1. Impacts of Federal Funding Reductions on CDBG and Housing Programs in Virginia Kelly Harris-Braxton Virginia First Cities Coalition June 14, 2013

2. Federal Reductions Impacting Virginia 22 percent reduction in federal CDBG Program in Virginia since FY 2010. 50 percent reduction in federal Home Program in Virginia since FY 2010. Sequestration reduced funding by 5 percent in FY 2013. Expect additional cut of 14 percent in FY 14. – Slight overall year-over-year increase in FY 2013 CDBG funding due to growth in Virginia population and poverty estimates. 2

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5. Large Reductions for VFC Localities CDBG ProgramHOME Program 20102013Change20102013Change Charlottesville$579,630$407,522($172,108)$1,007,754$534,766($472,988) Hampton$1,172,365$1,086,522($85,843)$782,968$373,414($409,554) Harrisonburg$583,140$531,114($52,026)$0 Hopewell$232,935$208,694($24,241)$0 Lynchburg$904,817$687,496($217,321)$467,942$311,795($156,147) Newport News$1,764,926$1,128,810($636,116)$1,203,386$620,612($582,774) Norfolk$5,622,885$4,018,211($1,604,674)$1,982,275$948,758($1,033,517) Petersburg$740,333$634,377($105,956)$0 Portsmouth$1,938,892$1,452,052($486,840)$782,542$40,286($742,256) Richmond$5,281,830$4,273,733($1,008,097)$2,165,036$1,186,468($978,568) Roanoke$2,015,851$1,578,101($437,750)$756,708$474,954($281,754) Winchester$274,474$237,014($37,460)$766,307$459,682($306,625) 5

6. Impacts From Reductions 5% CDBG reduction equivalent to $800,000: enough to fund a water project benefiting 150 households; housing rehabilitation for 25 households; a rural health clinic for 400 persons a year. HOME reductions reduce the number of affordable housing units. Funding for support shelters and homeless assistance also affected. 6