Community groups call for more funding for affordable
housing in low-income neighborhoods
By Cathy Klump
Funding for affordable housing and community development is in short supply. As a result, many of the housing needs in low-income communities are not being met. In response, National Training and Information Center affiliate community organizations are working to make sure that every dollar that comes into their cities is used to increase affordable housing opportunities for low-income residents.
Community Development Block Grant, (CDBG) is the primary source of community development and housing dollars available in low and moderate-income communities. The Federal government allocates over $4.7 billion per year to states and cities for affordable housing and community development activities. The amount of money that a state or city receives depends on the extent of housing problems and the number of people living in poverty. Therefore, cities only receive money because of low-income residents in their area.
Research by NTIC shows that of 13 cities studied, only 30 percent of CDBG funds went into housing activities during fiscal year 2002. Another 48 percent went to "other activities." National data does not provide information on whether or not the dollars actually benefited low-income people. NTIC affiliate community organizations are working with local governments to make sure the money is spent to meet the housing needs of low-income communities.
$20 million at stake in Buffalo
In Buffalo, the community group Eastside PRIDE is using public meetings, local media and community tours to encourage their city council and mayor to re-appropriate CDBG dollars into code enforcement and demolition of dangerous abandoned homes. Leaders are also calling for a freeze on all HUD Section 108 loans so that Buffalo will not loan CDBG money for economic development activities that may not materialize. Eastside PRIDE is also working for an effective citizen participation process to encourage greater accountability for how the $20 million in CDBG money is allocated.
SUN fights for affordable housing in Syracuse
Syracuse United Neighbors in Syracuse, NY is also using public meetings, local media and community tours to change how their $9.5 million in CDBG dollars is used. Leaders are working with the city to increase rehab/repair money for owner occupant homes. There is currently a three-year waiting list for rehab grants. Mortgage default counseling and board up procedures for abandoned housing are also priorities for Syracuse communities. The city has allocated $1 million of this year's CDBG funds to pay back old, non-performing Section 108 loans made to businesses. This money must be paid back now to HUD instead of going to meet the housing needs of low-income neighborhoods. SUN is calling for a freeze on all Section 108 loans and full restitution into home rehab and default counseling of the over $4 million paid back on Section 108 loans.
O.N.E tackles abandoned housing in Indianapolis
In Indianapolis, the Organization for a New Eastside's (O.N.E.) newest campaign, Stop Abandoned Neighborhoods with Education, is using public meetings, community tours, and local media to convince local officials to spend CDBG dollars on converting abandoned homes to affordable housing. Earlier this year, Indianapolis's mayor followed O.N.E.'s lead and declared "war on abandoned buildings." In March, O.N.E. convened a community bus tour with lender partners, local government, representatives of the Department of Housing and Urban Development and community leaders. During the tour, leaders pointed out how abandoned homes are ravaging their neighborhoods and where CDBG dollars are and are not being spent. Their local paper, NUVO, reported that the attendance on the bus tour is a "testament to O.N.E.'s growing influence...as one of the most effective grassroots organizations."
CDBG campaign goes to DC
In addition to the great local organizing, NTIC convened a team of leaders from these cities for meetings with national CDBG decision-makers. In March, the Abandoned Housing Leadership Team met with HUD Assistant Secretary Roy Bernardi. Leaders asked for his support in creating an effective citizen participation plan, improving how localities spend their CDBG money, and creating a new rule that will require cities to spend at least 70 percent of their CDBG funds in the lowest income areas. Leaders also met with FHA Commissioner John Weicher about creating a new pilot program that will sell vacant HUD properties at deep discounts to owner occupants.
Cathy Klump is a National Housing Organizer at NTIC. Klump is kicking off a national campaign to rid neighborhoods of abandoned buildings and working to continue a longstanding relationship with HUD and the Federal Housing Administration for policy and program reforms. Prior to joining NTIC in November 2001, Cathy was the Director of the Neighborhood Technical Assistance Center in East St. Louis, IL and vice-chair of the East St. Louis Action Research Project of the University of Illinois at Urbana-Champaign. Cathy holds a Masters degree in Urban and Regional Planning from UIUC.
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