Contact: Jane DeMarines, (703) 741-0144, Cell: (202) 997-8785, jdemarines@naceda.org
Kim Hayes, (301) 585-1131, khayes@naceda.org

  Statement from the National Alliance of Community Economic Development Associations (NACEDA) Chairwoman Diane Sterner on President's Proposed Budget Cut to CDBG

The president’s FY09 proposed budget cut of $0.9 billion to the Community Development Block Grant (CDBG) program is like rubbing salt into the wounds of many lower income communities, already devastated by historically high foreclosure levels. Community development corporations and other community based groups are already straining their budgets to deal with the foreclosure crisis and its aftermath, including the problem of vacant properties. Once vacated, foreclosed properties frequently fall quickly into disrepair, lowering values on adjacent housing and becoming breeding grounds for crime. In communities where large numbers of foreclosures have occurred, community development groups are struggling to keep their neighborhoods from falling further into neglect.

Reductions in CDBG funding will worsen an already bad situation. CDBG needs more funding, not less! Senator Dodd’s recent economic stimulus proposal views CDBG as part of the solution to the worsening foreclosure crisis. CDBG is a flexible and worthwhile program and testimony at congressional hearings has shown its progress. In the two year period from FY05 to FY06 CDBG helped create or maintain more than 140,000 jobs, funded public facilities and infrastructure that has helped more than 18 million people and assisted more than 340,000 households with housing needs such as rehabilitation, energy efficiency, and homeownership.* The value of CDBG has been proven time and time again, and NACEDA hopes that Congress will provide full funding for the CDBG program.

*Data from testimony from the Council of State Community Development Agencies

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 About NACEDA and the CDC Industry

Through its member network state associations NACEDA represents more than 2,000 community development corporations. In 2005, as an industry total (aggregate) CDCs produced/created: 1.3 million homes (since 1988), 774,000 new jobs and 126 million sq feet of commercial/industrial space, housing for special needs populations and nearly 2/3 of CDCs offer homeownership counseling. Visit our homepage (http://www.naceda.org) or our newsroom (http://naceda.org/news.php) for more about Naceda and to read previous press releases.