SCHUMER, GILLIBRAND ANNOUNCE OVER $375 MILLION IN FED FUNDING TO AID NY STATE ECONOMIC DEVELOPMENT & AFFORDABLE HOUSING; URGE PRESIDENT TO REVERSE COURSE AND FULLY FUND PROGRAMS NEXT YEAR

The Community Development Block Grant Program (CDBG) And the HOME Investment Partnership Program (HOME) Provides Essential Funds For Transformative Development Initiatives Across New York State, Has Created Good-Paying Jobs By Supporting Local Housing and Development Projects, And Investing in Neighborhood Rehabilitation

Senators: This Funding Will Help Upstate Communities Thrive And Any Cuts Would Be Devastating For Upstate New York

New York –- (RealEstateRama) — U.S. Senators Charles Schumer and Kirsten Gillibrand today announced $376,888,300in federal funding for communities across NY and relaunched their push to call on President Trump, who completely decimated the programs in the recent White House FY18 budget proposal. Earlier this month, Schumer and Gillibrand expressed serious concerns over reports that the Administration will eliminate all funding to the Department of Housing and Urban Development’s (HUD) Community Development Block Grant Program (CDBG) and the HOME Investment Partnerships Program (HOME). Schumer and Gillibrand said the proposed elimination would hurt New York’s most vulnerable and put countless community development and affordable housing projects at risk across New York. Schumer promised to fight to protect the CDBG program, which recently received $3 billion from HUD, and the HOME program, which received $950 million from HUD for FY17.

“The Community Development Block Grant and HOME Investment Partnerships Programs are non-replaceable streams of investment in essential services for area residents. They enable economic development projects and support affordable housing programs; without this federal funding, many local job-creating development projects that reversed blighted neighborhoods and boosted jobs and support for workers might not be here today. While this $376,888,300 million investment is a big win for New York, it’s also a sobering reminder of how incredibly damaging it would be if President Trump got his way and eliminated CDBG and HOME. That’s why I will fight with every fiber in my body to protect this critical investment for Upstate and make sure New York gets the federal investment we deserve,” said Senator Schumer.

“Investing in economic development programs is essential to the health of our families and the economic strength of our communities,” said Senator Gillibrand. “The CDBG program has revitalized communities across New York State and has helped create new jobs and bridge the gap in quality housing for residents in need. I will continue to work hard to include this funding in the Fiscal Year 2018 appropriations bill to support essential community development projects throughout New York.”

The CDBG and HOME funding was allocated through the U.S. Department of Housing and Urban Development. Communities in Upstate NY will use the funding to address a wide range of needs and enable local governments to support affordable housing initiatives, anti-poverty programs, and expand economic development. The CDBG program provides municipalities in New York with critical funding for transformative and unique development projects, and needed funding to leverage outside investment in job creating projects for low-income residents. The funds have played, and will continue to play, a critical role in facilitating local economic development in Upstate NY and putting local governments in a position to succeed. According to HUD, the CDBG program provides communities with resources to address a wide range of unique community development needs. The CDBG program funds affordable housing projects, provides services to the most vulnerable members of our communities, and creates jobs through the expansion and retention of businesses. Schumer and Gillibrand said these grants are critical to New York’s communities because they are capable of funding the kinds of business development, housing, and revitalization projects that that are essential to the success of these local economies. HOME funding is the primary source of funding for state and local governments to buy and rehabilitate affordable housing. The program supports a variety of first-time homebuyer incentive programs, affordable housing initiatives for low- to moderate- income families and other various neighborhood development efforts.

The Administration’s proposed elimination of the CDBG and HOME programs would have a devastating effect on low- and moderate- income families in Upstate New York. Schumer and Gillibrand said the elimination is reckless and cruel considering that both programs help local governments with economic projects and benefit low- income families. Schumer said the number of communities eligible for CDBG funds has increased in recent years, meaning that the Administration’s irresponsible cut would force local governments to do more with less. Schumer and Gillibrand added fewer local governments will receive the critical funds they depend upon for neighborhood housing rehabilitation and development programs.

Schumer and Gillibrand said the elimination of these two programs would make it difficult for state and local governments to acquire and rehabilitate affordable housing units. In addition, Schumer and Gillibrand argued that reducing funding for vital low-income housing programs would dramatically reduce or potentially eliminate the availability of many units. Because state and local governments rely on HOME and CDBG funding to offer and maintain affordable housing units, eliminating these programs would lead to great financial strain on the families who need these housing programs the most, and potentially increase homelessness in our communities. Schumer and Gillibrand said, if enacted, the HOME and CDBG elimination would diminish much of the progress that has been made in across the state to revitalize low- and moderate- income neighborhoods.

In May, Schumer and Gillibrand fought to ensure that the bipartisan federal funding bill included funding for the CDBG and HOME programs. In the FY17 appropriations package CDBG was allocated $3 billion, and the HOME program was awarded $950 million marking major wins for Upstate NY. Schumer and Gillibrand pledged to protect CDBG and HOME funding because both programs provide an irreplaceable source of investment for economic development and affordable housing in Upstate NY.

HOME funds are distributed to villages, towns, cities and counties across the U.S. to fund housing and development projects. According to HUD, the HOME program provides grants to states and localities that communities use, often in partnership with local nonprofit groups or development companies. These communities and organizations then fund activities such as building, buying and rehabilitating affordable housing units for rent or home ownership. HOME is the largest federal block grant provided to state and local governments designed exclusively to create affordable housing.

CDBG funds are distributed to states, counties, villages, towns, and cities across the U.S. to fund development projects. According to HUD, the CDBG program funds affordable housing projects, provides services to the most vulnerable in communities and creates jobs through the expansion and retention of businesses. The CDBG program provides annual grants on a formula basis to over 1,200 general units of local and state governments.