The U.S. Department of Housing and Urban Development (HUD) has announced a proposed rule aimed at enhancing economic and community development in underserved communities nationwide. The rule is intended to update regulations for the Community Development Block Grant (CDBG) and Indian Community Development Block Grant Programs (ICDBG). This initiative, marking the first significant regulatory update since 1995, is designed to expedite program requirements that support economic development in HUD-led housing rehabilitation, mixed-use projects, and infrastructure advancements.
Secretary at U.S. Housing and Urban Development, Marcia L. Fudge, emphasized the significance of these programs by stating: "The funds from these programs build roads and sewers, rehabilitate homes, support nonprofit organizations and small businesses, and help communities prepare for and recover from weather-related disasters." She further noted that "The Biden-Harris Administration has committed to making federal programs easier to use, and this rule will reduce burden on grantees and ensure this critical funding reaches communities quickly."
According to a HUD news release, the proposed measure is expected to simplify the process for CDBG grantees when utilizing CDBG or the Section 108 Loan Guarantee. The latter provides municipalities with access up to five times their annual CDBG allocation through low-interest loans aimed at fostering job creation and economic development. Furthermore, the initiative is projected to enhance city participation while accelerating the delivery of funds from CDBG.
Fudge reiterated her points by saying: "From coast to coast and nearly everywhere in between, Community Development Block Grant funds build roads and sewers, rehabilitate homes, support nonprofit organizations and small businesses, and help communities prepare for recovery from weather-related disasters." She also reaffirmed that "The Biden-Harris Administration has committed to making federal programs easier to use, ensuring this critical funding reaches communities quickly."
If approved, the proposed rule would mark a significant milestone in enhancing programs that channel funds into underserved communities as per the release. The proposed initiative also aims to improve data collection methods to measure efficiency and program results.
Marion McFadden, Principal Deputy Assistant Secretary, added: "For fifty years, CDBG has been a reliable resource for communities across the country. CDBG’s annual formula grant provides flexible funding for States and localities to address their greatest needs."
