FOR IMMEDIATE RELEASE
August 22, 2005
Contact:  Joy Fox
(401) 732-9400 
 
HUD AWARDS CDBG FUNDING
 

(Warwick, R.I.)–Congressman Jim Langevin (D-RI) today announced over $2 million in Community Development Block Grant funding for Cranston and Warwick. The annual funding comes through the US Department of Housing and Urban Development.

“CDBG funding provides critical federal resources to improve essential living conditions in urban neighborhoods,” said Langevin. “Without these funds, communities would be hard pressed to replace aging infrastructure, revitalize downtowns, and create new jobs. Rather than allow the federal government to micromanage funds, the CDBG program puts money in the hands of communities, which in turn provide funds to organizations that can best solve local needs.”

The City of Cranston will receive $1,192, 409 in CDBG grant funding and the City of Warwick will receive $979,806. Last year, Rhode Island received nearly $20 million under the CDBG program. Local municipalities have come to rely upon such funding to provide for their residents.

“Although the President proposed earlier this year to consolidate CDBG and more than a dozen other community and economic development programs and drastically cut their funding, the House and Senate voted to reject this consolidation plan,” continued Langevin. “The House has approved $3.86 billion for CDBG grants in FY06, while the Senate bill would provide $3.77 billion. The two numbers must still be reconciled before a final bill will be voted on.”

Communities may use CDBG assistance to fund any of 25 categories of eligible activities, including economic development, housing, historic preservation, public facilities, public services, works, and energy conservation. Although states and local governments are given broad discretion concerning the mix of program activities that they can undertake, the statute governing the program requires that each activity must address one of three national objectives: (1) principally benefit low- and moderate-income persons; (2) aid in preventing or eliminating slums or blight; or (3) address an urgent community development need posing a threat to the health and safety of residents of a community.

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