The goal of community development is to create safe, quality communities where people want to live, work, and play. This means providing resources and assistance to enhance opportunities for residents. These may include improved government services; housing options; infrastructure; recreation opportunities; quality schools, jobs and job training; small business support; or intentional community engagement. One of the oldest and most flexible programs to support community development is the federal Community Development Block Grant (CDBG) program. The program provides formula funding for eligible entities that decide which needs are most important and provides the flexibility to spend these funds accordingly. As the program celebrates its 50th year, let’s take a moment to recognize what it is, why it is important, and how it has impacted our communities over the years.
What is CDBG?
Naheed Huq, Economic and Community Vitality Manager, SEMCOG; Stephanie Burgess, Project Manager with the Macomb County Planning and Economic Development department; Carla Spradlin, CPD CARES Act Representative, U.S. Department of Housing and Urban Development; Cynthia Vails, CPD Specialist, U.S. Department of Housing and Urban Development.
The CDBG Program is administered by the U.S Department of Housing and Urban Development (HUD). It provides annual formula grants to states and communities that meet certain criteria in order to “develop viable urban communities…decent housing and a suitable living environment… by expanding economic opportunities…“
More than 1,200 entitlement communities across the country receive direct CDBG formula funding. In Michigan, there are 44 entitlement communities in addition to the State itself. Twenty four of them are in Southeast Michigan, including four Urban County programs: Wayne, Oakland, Macomb and Washtenaw Counties. In FY 2023, Michigan received a total of nearly $121 million in CDBG formula funding. About $33.7 million went directly to the State of Michigan while the remainder was distributed to some of the State’s largest communities and counties. The amounts received by communities in Southeast Michigan vary from $321,000 for the City of Livonia to $34 million for the City of Detroit. Smaller or non-entitlement communities and community organizations may receive CDBG funding through various state programs or as subgrantees of entitlement counties or communities.
Why is CDBG Important?
CDBG can be used for a number of “eligible projects” primarily for the benefit of low-and-moderate-income households. It provides communities with the flexibility to develop programs that meet specific needs within HUD eligible activities guidelines. Programs include Public Facilities and Improvements; Public services; Code Enforcement; Construction and Rehabilitation of Housing; Homeownership Assistance; and Special Economic Development activities, including job training and supporting small businesses/microenterprises. All activities must meet national objectives for benefiting low-and-moderate-income persons, preventing or eliminating blight or meeting urgent needs.
CDBG’s flexibility empowers communities to design and implement programs that best meet their specific needs and priorities.
Earlier this year, HUD’s Detroit Field Office hosted a 50th anniversary celebration where I had a chance to talk to some of Southeast Michigan’s entitlement communities about how they use CDBG and the impact it has made.
HUD representatives with some of Southeast Michigan’s community development leaders.
HUD also recognized community staff and programs for innovative activities, leadership, and administrative excellence.
Stephanie Burgess, Project Manager with Macomb County Planning and Economic Development, received the Leadership award for guidance to fellow CDBG grantees from Keith Hernandez, CPD Director at HUD.
How is CDBG used in Southeast Michigan?
Communities such as the City of Taylor use CDBG for street improvements in low-and-moderate-income areas and small-scale housing rehabilitation. The City of Livonia uses it for homeowner residential rehabilitation, utility assistance, public services, mental health counseling for eligible individuals, and improvements to public housing. In Dearborn Heights, CDBG is used for park improvements, outdoor facilities, senior services and code enforcement. One of the biggest projects in Dearborn Heights currently is improvements to Van Houten Central Park. This includes developing an ADA multisensory playscape, safe and inclusive walking trails, and creating a safe and inclusive environment for residents.
Madison Bjertness, CDBG Division Director at the City of Livonia, and Chris Klimchalk, Community Development Director at the City of Taylor.
In the City of Roseville, CDBG is used for blight removal, code enforcement, homeless intervention, and senior services. Jim Gammicchia, Administrative Services Specialist for the city says that “Code enforcement is particularly important because when you beautify properties, it makes the community more attractive to new residents, businesses, and investment.”
Jim Gammicchia from the City of Roseville and Charlotte Carrillo, CPD Representative for the Detroit Field Office of HUD.
In Warren, Michigan’s third-largest city, the focus is on residential rehabilitation, parks and recreation, road infrastructure and public services, homeless prevention and support for shelters. Major projects include the installation of a splash pad in South Warren. The City also receives HOME Investment Partnership Program (HOME) funds from HUD which it uses to expand housing options in the community.
Gina Hensley, Community Development Supervisor and Angela Tarasenko, Community Development Assistant at the City of Warren stand by a display showing CDBG-funded projects in the City.
In Oakland County, CDBG is distributed to participating communities for eligible activities such as senior services, ADA accessibility and parks improvements. The county also receives HOME funds and recently created a Housing Trust Fund to help address housing needs throughout the county.
The Oakland County Neighborhood and Housing Development Team with a display of their projects.
Kyle Hines, Chair of the Oakland Together Housing Trust Fund Board, says that “CDBG is important because it stimulates development opportunities, improves infrastructure, and provides affordable homes to Oakland County residents…”
Macomb County uses CDBG to address the needs of low-and-moderate-income households in communities by improving parks, roads, sidewalks, and barrier-free projects.
Stephanie Burgess, Project Manager with Macomb County Planning and Economic Development says, “CDBG helps to fill funding gaps that communities could not otherwise afford to address the needs of low-income households.”
CDBG in the Future
The power of CDBG is the stable and consistent funding that has helped communities address the specific needs of low-and-moderate-income households within the community. The formula used to distribute funding to the 1,200-plus entitlements across the country is based on a combination of factors including poverty levels, age of housing, growth, overcrowding levels, and community growth lag. It has not been updated since 1977 despite concerns about changing needs. However, HUD is considering rules to provide additional flexibility and removing obstacles to enable more investment in economically distressed communities and for additional economic development activities. These will help communities continue to use the program into the future to meet their community and economic development needs.
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