Examples on How Community Development Block Grants
Are Used in America?s Communities
Prepared by the National League of Cities, February 9, 2005
? Tuscaloosa, Alabama has used $2.5 million in Community Development Block Grant funds to completely renovate an area near the University of Alabama known as the "Strip", a cluster of small businesses, restaurants, and retail shops visited widely by University of Alabama students and city residents. As a result of the Streetscape project, Bayer Real Estate Company of Birmingham, Alabama, invested over $7.5 million in capital investment for a new retail center and Publix grocery store. Bayer Real Estate's investment has sparked other businesses along the "Strip" to improve their facades and other amenities. In total, the project has helped to create more than 100 new jobs and retained many more.
Contact: Tuscaloosa Ala, Council Member Lee Garrison, 205-349-2010
? In 2004, leaders in Milwaukee, Wisconsin, used the program t
1) Rehabilitate or construct 746 affordable housing units;
2) Assist 258 low income, first-time home buyers; and
3) Create and retain 303 full-time jobs for city residents.
Contact: Milwaukee Wis., Alderman Joe Davis, Sr., 414-286-3787
? In Onondaga County, New York, several small cities used Community Development Block Grants to create the ?Commercial Rehabilitation Program?, largely responsible for the preservation of small, central business districts. In FY04 alone, eight commercial buildings were rehabilitated in the towns of Baldwinsville, Jordan, Liverpool and Mattydale, each with a population of less than 7,100. The Community Development Block Grant program provided $143,000 towards commercial rehabilitation with the owners of the businesses providing $183,000 in matching funds towards the rehabilitation effort.
Contact: Onondaga County, NY Linda DeFichy, 315-435-3558
? Since 1997, Daytona Beach, Florida, has used $315,000 in Community Development Block Grant funds to create a small business incubator as well as for business development. The intent of the incubator is to provide low-cost office space and low general overhead costs to enable small businesses to get on their feet and transition into their own office space. Since the start of the incubator in April 1999, 25 new small businesses have been assisted. All of the business owners assisted through this incubator have been very low- and low income persons.
? Daytona Beach has also provided funding to assist very low- and low-income persons to become business owners through small business start-up courses. The Partnership uses professors from Bethune Cookman College (a historically black university) to teach a course of six classes on business. Since 1997, 620 very low- and low-income people have graduated from this course. A total of 111 new businesses have been created in the city and 54 existing business owners have also been assisted through these classes. To date, at least 90% of the businesses created through this program are still in operation.
Contact: Daytona Beach, Fla., Lynn Coonrad, 386-252-9580
Emory Counts, Community Development Director, 386-671-8051
? In FY04, Davenport, Louisiana, provided $900,000 in Community Development Block Grant funds to two projects dealing with redevelopment of vacant/abandoned buildings and slum/blight abatement. The city leveraged an estimated $11 million in additional funds.
Contact: Vicki Watson, National Community Development Association,202-887-5532
? In Mesa, Arizona, $331,000 in Community Development funds were used to build a new facility that provides prevocational, vocational training and placement services for people with disabilities in order to assist them in entering and re-entering the work force. The facility was opened in March 1997 and continues to help the disabled population.
Contact: Council Member Claudia Walters, 480-644-3000
? Beaumont, Texas has used Community Development Block Grant funds as seed money for a revolving loan fund that provides low-interest loans to minorities, women and economically disadvantaged citizens who want start or expand a business. To date, 56 businesses received loans totaling $1.3 million dollars. Approximately 300 low and moderate income persons have received permanent jobs through this program.
Contact: J. Beatty, Beaumont, Texas, 409-880-3768
? Because Columbia, South Carolina receives a relatively small annual CDBG entitlement, the city made the decision to invest much of these precious dollars into revolving loan pools whose repayments continue to fund opportunities for future recipients. Public funds of $1.86 million have leveraged $19.5 million from major area banks. Minority-owned businesses have 42% of the loans. Almost 1,000 jobs have been created and retained. In addition, the loan fund has seeded the revitalization of dozens of intown neighborhoods in Columbia. Approximately $5 million of public funds has leveraged over $71 million of mortgage commitments from major banks.
