creation and new business formation rates as the real drivers of economic development. In addition, community development outcomes that measure progress will include increasing homeownership, including first- time and minority homeownership ownership, commercial development, and private sector investment.

White House Office of Management and Budget 2/3/2005

o If communities do not show progress in meeting accountability measures, the Commerce Department will work with the community on a plan of action and will provide technical assistance to ensure that future funds are used wisely. Communities that are consistently unable to use taxpayer dollars to meet the accountability measures would stand to lose future funding.

Economic Develoroment Challenae Fund

o As part of the $3.71 billion, the President will propose a bonus grant program for low-income communities that have already taken steps to improve economic conditions and demonstrate readiness for development, similar to the President's Millennium Challenge Accounts.

o A development-ready community is one that is already taking steps to improve conditions in ways that have been proven to attract businesses, including:

J Improving schools by meeting No Child Left Behind adequate yearly progress goals; J Reducing regulatory barriers to business creation and housing development; and J Reducing violent crime rates within the community.

o The Economic Development Challenge Fund would build upon the President's Opportunity Zones initiative by rewarding communities that have already taken steps toward economic development. The Opportunity Zones program focuses primarily on those transitioning communities that set concrete, measurable goals toward economic and community growth by developing a community

1 transition plan.

White House Office of Management and Budget 1 21312005

Programs to be Consolidated Under the President's Strengthening America's Communities (SAC) Initiative

Housing and Urban Development Community Development Block Grant Formula CDBG Set-Asides Brownfields Economic Development Initiative (BEDI) Section 108 Loan Guarantees National Community Development Initiative (NCDI) Rural Housing and Economic Development Urban Empowerment Zones (EZ) Round I1 Grants

Commerce Economic Development Administration Grants

A~riculture Rural Business Enterprise Grants Rural Business Opportunity Grants Economic Impact Grants Rural Empowerment ZonesIEnterprise Communities

$4.1 1 billion $302 million $24 million $6 million $30 million $24 million $10 million

$255 million

$40 million $3 million $21 million $12 million

Treasurv Community Development Financial Institutions (CDFI) $5 1 million Bank Enterprise Award (BEA) Program $0 CDFI Native Initiatives $4 million

Health and Human Services Community Services Block Grant $727 million Urban and Rural Community and Economic Development $33 million Rural Community Facilities $7 million

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TABLE OF CONTENTS

HEADING PAGE

Forward ........................................................................................................................................... 1

..................................................................................................... Introduction .................... ... 3

............................................................................................................................ The Foundation 5

Purpose of the Guidebook ............................................................................................................. 5

........................................................................................................................... Breaking Ground 6

The Key Building Blocks for a Successful ................................... Community Development Week .......................................................... .. 7

Community Development Week: Implementing Your Plan with a New Congress and Administration ................................................................................................ 11

Suggested Community Development Week Activities .................................................................... 12

................................................................................................................................... Conclusion 14

Community Development Block Grant (CDBG) An Impressive Fact Sheet ................................................................................................................ 14

The John A . Sasso National Community Development Week Award ............................................ 16

National Community Development Association I

~at iona l ~ssociation of Counties - N A P - - - - Counties Care for America

NACCED

b ~ i l d l n ~ communities together

Celebrating the Community Development Block Grant Program (CDBG)

I CDBG:

I Provides a stable, flexible funding source t o

complete a multitude o f activities across America;

Addresses priorit ized needs identified through

cit izen input; and

Achieves success through local publiclprivate

partnerships tha t provide services t o low and moderate income persons and families tha t would otherwise no t be available.

For more than 30 years, the CDBG program has been the single revenue source available that provides funding for programs and projects that assists lower income persons that are beyond city budgets.Throughout its history, this program has provided over $108 billion t o cities, states and counties,and is the 8th largest federal domestic grant program.This highly popular program continues to thrive because it performs in the way Congress originally intended - providing decent, safe and sanitary housing, suitable living environments, necessary public services, revitalizing downtowns and residential neighborhoods primarily for low- and moderate-income Denons. CDBG Works!!! loin us and our sister organizations as we celebrate National Community Development Week 2005:March 28th - April 3rd, by recognizing all those individuals who have helped make this program what it is today, the most successful domestic program ever created.

This year, we have added a new product t o assist the sister program t o CDBG, the Home Investment Partnerships Program, (HOME) celebrate its 15th anniversary. As many of the entitlement communities receive both CDBG and HOME funds, and use both programs together, we encourage communities t o recognize the efforts of both of these great programs during National Community Development WeekWe have added a "HOME product - a very fitting key chain -that we hope will complement the CDBG 30thAnnivenary key chain.We hope you will enjoy the product line for this year as we celebrate

3 1 years o f CDBG and 15 years o f HOME!!!

(Order form is on the reverse side of this flyer.)

National Community Development Association 522 2lst Street, NW Suite I20 Washington, DC 20006

tel: 202.293.7587 fax: 202.887.5546 e-mail: ncda@ncdaonline.org

Postcard

C r l M q 15 Y- n l ~ B O H E l ' q r m

Mouse Pad

T-shirt w i t h full-front graphic

'ag

Acrylic Travel

Mug

24" x 17.25" Poster

Order Form Community:

Name:

Address (no P.O. Box addresses):

Phone: Fax:

Quantity - Item Amount

2005 CDBG Poster

25 posters @ $1 30.00, includes 75 postcards

50 posters @ $210.00, includes 150 postcards

2005 CDBG Post Cards 150 postcards @ $75.00

300 postcards @ $1 00.00

2005 CDBG Heavv Blue Short-Sleeve Tee Shirt Small - Extra Large ..................... $1 10.00 per dozen ($9.99 each)

XX-Large .................................... $125.00 per dozen ($10.99 each)

XXX-Large ............................... $1 60.00 per dozen ($1 3.99 each)

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2005 CD Week Tote Bag ($1 0.99 each)

2005 CD Week Travel Mug ($9.99 each)

2005 CD Week Baseball Cap ($9.99 each)

2005 HOME 15th Anniversary Key Chain ($5.50 each or $60.00 per dozen)

2005 HOME lsth Anniversary Mouse Pads ($6.00 each)

(NOTE: The cut-off date for ordering shirts, tote bags, travel mugs, mouse pads and key chains is March 4,2005. An additional fee of not less than $20.00 will be assessed for late or rushed items.)

TOTAL:

Make checks payable to: National Community Development Association 522 2ISt Street, N.W., Suite 120 Washington, D.C. 20006 Phone: (202) 293-7587 Q Fax: (202) 887-5546 E-mail: ncda@ncdaonline.org Website: www.ncdaonline.orq