Align Community Development Block Grant funds with state land-use policies
Action
States receive a significant portion of funding for affordable housing and community development activities from the federal Community Development Block Grant program. The CDBG program provides funding to assist a wide range of activities, including housing improvements, public facilities such as water and sewer, buildings such as local health centers, and economic development projects.
Federal statutes require CDBG funds to support the needs of low- and moderate-income households and their neighborhoods. When distributing funds, states must meet this programmatic goal, but they have significant latitude in promoting or achieving other state housing and community development goals, including smart growth objectives.
Funds can be used, among other things, to locate affordable housing near transit, commercial center or employment centers; to promote rehab of historic buildings; and to fund brownfield cleanups. Governors should direct their housing agencies to revise the distribution criteria for CDBG funds to more effectively support smart growth.
Process
To receive CDBG funds, states and jurisdictions must have a consolidated three-to-five-year plan that is approved by U.S. Department of Housing and Urban Development. The consolidated plan identifies housing and community development needs and objectives, and sets forth the criteria and process for distribution of CDBG funds. States can establish geographic criteria that prioritize the distribution of funds to designated locations, such as downtowns or designated growth locations.
Examples
- Vermont’s Consolidated Plan
Under Vermont's Consolidated Plan, funding preference for all programs is given to projects that maintain the historic settlement pattern of compact village and downtown centers separated by rural countryside. The plan also focuses resources on designated growth centers in the state and defines growth center characteristics.
— Vermont Department of Housing and Community Affairs