Contacts: Columbia Council Member Anne Sinclair, 803-256-9700
? Los Angeles, Calif., has used Community Development Block Grant funds in several different ways: The Chesterfield Square project in Southwest Los Angeles brought a major supermarket, a Home Depot, a major drug store and other stores and restaurants to this underserved community. The project has created over 500 jobs and brought newfound pride to the community.
? Cynthyny Lebo is an example of the value of the CDBG-funded Business Assistance Program. She enrolled in the Entrepreneur Program operated by Barrio Planners, Inc., which serves the East Los Angeles area. She learned how to operate a home-based business and now owns New Life Options Audio and Video. Ms. Lebo was recently nominated for the Small Business Administration?s 2005 Home-Based Business Champion of the Year award.
Contact: L.A. Council Member Ed Reyes, 213-485-3451
? Revitalization projects in Olde Towne Gaithersburg, Maryland have included Community Development Block Grant funding towards the historic restoration of the Thomas Cannery, a Maryland Historical Trust and National Register property, located at one of the four gateways into Olde Towne. CDBG funds and other public and private financing, enabled the owner to transform a blighted, vacant building into a viable commercial enterprise. With 90 percent of the facility's 12,000 square feet fully leased, the Gaithersburg City Council considers this a true CDBG success story.
Contact: Gaithersburg Council Member Henry Marraffa, Jr, 301-977-5029
? In Rochester, New York, where sixty-five percent (65%) the population is eligible to be served by the Community Development Block Grant program, the city has:
? Rehabilitated or constructed over 3000 affordable housing units;
? Created or retained over 4,000 jobs;
? Provided critical employment training and services to seniors and youth; and
? Funded or leveraged over $960 million dollars in housing and business investment.
? Rochester has also successfully transformed a 7.4-acre troubled housing project called Anthony Square into a completely new community. The project involved relocating 149 residents, demolishing 10 existing apartment buildings and a small commercial building, environmental remediation, infrastructure improvements and the subsequent construction of 45 units of affordable rental housing and 23 affordable, single-family homes. The city leveraged over $11 million the $2 million in CDBG funds.
Contact: Rochester Council President Lois Giess, 585-428-7538
? Shoreline, Washington, rehabilitated 21 homes in 2004 using Community Development Block Grant funds.
Contact: Shoreline Deputy Mayor Scott Jepsen, 206-546-0645
? With CDBG funds, Tucson, Arizona, transformed a vacant, dilapidated downtown landfill into a thriving business park which now employs almost 1,000 people. The Rio Nuevo North Redevelopment project used innovative landfill mediation techniques, and a creative mixture of financing to return this historic site in downtown Tucson to an economic center. CDBG funds also were used to purchase land in downtown Tucson that was cleared and sold to a housing developer, who is building a 120-home neighborhood, creating homeownership opportunities, and bringing people to live, work and spend money in the downtown. The sale of the land allows the CDBG money to be used again, generating multiple benefits from reuse of the funds.
Contact: Tucson Mayor Shirley Scott, 520-791-4213
? Since 1997, Wichita, Kans., has used $6 million in CDBG funds to leverage more than $61 million in private or other public funds. Projects include economic development, capital, housing, public services and historic preservation ? all of which benefit low and moderate income persons and neighborhoods directly, and indirectly enhance the livability of the entire city. Following are examples:
o Economic Development. CDBG funds were used for reconstruction of the University Plaza retail center located in northeast Wichita, creating 40 full-time jobs and an inner-city neighborhood has benefited from retail options not formerly available.
o Housing. Yearly, over $1 million in CDBG funds is invested in low-income neighborhoods as loans or grants to homeowners. In 2004 CDBG assisted 372 properties. The improvements have increased the safety of the homes and have contributed to the revitalization of the neighborhoods.
o Public Services. Yearly, over $1 million is used to support neighborhood assistance programs, shelters for victims of domestic violence, youth employment, recreation and enrichment programs. In 2004 over 79,000 citizens and youth were assisted with CDBG funding.
Contact: Wichita Council Member, Carl Brewer, 316-303-8020
Other examples are available from the U.S Dept. of Housing and Urban Development, which celebrated numerous cities at its CDBG 30th Anniversary Recognition of Excellence. See www.hud.gov.