CDBG in 2009 NCDA Annual Conference San Antonio, TX June 18, 2009

CDBG in 2009 Overview of Office of Block Grant Assistance Overview of Office of Block Grant Assistance CDBG CDBG Section 108 Section 108 CDBG Disaster Recovery CDBG Disaster Recovery Neighborhood Stabilization Program Neighborhood Stabilization Program

CDBG FY 2009 appropriation - $3.641 billion FY 2009 appropriation - $3.641 billion Recovery Act - $1 billion Recovery Act - $1 billion FY 2010 budget request - $4.45 billion FY 2010 budget request - $4.45 billion $150 million for sustainable communities $150 million for sustainable communities CDBG Reform CDBG Reform Formula Formula “Hold harmless” approach “Hold harmless” approach

CDBG Issues IDIS launch IDIS launch Data quality Data quality Why it is critical Why it is critical Growing focus Growing focus Administrative costs including housing rehab, code enforcement and activity delivery costs Administrative costs including housing rehab, code enforcement and activity delivery costs Analysis of impediments/AFFH Analysis of impediments/AFFH

CDBG Issues Technical assistance Technical assistance Just awarded FY 2008 competitive funds Just awarded FY 2008 competitive funds Roughly $1 million to Community Connections and College of Experts Roughly $1 million to Community Connections and College of Experts Considering options for $5 million in FY 2009 funds Considering options for $5 million in FY 2009 funds TA in FY 2010 under umbrella of Secretary’s Transformation Initiative TA in FY 2010 under umbrella of Secretary’s Transformation Initiative

Section 108 $265 million in guarantee authority for FY 2009 $265 million in guarantee authority for FY 2009 FY 2010 budget proposal to turn Section 108 into fee based program FY 2010 budget proposal to turn Section 108 into fee based program Eliminate need for credit subsidy appropriation Eliminate need for credit subsidy appropriation Number of substantial proposals in hand – if interested, apply soon Number of substantial proposals in hand – if interested, apply soon

CDBG Disaster Recovery Approximately $6.5 billion appropriated to respond to declared disasters in 2008 Approximately $6.5 billion appropriated to respond to declared disasters in 2008 All funds allocated as of last week All funds allocated as of last week More than $3 billion in total to Texas for Hurricanes Ike and Gustav More than $3 billion in total to Texas for Hurricanes Ike and Gustav 16 states under first appropriation 16 states under first appropriation 15 states under second appropriation 15 states under second appropriation Some states lagging in applying Some states lagging in applying

CDBG Disaster Recovery More than $7 billion remains to be expended on the Gulf Coast from Katrina, Rita, Wilma funds More than $7 billion remains to be expended on the Gulf Coast from Katrina, Rita, Wilma funds Still have $1 billion in Lower Manhattan for construction of ground zero memorial Still have $1 billion in Lower Manhattan for construction of ground zero memorial Bottom line – disaster recovery takes a long time Bottom line – disaster recovery takes a long time

Neighborhood Stabilization $3.92 billion in Housing and Economic Recovery Act of 2008 $3.92 billion in Housing and Economic Recovery Act of 2008 All funds allocated and under contract All funds allocated and under contract $2 billion in Recovery Act – competitive program plus TA component $2 billion in Recovery Act – competitive program plus TA component Applications for NSP 2 due July 17, 2009 Applications for NSP 2 due July 17, 2009

CDBG Question and answer period